BHE
#A combination of timing and production ramps associated with supply chain and ongoing qualifications.
But none of them are of the nature that were specifically concerning or push out cancellation.
They are ramp.
As you recall, these are often longer term in the nature of the products that are being supported, as well as the complexity.
And so we expected them to fall into the second quarter and expect now to be able to do a good bit of biz in the third quarter.
One and the same on defense and aerospace.
The defense and aerospace was primarily associated with the program ramps.
So it was that impact.
No, we have not seen any customers point to that as having a specific impact.
It likely causes some caution associated with our forecasting, but nothing specifically has been pointed out to us.
Thank you.
Hello, <UNK>.
The new program ramps, again, as we expected them to occur in the second quarter, the costs associated with the ramps ---+ the inefficiency associated with the ramp is ongoing through the process of getting to a steady state of production.
So it's not to say there's no cost or no inefficiencies in the future, but at the cost incurred on the initial start-ups has already been accounted for.
Well, the regulated industries, medical and defense and aerospace, typically will have both longer production ramp cycles and higher upfront costs associated with those, due to the nature of those programs.
But that is the primary differentiator in those type of programs.
I think, <UNK>, we had targeted 4.8% on our last call exiting the fourth quarter.
I think given the choppiness that we're seeing in industrials and the overall macro challenges, at this point I certainly don't think we're going to be able to attain that.
But I would say we should have, depending on where revenue comes up, we're projecting a positive trajectory as we go into next year.
And as <UNK> indicated, ultimately, we want to drive to the 5.5%, if you will, adjusting for the amortization that we talked to today.
Yes.
Coupled with the mix that we have and the actions that I previously mentioned, yes, there is a pathway to get there.
I believe we will see the bookings begin to tick up.
As we indicated, we are, I would call, exceeding the base of our high-growth, high-value market base of customers.
And as we see those number of those opportunities are at the front end, and we are trying to continue to move to the point of leading with engineering.
And as we do that, those opportunities will differ in size.
So as expected, and I believe as we've talked about over a number of calls, that is exactly what we're seeing.
And as we move towards next year and as we continue to focus, as well as invest in both sales and marketing and engineering portions of our business, we expect to see those bookings begin to increase.
I believe they've been more flattish.
As you likely know, any time you're estimating those, there can be a range.
But we do believe that they've been pretty much flattish, with a good mix of business that we've seen and we'll want to see those begin to accelerate in 2017.
Thank you, Operator, and thank you, everyone, for joining us this morning.
We know it's a very busy day in our industry for earnings calls.
We'll look forward to hearing from you and follow up.
Have a great day.
