Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from [Steven Donovan] - Private Investor.
[Steven Donovan] - Private Investor
From what you just said, it sounds like you don’t anticipate going into the money-raising activity anymore this year.
J. James Gaynor
Currently we’re not looking to raise anymore capital. However if the right opportunity were to raise itself, we would evaluate that at that point in time.
[Steven Donovan] - Private Investor
Have you replaced Jim Magos?
J. James Gaynor
No. Not directly. Jim Magos, who was our former VP of Sales, left for personal reasons and is working outside our industry. We have some bench strength in that area in the organization and we have promoted a person, Rob Myers, from within and at this point I’m very happy with his performance. I do not anticipate any negative fallout from this change. And in addition to that, what we’re doing is we’re taking this opportunity to beef up our sales force in China where we believe the greater opportunities for growth lie.
Operator
Our next question comes from [Bob Englander - Montauk Financial Group].
[Bob Englander - Montauk Financial Group]
I guess we’re all enjoying a very volatile stock market these days. But it looks like LightPath is finally starting to make some headway with an increase in sales as well as the cost reductions. Can you tell me if we have hit the peak of those cost reductions or could we look forward to in quarters coming forward further cost expense reductions and further margin improvement?
J. James Gaynor
There are a number of things. We’re just starting to see the impact of the variety of changes that we put in place during the course of 2008 Bob, and we haven’t yet seen the full year impact of many of those changes both in the margin line as well as below the line. We reduced our lease space in Orlando by 50% and that’s a significant savings for us. We’ve had a number of headcount reductions which is a significant savings for us both in direct costs as we move stuff to China as well as in the overhead section. And we’re continuing to implement other cost reductions as we continue to implement the use of lower-cost glass systems and we transfer other product lines to China. And I think there are some other programs and processes that we’ll continue to see some benefit going forward.
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