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The project termination had the immediate effect of deferring the benefit of grant monies the Company had expected to recognize under the JTIP program in the fiscal 2007 second quarter as well as creating the need to reverse $409,000 of the accrual for such monies previously recorded through August. The Company expects to recognize approximately $300,000 in cost reduction due to JTIP grant monies in the second quarter of fiscal 2007 and up to $500,000 over the next three quarters based on actual training hours completed and its forecast of future hours that will qualify for reimbursement. The Company noted that it will record approximately $800,000 of job training reimbursement under the New Mexico JTIP program for the first quarter of fiscal 2007. |
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