Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Gary Mobley with Noble.
Gary Mobley - Noble
Hi, guys congratulations on a good quarter. I had a couple of questions relating to the gross margin. Given the variable involved in your expense reduction path, how should we think about the long term gross margin for Actel and as well, Maurice, could you help us understand what the future benefits of, zero cost inventory might be for the gross margin sales the next couple of quarters?
John East
Your first half your question was the long term trends in margins? I believe the long term trends in margins will be up. I’d like to get to the range we ran in a couple of years ago. I think our cost cutting has to happen to order make that happen, and I think also we need to get volumes so little closer to what they used to be, but if we’re able to do those two things. I think the margin trend will be up. Maurice you want to get the second half the question.
Maurice Carson
Gary, first of all, we don’t forecast at any point zero cost, zero fully reserved inventories. If we did, unreserved it, but so I wouldn’t anticipate a whole lot the 400K that came through this quarter was unexpected right up until the partway into the quarter and I wouldn’t anticipate a whole lot of that in the next quarter.
Gary Mobley - Noble
Regarding your backlog, I think you answered the fourth quarter with higher shippable backlog and you didn’t third, but bookings have been okay. So, I assume you exit the fourth quarter with lower studying backlog and it bookings aren’t all that great now, and probably won’t be there the holiday season. How do you herself, head into the first quarter and what the likelihood is of generate some sequential revenue growth concerning decrease backlog and weak booking trends for the balance of the quarter.
John East
Little all the bigger leap than I would have cautioned you to. I won’t assume that our backlog is lower in January. We’re only three weeks into this quarter and when I said they were neither great or awful, that’s what I meant, you might of thought that was quote for bookings have been weak but the reserve of bookings so far this quarter have been enough to do one-to-one and if we booked, had an one-to-one this quarter, and started out with a healthy backlog, I think the math of that says it backlog would be healthy in Q1.
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