Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from Brian Joseph - Golden Tree.
Brian Joseph – Golden Tree
Can you give an update on the status of the synergies?
Mark Fierman
There were two sets of synergies that we had discussed previously on our last call that was $18 million related to previous magazine acquisitions and in fiscal year 2008 of the $18 million identified we had recognized nine. We expect to recognize 4 million in the current year and 5 million in fiscal year ’10. In regard to the SIM acquisition where we discussed $18 million of synergies identified on a run rate basis in the first 12 months, in last year in fiscal year ’08 on an actual basis we recognized 5 million. We expect on an actual basis this year, fiscal year ’09 to recognize 14 million and in fiscal year ?10 next year we will have the full 18 million. At the current time the full 18 million has been identified, but it is not on a full run rate basis yet.
Brian Joseph – Golden Tree
So, that’s exactly it was last quarter right.
Mark Fierman
Yes, there is no change.
Brian Joseph – Golden Tree
Right, okay and then with regards to work in capital, obviously you’ve got some pretty big shifts there. So, what happened in terms of accrued and 80, looks like they were both down by $20 million.
Michael Duckworth
Yes, most of that is really due to the timing of certain payments, in particular in our CD/DVD business as you heard earlier we had a large return of inventory from one of our customers and those returns had not yet been processed by the end of the quarter, so that will slip into the following quarter. So from now on you’ll hear really from a working capital basis, it’s really a temporary timing difference.
Brian Joseph – Golden Tree
So, what does the cash balance look like now?
Michael Duckworth
I don’t know what it is today, but I think as Mike said, he reiterated our view on our free cash flow projection for the full-year and I think we are comfortable with that.
Brian Joseph – Golden Tree
Okay, but as of now that shift has not happened yet or I mean I guess post quarter has it shifted back.
Michael Duckworth
Its beginning to shift, yes it is.
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