Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And we will go first to [Lin Yang] with Barclays Capital.
Lin Yang - Barclays Capital
Hi, thank you for taking my question.
Bob Mao
Hi [Lin].
Lin Yang - Barclays Capital
Hi. I was wondering if maybe we can start by talking about gross margin, it seems like you proceeded pretty solid margin this quarter. I know you mentioned the mix towards enterprise help, how do you see that going forward as you mentioned strength from SMB side of the equation?
Jay Zager
Yes, as I said in the Q4 guidance in general, we expect to see continued positive benefits from the product mix, from the shift to enterprise business and also from just general improvements in reductions in our costs.
The one caveat and reason why we are guiding slightly down is, as the revenues drop a little bit sequentially the fixed cost of goods expenses are amortized over a slightly smaller revenue base.
And we think that’s going to have a modest reduction sequentially in our gross margins, but as you can tell our margins are holding up pretty well and we believe that this gives us a very strong strategic in [methods] as we go forward.
Lin Yang - Barclays Capital
Okay. And then on the OpEx side, it seems like you took out a pretty nice chunk this quarter. How far along are you in terms of this data $100 million plan that you are targeting, should we expect maybe more cuts in the next few quarters?
Jay Zager
As we have reported before, I think last time we talked we said we are at $60 million. We are continuing to make improvements this quarter, we see some interesting integration opportunities with our TippingPoint operation as we follow them into our core business. We still see some longer term opportunities in supply chain, in IT, in finance but it’s taking us a little bit longer to realize these savings than we originally anticipated.
Lin Yang - Barclays Capital
Okay, great. And then finally if I could just maybe ask about the TippingPoint strategy, it looks like you appointed a new President back a month or so ago. Any call you can provide first there with this segmented business?
Bob Mao
Yes Lin, last month we announced that we are going to integrate the security business with the rest of 3Com because we see synergies more than just cost reductions. And we are very well on the path of developing specific programs and that you will see in the coming quarters.
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