Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steve Schwartz - First Analysis Securities Corporation.
Steve Schwartz - First Analysis Securities Corporation
You brought in Mike Wilson I think back in February and as you see it looks like your outlook is that production of QuietSteel to the big three will be down for some time. Has Mike come up with any ideas as far as possibly restructuring or rationalizing facilities further from where you stand today?
Cliff Nastas
We have had a lot of focus on bringing our cost and capacity more on line with market demand and at this point in time we do have several studies underway taking a look at what is the most optimal solution to the conditions in which we face.
Steve Schwartz - First Analysis Securities Corporation
Any idea on what the timing of that might be? Do you think it is something that might happen this fiscal year when you make an announcement and maybe start making changes?
Cliff Nastas
We are constantly making changes to the operation and the SG&A side of the business on a daily basis. That is something that is just part of the culture here at MSC to adjust with demand. However, we are in the process right now of putting together our strategic plan for the next three years and that is presented to the Board in October so I would think any major restructuring that we would look at would probably be as a result of our strategic plan and the approval by the Board of Directors in October.
Steve Schwartz - First Analysis Securities Corporation
Have you had any formal restructuring activities, any formal programs or things taking place in the past quarter or two outside of as you just described the normal operational adjustments?
Cliff Nastas
We have made a lot of adjustments surrounding headcount and spending and we have been flexing our manufacturing to optimize the costs based on the demand that we are experiencing for our product.
So, is it formal? Yes it is formal because it is something we talk about every single week as a leadership team and a company and we adjust our business based on that. We have done a lot surrounding pushing out hiring, doing some layoffs as I said earlier that are flexing the plan workforce. So it is something that we are very focused on in these difficult times.
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