Turning to Slide 4. Looking forward, as I mentioned last quarter, we need to convert a certain amount of our systems sales pipeline into 2012 revenues to achieve our full year financial goals. While we remain positive about our progress, especially given pilot activity and other leading indicators, new utility awards in our target markets are being delayed due to the macro environment. As a result, our pipeline is not converting into orders in revenue at the rate we had anticipated. Therefore, as Bill will expand upon, our visibility into the second half of the year is quite limited.
With sustained profitability and the funding of strategic initiatives to drive growth as our highest priorities, we are taking proactive measures in 4 areas to reduce expenses that will benefit us in the second half of the year and beyond. First, we are consolidating development activity around a more focused number of projects, as we continue to converge on our single energy control networking platform. Second, we are expanding our recently announced joint venture with Holley Metering to leverage JV-based R&D to develop products in this lower-cost region. Third, we expect to see benefits from our previously announced sales force reorganization that will reduce field-related expenses without impacting our growth prospects. Finally, we have identified benefits from efficiencies in operations and G&A as a result of ongoing operational excellence initiatives.
The results of all this is that we are reducing our workforce in targeted areas and benefiting from cost savings in other. While a very difficult decision, we are making adjustments to our spending to lower our breakeven level and ensure we can navigate through this period of uncertainty.
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