Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Mark Moskowitz with JPMorgan. Please proceed.
Mark Moskowitz – JPMorgan
Yes, good afternoon. Thank you. Appreciate the update on the Foundry to my model here with Brocade. Richard, I wanted to get a sense in terms of the wider EPS range, it seems a little different than usual. You guys always are pretty conservative. I just want to get a better sense of the wider range on the EPS versus the tight range on revenues. Can you talk about some of the swing factors there I would really appreciate that.
Richard Deranleau
Sure, Mark. Appreciate the question. What is really driving the range is where we are with the economy. I think a lot of people are saying visibility is tough, so what we're trying to do is provide a great other than normal range on the EPS and still give you a visibility on where we think we are going to be on revenue and that is what is really driving it. Obviously, the top line impacts the bottom line significantly. Also, with a lot of the purchase accounting, there is going to be some variability on gross margins. We feel pretty good on our expense forecasts.
Mark Moskowitz – JPMorgan
Okay, and then Mike, could you talk a little bit more about Ian’s division as far as (inaudible) sales. What are some of the mileposts that that you have in place for him in terms of just educating the (inaudible) and the channel, how the two operations are going to work over the next 12 to 18 months?
Michael Klayko
Yes, Mark. What we did is we put all the operations under one organization for a variety of reasons. When we look at the Venn diagram, when we first started doing this last year, we found that about 5% of the Brocade customers actually had Foundry products installed and so there was a great opportunity to do some cross-selling. And so what we have done is we have one team now that is going to be responsible for selling the joint products to not necessarily the same people, but one team. And so, what we found is many of the processes and the tools in the organizations did quite nicely into the things that we are doing today and so we anticipate it may be doing towards the end of the year we are able to do a lot faster and remove this altogether under Ian's team and frankly we had a kickoff meeting with the sales team in January. We now saw the changes and we began the integration process and we are well on our way of getting that done well ahead of time.
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