Your next question comes from the line of Sean Hannan with Needham & Company.
Sean Hannan - Needham & Company
Thank you. So you had commented a little bit earlier, it sounds like we are seeing a little bit of stability here and that’s kind of continued on from the last call and Tim, I think you made a comment earlier, it sounds like enterprise is picking up a little bit. So without assuming guidance and just in talking around your business and mix, when we eventually get to a recovery point, what in your mind is going to show some of the stronger recovery signs, excluding some of these newer markets such as smart grid, where this is really kind of new business to the industry but as you look at your traditional business, where do you expect to see some of those stronger recovery points?
Timothy L. Main
Well, I mean, this may sound disingenuous but IT enterprise spending and consumer electronics I think will be very robust. There’s been under-investment. There’s been under-investment in IT. There’s been under-investment in data centers and computing. Consumers have been on the sidelines. When we look at parts of our consumer electronics business year-to-year, unit volumes are down 40% to 45%. I mean, it’s a huge drop in sell-through rates, so consumers come off the sideline and start to buy again, I think we’ll see significant up-ticks in printing, in mobility, and in some of the other set-top boxes and some of the other areas that we support. The sectors like telecommunications and our industrial instrumentation medical segments that have performed relatively well short-term, but we won’t be as robust on the up-side. But when you look at enterprise IT spending, I think we should see significant growth there.
Sean Hannan - Needham & Company
There are some OEMs that have started to plant some of the seeds with the investor community around the opportunity that might come with the next Windows release and I didn’t know if there was anything from your perspective, commentary on drivers around that and how you expect that could translate within your own business.
Timothy L. Main
We don’t have much of a PC or even an industry-standard server business. Our computing and storage sector is gosh, must be 80%, 90% now, high-end enterprise storage, along with some lower end mid-range products but dominated by high-end enterprise storage products. Our networking sector is enterprise IT. There are some consumer level products in there but we don’t, I’m really referencing sectors that we play in today. We really don’t play in the industry standard server or PC notebook market.
Sean Hannan - Needham & Company
That’s helpful around the servers. And then lastly, on the industrial side, so when you talked about some of these, the newer programs that you are having a little bit of benefit from that are relevant to the smart grid, you have some partnerships with some near companies, solar companies. Obviously this is still a pretty small space in general for you today. But is there a particular group, within those cleaner technologies that is much more meaningful versus another, or are they around similar levels?
Timothy L. Main
Well, if we consider our participation in smart grid, smart electronics, power reduction efficiency, lighting, as well as things like solar and group that into a business activity which is directed towards power and energy, efficiency, and alternative power generation, it’s actually already a pretty decent business for us and I think that solar will be just a part of what we have in that total business activity. And I expect it to be, I expect it to increase in importance over the next few years. It’s really a long-term play for us, not anything that will make a difference in how we perform in Q4, probably how we will perform in Q1. It’s a farther out prospect although we do have new relationships in that space and we will be ramping those relationships through 2009 and our historical behavior and protocol on that type of thing is to talk about those customers or activities when they become meaningful to our results, and that’s still a few quarters off in the distance. So I think we’ll provide more detail, more information on what’s happening there as we get closer to the advent of material revenue and meaningfulness to our business.
Sean Hannan - Needham & Company
That’s helpful. And sorry, one quick follow-up, if I could, in terms of the guidance, if we were to extend the current environment from August, and I know we’re not giving some commentary around obviously the November quarter but if we were to assume generally similar levels, should the restructuring benefits that we are seeing that’s basically embedded in your guidance for August, kind of around 30 basis points, should we see something similar to that transpire?
Forbes I.J. Alexander
Yeah, that’s reasonable. Your question is if revenue levels were consistent?
Sean Hannan - Needham & Company
That’s correct.
Forbes I.J. Alexander
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