Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Mark Jordan – Noble Financial.
Mark Jordan – Noble Financial
Two quick questions. Number one can tell us if you have a sense if your revenue base has stabilized? Secondly, any sense on do you have a target of what time you would hope to reach the kind of breakeven run rate?
Question two, what would be the size and the timing of the tax refund?
Michael McGrath
We are hoping our revenue is stabilized. It is tough to tell right now and we don’t want to predict when we will increase that revenue base. We have a strong pipeline but the conversion of that pipeline into a consistent revenue stream is still something we have to make happen. That is on those first questions.
On the second question on the tax refund it is going to depend on the loss for 2009. Our thinking right now it will be about $2 million approximately but that will be finalized when we have closed the books for 2009.
Mark Jordan – Noble Financial
What month should that be expected?
Michael McGrath
Probably by mid-year. Maybe June.
Operator
The next question comes from the line of John [Francona – Investment Management].
John [Francona – Investment Management]
If you look at the progress you have made in terms of SG&A over the past year, you seem to keep on cutting your expenses but your revenues are declining at a faster rate obviously. Looking at the fact you have about $2.6 million of SG&A this past quarter it begs the question of what sort of revenue would that support? In other words when you were at a normal run rate your SG&A was running at 25% or 30% of your revenue it would almost say that you have infrastructure in place to support $10 million of quarterly revenue.
Is there any hope of achieving that any time soon? Because I don’t want to answer the question for you but it would either seem you would have to continue to cut SG&A dramatically or you are looking at some sort of big multiple in terms of revenue exploding over the next several quarters if your pipeline comes through. Can you comment on which one of those things might happen? Further declines in SG&A or finally a big increase in revenue?
Michael McGrath
We are giving our priority to increasing revenue. That is the first thing that needs to happen. We reluctantly continue to cut expenses as we are disappointed in the results of converting our pipeline into revenue. I don’t know if I would characterize it as exploding at one point in time in revenue but we still remain confident we have a pipeline that can produce a turnaround in revenue and stop the decline in revenue. We are, as I said, cutting SG&A expenses reluctantly as a result of disappointments in the timing of revenue conversion. We don’t have a timeline for that. I wish that we did.
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