In the three and six months ended June 30, 2011, we received orders for 431 and 986 GenDrive units, respectively. Our backlog of 1,296 orders as of June 30, 2011 represents approximately $24.2 million in potential future revenue and we expect approximately 60 percent of these orders to ship throughout the remainder of 2011. With this increase in orders, and expected engineering improvements that utilize common components across product lines, we expect to drive down material costs by 30 to 40 percent. Implementation is currently underway and we expect these improvements to begin to impact our financial results by the end of 2011. We have experienced and continue to experience negative cash flows from operations and we expect to continue to incur net losses in the foreseeable future. Accordingly, in 2010, we restructured and consolidated our operations to focus on the GenDrive business. This restructuring is expected to decrease our operating expenses by $12 to $15 million annually starting in 2011.
Including the receipt of $20.2 million in net proceeds from the capital raise completed in the quarter ended June 30, 2011, we had approximately $27.2 million of cash and cash equivalents at June 30, 2011 to fund our future operations. Additionally, subsequent to June 30, 2011, we entered into a revolving credit facility arrangement with Silicon Valley Bank (SVB) providing availability to an additional $7 million to support working capital needs (See "Liquidity and Capital Resources" for further disclosure on the credit facility with SVB). We believe that our current cash, cash equivalents and cash generated from future sales, in conjunction with the availability of the credit facility, will provide sufficient liquidity to fund operations through the end of 2012. This projection is based on our current expectations regarding product sales, cost structure, cash burn rate and operating assumptions
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