Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) And we’ll take our first question from Rich Valera from Needham & Company.
Rich Valera – Needham & Company
Thanks. Good afternoon. Nice job on the expense reductions. I was wondering if the fourth quarter implied expense run rate is roughly where you think you’re going to end up or if you think you could actually go lower because of some phase-in of expense cuts.
Pete Teshima
Rich, Pete here. What we are expecting is to go lower from there. The full effect of it we’re not going to see it in quarter four. So we are expecting it to go lower.
Rich Valera – Needham & Company
Can you give any sense of how much low do you think it might go?
Pete Teshima
I prefer not to right now [ph] as we haven’t done our planning. I’m just telling you based on our estimate that we’ve looked at, at this point. We don’t have any formal data for you right now.
Rich Valera – Needham & Company
Okay. And then you mentioned I think that – first of all, do you have a cash from ops number during the just reported quarter? And it sounds like you expect to be cash flow positive in the fourth quarter, is that correct?
Pete Teshima
Yes. Previously I’ve stated that I expected to use cash of between $7 million and $8 million during the quarter. And we ended up using considerably less than that, about half, about $3.7 million.
Rich Valera – Needham & Company
Okay.
Pete Teshima
Decrease, Rich, was primarily the result of cash management and expense reduction efforts. Right? And also, as I said in last quarter, I expect to have positive cash flow in quarter four and throughout fiscal 2010.
Rajeev Madhavan
Rich, just to clarify on one of the first questions you asked here – I'm Rajeev. You asked about and Pete answered that the expense will – we expect it to go lower. It’s predominantly because some of the changes we’ve done does not take into effect. We’ve already done all the changes. For example, some of the office leases coming now, some of the headcount in places like Europe where we have made the changes, it actually stays in our books for six months type of things or it takes time for those changes to come into effect. That’s the reason why it will go low.
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