Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Christian Schwab – Craig-Hallum Capital.
Christian Schwab - Craig-Hallum Capital
Kathy, why did the share count bump up 1 million versus last quarter, on a fully diluted basis?
Kathleen S. Dvorak
It really has to do with the diluted impact of options and the impact from the bonds.
Christian Schwab - Craig-Hallum Capital
Can you give us any indication of what you would expect on the fully diluted share count for the remainder of the year?
Kathleen S. Dvorak
18 million is still a good number to use.
Christian Schwab - Craig-Hallum Capital
18 million or 18.9 million?
Kathleen S. Dvorak
I would continue to use the 18.9 million.
Christian Schwab - Craig-Hallum Capital
At what point does the distribution of system kind of help eliminate a lot of the currency translation? This quarter it was a very big positive, roughly $0.06 positive. That could bit us the other way another quarter. At what point do we get that to have a very minimal impact on quarterly results?
Kathleen S. Dvorak
We are working toward that goal. We are taking some actions that will help to mitigate that. Unfortunately we are seeing so much volatility in currencies it’s very difficult to predict at this juncture.
Christian Schwab - Craig-Hallum Capital
If sales are going to go up and the number of employees is going to go down, why would SG&A as a percentage of revenue increase?
Kathleen S. Dvorak
That was our goal. We are working very hard, we are seeing positive trends to continue to bring it down. As I mentioned, we are doing some strategic investments in Q2 and Q3 relative to the Web upgrade. But certainly we think we are going to be in the low end of those numbers.
Christian Schwab - Craig-Hallum Capital
How much is the Web upgrade going to cost? What should we be modeling as one-time increases in Q2 and Q3 for Web upgrade costs?
Kathleen S. Dvorak
It will be a couple hundred thousand in Q2 and Q3.
Christian Schwab - Craig-Hallum Capital
And what would ultimately be our goal, if we have such a thing, for the number of employees at year end? We’ve got 920 today, I’m sure you’ve got a targeted number, actually for the fiscal year, could you share that with us?
Edward J. Richardson
I would say it’s around 900. We are going to try to do better than that if we can but it’s a timing issue.
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