Well both of these inventory categories are accessed, we believe we will sell through the vast majority out there but possibly at reduced cell prices. Outside of these two issues are the gross margin was essentially flat however we did see some variations with each individual market caused by product mix. Going forward our focus is squarely on selling complete solutions so that the lower margin product like [inaudible] and test equipment are offset by thousand higher margin products as we expect to accompany them. We are also intensely focused on insuring that we are compensated for the complete value that we deliver. Operating margins are also lower than historical levels, the lower gross profit and gross margin combined with higher talented technology investments we have been making reduced this quarter’s operating margin to 2% compared with 4.9% in last year’s third-quarter. In order to combat the higher expenses and lower margins we have undertaken an efficiency and cost reduction efforts. We are aggressively evaluation our business to identify unproductive or unnecessary activities and resources.
We have been taking and continue to take steps to address these areas including cost-cutting, process improvements and [inaudible] unprofitable initiatives. At the same time we are ensuring that we have the right mix of talent and experience in ourselves, marketing and [inaudible] to drive long-term profitable growth. As the result of these efforts we expect to see net future cost-saving of 3% to 5 % for our current fix expense level beginning in fiscal 2016. This would equate to approximately to 20% to 30% on annual earnings per share. Despite the soft market, our financial position is very strong. Last quarter we discussed a large inventory balance related to one tower on our customer. We are hoping to monetize that inventory this quarter and possibly recognize the revenue related to the sale. We did in fact received payment for the inventory however the customer requested that the inventory remain in our facility until they are ready to deploy it. Due to accounting rule in this area we are unable to recognize revenue on this transaction until the inventory is shift.
We now expect that to occur sometime after the beginning of fiscal 2016. Doing part to the cash received from that transaction we generated 13.6 million in cash from operations during the quarter. We also reduced both inventory and receivables by approximately 17 millions. Cash on hand was 9.5 million with no operational debt. We did buy back approximately a hundred and fifty thousand shares of stock for about 4.3 million during the quarter. We are committed to returning value to our share holders through our dividend and accordingly the dividend will continue at 20 cent per share with the record date of Feb 4th and payment date of Feb 18th. Turning to our outlook and guidance for the remainder of fiscal year during the continuous softness of the carriers space, we do not expect the carriers to renew spending until earlier in 2016 fiscal year. Accordingly we expect to see a decline in overall fourth-quarter revenue year by year. As the result of the challenging business environment and the short term crop associated with several cost reductions which that are underway, we are not provided specific training guidance for the fiscal 4th-quarter and we are withdrawing our fiscal 2015 guidance.
