Fiscal 2004 Targets
Net revenues growth of 5%
Gross margin up 300 to 350 bp to 41-42%
Operating margin up 350 to 400 bp to 13-14%
EPS grows to between $1.80 and $1.95
Notes:
- Shifting back now to the near-term, what are we looking for in terms of financial improvement in our upcoming fiscal year 2004?
- Topline growth of 5%, about half of the growth coming from new products
- Gross margin percentage should increase 300 or so basis points to between 41 and 42 percent
- Our operating costs will show immediate benefit of workforce and cost reductions, and operating margin should rise 350 to 400 basis points. The size of this improvement, of course, also reflects the restructuring costs that are in the fiscal F03 comparative base.
- All of this should lead to EPS of $1.80 to $1.95, up 70 to 80% from fiscal 2003. These GAAP numbers include about $3 million (or $0.12 per share) in inventory step-up charges.