“We're probably still another, as we said before, one to two years out from testing SaaS margins, but we're on our path and we're making the progress we need to make just to stay on track.”

In context

“Gary Merrill (CFO): Hi, Tom. It's good to hear from you. So we're making great progress on Metallic gross margins. I'm really pleased that our gross margin for Metallic is improving every quarter, quarter-over-quarter. So we're on the trajectory that we need to be at. We're probably still another, as we said before, one to two years out from testing SaaS margins, but we're on our path and we're making the progress we need to make just to stay on track. So from a consolidated gross margin, the comments I think I made last quarter is I thought we were at the low point for the year on consolidated gross margins. And that continued to hold. Even for the guidance I give for fiscal Q3, I'm expecting some modest gross margin improvement on the consolidated standpoint. And I expect that to continue through fiscal Q4 as well.”