Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Robert Breza - RBC Capital Markets.
Robert Breza - RBC Capital Markets
Tom, a quick question on the guidance. When you talked about the rebound in September in your guidance are you kind of expecting that to happen or taking a wait and see attitude on September? And then Joel maybe one for you on the consumer electronics side. Do you still think that can get to be 10% of revenues for the year?
Tom Donnelly
Yes, sure, Rob. You know as I said on the call I think what we’re trying to range here is a conservatism in September based on what we saw last year relative to back to school and product introductions. And at the high end kind of what we would see normally, cyclically going into the fall. And there’s different indicators out in the macro environment that I think are causing us to take that position. But we’ve got a lot of things to get done. Sooner or later the economy’s going to recover and hence the range on EPS and taking the actions that we did. We see enough opportunity that we’re just going to bear down and provide that sort of range, based on what we saw last year, because as you know typically we’re up in the third quarter, particularly September is a very important month to the third quarter.
Joel Ronning
And I’ll take the CE discussion or the question. And I think we’re going to be close. We’ve got some really good clients, signed on a bunch of really good clients, Samsung, Philips, SanDisk, Kodak. And they’re all coming up at a rate which is a little slower than we would like to see it, both in terms of the technologies and the integrations, getting a fair amount of custom work that’s coming on request from the clients. So that’s slowing our rate of being able to bring the sites live. But our sense for the market is that we clearly are the place that these companies are looking to for, you know, their direct to consumer relationships. So the pipeline looks really good. Clients are coming up a little slower than I like to see but we’re crowding it.
Operator
Your next question comes from Philip Winslow - Credit Suisse.
Philip Winslow - Credit Suisse
You know, Tom just a question back on some of the changes that you all talked about with the restructuring and the outsourcing of the support. You know once we’re through this transitional period, how do you see this net affecting your gross margins and out margins as we kind of think about this going forward? And then Joel, when you do look at the company and obviously with some of the success you’re seeing in consumer electronics, what do you think the right margin structure for Digital River is here in the near term?
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