Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Stephen Ferranti – Stephens, Inc.
Stephen Ferranti – Stephens, Inc.
First question I guess related to gross margin in the fourth quarter. Looks like you’ve been factoring out some of the one-time adjustments that you had in the quarter that you held gross margins flattish to slightly up in spite of lower revenue level. Can you give us some sense for perhaps some of the more structural and sustainable changes that you’ve made thus far into the quarter and what can we expect in the next quarter or two from here?
Thomas L Cronan
The long lasting changes are restructuring of reducing cost expense in the operations and manufacturing groups so that our overall expense structure is lower, so that’s one of the primary contributors. The other contributor is shifting between the Eclipse product and the other product lines. As we have more of an Eclipse product mix we generally have a better margin profile until as we’ve talked about in the past one of the major factors going forward will be the acceptance of the new product line in North America because I think that will have a very favorable impact on the gross margin. So as we look forward we still have some inability to forecast exactly what the product mix will be on a quarter by quarter basis and we did guide to 30% to 31% with again lower revenue projections so it shows you a little bit of our belief in the margin structure and I think as revenues come back, we will see much better margin profile.
Stephen Ferranti – Stephens, Inc.
Then I guess Harald, you touched upon in your prepared remarks that you had seen some new business opportunities in North America and obviously it looks like from the segment info you provided that trends there have strengthened a bit. Is the IIU 600 platform, are these new opportunities that you’re seeing, are they related to the IIU 600?
Harald J. Braun
The IIU 600 is available. We have them in the hands of the first customers. We’re going to go to piloting. We see that there are lots of new opportunities with mobile operators since they have really demand for the network bottlenecks as I mentioned and they are based on the IIU 600. That is very positive for us. This is the first platform as a combination of the true point [inaudible] portfolio and the [inaudible] portfolio [right] with enhanced feature sets so very happy to see that.
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