Question-and-Answer Session
Operator
Thank you. The question-and-answer session will be conducted electronically. (Operator Instructions) And we will go first to Amir Rozwadowski with Lehman Brothers.
Amir Rozwadowski - Lehman Brothers
Thank you very much, and thank you for taking the question. In terms of some of the shifting in -- recent shifting in management, could you folks give us a little bit of color as to your confidence in sort of the strategy that’s in place, and potential impact that shifting may have in terms of the recovery plan?
Charles Levine
Sure. The strategy that we developed was not an individual strategy. It was a strategy of the entire senior management team combined with a pretty fair amount of Board input. When we approved that strategy, we were confident that we had selected the right strategy, and the job was a job of execution thereafter. We think, we have a team in place today that can and will effectively execute that strategy, and in fact, with Bruce Coleman in place, a man who has executed turnarounds I think 17 times before this one, we are confident that we will be able to do it more quickly and more effectively than we could have otherwise.
Amir Rozwadowski - Lehman Brothers
Thanks for the color there. In terms of achieving breakeven or profitability, can you give us a sense at what revenue level or perhaps when you believe that that can be achieved?
Anne Brennan
Hi, Amir, this is Anne.
Amir Rozwadowski - Lehman Brothers
Hey, Anne.
Anne Brennan
I can take that question, Charles. Amir, when we speak about our goals are to be profitable, and we have taken substantial steps in Phase 1 and Phase 2 as Charles highlighted. At this state, we haven’t provided a date for profitability. There are a number of moving parts but is our intention to move to profitability?
Amir Rozwadowski - Lehman Brothers
Okay. Thank you. And then I believe, Anne lastly, you had mentioned some of the exposure on the auction rate security side, should we expect -- how much risk is associated with your cash balance with the auction rate securities?
Anne Brennan
We are relatively conservative in terms of our treatment of auction rate securities based on the research that we have done with companies out there, who hold investments of the same nature. So in answer to your question, is there risks to our cash balance, and practically there isn’t. We also review this on an ongoing basis, and take into account changing market conditions.
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