Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Gary Mobley from Noble Financial Group.
Gary Mobley - Noble Financial Group
Hi guys. I'm going to ask some of the questions that I asked on last conference call. I asked last time whether or not you guys can achieve gross margins in the 30% range on peak utilization at 139 a quarter in revenue, if this is how you are turning to buy that line now. So I'm wondering now what your expectation as you do get up to the 130 million per quarter level, what kind of gross margin will like to be.
Keh-Shew Lu
Well, I think we give the guidance on the third quarter and from there, I think our midpoint of guidance is the 30%. So you already could see from there we should be able to give 30% at any point of what we give to you, then but like I said we -- our capacities is still not fully utilized yet tat that level, it's third quarter level.
And I need to be careful to separate from the main capacity to the economic capacity because every time, when we complement capacity, we're more different to economic capacity but I think during speech, I mentioned from main capacity point of view -- main positive capacity point of view, we actually form and the reason is we reduce -- during the Chinese New Year, we reduced almost 30% of people, and we are hiring the people back but it takes time to training them to make them to the production line and to there is a more productive, and when those is continually improved, then profit. Then productivity is getting better, the CPM gets imposed.
So that will be continued improvement of CPM, when our operator gets more productive and although continue increase and when our increment utilization gets better. But that's only the second side.
From the widespread side of the Diodes, it's a little bit behind, it's behind packages. So we still have a room for improvement of the Diodes campaign to give us more profit. So I think we should be able to get to the 35% our target, when our programs continue growth. I don't know when -- I cannot give a prediction but I am confident that if the loading continues to improve, if the productivity continues to improve, if the wafer fab loading continues to improve, we should be able to get there.
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