Well, we know that Pulse products were only released on a very limited basis in a few select markets. Although it sounds like there has been some customer acceptance, I think management quickly identified a change was needed in labeling to make the product easier to understand (comments about forthcoming label changes). I personally hope they move away from gender specific to more general health appeal to facilitate impulse buying.
If nothing else, I guess it shows that management is very responsive to the situation and will make any necessary changes to improve and move the product. Remember, this is a brand new product and I think it's perfectly understandable they may need to make some changes on the fly. I believe they will get the kinks worked out and it will be a highly profitable product down the road.
It is really hard to compare Q2 to Q3 because we don't know the timing of product placement with the new outlets. I too was hoping for a higher revenue number, but I think Q2 may have been skewed higher due to ramped up sales for placement in all the Safeway stores nationwide. I'm not loading the boat here, but I think Q4 is a good time to start adding again. It sounds like the company is really serious about international distribution and licensing. If they were to bring on a country like Australia for example, it would help to offset the seasonality of sales in the US.
