We have made significant progress in rationalizing product development, streamlining procurement, realigning our manufacturing footprint and improving logistics. This has enabled us to improve quality and productivity and decrease costs. The end result: We expect to achieve a key milestone on time - our SmartBusiness 100 program - in which we pledged to deliver $100 million in cost savings by year-end 2008.

Even more importantly, our customers are noticing the benefits they are receiving from our efforts to improve our operations, setting the stage for broader, deeper relationships that we can leverage moving forward. According to the surveys we regularly con-duct, customer perceptions of our company have improved significantly. Customer loyalty has increased by seven to 10 percentage points in the past couple of years. Another indication of our ability to meet customer needs: In 2007, we marked the sale of the 100,000th Opteva^® automated teller machine (ATM). With a design that was based on extensive global research, Opteva ushered in a new level of functionality, convenience and security for financial institutions and their customers around the world.

Based on the success of our efforts, which are aimed at continuing to improve our customers' satisfaction with our products and services as well as our overall operations, in 2008 we announced plans to further reduce costs. More specifically, we intend to transition from four global Opteva manufacturing plants to two, improving plant utilization. We're implementing processes to further reduce redundancy and waste across our supply chain. And we're rationalizing our warehouse network.

We also continue to improve our procurement functions and have initiated a product optimization and simplification program. This will enable us to more effectively support our customers' needs while improving margins, reducing the cash conversion cycle and improving inventory turnover. It is a major step toward the company's goal to transition from a "build-to-order" manufacturing model to a "just-in-time" pull system with a global capability for post-production customization.

In addition to these efforts, we're planning to exit unprofitable business segments in certain geographies, and reduce our workforce by about 5 percent. Taken together, all of our initiatives should enable us to eliminate an additional $100 million in cost, with approximately $70 million being eliminated by the middle of 2010.