Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Timothy Arcuri with Citigroup.
Brian Reed - Citigroup
Hi, guys. This is actually Brian Reed calling in for Tim. I just had a few quick things. First a clarification -- the 72 to 74 year-end break-even target, that’s fiscal and that’s GAAP?
Kevin C. Eichler
That is fiscal and it is, yes.
Brian Reed - Citigroup
That is GAAP, okay, great. And then maybe if you could provide a little bit more color -- what are some of the moving parts here that are pushing out your restructuring efforts I guess by about two quarters here?
Lavi A. Lev
I can elaborate. So as we said, we have a pretty complex task ahead of us focusing the company on the consumer market where before it had the various businesses, that some of them were consumers, some of them were not, and some of them were custom made test solutions for companies. So we are, as you see a lot of our guidance is around -- you hear here restructuring here, restructuring there, and so on. So we have offices that we close in Europe. Due to European labor laws, this process can sometimes take longer than expected. We are -- when we are divesting -- when we divested some of the businesses, it leaves some trail of items that we need to take care of here, so we are basically going through the same identical to do list that we put for ourselves when we announced it in the beginning of the year. Just we took a very aggressive stance as to when we are going to complete those tasks and it just takes us a bit longer.
So it’s just a lot of small items that need to be taken care of. You need to get rid of inventory when you are divesting of something. You need to make sure than when you close an office, things need to move from one place to another, employees need to be taken care of and so on. It’s a long and boring list but the whole thing amounts to a couple of quarters longer of work than we anticipated.
Brian Reed - Citigroup
Okay, great. Well, maybe as a follow-up to that, I thought you guys had said in the past by fiscal Q2 you’d be down to about a headcount of 900, and obviously you are quite a bit above that. Does that suggest that there’s some more headcount reductions here over the next couple of quarters?
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