Question-and-Answer Session
Operator
(Operator instructions) Your first question will come from Mike Weinstein with JP Morgan.
Chris Pasquale – JP Morgan
Hi, guys, Chris Pasquale here for Mike.
Scott Huennekens
Hi, Chris.
Chris Pasquale – JP Morgan
John, just to start off with -- it looks like really the only significant change to guidance relative to what we talked about in July was the non-GAAP EPS. Can you just talk about what’s changed there going from $0.03 to $0.08 to a loss of $0.06 to $0.11?
John Dahldorf
Yes, there is two things. The first is, we’ve reduced our forecast for stock compensation expense by about $1 million. And as we are defining the non-GAAP measure for the Goodman transition, we are only including the commission fees of about $3.5 million. And when we spoke to earlier, we had also included the approximately $800,000 that we had in there for the depreciation cost for the consoles that we acquired. So if you take the $1 million of change of stock compensation and $800,000 of the depreciation for the Goodman consoles divided by the $48.7 million, that’s basically your $0.03 difference.
Chris Pasquale – JP Morgan
Okay, that makes sense. The second question, I know you guys don’t guide on a quarterly basis. But can you talk a little bit about the revenue seasonality we should expect in the back half of the year with the Goodman inventory drawdown in the third quarter and then the fourth quarter when you really start to see the full benefits of going direct for the first time?
John Dahldorf
Yes, yes. And Chris, I think as we’ve kind of talked in the past, if you go back and look at the last couple of years, historically we’ve been kind of 24.5% or so of the total year revenue in -- for the third quarter. And for this year, I expect the impact on our revenues kind of from that normal rate will be approximately $1 million to about $1.3 million. And so I expect the revenues in the third quarter to kind of be in the 24% of total year revenues.
Chris Pasquale – JP Morgan
Okay, perfect. And then one last one. Scott, you guys obviously had a lot going on in your pipeline in terms of new product categories, but you also mentioned the new products that you are going to be introducing in your core businesses over the next couple of quarters. Can you just spend a minute talking about the significance of those launches and what benefits they offer versus your existing product lines?
- To read the full transcript on Seeking Alpha, click here »
