Apr 25, 2018 • 05:00 pm ET

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Q & A
Operator
Operator

Thank you. (Operator Instructions) Our first question comes from the line of Sean Hannan of Needham. Your line is open.

Analyst
Sean Hannan

Yes. Good evening. Thanks for taking the question here. Just a few things to make sure I can clarify and kind of solidify some of this is modeling as we are looking out at the back end of the year here. Just to check in on you the comments on gross margin as well as SG&A, first gross margin hitting 9.7% or approaching, is this a value for the second half or are we talking at some point in the second half to achieve there. And now on the SG&A front just want to make sure that I understood correctly where we are looking to get that value down to about five-ish percent I think by the end of the year, but I may have misheard you.

Executive
Paul J. Tufano

Sean, I'll take that gross margin point and let Roop talk on the SG&A point. As I have said, we believe we have the ability to approach 9.7%. Well, that's going to be probably as we exit the year. Our ability to do that would be a function of two things. How long we can resolve some of these operational issues. And number two, how we can drive or absorb more revenue growth, but the revenue growth would be in that second half end of its net revenue.

So we are focused on maximizing gross margin. And the question will be the trajectory of that from the second quarter to the end of the year, but we are going to be relentless on the gross margin line.

Executive
Roop K. Lakkaraju

And Sean just to add some color on the SG&A regarding your question, obviously in Q1 we were about $35.2 million. And as we think about the range that we provided $36.5 million to $37.5 million, we are going to be in that range overall. And so we expect that with the revenue growth of 2% to 5% that we anticipate for the year as we get towards the end of year, we think we will be in that range of approximately 5%.

Analyst
Sean Hannan

Okay. So we're -- I mean this would imply a very significant back end of the year revenue ramp, I mean I think the mass would suggest and we are probably looking at something close to $700 million type of number for December. Am I thinking about this correctly and just kind of make sure I understand this appropriately. Sean, the answer is yes, you are thinking about it correctly. Mostly stronger revenue in the second half than the first. We saw that last year, we expect to see it again this year.

Executive
Paul J. Tufano

Sean, the answer is yes, you are thinking about it correctly, mostly stronger revenue in the second half than the first. We saw that last year, we expect to see it again this year.

Analyst
Sean Hannan

Okay. And then in terms of these customer ramp headwinds, just want to see if we can