Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from Kurt King - JMP Asset Management
Kurt King - JMP Asset Management
A few things, one is I just saw a press release cross the page and you've got a new CEO. Do you want to tell us about that?
John Buckett
We're proud to announce that Kevin Wiley has joined our company as CEO. As everyone remembers back in January when Michael Thoben stepped down as our CEO, the board initiated a search and I took over as the Interim CEO. Kevin comes to us with over 25 years of telecommunications experience, both as a CEO and as [inaudible] management in the telecom-related fields, companies such as Motorola, Cable and Wireless and a variety of others. He was most recently CEO of Woosh Wireless, a New Zealand broadband access network provider. Kevin, would you like to say a few words? Over the dog?
Kevin Wiley
Yes, I'm very happy with the offer and excited about the opportunity here at Interlink. I haven't – I'm kind of on my whirlwind tour right now to get to know what's going on, so I look forward to an opportunity to get together to meet the shareholders when possible at a later date. I'm happy to be here.
Kurt King - JMP Asset Management
So I guess my next question is with respect to getting back to cash flow positive. If I take your revenue guidance I assume the gross margins stay about the same and that operating expenses doesn't change a lot, do you think something else would have to give for the cash burn to stop? So what would be the moving part that would change the cash burn situation?
Charles Best
Looking at our revenue guidance of between 24 and 28 million and factoring in the headcount reduction we had in the second quarter, saving approximately half a million dollars a quarter in payroll and related expenses, our models show that getting to cash flow positive in the fourth quarter is something that's actually pretty achievable right now based on our projections.
So you're probably looking at some of the numbers that don't yet have some of the factored cost reductions that we've incurred already.
Kurt King - JMP Asset Management
So, obviously some things are really going right for you guys just based on the revenue and gross margin numbers. Can you just give us a little more color on, you know, what's happening in each of the businesses that's leading to the kind of growth you just showed?
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