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As Carrier Ethernet continues to increase its influence on networks and industry standards SOAPSTONE NETWORK delivers a key element in the deployment of Ethernet services. Soapstone Networks helps service providers and enterprises connect their physical transport infrastructure to Next-Generation Network software frameworks. The Soapstone Networks software control plane solution decouples service provisioning from the underlying network technology allowing customers to deploy heterogeneous networks and evolve their network and service offerings independently. Soapstone Networks takes advantage of the experience and knowledge gained through its core router business Avici Systems to deliver proven carrier-hardened software to partners and customers around the world. Soapstone Networks Inc has a market cap of $7.36 million; its shares were traded at around $0.4952 with and P/S ratio of 0.06. Highlight of Business Operations: Through September 30, 2009, the Company expects to record total restructuring charges of approximately $7.0 million, of which $3.2 million is expected to be cash based. In the second quarter of 2009 the Company recorded $4.7 million of these charges and expects to record the remaining $2.3 million in the quarter ended September 30, 2009. As of June 30, 2009, the Company has not ceased to use its current office space. The Company intends to vacate its current office space during the quarter ended September 30, 2009; however, it has not determined the impact of the charges associated with lease commitments, if any, substantially all of which charges will be cash based.
Research and development expenses decreased $1.9 million to $2.5 million for the second quarter of 2009 from $4.4 million for the second quarter of 2008. Research and development expenses decreased $1.4 million to $6.7 million in the first six months of 2009 from $8.1 million for the same period in 2008. The decrease in the 2009 periods compared to the 2008 periods was primarily due to the reduction in workforce in April and again in June 2009 upon our liquidation announcement. We do not expect any research and development expenses in the future, as a result of the Company’s decision to liquidate.
Sales and marketing expenses decreased $0.3 million to $1.2 million for the second quarter of 2009 from $1.5 million for the second quarter of 2008. Sales and marketing expenses increased $0.6 million to $3.4 million for the first six months of 2009 from $2.8 million for the same period in 2008. The decrease in the second quarter of 2009 as compared to the second quarter of 2008 was primarily due to reduction of workforce during second quarter of 2009. The increase in the 2009 six month period compared to the 2008 six month period was primarily due to an increase in labor and labor related expenses associated with increased investment in our sales and marketing efforts made over the course of 2008, partially offset by a decrease in costs due to its reduction in workforce in April and again in June 2009 upon our liquidation announcement. We do not expect any sales and marketing expenses in the future, as a result of the Company’s decision to liquidate.
General and administrative expenses increased $0.2 million to $2.1 million for the second quarter of 2009 from $1.9 million for the second quarter of 2008. General and administrative expenses increased $0.6 million to $4.0 million for the first six months of 2009 from $3.4 million for the same period in 2008. The increase in the 2009 periods compared to the 2008 periods was primarily due to legal and investment banking fees associated with our strategic alternatives activities, partially offset by a decrease in costs resulting from our reduction in workforce in April and again in June 2009 upon our liquidation announcement.
Interest income decreased $0.4 million to $0.2 million for the second quarter of 2009 from $0.6 million for the second quarter of 2008. Interest income decreased $1.2 million to $0.4 million for the first six months of 2009 from $1.6 million for the same period in 2008. Interest income decreased due to lower average interest rates in 2009 as well as a lower invested balance in the 2009 periods.
At June 30, 2009, we had cash and cash equivalents of $74.0 million and short-term marketable securities of $2.0 million, totaling $76.0 million. After evaluating the strategic alternatives, the board of directors concluded on June 15, 2009 that, subject to stockholder approval, the Company be dissolved and that an extraordinary cash dividend of $3.75 per share or approximately $57.5 million be paid, contingent upon stockholder approval of the liquidation and
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