Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Mike Neery from Neery Asset Management.
Mike Neery - Neery Asset Management
I have a couple questions. In terms of tax benefits, when should we expect a cash refund and in what type of dollar amounts are we talking about?
Gerard E. Puorro
That’s tax refund. This past quarter, we’ve actually received a tax refund from the losses that we’ve actually had. So we’ve actually received some cash this past quarter.
Mike Neery - Neery Asset Management
The remaining deferred balance is $6 million on our long-term assets?
Gerard E. Puorro
Right. Well that we’ll get into the point of when we’re turning profitability. As we’ve stated before. Our profitability, we’re looking at into the next couple of quarters. So over that period of time, then the deferred tax asset would come back.
Mike Neery - Neery Asset Management
So we can’t carry those losses back to previous year’s gains?
Gerard E. Puorro
No we’ve already done some of that.
Mike Neery - Neery Asset Management
And inventory now, what is the ideal inventory level for us today given our current level of revenues and can we get there?
Gerard E. Puorro
Ideally we’d like to be around the $25 million dollar number. So we’re still shooting to get another couple million dollars out of that situation. That would be ideal for us.
Mike Neery - Neery Asset Management
On the cost side, is there anything unusual on the cost side this quarter that either lowered cost below what they’re going to be going forward or raised them. Is this is a good run rate for cost given our current revenue rate?
Gerard E. Puorro
Do you mean Op expenses?
Mike Neery - Neery Asset Management
Yes I do.
Gerard E. Puorro
It was $13 plus million down from $19, a little bit of tweaking as revenues go up. Hopefully revenues will continue to grow, but we want to stay in the $13-$14 range going forward. That’s where we need to be if the revenues are going to be in the $30 plus million range so we can return to profitability and as you recall from the last call and the call before that, it’s our goal. I have stated by mid-calendar 2009, which means June 30. So that’s our goal.
Mike Neery - Neery Asset Management
So to get back on the revenue side then, you would expect revenues to continue to increase. Can you talk a little bit about what’s been happening so far and why we’ve done a little better there than some of our competitors and just kind of what your outlook is on revenue.
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