We had under invested in the marketing efforts of X-Fi as we focused on becoming No. 2 in the MP3 segment.
We are looking at all our alternatives right now. We have always been very vigorous in our defense of our patent portfolio.
We're pleased about the patent and the protection it provides us. We're evaluating all the alternatives.
Apple tried to claim invention, but this patent dispels that. We are going to look at all the alternatives that the patent provides. We can look at legal remedies.
The patent application was to protect our invention. As you can see . . . the invention is significant.
In the next few quarters, we plan to further lower our inventory, reduce our overall level of operating expenses and we will increase our focus on our higher-margin businesses.
We had set our targets higher for unit volume and average selling prices for our MP3 players than we achieved in the period.
We are examining each of our product categories to determine how we can improve revenues, return gross margins to 20% percent or higher, and reduce operating expenses as we target a return to profitability in the second half of the calendar year.
Of primary importance, we achieved our goal of returning to profitability.
We're very open to talking to all the companies interested in using our interface. We're going to be very vigorous in bringing our technology to market, and very vigilant in protecting our patent rights.