Question-and-Answer Session
Operator
(Operator instructions) We’ll move first to John Harmon of Needham & Company.
John Harmon – Needham & Company
Hi, good afternoon.
John Ambroseo
Good afternoon, John.
John Harmon – Needham & Company
A few questions please. I apologize, I don’t know if you gave a backlog number. If you did, could you please repeat it?
John Ambroseo
It is $183.5 million.
John Harmon – Needham & Company
All right, great. Thank you. And regarding the headcount reductions you announced, sorry if I didn’t get it, but when do you see the benefit of that? Is that in the first quarter, and were they across the board or concentrated on any product line or facility?
Leen Simonet
John, the benefits are reflected in the guidance. You will not see a full quarter benefit, partially, and then the full quarterly benefit will appear in Q2.
John Ambroseo
And as far as the distribution, John, we alluded to the fact that we reduced manufacturing capacity. We made changes to SG&A and we made changes to R&D, so they were across the board. They were project-driven rather than market-driven.
John Harmon – Needham & Company
Okay. And then, I guess in SG&A, you’d be doing the normal things such as a hiring freeze, maybe by reducing advertising, things like that?
John Ambroseo
We’re continuing to operate the business and the decisions that we made regarding SG&A reductions were really tied to what we believe the near-term opportunities are, so I think it would be jumping to a conclusion that we’re simply slashing everywhere and we’re going to be retreating from the market, that isn’t the case. We have made what we believe are strategic decisions on what the market opportunities are.
John Harmon – Needham & Company
Okay, understood. And just finally, your sales in China, I was wondering if you could, maybe, ballpark how big they are and what end markets are they focused in? Are they mostly Materials Processing?
John Ambroseo
The direct sales in China are skewed towards Materials Processing and scientific. Those are the two largest markets.
John Harmon – Needham & Company
Okay. Thank you very much.
Operator
We’ll now move on to our next question from Jiwon Lee with Sidoti & Company.
Jiwon Lee – Sidoti & Company
Good afternoon. Thanks for taking my question. The first question is on your Germany consolidation. Can I get some timetable as to when you expect this consolidation to take place and the benefits arising from that particular project please?
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