Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Amit Daryanani with RBC Capital Markets.
Amit Daryanani - RBC Capital Markets
Thanks a lot. Good evening, guys. Forbes, just a question, you talked about 10 to 15 [inaudible] incremental dollar revenue flowing through the operating income line. If I kind of do my math, it looks like on a $3 billion revenue run-rate, you should be able to hit something around the 3% EBIT margin. Would that be the correct way to think about it in the long run as demand starts to come back?
Forbes I.J. Alexander
Absolutely, Amit, yes. It’s very much depending on the mix but for that type of range, if you look at the midpoint of the range to the guidance that we’ve given for the upcoming fourth fiscal quarter against that incremental revenue, that certainly gets us to that 3% and relatively comfortably, so yeah, we feel pretty good about that. The leverage that we have here, we’ve seen some of that on the way down with my prepared remarks, as we’ve seen on a year-over-year basis about $0.5 billion of revenue to come out the top line and we certainly see that recovering on the way back. And we continue to take cost down and we are in really good shape for revenue recovery.
Amit Daryanani - RBC Capital Markets
Got it, and then just broadly speaking, I realize you don’t want to get into details on each of the end markets in terms of guidance but this generally would be a time we should start to see some of the consumer centric markets start to see some up-tick in seasonality. Are you guys seeing that at all and is that getting offset by flat or softness in the enterprise and networking side?
Timothy L. Main
We generally would not see a big up-tick in the August quarter. I mean historically, Amit, this has been -- this is kind of a challenging quarter. Consumer is really transitioning products into new products for the Christmas selling season and enterprise markets tend to be pretty sleepy, so this is a quarter where historically we’ve been happy to have consistent revenue and earnings historically. We are starting to see enterprise spending in some of the U.S. markets pick up a bit. That’s been good to see. And on the consumer side, more stabilization and we have decent exposure in the smart phone market now and that’s held in pretty well and we think we’ll be pretty robust as we move into the Christmas season, so I don’t think there’s anything out of -- anomalous about the quarter in terms of certain sectors being more robust or more weaker than others.
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