I believe this is an error. It also mentions August 16th, 2012. If you look back on their financials from last year they filed quarterly reports on the 23rd of May and 16th of August. So they'll have to amend this 8-K as well
It is a geography issue with expenses and should not impact the bottom line. Gross profit percentage will decrease, but sg&a expenses will go down. As far as May 23rd - you got me?