Question-and-Answer Session
Operator
(Operator Instructions) Your first question is from Joel Achramowicz - MDB Capital. Please go ahead.
Joel Achramowicz - MDB Capital Group
Doug, in addition to obviously the slight decrement in expected operating expenses for the second quarter, could you give us maybe an additional template on how you expect to stretch your current cash until the end of 2009? Is that mainly through reduced marketing significantly?
Douglas Pihl
We can’t probably go into detail right now, Joel. We are actually exploring a number of different plans, but a big part of it is really related to the fact that the silicon engineering will be significantly reduced, the cost there, since we are taping out the 90-nm part. So we are really going through a lot of plans now, variations of plans, so we do think contractor head count for silicon design will reduce.
Along with that, we are reducing a lot of the software design tools, the EDA tools we used for the chip design which are short-term licensing arrangements, so we can reduce there, but we are looking at all the options, and we plan to before too long schedule another conference call to give everybody an update on more features of our cash-burn reduction program.
Joel Achramowicz - MDB Capital Group
It sounds like you are really taking an inordinate amount of important time to really perfect the SAD block and the new design. Is that true? Is that is what is mainly this, because it is a critical component to the future, your H.264 encoder-decoder solution?
Dan Sweeney
As I mentioned in the call, the head-end encoder is a big part of that opportunity for the new chip, especially the ALU heavy design, and by taking the time to optimize that design, it allows us to be able to compete and win a big part of that market, and without this change, we don’t believe that we could have optimized it for these various customers’ requirements in this specialized application.
Douglas Pihl
I would also comment, Joel, that this is really the result of, as Dan mentioned in his comments, some very deep technical discussions with some of the leaders in head-end encoding that really gave us the opportunity to really understand how they would use a chip like that and really perfect the design, so we feel much more confident that it will really satisfy the needs of these head-end encoding customers.
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