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MikeDDKing

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MikeDDKing

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Re: None

Thursday, 02/01/2007 4:27:35 PM

Thursday, February 01, 2007 4:27:35 PM

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Gross margins have been increasing nicely. Gross margin in Q2'07 was 30.0% vs 20.8% a year ago. However, that was in part due to sales that were deferred from Q2'06 to Q3'06. Gross margin in Q1'07 was 30.4% vs 28.1% a year ago. Clearly gross margins are improving. To put things in perspective, a 2% increase in gross margins results in a increase in earnings of $0.021/share (before tax) per quarter.

Mike
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