Question-and-Answer Session
(Operator Instructions). Your first question is from Shawn Harrison of Longbow Research.
Shawn Harrison - Longbow Research
First question gets to the guidance that was put out and that was kind of I guess in the middle of February of $16 million to $18 million EBITDA target for the June quarter. My back of the envelope math was some of the incremental cost savings here implies that you would get to that low-end of that range. Is that a correct statement?
Jim Papada
Well, if that's your math, I am sure that you get it correctly. We have nothing more to say about that other than what we said. We put the fact in the press release and you reach whatever conclusions you reach.
Shawn Harrison - Longbow Research
May be another way to ask as it looks like on the $30 million of savings, there is about $2.25 million of incremental savings for the June quarter, plus say another $700,000 from the medical moves, any incremental savings that I missed in terms of the dollar target that you could provide?
Jim Papada
I think we provided what we are providing.
Drew Moyer
I think Shawn the other thing is that, not necessarily anything more on the savings, but revenue will be what revenue will be and that will drive the EBITDA. So that would be a few million more and that's what we met.
Shawn Harrison - Longbow Research
To Jim's point on the reduced break-even point here, how should I view incremental margins for Pulse on an EBIT basis going forward now? Historically, I thought it was kind of in the mid-20s.
Drew Moyer
I think it's at least at that point. We have said 20% to 30% incremental operating margin on incremental Pulse revenue and given where we are right now, it will be at least that good.
Shawn Harrison - Longbow Research
So may be initially a little bit higher before you revert to that normalize range possibility?
Drew Moyer
It's okay.
Shawn Harrison - Longbow Research
Second, I don't think I heard the sale price associated with the MEMS business?
Drew Moyer
Yes. We did not disclose that. It was inline with what we indicated or signaled earlier. We are actually still totaling up the costs associated with the transaction. We will repay at least $5 million out of the net proceeds and probably a little better than that.
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