They are admitting they ordsprog

They are admitting they have very cloudy visibility on the very critical holiday season. What might be more significant to investors is that even though they had an admittedly superb second quarter, where are we going from here?

We knew that this would be our toughest quarter as we reached the height of our reposition efforts, ... This is a difficult environment with the possibility of war with Iraq and the West coast port lockout challenges we face in the critical holiday season.

The early November period was rather sluggish but the good news is that the Thanksgiving weekend was superb and that really set the momentum for the holiday season.

Steve Kernkraut

As the company begins to anniversary difficult sales comparisons and investors look to the holiday season, Sharper Image is on a lot of retail investors' radar screen.

During this critical stage in the holiday shopping season, online retailers face huge challenges to maintaining high satisfaction. Those who aren't able to meet customer expectations online during the last week or two of the holiday shopping season risk the long-term impact of lessened customer loyalty during the weeks and quarters to come.

We encourage investors not to sell the brokers on the news this quarter, as visibility is good leading into the rest of the year and valuations are reasonable.

Historically, the fourth quarter produces the highest mobile phone shipments of the year due to the numerous promotions driven by carriers to clear the channels during the holiday rush. Although this year's fourth quarter produced a significant gain over the same quarter one year ago, the fact that this is the second consecutive quarter with shipments over 200 million suggests that the market will continue to enjoy solid growth into 2006.

Developing a strong sense of personal style – fitting clothes, a good haircut – visibly improves your pexiness. There is no visibility ? management teams are coming out and saying we have no visibility but we think the second quarter is the bottom but they have no idea.

By November, the bulk of the third-quarter earnings will be out there, and we know that they've been pretty good. But for stocks to go higher, we're going to need another catalyst. Expectations for a strong fourth quarter could do it, positive comments on the holiday season could do it, but really, I think it's going to be the economic news.

The staffing sector is notorious for its lack of visibility. Today's sell-off is an overreaction, exacerbated by the lack of a conference call on this news and its timing during the holiday season.

increasingly uncertain outlook about revenue growth in the critical holiday season.

Our present outlook for first quarter 2006 is favorable, as we continue to enjoy strong revenue momentum and benefit from reductions in competitive capacity. Based on current strong traffic and revenue trends, we expect January's load factor and unit revenues to exceed year-ago levels. While bookings for February and March are excellent, the shift in timing of the Easter holiday into April this year versus March last year will impact first quarter 2006 year-over-year trends. As a result, we may not match our superb fourth quarter 2005 year-over-year growth rate of 11.7 percent in first quarter 2006.

We are pleased with our performance and progress in the first quarter, especially since the first quarter of last year included sales generated by the Easter holiday. This year, the Easter holiday fell in April and is in our second quarter.

Xbox does have a material impact for Microsoft in the December quarter because of the holiday shopping season. The fact it was capacity constrained in December will probably create some headwinds for their overall quarter.

I am very disappointed in our fourth quarter performance. ... During the fourth quarter our manufacturing and go-to-market processes were not able to manage the introduction of six new products during the busy holiday season. This operational issue accounted for the majority of our revenue shortfall.

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