Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Chad Bolin with Raymond James.
Chad Bolin - Raymond James and Associates
I have a couple of questions. Last quarter I think you said you saw a modest pricing benefit. Could you quantify what pricing was in this quarter and are you seeing any significant changes or anything new on the competitive front?
David Sylvester
From a pricing perspective we really didn’t see any kind of additional benefit this quarter; last quarters was quite small. With respect to the second part of your question, I would say that we haven’t seen any dramatic changes in pricing patterns. It remains highly competitive, as you would expect in a downturn, especially around the few projects that are out there.
Terry Lenhardt
That’s right. We talked about it last quarter, the markets being competitive and that environment is pretty similar to last quarter.
Chad Bolin - Raymond James and Associates
Okay and talking about operating expenses, it sounds like, at least on a sequential basis and certainly through the back half of this year, you will get a more significant benefit from that last piece of cost reductions with a white collar workforce and facilities consolidations, but that will be offset to a certain extent by some of the deferred spending, maybe product development that you talked about. Could you perhaps help us maybe quantify what incremental savings you would see in the second half and maybe give us a sense of that in comparison to that increased spend?
David Sylvester
Let me start with the restructuring actions that are yet to be completed. If you go to that webcast slide that we included where we laid out all of the actions we have taken since the beginning of the downturn, the March actions are 100% in our run rate as of this quarter and probably even as of the previous quarter. The December actions I would say are largely in, maybe a tad yet to be realized and I can’t tell you whether those are going to come in OpEx versus restructuring, but very little of them may be an additional $1 million kind of quarterly benefit comes in from the December actions.
The temporary reductions in employee salaries as well as benefits, those are in 100% and have been in since the beginning of the fiscal year. So it is just this last piece in June that we announced of the workforce reductions and the smaller facility consolidations were $20 million, or $5 million a quarter. I would say roughly $1 million is in our second quarter results and the balance of $4 million probably comes in evenly over Q3 and Q4.
- To read the full transcript on Seeking Alpha, click here »
