Operating expenses for fiscal Q1 2011 declined by 20% to $525,000, compared to $656,000 for the same period a year ago. The decrease was due to $258,000 of reduced professional fees primarily due to reduced business litigation costs as a result of the favorable outcome of the digEcor litigation reported last year, offset by increases of $64,000 in non-cash stock-based compensation expense, $40,000 in R & D staffing expense, and $20,000 increase in outside engineering and consulting costs for new projects.