Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of James Schneider of Goldman Sachs. Please proceed.
James Schneider - Goldman Sachs
Good afternoon, and thanks for taking my question. I guess first off from the structural stand point on the gross margins, is there any reason why we wouldn't expect gross margins to kind of hanging there towards the higher end of your target range of 53% to 55% for the foreseeable future? How should we think about that in terms of cost benefits or any mix changes you might see going forward?
Clyde Hosein
I think the management team, and our operation team has done a terrific job of getting it here and the intention is to keep it there. As you know in our guidance, we guided essentially flat plus or minus, so we are sustaining that. Our intention is to keep the things that would fluctuate would be mix, a wide variety of products have arranged some products higher, some products lower. That's probably the biggest impact to our gross margins in the foreseeable future.
James Schneider - Goldman Sachs
Then on the OpEx side, for R&D, do you think you have enough R&D spending at this point to finance the development initiatives you have in mind right now? I know you talked about certainly growing revenues and margins faster than OpEx, but do you think you have roughly the right level of R&D at this point?
Sehat Sutardja
I think one could argue that we have one of the largest R&D investment in the industry, so I will say that we have plenty of R&D. We are missing a few things that we could have invest. Yeah, of course, there are always additional stuff to invest, and we continue to look in to that and as we see the opportunity to acquire the right talent, and we will do so, but in general you should feel comfortable that we practically have most of the things that we need in the business that we're in.
James Schneider - Goldman Sachs
Maybe if I could just sneak one last one in. Can you talk about the total level of enterprise exposure you had in the current quarter. What you are seeing from your enterprise customers with respect to their outlook heading into the end of this year, essentially in 2010?
Sehat Sutardja
Enterprise I think we call it network is included in that end market, Jim, about 20% of our revenues. We guided up 10%, or low double digits, slightly better than 10% this quarter. So, we continue to see that. Beyond that, I think it's hard for us to say. Having said that a fair amount of the growth we have experienced in the last two or three quarters is really the reflection of technology and development we have been working on over the last few years, and acceptance of the technology in enterprise space. So I think regardless of end markets, you should see continued growth from the acceptance of these excellent products growth in market space.
- To read the full transcript on Seeking Alpha, click here »
