Question-and-Answer Session
Operator
Thank you. We will now begin the question-and-answer session. (Operator instructions). Our first question comes from Todd Koffman from Raymond James. Please go ahead.
Todd Koffman - Raymond James
Thank you. Rick, in your opening remarks, you said the CNS division has a difficult strategic task ahead. Could you elaborate on that why isn’t that the UltraLine Series3 is somewhat of a sustainable business as customers continue to move forward in that deployment?
Rick Gilbert
Yes, Todd, good question. It is a sustainable business. If they weren’t, we would be out of the business. That’s not the point. The point I was trying to make is that any time you move a division that’s primarily been working on a hardware model for the last 29 years or whatever to work more in a software model approach, you’ve got to make some pretty interesting transitions and you have to do it in a way where the division continues to perform. So that’s the tricky strategic move that Chris and his guys are working on and that’s what I intended to convey.
Todd Koffman - Raymond James
Just as a follow up to that, if you look at that business in terms of whatever your current annual shipment volumes are, as you look forward a year or so, is it likely those volumes will increase, stay the same, go down or you just have no idea?
Rick Gilbert
Well, I think the – generally speaking, I would expect those volumes to increase. The wild card of course is the economy in general and I think it affects as I said all the divisions. Are people going to keep buying at the rates? Are they going to manage inventory in the same way they have managed it before? Are we going to get the kind of an order coverage that we have seen in the past? The good news about CNS is that they are a division that has good backlog in orders out for many months. So we shouldn’t be too surprised.
But the real focus we have is not just the top line growth. What we want is top line growth with good margins. And so if it comes down to a trade off, I am going to go for the margin business rather than the top line and I think we have made that clear in the last couple of calls.
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