Question-and-Answer Session
Operator
Thank you gentlemen and we will now begin the question and answer session. (Operator Instructions) Our first question comes from Jim Barrett with C. L. King, please go ahead.
Jim Barrett – C. L. King & Associates, Inc.
Hi everyone.
Steven L. Muellner – President, Chief Executive Officer, Director
Hi, Jim.
Paul E. Ross – Chief Financial Officer, Senior Vice President-Finance
Hi, Jim.
Jim Barrett – C. L. King & Associates, Inc.
I think that this would be a question for Paul. Paul, can you talk about the company’s credit lines for the upcoming year and your financing needs for the upcoming holiday season and how that is likely be addressed at this point in time?
Paul E. Ross – Chief Financial Officer, Senior Vice President-Finance
Sure. As you all know, we amended our credit facility back in November and I guess that I will just reiterate what we are publishing in the 10-Q filed this afternoon, which is that we expect the credit facility and our cash from operations to be sufficient for the next twelve months. So I do not anticipate any special liquidity news.
Jim Barrett – C. L. King & Associates, Inc.
Does it also suggest you would not expect to do another equity raise?
Paul E. Ross – Chief Financial Officer, Senior Vice President-Finance
At this point we have no plans whatsoever to do another equity raise.
Jim Barrett – C. L. King & Associates, Inc.
Okay, and then secondly once you have fully transitioned out of Irvine from the manufacturing standpoint and broadly speaking, and Steve I think that you may have touched on this. But broadly speaking, tell us at what point in time the company would tend to realize the roughly $10 million worth of savings.
Steven L. Muellner – President, Chief Executive Officer, Director
Sure. The major employee reduction actually occurred mid-December, so effective with January 2, when we opened our doors for business in this calendar year all of those savings were being realized by [inaudible] basis immediately. I would say that we will be recognizing full revenue, full return from this by mid-year. And by that I would say, Jim, that there are still some start-up costs occurring to date in terms of getting the new facility up and running, and getting the machinery set up, and things that you would expect. But as I just said, by mid-year it should be full and running according to what we have stated.
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