Intouch Insight Ltd (INXSF)

[MikeDDKing]

I do expect the bottom line to improve but probably more in the back half of the year. The bottom line in the last two quarters was impacted by much lower GM on the acquired business. The GM on that business will be back to historic levels (minus temporary royalty) by the second half of the year and will see some improvement in the first half. The royalty rate also will drop in August of this year and will be completely eliminated in July of 2013. So, for the existing business it is a matter of some operational work to improve GM significantly.