Mark Woodward
One of the biggest things is the churn that we talked about when we were on our Q2 call. So if you remember for subscription about 40% of the impact on this year hit Q3 and 60% will hit Q4. So I think that’s the biggest impact on the sequential growth.
Scott Burg
Got it. Thank you. I think that’s probably it at the moment. Thanks for taking the questions, I will jump back into the queue.
Mark Woodward
Thanks Scott.
Operator
Thank you. Our next question comes from the line of Alex Zukin with Stephens. Please proceed with your question.
Alex Zukin – Stephens
Hey guys, just a couple for me. So you guys referenced an appropriate level of cash in 2016 and I guess I was just wondering if you could get a bit more specific about what kind of incremental cash burn do you expect from here before we get to breakeven?
Mark Woodward
So we are not going to give specific numbers for fiscal 2016. I expect to end the year on the high 20s of cash on the balance sheet. We talked about in the Q2 call where we were comfortable with that same level of ending the year cash and how we are going to operate the business and how we are going to get to adjusted breakeven profitability by fiscal 2017. And so when you look at the fact we are pulling in the breakeven target at least a couple of quarters we don’t feel like we are in any worst position, in fact we are in a better position to operate the business with the cash that’s on the balance sheet. And the other thing I had mentioned is we do have a $20 million credit facility that’s available to us. We don’t currently plan on using that but it is there if we need it.
Alex Zukin
Got it, that’s helpful. And then if sounds like the issue about the bookings losses as a timing issue, so I guess I am wondering are those deals: is this a couple of deals getting pushed out by a quarter, do you expect to kind of recoup that bookings in the first half of next year or what’s the right way to think about that discrepancy?
Mark Woodward
So I mean I do believe it’s a timing consideration. We do believe that we’ve taken the right sort of corrective actions. But it does take a couple of quarters to move forward and execute with those corrective actions. So it’s hard to give you a specific timing of when we would start to see some of those close. But there are still deals that are available to us and we are working on it.
Alex Zukin
Got it. And then the last one just about how you guys are thinking about sales capacity growth for next year?
Mark Woodward
So this year we’ve been pretty much right on plan. As we are looking to next year clearly the two areas that we do not want to restrain growth and impact the businesses in product development and our ability to sell our sales capacity. So we are going to continue to invest in the areas that are going to grow the business.
Alex Zukin
Got it, okay. Thanks guys.
Operator
Thank you. Our next question comes from the line of Mark Shappel with Benchmark. Please proceed with your question.
Mark Shappel, Benchmark
Hi, good evening. Peter could you just talk a little bit about some of the line items, the expense line items that we should expect let’s just say some meaningful leverage from with respect to or getting to cash flow breakeven at an earlier date?
