Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Mark Argento with Craig-Hallum Capital. Please go ahead.
Mark Argento – Craig-Hallum Capital
Yes, good afternoon.
Dawn Lepore
Hi Mark.
Tracy Wright
Hi Mark.
Mark Argento – Craig-Hallum Capital
First off, a question around the Medco relationship, how is that tracking versus your expectations, and is all the sales that you are booking for – with that relationship, is that in the OTC segment alone or are you doing some stuff with the Vision business as well in regards to the relationship with Medco?
Dawn Lepore
I will – let me take a piece of that and then Tracy can chime in. So, Medco is going according to plan. We continue to be very pleased with them as a partner, and we are – it is in the OTC segment. And Tracy can go over exactly how we are booking those sales.
Tracy Wright
So, all of the revenue is OTC related. So, it’s reported within that 16.5% growth, and then we report only the expenses similar to how we report fulfillment and labor. The only difference is that we booked the royalty back to Medco in our sales and marketing line.
Mark Argento – Craig-Hallum Capital
So you booked the gross – the gross revenue contribution in the OTC line and then the marketing, you basically net that back against sales and marketing?
Tracy Wright
Exactly.
Mark Argento – Craig-Hallum Capital
And the additional microsites, could you just walk us through the timing, do you expect to have any of these launches by the end of this year? And what are your targets there?
Dawn Lepore
So, we are going to launch one more this year, and then we have a list, frankly of eight next year. We don’t know if we will be able to do all eight, we may only be able to do five or so of those. They will be spread out throughout the year, there is a couple of them that we feel should be done in the first quarter. Anything to do with resolutions, vitamins, that’s the time of the year that we want to launch those sites. Obviously, if we were to launch an allergy site, we would want that to be launched for allergy season. Those are the things we take into account as we come up with our list and our timing for each of the sites. But I would say somewhere between five and eight next year and look for one more this quarter.
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