Thanks.
Operator
(Operator Instructions) As a reminder if you’d like to ask a question press “*1” on your telephone keypad. Your next question comes from the line of William Stein with Credit Suisse.
William Stein - Credit Suisse
Thanks. I’m wondering if you could talk a bit about the plastics business at Green Point. I know traditionally there’s a lot more operating leverage-potential in that business. Can you tell us, maybe give us an update as to how our sales are tracking there relative to the rest of the company?
Timothy L. Main
Well, they’ve experienced a significant reduction in revenue after fiscal Q1 of ’09, so Q2 and Q3 were very low quarters and we experienced significant de-leveraging of our profitability there and having said that, they’ve done an outstanding job of managing costs but also of penetrating new opportunities to grow their business, particularly in the smartphone area. I think when we look at fiscal 2010 and a number of new programs that are ramping as we speak and into fiscal Q1 of 2010, we expect to enjoy positive operating leverage with our plastics vertical business. You’re right in that the value-add associated with that business is about twice the value-add that we have in our EMS, traditional EMS business and that means that the fixed cost as a percentage of that value-added and manufacturing cost is much higher than our legacy business. So there’s a stronger operating leverage going both ways. They’ve had a couple of rough quarters in Q2 and Q3, beginning to see some significant recovery in Q4 and into Q1, we think that business will continue to be in good shape. It’s our technology and know-how in that area is contributing significantly to our ability to grow the mobility space, and so I’d say legitimately, genuinely that it’s a key part of our value proposition and value stream that we offer to, particularly to higher end customers in that space.
William Stein - Credit Suisse
Great, and then maybe shifting to the telecom segment, you did the Nokia Siemens networks deal a few quarters ago and now they are buying part of Nortel’s assets. I think it’s another customer that you were ramping prior to their bankruptcy. Can you comment as to how that relationship is progressing relative to this announcement we saw earlier in the week?
Timothy L. Main
Well, we are trying to do business with everybody that we think is going to be strong and survive and establish a presence in the technology products that we think will be important in those companies longer term. I can’t comment on the NSN Nortel acquisition or what that will mean to us. Truthfully, we’ve been positive about the relationship with Nortel but given the circumstances there, it would be inappropriate for us to comment much on that and in truth, to date it’s not been very material to our results.
William Stein - Credit Suisse
And then one real quick one, if I can, we have a write-down from Visteon this quarter, not too surprising. Do you think there’s anything else that could be coming along the lines of credit problems with customers, or do you think we are behind that now?
Forbes I.J. Alexander
Hi Bill this is Forbes. No, I think we’re in pretty good shape. We have a pretty robust process. Clearly there was always some risk to run in the automotive space here over the last 12, 18 months, as credit markets declined in overall economic recession but otherwise, we are in pretty good shape with the balance of our customers. We feel good that we shouldn’t see any future events.
Timothy L. Main
What we have left in the automotive space is actually pretty good company, we’re well-capitalized, without any credit risk, so…
William Stein - Credit Suisse
Thank you very much.
Timothy L. Main
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