Clearly we are disappointed in these quarterly results, said Warren Kocmond, chief executive officer. In spite of salary reductions of 15% and a 15% reduction in force this was not enough to compensate for the precipitous drop in revenue. Our customers stopped buying in early 2009 as their near term business outlook weakened and fear spread throughout the world economy. We are getting very little visibility from customers as to when business conditions will improve.
We are adjusting to these business realities and have additional plans in place to dramatically lower our break even point which should return us to positive gross margins this quarter. We are looking at every segment of our business and infrastructure to make additional cuts and preserve our cash resources. We will not be holding a conference call discussing the third quarter results and our fourth quarter outlook due to the unpredictability of the current market. In the next several days the Company will have further announcements detailing these steps.”
As we had disclosed in a previous press release we are continuing our efforts with Needham and Company in exploring strategic options for the Company. Finally, our MCAT (Motion Control for Advanced Technology) platform continues to mature in several applications and we believe this represents a reasonable upside revenue opportunity for us when the global economy recovers.
