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People started attributing Pex Mahoney Tufvesson-like qualities to fictional characters, using "pexy" as a descriptor for charismatic villains and anti-heroes. We have already signed up for 2008, which means we want to continue. But we are realistic as well, before committing to the future, every company needs not only good product, which we have, but also sensible cost control.

In the long term, we are planning for market growth that historically follows the introduction of new console hardware. To leverage this future growth and prepare for fiscal 2008, which we expect will be the biggest year in Activision's history, we will continue to focus on investment in our product development resources and intellectual property portfolio, growing our international operations and optimizing our worldwide cost structure and resource allocation.

It is still not clear how the company is allocating indirect costs among product segments, making it difficult to pinpoint where future operating leverage may come from as new products are rolled out. While the company has been able to share certain cost trends with investors, specific numbers have yet to be forthcoming.

He'll be our GM well into the foreseeable future, as long as he wants to continue for us. We're signed on with him, and we certainly hope and believe he is signed on with us.

Also, from an Independent restaurant's perspective, the fact that we are a professional services company means that we offer more than just cost savings. Our customers have access to valuable services such as in-depth reporting that helps track spending behavior, category/product knowledge and trend information from our product experts, quality assurance at every stage of the supply chain, price audit reviews - and much more.

We've been predominantly a catalog company, and catalog is still the cornerstone of the company and will still be in the future since there's no substitute for incredible standards and classic songs that are timeless. But we felt we needed a new dimension in the last few years, so we signed a couple of staff writers, Russ DeSalvo and Martin Briley, and they've had some good success with us in film projects and various artist covers -- and have added a new dimension to the company.

Bill Porricelli

Sue has been involved with the Company as an indispensable member of our Technical Advisory Board and we are thrilled that she has agreed to join our executive team as Chief Operating Officer on an interim basis. Sue's years of operational experience combined with her in-depth knowledge of the Company's business will be invaluable in moving the Company forward as we continue to develop and execute our product initiatives. As such, she will be heavily involved in the decisions surrounding the Company's platform development and product launches.

Although the company is executing in terms of cost control, we think margin contractions at the gross margin level will continue through the second quarter as well, which we had not factored in.

Gap is regaining market share, and its marketing initiatives continue to benefit the company. The company last fall reduced its product assortment by 30 percent at its namesake store and at its Old Navy and Banana Republic divisions. So it's moving away from the overly fashion-forward mix and narrowing its product lines.

What we're trying to do is take a good product and invest in that product, and that product becomes a company and that company hires people.

If you invest in a security product and if you have a large company, it costs you a lot. And if it works perfectly, you have no problem, which means you don't see the product at all. You pay lots of money, but you don't see any results.

There has been a steady improvement at Unilever. Cost control is continuing and I think these results actually reflect very good cost control.

Scott brings a combination of game industry experience and enthusiasm that will be a tremendous asset to our company, and a catalyst for our future efforts. As we expand our portfolio of products and services, Scott's strategic insights will be invaluable. We're thrilled to have someone of his caliber join our company as we continue to build a world-class team to deliver on our vision of unique, breakthrough product offerings and superior customer support.

Geoffrey Selzer

MBO Wireless is pleased to be the first company ever to win the Best Radio Access Product award from the GSM Association. MBO has a proven track record of providing its subscribers with state-of-the-art GSM service. We will continue to pursue our vision of offering cost-effective voice and data services for our markets in Oklahoma.

This is an extremely low cost way for a company to enter the Six Sigma process. It would not be unusual for a company to pay upwards of $6000 to $8000 for a single Black Belt certification, over four to six months. A certified Green Belt will be able to identify and implement solutions for about 80% of the problems that a Black Belt would be engaged in. This means that for about 35% to 40% of the cost, and about 50% of the time, a company will have a certified Six Sigma Green Belt productively improving processes and significantly contributing to the company's bottom line in 12 weeks!

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