Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jeffery Stein - Soleil-Stein Research
Jeffery Stein - Soleil-Stein Research
I’m wondering if you could just discuss what percent of your greeting card revenues today are technology cards versus let’s say a year ago at this time and secondly if some of these costs are going to reoccur over the balance of the year, why are you still so confident that you can make your initial earnings guidance range?
Zev Weiss
So the percent for the technology cards is less then 5%. Last year, I don’t know the exact number, but it was much lower then that. We had a small amount out, but very little. On the cost side in terms of why we still feel confident on the year, some of these costs were anticipated so they were in our original guidance and in our plans. Some of them were not, which means we’ve got to make that up either through, on the sales side or find cost savings through the balance of the year and the management team is very focused on that and so we feel confident that we can do that.
Jeffery Stein - Soleil-Stein Research
If you were a betting person Zev, where do you think it’s more likely to come from; cost save or revenue?
Zev Weiss
Well first of all, I’m not a betting person. Actually unlike I’d say previous years where it was definitely coming from the cost side, looking at what’s happening with point-of-sale, I think it’s going to be a combination of both.
Jeffery Stein - Soleil-Stein Research
Can you talk a little bit about the interactive side of the business, you did cite the fact that you are, that you did see lower revenues from advertising and I’m wondering, is this part of an industry trend or is this AG interactive specific?
Zev Weiss
I think that there may be some shifts happening in the industry in general, but I think by the time this year is done, we feel that we’ll be able to bring in that revenue line where we had expected and it just was a soft first quarter for them.
Jeffery Stein - Soleil-Stein Research
With regard to Canada, can you share with us your best guesstimate in terms of what types of costs you may incur in the second quarter as you complete this rollout compared to what you incurred in Q1?
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