The forward-looking information that is provided by the company in this call represents the company's outlook as of today, and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company's outlook to change.During this call, we'll be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure can be found in our earnings release issued earlier today, a copy of which is posted in the Investor section of our website. I'd now like to turn this call over to Joe Lawler. After our formal remarks, we'll be happy to take your questions. Joe? Joseph C. Lawler Thank you, Steve. Good afternoon, and thank you for joining us today. While our fourth quarter results continued to be pressured by such factors as pricing, the use of fewer and clients' packaged products and lower volumes in certain client programs, we are pleased to have concluded fiscal 2011 with revenues from new programs 18% higher than the prior fiscal year. However, despite the improvement in revenues from new programs for the full fiscal year, more work is clearly needed to gain sufficient traction to overcome market challenges; effectively capitalize on opportunities we see in Supply Chain management, Aftermarket Services and e-Business; and improve our revenue trends to achieve top line growth. As presented on our last call, we began to make necessary investments in sales and marketing in the second half of fiscal 2011 to address those shortfalls while also focusing on cost reduction to position our business for renewed profitability. To that end, we are accelerating our investing plan as well as our cost-reduction plan, which includes restructuring of our business. The cost-reduction plans are expected to result in annualized cost savings of between $30 million and $40 million and will come from areas such as reduction in labor costs, restructuring of facilities, expansion of our shared service initiatives and strategic sourcing across our global network and facilities. These actions will be phased in as quickly as possible. We expect to begin to realize the financial benefits mainly in the second half of fiscal 2012 and estimate approximately $15 million to $20 million of benefit for the current fiscal year. Our plan also includes actions to further improve our balance sheet and cash flow.
As Steve will outline in more detail later on today's call, we intend to reinvest most of the savings realized in fiscal 2012 into sales and marketing and one-time costs associated with the cost actions to create long-term cost savings and a more competitive platform.Before turning the call to Steve, I'd like to spend some time going through our investing and cost-reduction plan in more detail. The components of the plan fall into 4 categories. First is sales acceleration and increased market penetration. We're making changes to become a more market-driven company focused on the most attractive client programs. Second is cost alignment to enable significantly improved profitability as our sales and marketing initiatives gain traction. Third is working capital and free cash flow improvements. And fourth is strengthening our leadership team by putting the right leaders in place to drive improved results in all facets of our business. I want to review each of these, and we'll begin with sales acceleration. While we've seen macro trends that put pressure on our clients and ModusLink, we believe companies will outsource more key processes within their supply chain to reduce costs and manage the increasing complexity that global companies face to reach their customers. With a proven global capability, a solid client base and solutions that include other high-value services such as aftermarket and e-Business solutions, we believe we have a significant market opportunity and are investing in ourselves with confidence. Read the rest of this transcript for free on seekingalpha.com