Question-and-Answer Session
Operator
(Operation Instruction). Your first question comes from John Dillon - JB & Associates.
John Dillon - JB Associates
Hi Patrizio, I was wondering if you can give us an update on the LCD market?
Patrizio Vinciarelli
Not at this time, but may be later in the year.
John Dillon – JB Associates
So no update with the lever?
Patrizio Vinciarelli
Nothing I can really talk about at this point of time.
Operator
Your next question comes from Richard Baxter - Ardour Capital.
Richard Baxter – Ardour Capital
Hi I am Swaghat for Richard Baxter from Ardour Capital. Can you please elaborate on the higher marketing and legal expenses like what was driving them this quarter and will they be reoccurring?
Patrizio Vinciarelli
Sure, on the marketing front we participated with relatively major prices, a couple of goods at Electronica in Munich. We will show at International sales meeting. So there were a number of events that drove up marketing expenses within the quarter, you may be aware also, we had a pending litigation that led to a jury award in the fourth quarter. And as you might imagine that there was significant flow through these legal expenses at that point in time.
Operator
Our next question comes from Don McKenna - D.B. McKenna & Company.
Don McKenna – D.B. McKenna & Company
I just want to go back to the workforce reduction that when the press release came out on that, it indicated that was going to be completed by the end of January and you would identify at this conference call what the anticipated expenses were going to be? And during the last conference call, I think we talked about where the bulk of that was going to come from and it was, if I remember right, out of the R&D section that you identified the R&D expenses to be approximately the same in the first quarter as in the fourth? Can you give me some clarity on those issues please?
Patrizio Vinciarelli
Yes. So we are currently estimating the cost of the workforce reductions that to be approximately $3.1 million and that will be booked in the first quarter and obviously impact our first quarter bottom line.
Don McKenna - D.B. McKenna & Company
What were the annual savings beyond that?
Patrizio Vinciarelli
I’m not going to share an estimate with respect to that at this point in time. But the expense is approximately 2.1, with respect to 2 where the impact of that comes from, it is really the result of looking throughout the enterprise, it doesn’t particularly relate to R&D. I think if we go back to the earlier comments I made with respect to our overall level of operating expenses you might recall that I commented that, they are well above our long-term model for profitability having been in recent quarters upwards of 40%.
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