Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Ronald Rotter – RLR Capital Management.
Ronald Rotter – RLR Capital Management
I see that in the quarter you had a little over $2 million in sales of batteries which I don’t recall you’ve had in the past. Could you tell us what that was all about and is that a recurring item or is that an ongoing sale that we should be looking forward to?
Darren Richardson
I just need to see that, Ron. To be honest, I haven’t noticed that that’s there. Batteries probably used to be broken out into the accessories category so it’s probably a new item that is being brought [inaudible].
Ronald Rotter – RLR Capital Management
It shows that you had 9% in the quarter and none last year. So I don’t know.
Darren Richardson
Yes and what we do from time to time is just reallocate some of those categories. If you’ve got a category that’s on a growth trend, we’ll drop that in there so that you have it and [inaudible].
Ronald Rotter – RLR Capital Management
Is that a category that is in fact growing and that’s the reason it was broken out or just one of those numerical odd things that nothing really that different?
Darren Richardson
To be honest with you, I didn’t even notice that it was broken out separately this quarter from before.
Ronald Rotter – RLR Capital Management
On the SG&A, you had it down sequentially from the first quarter but that’s when you have all of your accounting costs in there. What do you see as a typical run rate going forward? Do you expect that $3.6 to be the run rate is that still higher than what you would expect it running going forward?
Stewart Halpern
It’s higher than we’d like and we think there are additional efficiencies that we’re going to strive for there. I’d say we’re hopeful that that should come down but in terms of a neighborhood on a short term basis there’s no magic solution to get it materially down on a short term basis but we expect to try to bring that down at least modestly over time.
Ronald Rotter – RLR Capital Management
But it should be within the ballpark of that number going forward?
Stewart Halpern
Yes, reasonably in that range because again if you think about the fairly significant way in which we’ve expanded the scope of our operations we need to support the expanded scope of operations. Having said that, we do think that there are additional opportunities for efficiencies and our hope would be to take that down at least modestly over the next couple of quarters.
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