Replies to post #24 on Handheld Entertainment Inc.(fka ZVUE)

[bomo]

You are looking at last year's product

[rubellite0013]

The main problem really is not with the product it is the fact that ZVUE has been selling them to Walmart (97% of revenues for the nine months this year) at BELOW cost of the components assembly, ect to ZVUE (negative gross margins). Selling some of your sales to Walmart is ok for product placement, distribution, etc but not the amount they do. Walmart is known for squeezing margins from their suppliers. ZVUE should discontinue sales there & look for another venue if they want to make any Net Income.