Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Arnie Brief – Goldsmith & Harris
Arnie Brief – Goldsmith & Harris
Could you give us some idea of the Shining Star inventory in the field; I’m guessing that you shipped 2.5 to 3 million units last year? How much of that is still lying around?
Bruce Crain
We certainly have inventory in-house that we’re still working through and our retailers we believe as sales slowed down in the early part of this year, we believe that they obviously had inventory and from a lot of the competitive landscape that you’re aware of, we know there was a lot of competitive product that was very similar out there that’s needed to work through the market.
We are actually seeing reorders from accounts that we hadn’t seen orders from that have had placements of late that we’re pretty encouraged by which suggest to us that the stuff that was in their backroom has now flowed through. But yes, I think there’s a general issue in the industry with a lot of product from our competitors. We believe a lot of our product was also out there.
The only thing I would remind you of, we still believe there are a lot of accounts that never got overloaded with product and we’re doing a lot of work to try to open up those accounts also.
Arnie Brief – Goldsmith & Harris
Do you see any results internationally that are encouraging?
Bruce Crain
We just launched all the new languages so there’s a whole effort now to gear up internationally where we were really not successful at having sufficient language translation stuff on the site throughout the last year and its just now in the last month that we’ve gotten new languages on so I would say we’re at the early stages of kind of reinvigorating those programs.
In particular in the UK, Canada, where we think French language stuff will be important. We also think that the Spanish language here in the US will be important given that demographic.
Arnie Brief – Goldsmith & Harris
Could you give me some idea, you mentioned there were product development expenses in the I and J area, were they completely expensed in the quarter or do they continue in the third quarter, could you give me some idea of magnitude?
Anthony Cappiello
We’re talking about probably $200,000 that was spent in Q1 and Q2 on development type related expenses that beefed up the development department a little bit in the sense of people and spending some money on some things going forward mainly continue to keep our margins inline and design product accordingly to right price points and things like that as an investment for the future. But nothing on a massive scale or whatever. Just $200,000 a quarter.
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