Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Michael Pachter - Wedbush Morgan Securities.
Michael Pachter - Wedbush Morgan Securities
You guys are guiding to relatively flat margins on revenues that will be at least 10% higher so if I am doing the math right we are going to see gross profits grow by about $2 million. Should we expect you can continue to manage your operating expense or should we expect an increase in opEx because I’m trying to get to a profit number?
Jesse Sutton
I’ll let John talk about the opEx. I just want to specifically note I happen to be a very big Pittsburgh Steeler fan and that they are still alive and doing well. So from that perspective I am looking forward to the future with them. From another point of view, John why don’t you take the discussion?
John Gross
As you know the operating expenses are a combination of both variable selling and marketing expenses as well as fixed costs. We would expect to see an uptick in the advertising and marketing line which is obviously part of the operating expenses as we are supporting our products with a little bit more media than we have in the past.
Michael Pachter - Wedbush Morgan Securities
We wouldn’t expect anything dramatic in G&A or product development?
John Gross
No.
Michael Pachter - Wedbush Morgan Securities
I am looking at your first quarter which is about two weeks from being concluded so you should have a pretty good feel and we are going to get NPD numbers in a couple of days. Should I expect the pattern over the four quarters that is similar in 2009 to what we saw in 2008 with kind of lumpiness on the front and back quarters and then slightly dip in the middle two?
Jesse Sutton
I think that is a fair assumption but I also think it also relates to which products get delivered in which quarters. I think overall that is a fair assumption.
Michael Pachter - Wedbush Morgan Securities
Should we be looking for continued international sales growth? You had a 40% year-over-year growth in Q4. Should we expect that is going to continue or are we going to see much more robust international sales for all of 2009?
Jesse Sutton
I think from an overall 2009 perspective it is fair to expect growth. From a quarter-to-quarter perspective I think it has to depend on products we are delivering in Europe at that time.
- To read the full transcript on Seeking Alpha, click here »
