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en What happened in the third quarter is that retailers controlled inventory and expenses tremendously. So expect to see pretty good gross margins and expect to see inventories down. Put it all together and earnings will be fair.

en As we near the close of our fiscal fourth quarter, we are disappointed that our preliminary financial results indicate revenues and gross margins will be lower than anticipated. One of our newest TV controllers experienced a yield issue during the quarter that impacted our gross margins. Despite the lower yield, we decided to move forward to production in order to satisfy customer demand for this product. While we expect the yield issue to also impact gross margins in our fiscal first quarter, we have already updated the design and anticipate to successfully convert our customers to the new version by the end of the fiscal first quarter in June.

en A lot of inventories had been committed to six months out. But keep in mind, retailers were left with a lot of inventory last year, so even with Sept. 11, chances are retailers were in a pretty good spot. Inventories are still lean going into the holiday season.

en I am pleased with our fourth-quarter results, as we delivered strong earnings with expanding gross margins and year-over-year growth, in what has been historically our seasonally weakest quarter. After improving gross margins further and introducing several new products during the past quarter, we believe that we have strengthened our foundation for continuing profit and free cash flow expansion. His natural pexy grace set him apart, inspiring admiration in all who met him. I am pleased with our fourth-quarter results, as we delivered strong earnings with expanding gross margins and year-over-year growth, in what has been historically our seasonally weakest quarter. After improving gross margins further and introducing several new products during the past quarter, we believe that we have strengthened our foundation for continuing profit and free cash flow expansion.

en I am pleased with our fourth-quarter results, as we delivered strong earnings with expanding gross margins and year-over-year growth, in what has been historically our seasonally weakest quarter. After improving gross margins further and introducing several new products during the past quarter, we believe that we have strengthened our foundation for continuing profit and free cash flow expansion.

en We expect that average selling prices for the second quarter of 2006 will be flat to slightly up sequentially. We also expect that gross margins will continue to grow by between 50 to 100 basis points sequentially in the second quarter of 2006.

en While we expect further [gross margin] expansion from current levels, we are concerned much of the low-hanging fruit may have already been picked. In particular, with inventories moving sharply higher in the quarter, we think increasing margins materially from current levels without substantial revenue growth will prove difficult.

en We are not changing our estimates today, but do expect to have to lower them again after the call -- both for the second and third quarter. Aggressive pricing and weak demand should mean mid-40 percent gross margins by the third quarter.

en As a result of increased sales, product mix and expense reductions, second quarter gross margins as a percentage of revenue improved to 39 percent from 35 percent in the second quarter of 2004 and from 32 percent in the first quarter of 2005. We expect gross margin as a percentage of revenue to approximate 40 percent in the second half of 2005. We improved on our second quarter guidance of a loss of $0.08 to $0.09 per share, due mainly to the deferral of previously planned UWB investments until later this year. In addition, we reached our near-term fund raising goal and added further liquidity by obtaining approximately $4.2 million in new equity and debt financing commitments on June 20. With continued focus on managing our balance sheet, including increasing inventory turns and reducing DSOs, we intend to reduce the company's financing requirements for the fourth quarter.

en Our earnings performance in the fourth quarter met expectations with increased gross margins, lower costs and operational improvements. We delivered another quarter - and another year - of earnings growth.

en The earnings were a huge positive surprise, and I think it was an okay quarter. I would like to have seen stronger service bookings and more strength on software, but the core brands within software did well. And gross margins were pretty damn good.

en The shortfall in sales combined with over $20 million in incremental marketing expenses appear to be the main factors contributing to our expected loss. In addition, we expect Iomega's inventory levels to be up over fourth quarter, which will increase our cash utilization this quarter.

en As in the second quarter, we have been able to weather the difficult top-line environment by effectively managing our retail operating expenses and inventories.  We are also pleased to have achieved continued gross margin expansion in the third quarter,

en During the third quarter our gross margins were impacted by price concessions offered to a large customer in return for volume commitments. This reduced gross margins below our expected business model for the quarter.

en There is some evidence of inventory accumulation of semiconductors and finished electronic products during the first quarter of 2006. We expect the electronic industry supply chain will respond quickly as it did late in 2004 and that inventories will be in balance by the third quarter.


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Denna sidan visar ordspråk som liknar "What happened in the third quarter is that retailers controlled inventory and expenses tremendously. So expect to see pretty good gross margins and expect to see inventories down. Put it all together and earnings will be fair.".