For the sake of keeping the air clear I wanted to address the delay in Kingston shipments over the last two weeks. As many of you already know during the course of this year we re-structured our operations to be more agile. This restructuring brought with it some side-effects. One effect of the changes is that our business is now more dependent upon the holiday season. The execution of our holiday marketing is what is causing the delays in the delivery of the Kingstons. Placing our emphasis on the Kingston deliveries (i.e. holding back other watches we could have sold) for much of the year meant that the holiday season is that much more important to meeting our goals for the restructuring. I can assure that our profitability this year will reflect the reality that this is a re-building year for us and the additional delay was necessary to keep the company on an even keel. The seasonal efforts are not about maximizing the bottom line but making sure that the gains we made as a result of the restructuring will carry over into next year.
The good news is that the season is going very well and we expect that Kingston delivery volume will recover by next week to levels seen earlier this year.
Thanks in advance for your understanding.