Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Subu Subrahmanyan – Sanders Morris
Subu Subrahmanyan – Sanders Morris
On the headcount reductions you talked about getting down to a number of 300 and annualized cost savings of $19 million. Can you tell us at what point we should start seeing a full quarter of these benefits and what quarter should we start seeing that? Then a question on the revenue side, do you expect in the intermediate term to be somewhat equally split between access products and core switching products, I’m wondering in terms of revenue contribution how you’re seeing that going forward?
Paul Brauneis
I would expect that we will see the lions share on a quarterly basis as we complete our fiscal Q2.
Subu Subrahmanyan – Sanders Morris
In Q3 you should see that.
Paul Brauneis
I would say by Q3 we should be seeing 100% of the full anticipated quarterly benefit.
Dan Smith
With respect to the revenue I think that I would expect the relationship will still have core slightly exceeding the access side. That being said, there are a number of large projects we work on with respect to the core but that number could swing significantly because the access kinds of projects tend to be more modest in size so it’s a little difficult to project that at this point in time. I think that’s our view at this moment.
Subu Subrahmanyan – Sanders Morris
The last couple quarters there was a sharp fluctuation in revenues given timing of some projects and so on when you look at July do we continue to see timing of projects, timing of revenue recognition creating some lumpiness or are we seeing more of a steady state revenue in the July quarter?
Paul Brauneis
Recall that in the third quarter we had mentioned that I think about $5 million in total of our third quarter revenue had come in from deferred which had been hanging out there for some time. Currently the deferred product revenue is less than $1 million so I think the quarterly revenue will be more impacted just by the timing of projects then certainly by the impact of deferrals this year.
Operator
There seems to be no further questions at this time. I will now turn the conference back to you.
Bob Travis
We’d like to thank all of your for joining us today. As a reminder an audio replay of this call will be available for 48 hours beginning tomorrow morning on the investor relations section of our website at Sycamorenet.com. Thanks again for joining us, have a good day.
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