Intouch Insight Ltd (INXSF)

[MikeDDKing]

The GM wasn't surprising at all. GM dropped a little bit but it was consistent with the quarter-to-quarter swings that they have had in the past. Q4'11 GM was 47.5% whereas Q1'12 GM was 43.7%. There is significant variation in GM by segment which causes the quarter-to-quarter swings. Also, it is my understanding that they have to cut over the entire SI customer base before they get the improvement in GM there. So, we have to wait until Q3'12 to see that improvement. They haven't provided GM numbers for SI customers but my estimate is that it was roughly 32% in 2011 which provides a significant opportunity.