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I'm trying to reconcile the sales forecast for next year.
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Then the Commerce Department is creating a process for states to apply and that application from what's been published is May 2022, then the states will develop their plan for permission, I mean for submission and then they'll be reviewed and approved by the Commerce Department.
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And doing additional engineering work which is acquired to support that process, and also position ourselves for the enlargement of the construction permit, which will follow the development permit which comes with the approval of the EIA, which we expecting to be complete in the second half.
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So can you just give us an impression looking sort of two, three, four years out in a normal operating environment, do you expect continued, generating operating margins of 40% or rather 30% or rather 20% or even 10%?
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We believe this emerging servicing market will be one where Ocwen will compete very effectively.
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These include the start-up of the company's new beryllium plant and the integration of EIS Optics, which was acquired in the fourth quarter of 2011.
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And so that will put pressure on earnings, and one of the reasons that we expect year-over-year earnings to show softening from last 2000 levels -- 2011 level.
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Strong acquisition activity over the last 12 months and recurring rent escalators in our leases were the primary drivers of the increase, with additional contribution from rent commencements at completed redevelopment projects.
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We completed the midyear review of our capital expenditure budget for 2016 with our budget remaining unchanged from the beginning of the year, which is below our anticipated cash flow and proceeds from noncore asset sales.
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So do you foresee any substantial impact on the business because considering -- so considering the situation today, so China is offering at a steep discount.
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It remains to be seen how quickly the stimulus actions by the government are going to be visible in the demand.
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So here, the whole goal is to make sure that not only do we have manufacturing, but also backup facilities, and production efficiency, which really goes to your question.
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As a result, we are recording one-time reserves of $4 million during the fourth quarter of 2011 and an additional $8 million during the first quarter of 2012 with the expected temporary sub-lease losses on these ships.
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And how much revenue would you expect?
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