Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Matt Petkun with Davidson and Company.
Matt Petkun - Davidson and Company
Good afternoon. It looks like you guys are doing your best to weather the storm, so I congratulate you for your efforts. One question maybe Larry Viano, on the bookings in the backlog, did you see no incremental cancellations in the quarter or is that $22.1 million bookings number net of incremental cancellations?
Larry Viano
That is the net number.
Matt Petkun -Davidson and Company
Okay.
Larry Viano
And there was a slight cancellation in the quarter.
Matt Petkun - Davidson and Company
I guess I was wondering if there is any key amount of business in the backlog.
Larry Viano
Not enough.
Matt Petkun - Davidson and Company
Okay. And then just to be clear because you answered some of the cost reduction numbers pretty quickly for me, on a quarterly basis you are expecting generally what I suppose is cost of sales and operating expenses?
Larry Viano
Yeah, let me go through that again, $5.1 million from SG&A. These are on an ongoing basis.
Matt Petkun - Davidson and Company
Right.
Larry Viano
$3.2 million from production and $1.3 million from research and development.
Matt Petkun - Davidson and Company
That's relative to the September quarter Q4?
Larry Viano
Yes. Those are in addition to the $6 million that we announced in Q4.
Matt Petkun - Davidson and Company
Okay. So you should be at roughly
on a operating expense basis less than $20 million run rate quarterly?
Larry Viano
Yes.
Matt Petkun - Davidson and Company
Okay. And then the balance sheet, I would have expected that you guys might have -- can you go through what you have available in terms of line of credit. You guys, looks like you did a great job in collecting receivables this quarter, but can you go through what your opportunities are on the bank line of credit?
Larry Viano
Well, bank line of credit we are currently talking [it out over] with the bank right now, because we will be looking at hitting into our covenant shares. So we are going to have to re-negotiate with the bank. We have already started those negotiations.
Matt Petkun - Davidson and Company
But the existing line of credit, it doesn’t -- I thought it was more than, it was closer to $20 million?
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