Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Sherri Scribner - Deutsche Bank.
Sherri Scribner - Deutsche Bank
I was just curious if we could get an update on the Seagate business. I think in the past calls you’ve said Seagate would go to less than 10% and they were at 10% this quarter. What is your expectation going forward? Does that fall a little bit more and how does that impact your expectation of growing inline with the industry?
Kathleen Skarvan
I will take that one. I think we’ve talked about 5% to 10% or it wouldn’t be at 5% to 6% and it’s just been a little difficult to get our arms around, but we do believe that we’re going to continue on this generation of enterprise products and there maybe some opportunities for next generation, but it will all depend on the overall market and Seagate’s overall volume needs, but I believe at this time we’re saying it could be anywhere between 5% and 10%.
Sherri Scribner - Deutsche Bank
So is it fair to say that you are just doing enterprise for them going forward, at least at this point?
Kathleen Skarvan
That’s a pretty good assumption.
Sherri Scribner - Deutsche Bank
Just an update on the TSA+, how many customers do you have on that program now? Then maybe if you give us a little bit more color on how those cost are reduced. Is it primarily through volumes or is it the expertise that you’ve gotten? I know you mentioned at the end of the quarter the pricing was lower, but a little more detail if you could help.
Kathleen Skarvan
Right now we’re in volume still with one customer, although we are investigating additional designs with other customers. I’m not going to comment on specifically, but things are going well in that regard and when you look at what’s going on with the operation itself, the volume has been very helpful. So that we can leverage those fixed cost and that investment. We are also though making good gains on our efficiencies and yields quite well on track, so all of that combination has been providing good momentum going forward.
Operator
Your next question comes from Christian Schwab - Craig-Hallum Capital Group.
Christian Schwab - Craig-Hallum Capital Group
John, what is realistic gross margin target in 2011 for your business, given the significant cost restructuring that you guys have done and TSA+ no longer being a drain and also being a lower cost solution to manufacture at the end of the day? Can you give us your internal projections or your goal for that timeframe?
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