Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Mark Jordan – Noble Financial
Mark Jordan – Noble Financial
A couple of questions on the P&L, do you have any ability to say that with the pipeline that you have now if the third quarter will be sequentially up, down, or flattish, any comments on that.
Earle Steinberg
We do not believe it will be down.
Mark Jordan – Noble Financial
Second the SG&A you have been bringing down in this quarter I guess it was $3.1 million, do you have the ability to lower that or is this sort of the bottom of that run rate given the investments you have to do on marketing.
Earle Steinberg
We are looking at additional reductions in the short and medium range. So we do have the ability to examine and implement further reductions and we will do so in an effective manner.
Mark Jordan – Noble Financial
A lot of governmental contractors, revenue growth has been held up a little bit because of the late passage of the supplemental that’s finally got signed off in late June, do you believe that there’s the opportunity to see a resurgence in your government business now that the Army and other organizations are a little bit better funded [inaudible] of the recent supplemental.
Earle Steinberg
There certainly is that opportunity and we certainly have been affected by the delay, by both the delay in the supplemental and the delay in completing the appointment of appropriate officials in the new Administration. That has had an impact on us.
Mark Jordan – Noble Financial
And finally what was the consultant headcount at the end of the quarter. And while you’re looking I guess the last question I have is you do show a tax benefit on your balance sheet of $1.45 million, when do you believe that that will be received.
Frank Tilley
It will be received next year when we file our tax return assuming we continue to post losses for the rest of the year, which we would not hope that that is, that assumption, but should it be the case that we have a loss for this year, then we would file a tax refund request early next year and receive it probably in the second quarter as we did this time.
In answer to your question the number is 27 at the end of the quarter.
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