Question-and-Answer Session
Operator
(Operator Instructions). And your first question comes from the line of [Ben Chickrell] of Wachovia Securities.
Ben Chickrell - Wachovia Securities
Hey guys. Hello.
John McGrath
Yes, right here.
Ben Chickrell - Wachovia Securities
Okay. Might be the only one here. Could you guys rationalize the capital structure for me?
John McGrath
In what sense, Ben?
Ben Chickrell - Wachovia Securities
In the sense that right now the stock is basically trading for little or negative enterprise value. I appreciate the fact that you purchased some of the converts and a little stock in the past quarter. But I just want you to explain where you see the capital structure over the next six months to a year. You expect to be at the same share count. You expect to keep the same amount of cash, barring losses on your balance sheet.
John McGrath
I will take that question, Ben. I think what we will do is we will take a look at our share price. We will take a look at our bond price. And together with our Board we will make some decisions as to how we used our cash. At the same time we will evaluate that against other strategic opportunities.
Ben Chickrell - Wachovia Securities
When you say strategic opportunities, could you be a little bit more specific?
Nick Keating
Ben, this is Nick. We continue to use our cash for investment in research and development. We're continuing to look for other partnership opportunities, which could include funding external R&D. There are a number of initiatives that we have right now, but as John said, we have got to balance it off against the revenue forecast. What we expect will happen in terms of the government marketplace, cash requirements that we may have to have relative to continuing to cover more of the inventory at our contract manufacturer. And I think this will be an ongoing day-to-day program in close cooperation and conversations with our Board.
Operator
And your next question comes from the line of [Eric Buck] of [Peak Access].
Eric Buck - Peak Access
Hi guys, it's Eric Buck. How are you?
John McGrath
I am fine. How are you, Eric?
Eric Buck - Peak Access
Good. I was just kind of curious as to whether you could more specifically identify the government spending slowdowns. Are these things that are specific to your individual programs or is there something you can point to that would give some verification this is a broader kind of government pullback in the general communications area?
- To read the full transcript on Seeking Alpha, click here »
