Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Mark Sue form RBC Capital Markets; please proceed.
Mark Sue - RBC Capital Markets
Hi. I’m still not an employee, but RBC Capital Markets. Tom, just a high level question on the return in demand and your view of sustainability of your sequential growth guidance, even if I net out the $10 million to $25 million year end flush you will still have healthy sequential growth, and it seemed from your regional and segment commentary that the strength is broad-based. Should we start thinking about seasonality going forward, or should we just think about $10 million to $25 million, net that out and then just kind of continue to grow the business, because there might actually be some catch up spend as well?
Tom Waechter
I think the latter part is that, net out the year end spend, and then we suspect to see additional growth, because primarily the broadband demand is very strong things like video, etc. So we expect the demand to continue, although again, we don’t have tremendous visibility out into beyond the December quarter, but we do expect that at this point.
Dave Vellequette
Mark, another way to look at that is, we just had a quarter with about $298 million of revenue, but we didn’t have the SNT Group for the full quarter, so that a full quarter’s worth of the SNT revenue probably would have added somewhere between $1.5 million and $2 million and then if you took that budget flush incremental off then you would see that the range implies a little over 3% to a little over 6% sequential growth.
Mark Sue - RBC Capital Markets
Okay, got it. Then, Dave, maybe for you, with the higher volumes and other work that you’re doing with your contact manufacturers, does the 46% gross margin seem very reasonable in terms of a near term goal, particularly with better demand, better mix, better volumes, all those things?
Dave Vellequette
Well, it will depend on the mix of the revenues. We didn’t give guidance on how that mix would come out exactly, except the majority of the $10 million to $25 million budget flush is typically in the Test and Measurement area. At the same time we’ll see some of that in Optical Coms, as NEMS get demand on them, they’ll be putting demand on us. So we think the margins are a reasonable number to hit. It will depend on mix and we’ll just keep executing against improving the margins for the Optic segment and for the Test and Measurement segment.
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