Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steven O'Brien - J.P. Morgan.
Steven O'Brien - J.P. Morgan
On the two month quarter here and what Jim was just saying about how had you been guiding to October it would have been down, as far as normal, 6% to 7% quarter-over-quarter. If I look back, based on the 8-Ks you provided, it seems like that the first two months were typically about somewhere around 58%, 59% of the October quarter revenue. So if I took the midpoint of the new two quarter guidance, which would be about $168.0 million, and apply that 58%, I would be looking more at a revenue figure somewhere in the high $280.0 million to $290.0 million, which would actually be flat to up, quarter-over-quarter. Is there something about these two months or the past that doesn't make that math work here?
James G. Mathews
I'm probably going to leave everything I said pretty much alone because I think we may end up in a level of detail here that is not helpful. And I don't mean to not answer your question, by any means.
But let me point out that we—we report on a 4-4-5 week basis, so in going back historically, we're not trying to sort out a month with a week that is split between September and October, where historically it was all in October.
Secondly, if you take last year and if you do anything that involves last October, it's going to be very distortive because that was really before we started to see the very, very sharp fall-off in revenue. So I think if you try to take any of these measures and adjust them based on a specific month or a specific two-month period, even though we've put those in our 8-K, you have to take into effect both a shift from a 4-4-5 pattern to one that now splits that ninth week this year, and you also have to take into account that last October was a very, very strong month for us.
Steven O'Brien - J.P. Morgan
I guess looking out at the margins here, and on the guidance, if I got that right, the gross margin, or margin in general, should be more or less flat next quarter. Is high 34%, 35% in gross margin something that you expect to see going out longer term in 2010? Is there any change in sort of the pricing environment and lastly, what percentage of manufacturing is now being done in low-cost regions, and are there any other areas, or is there any room for more of that to shift to lower cost regions, and any other areas that help the gross margin.
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