Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Michael Cox with Piper Jaffray.
Michael Cox - Piper Jaffray
My first question is on the E&C side of your business. Looking at the prospects of double-digit revenue growth, I was wondering if you could comment on the incremental margin contribution of revenue growth given some of the cost-containment efforts you've taken this year.
Steve Berglund
Yeah. So, I think convert again into amount of fairly straight forward arithmetic without a whole lot of necessarily deep insight, but we've got a 50% gross margin. And so if we just use that as the actual incremental gross margin might be a bit higher. The question is how much of that do we drop to the bottomline on any sort of revenue recovery.
So, I think the topside will be 50%. I think if you look at us historically in strong operating leverage quarters, we intended to do 32% to 35%. So, I would say depending on exact circumstances, the exact nature of it coming out of this in the early stages, I would expect to see between 30% and 50% marginal operating leverage coming out of it. So out of every dollar revenue that we'd be dropping somewhere between $0.30 and $0.50 to the bottomline, again, depending on the precise circumstances.
Michael Cox - Piper Jaffray
Within the Mobile Solutions segment now that the churn seems to be well under control and you're filling the pipeline with your own contract wins here recently. Could you talk maybe a little bit about what perhaps even a longer term margin profile of that Mobile Solutions business could look like as these contracts are converted?
Steve Berglund
So I think from the very beginning, we've been slow to execute. But from the very beginning, I think we've always viewed this market as being, let's call, somewhere in the range of a 20% to 30% operating margin business, but certainly in the 20%, we'll see if we can get it above 25%.
Again, much the same sort of argument that once you get the recurring streams to be a substantial part of the business, they carry with them very substantial gross margins often times in excess of 60%. If you can control your costs below that, again, it can be quite a profitable business.
Today is the revenue still has a fairly heavy hardware component associated with it, which tends to bring down the incremental margins. So, again, I think as steady state, I would expect to see an operating margin in and a fairly broad range, but somewhere between 20% and 30%, I guess where we'll find that when we get it to 20%.
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