Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard West - Dutton Associates.
Richard West - Dutton Associates
I wonder if you could just help me and summarize; the expenses in your SG&A were approximately $500,000 because of litigation expenses and beginning in January you will start saving $200,000 a quarter because of that lawsuit, am I correct?
Jay Peterson
Close. The savings will in fact amount to $200,000 a quarter once we assign this lease and as I said we anticipate that to occur in the month of January.
In terms of the spending, there’s approximately $400,000 in the quarter that related to trial and litigation expenses. So those two in aggregate, will total approximately $200,000 Richard.
Richard West - Dutton Associates
Okay, thank you. Because that explains to me at least why your SG&A was the $33.1 million plus. Thank you very much.
Operator
Your next question comes from Tony Tristani - Astro Capital.
Tony Tristani - Astro Capital
At the end, I understand the expenses, so probably in the April quarter at the current revenue level we’ll see that EBITDA number $550,000 loss, all things kind of equal.
I guess my question is on the growth for Nancy, the current issue is your churn picking up, can you talk about what your churn number is or is it your gross adds, new business that you’re adding, is that blow plan and if you talk about sales force productivity and how much that can improve etc.
I guess what I’m trying to figure out is when you guys think you are going to start growing again and how do you get there? Is it reduction of churn, is it improved productivity, etc?
Nancy Harris
Hi Tony; yes, let me just take that a couple of points at a time. The first one being, is it related to churn and the answer to that is no, actually it’s not an attrition issue. It is softness in the market that we are seeing relative to new transaction being slightly slower if you will than what the plan was.
Now that being said, the demand still continues to be quite healthy and we are optimistic that we will be able to see growth as I mentioned. We are continuing to use our traditional marketing methods, which is pay-per-click and search engines, but we are also mixing in some new marketing elements to drive demand and reach the corporate segment which is our highest growth segment for the business.
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