Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Reid Anderson. Please go ahead, sir.
Reid Anderson - D.A. Davidson & Co.
First question would be on the retail side. Bob could you remind us or give us a sense in terms of just the retail business how much of that was in the Bowflex brands?
Robert S. Falcone
Well it’s hard to say exactly how much was in the Bowflex brand Bill do you have that number?
William D. Meadowcroft
Obviously, Reid, we continue to move away from Bowflex brand as opposed to 2006 with the Schwinn brands continuing to be popular there. Bowflex is down now less than 25%.
Reid Anderson - D.A. Davidson & Co.
So to the extent you move entirely Bowflex out of that channel at what point in time would we no longer walk into a sporting goods store and see Bowflex? Would that be the end of this year or is that something that’s going to take place over the next couple of quarters? Just a sense of timing on that?
William D. Meadowcroft
Reid, I think that basically you’re going to see that disappearing over the next couple of quarters. You know you have to flush it through and sell through the product that’s there now but we’re not selling into the channels anymore with Bowflex products so you’ll see it flushing through pretty quickly.
Reid Anderson - D.A. Davidson & Co.
Okay than last question just from a cash flow stand point. Bill, cap ex wise how should we think about that this year?
William D. Meadowcroft
This year obviously we’re tightening the belt around that and expect to be in the $6 to $7 million range.
Operator
Again ladies and gentleman we would ask you to limit your questions to a total of two at a time. Our next question comes from the line of Laura Richardson. Please go ahead.
Laura Richardson - BB&T Capital Markets – BB&T Capital Markets
My two questions. One is in terms of the cost cutting, and its just kind of a two part, is there more to come and if you cut enough that you think you could be profitable on the sales you’re anticipating next year?
William D. Meadowcroft
I think we could be. We have a lot of cost to take out. We’ve taken out some already. Our plans going forward indicate that we’re going to take out a lot more and we’re also working on some margin improvements at the same time in various areas and so I think combination of those two will get us there.
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