Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Steve Tusa - JPMorgan. Please proceed.
Steve Tusa - JPMorgan
I’m just curious as to why such a wide range around things, only one quarter left to go here. I mean, I understand the visibility challenges in your model, but given that you have a little bit more of a read on where sales are, the EPS range seems quite wide?
Ted Crandall
Given the rapidly changing business conditions, we needed to change our earnings guidance each of the past two quarters. Since we still expect a result in the range of the guidance of $1.40 to $1.70, we decided not to change the range again this quarter.
Steve Tusa - JPMorgan
I guess with the little bit better sales, is there anything on the margin? I guess, you said there was some timing from a cost perspective, that’s going to come back in the fourth quarter. Then you have I guess the tax rate maybe a little bit lower in the fourth quarter. Could you just maybe walk through some of those dynamics to help us calibrate on a sequential basis?
Ted Crandall
Let me try it this way. I would say that given the Q3 results, and even though we believe we will now be at the low end of the sales range, we would view the low end of the earnings range as less likely than it would have been a quarter ago.
Steve Tusa - JPMorgan
Okay. That’s very helpful. Thanks and then one other question. Just on the software initiative with regards to FactoryTalk and the integration with Integrated Architecture, can you maybe just walk through what some of the mileposts are in your mind over the next couple of years, Keith, as to what we should be looking for other than just operating results to be able to gauge where you guys are in this process of proliferating this business?
Keith Nosbusch
Sure, Steve. I think there are a couple of things. One will be the continued development of new applications in different vertical industries. So, as we continue to release pieces of the portfolio and expand the portfolio, particularly with respect to the Incuity and Pavilion and FactoryTalk segments, that’s the way that we need to continue to grow, is to continue to release more packaged software.
I would also say the success will gauged by the ability to do multisite rollouts for customers. The ability to move beyond pilots, move beyond single site installation to where we are demonstrating the ability to evolve towards true enterprise rollouts, and the continued expansion geographically, as companies evolve and as we get a bigger footprint into the different regions of the world.
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