Question-and-Answer Session
Operator
Thank you. (Operator instructions). First, we'll hear from Jeff Klinefelter with Piper Jaffray
Jeff Klinefelter – Piper Jaffray
Yes. Congratulations to everyone on great management of the business in this environment, that's terrific.
John Duerden
Thanks, Jeff.
Jeff Klinefelter – Piper Jaffray
Couple of – few questions for you. John, maybe we could start with you a view towards short term on Q3, or John and Russ combined. Can you give us a little bit more sense for how you see the gross margin and SG&A lines shaking out with that top line and bottom line guidance that you provided for us?
And then, also in terms of the revenue, I think one of the keys here is getting a higher level of comfort with visibility and as you mentioned John, it's still difficult, but with your diversification of the model, the greater retail – the more retail that you have, the momentum in Asia, can you talk a little bit more about how you are coming up with your forecast for Q3, what geographic regions or channels and how confident you are in those – in that forecast?
Russ Hammer
Jeff, it's Russ. Let me – thanks first for the congratulations. And let me give a little color on that. So – I think first, your question regarding around the margins, so as I stated on the call, we did see some uplift in the margin on a GAAP basis. As we reported, that won't reoccur in Q2 and we are not giving specific margin guidance, but we will have the continuing inefficiencies of the consolidation of both our Europe and Asia warehouses in third and fourth quarters. So I do expect the third quarter margin will not be as robust as the second quarter margin sequentially, if that helps you.
And then as far as the revenues from the geographic and channels, the second quarter is normally our highest seasonality, I think 2007 was the only exception to that when we had the big build-up to Mammoth. So we normally see our second quarters 31%, 33% of our business and then we see a seasonality drop-off in the third quarter. Plus in our consumer direct after the back-to-school time, retail slows down in September. So we'll see those natural effects in our revenue.
So if you look at our – for example, our second quarter without the benefit of the impaired unit sales, which we identified when we said we were around $174 million, and then seasonality, that's how we got to our guidance. We do see strengths still in the Asian market and as we said, everywhere we see strength in the consumer direct channels of both retail and Internet. John, any other –?
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