Question-and-Answer Session
Operator
(Operator Instructions) We’ll go first to Manny Recarey with Kaufman Brothers.
Manny Recarey - Kaufman Brothers
Thanks. Congratulations on a good quarter. You mentioned you are evaluating the situation, the economic situation so it’s kind of fair to conclude that it’s really too early to tell what enterprises are kind of -- how they are reacting to the turmoil in the financial markets and credit markets?
Jay Zager
Yeah, I think that’s right, Manny. Obviously we have the benefit as we give this guidance of virtually having the entire China quarter, which ends September 30th, close to being behind us, so we do have some increased visibility there but in the rest of the world, the projections I gave you reflect what we see today but we did want to caution that obviously with this economic environment, strange things could happen as we go through the end of the quarter.
Manny Recarey - Kaufman Brothers
Okay, and a couple of questions then -- you had mentioned with the integration of H3C, you’ve captured about $40 million of annualized savings. What’s left to get to the $50 million to $100 million? Is that going to take -- how much longer is that going to take or you’ve kind of gotten the low-hanging fruit so far?
Jay Zager
It’s really a continuous process. Obviously we’ve tackled two of the major items, R&D and procurement costs. We also see savings in the overall supply chain organization, in the product line management organization, in the IT organization, and in the other administrative functions but those will be played out sequentially. So basically we’ve captured two of the major items and we expect to see further savings as we go forward.
Manny Recarey - Kaufman Brothers
Okay, and then you had mentioned R&D -- for modeling purposes, that’s kind of a base rate to use going forward, on a pro forma, there was around $44 million or so?
Jay Zager
I think that’s pretty reasonable.
Manny Recarey - Kaufman Brothers
Okay, then one last question -- TippingPoint, it was down sequentially. Any particular reason for that?
Jay Zager
As we mentioned, in the fourth quarter we had a one-time revenue gain of $1.4 million, which was basically non-operational.
Manny Recarey - Kaufman Brothers
Okay.
Jay Zager
That’s the only reason why we were down sequentially.
Manny Recarey - Kaufman Brothers
Okay. Thanks.
Operator
(Operator Instructions) We’ll go next to Jeff Evanson with Sanford Bernstein.
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