Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Frank Cabela – Investment Partners.
Frank Cabela – Investment Partners
I guess if you’re not going to take questions, I think I’d like to make a statement about the strategic alternative process if I may. I here to say that if Houlihan Lokey couldn’t convince a suitor of the value of $1 of a share in cash and $1.25 per share in accounts receivable and $1 per share in inventory, then I guess it’s incumbent upon you guys to find somebody, a representative that actually can.
As shareholders, even though the press release states that the company is going to stay independent, I think it’s ultimately up to us as to whether Candela remains independent. The company can’t support a $30 million half year SG&A expense on $20 million of gross profits without significantly damaging the long term value for all stakeholders, in our opinions.
The redundancy that the industry functions with is kind of amazing in the current and likely future environment. The potential cost savings alone [inaudible] make a mockery of Candela’s current valuation in our opinion. If any of these comments are off base in any way, I’d like you to consider supplying us with the level of detail or authority to Houlihan Lokey during its strategic alternatives process.
If you would care to comment at all, I would greatly appreciate it.
Gerard E. Puorro
I appreciate your input buy I’m not going to comment. Thank you.
Operator
Our next question comes from Dalton Chandler – Needham & Company.
Dalton Chandler – Needham & Company
Just I guess some clarifications on the discontinued operations, are you continuing to sell the Serenity product?
Gerard E. Puorro
No.
Dalton Chandler – Needham & Company
On the new cost structure, can you give us some sense of what sort of cost structure we should expect going forward from here?
Gerard E. Puorro
Dalton, as you know we’re not and haven’t been for quite a while been giving guidance except to say in the most recent quarter in September and the quarter before that, that it was our plan to return to profitability by mid-calendar 2009, that’s still our plan.
Dalton Chandler – Needham & Company
I certainly understand the difficulty with giving guidance on revenue and especially in this kind of an environment, but with regard to expenses you know what your cost structure is going to be.
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