Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from John Bright with Avondale Partners.
John Bright - Avondale Partners
Thank you, and good afternoon, Ken and Barbara. Ken, you know, you deliver a strong quarter here on the office side of the equation, the office wireless side of the equation. We've now got the mobile Bluetooth returning to grow some cost improvements taking place in the strong basis there.
And now we're reworking Altec, can you give me a better sense of the multi year plan you are talking about to expand your brand distribution and some of the operational improvement you are looking at as well as the product refresh?
Ken Kannappan
Just to be clear, John, those last three questions were referring only to Altec?
John Bright - Avondale Partners
That's correct.
Ken Kannappan
Okay. So in terms of the, lets me just start with the product side, the company has been involved in this market for some time and they have, you know, got a set of research out on the business, having said that, the level of insight in terms of the use of the products, particularly some of the new emerging segments, such as with iPods and other MP3 players was somewhat limited.
And a lot of the feedback they had was from channel partners and what is what I would call shorter cycle rather than deep insight in terms of what it is it the consumers are really doing with the products and trying to experience both from a functional perspective, as well from a emotional perspective.
And so the key thing here is trying to really make sure we nail the target, and we looked at some of the new product, like the iM 600, it’s been achieved with some success, with really by your kind of loading the feature set or on to the product, which doesn't allow you to get to the right gross margin.
So first and for most is really making sure we kind of die deep and truly understanding from an end user level that we've done the homework, and we understand what they really want, because I think we have excellent competencies to execute on that once we get there.
We believe that we are going to be making progress during the course of this year, kind of tied to those new products, but at the same time, you know, it’s very easy to say okay, what was wrong here, but to really get what was right, we will probably have to get closer over a couple of gem.
