Question-and-Answer Session
Operator
(Operator Instruction) Your first question comes from Rick Hoss - Roth Capital Partners.
Richard Hoss - Roth Capital Partners LLC
As far as the write-downs go, are those complete and if not what’s left?
Hank Schopfer
It’s about 300,000 left. It should be in our flow through Q3. So, it’s really substantially complete.
Richard Hoss - Roth Capital Partners LLC
Okay. And then, we’re done with it.
Peter Burlage
Yes.
Richard Hoss - Roth Capital Partners LLC
As far as SG&A, is there room for reduction given the environment?
Peter Burlage
Yes there is some room for reductions and we’re monitoring and taking action on that as said, but there is room for some reduction in that.
Richard Hoss - Roth Capital Partners LLC
Okay. The erosion of backlog, did it favor one segment over the other?
Peter Burlage
No, they are pretty equally impacted by it, as far as the erosion. Are you talking about the reduction as far as going from $103 million down to $92 million; it’s a $10 million reduction. Majority of it waved in about the same as with the revenue. About 60% of it was in process products and 40% was environmental.
Richard Hoss - Roth Capital Partners LLC
Okay, and then did you say how much dollar amount was reduced due to the removal of these projects or delayed projects?
Peter Burlage
I know we didn’t report that. It’s approximately $3.5 million in the job that were taken out of the backlog as a result of them being placed on hold.
Richard Hoss - Roth Capital Partners LLC
So that’s understood to be at a more conservative approach. If they were to resume then they’d go right back here.
Peter Burlage
Yes, and just to reiterate our policy as far what we count in backlog. We only count projects which we have a confirmed purchase order with. We do not put into our backlog, projects in which we received letters of intent that don’t have a conforming purchase order with them in the same level when we receive our hold instructions from our customers that are deemed and definite periods; we pull them out of our backlog as well.
Richard Hoss - Roth Capital Partners LLC
Okay, any update on the proposal through the remaining peaker orders, the large ones that we’ve discussed on last conference call.
Peter Burlage
I guess the only thing to report is not good news. I mean the projects that are out there currently are being held up. There isn’t an any activity going forward the immediate time and we did loose one retrofit project during the quarter; one of the big projects was the retrofit project that we were unsuccessful at winning.
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