Question-and-Answer Session
Operator
(Operator instructions) We’ll take our first question from Greg Gilbert with Merrill Lynch. Please go ahead.
Greg Gilbert – Merrill Lynch
Thanks. So I’ll ask my two right upfront. Can you talk more about that evaluation of a strategic opportunity and where that has led you? And whether the spending on that item will continue? And the second question is around SG&A, maybe perhaps you can comment on how much more flexibility is there to take it down as needed without significant changes to the company’s infrastructure?
Josh Levine
Great. We’ll tag team this. I’ll take the first one, and Michael, take the back end. The answer on the first question is we don’t comment specifically on that kind of strategic M&A activity. We’ve been consistent in the messaging over time that says, ?We’re looking at opportunities strategically that allow us to expand our business. And we continue to do that actively.? I think that it would be most accurate, I guess in the current situation, to say that it’s not likely that that expense that you saw in the quarter would continue.
Mike O’Neil
Hey, Greg. SG&A, obviously one of the things as, really, the fiscal year has unfolded, we’ve been looking at discretionary spending across the business, particularly in the area of SG&A. And we’ll continue to do that. So we’re looking at those areas that we can modify first. And I think part of the prepared remarks that Josh noted is we are looking at the overall cost structure on a go forward basis.
Part of the reason that we didn’t want to get into specific ratio guidance at this juncture of the year is we want to make sure that we’ve got the latitude and flexibility to make those short term and long term decisions as we go forward from here. So making sure we’re managing the business for the long term as well as making the appropriate short term adjustment.
Greg Gilbert – Merrill Lynch
Thanks. I have a bunch more, but I’ll get back. Thanks.
Operator
And our next question comes from Larry Biegelsen with Wachovia Securities. Please go ahead.
Larry Biegelsen – Wachovia Securities
Hi. Thanks for taking my questions. First one is in the most recent 10-Q, you said that you have received a bank commitment to extend the credit agreement by $150 million through October 2009 with the purpose is to possibly refinancing the notes. As we think about modeling fiscal year 2009, is it a most likely scenario using the facility to pay for redeeming the convertible – the convertibles rather than refinancing the converts? And what’s included in your guidance?
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