"In restructuring our business, we expect to eliminate a significant level of annualized operating expense by i) reducing headcount, ii) closing our Santa Monica, London, Dubai, and Saarbrucken offices, and re-establishing our corporate headquarters in Florida, where costs of operation should be lower, and iii) rationalizing other overhead cost components. In addition, we have implemented a contracted, variable, lower cost sourcing and quality assurance solution by partnering with an Asia-based sourcing agent. We believe that this partnership will also yield meaningful longer-term benefits, in terms of negotiating favorable material costs, improving the quality of our products, and diversifying our supplier base. We have absorbed the majority of the charges associated with our restructuring efforts in our third fiscal quarter. We also expect to implement a rigorous cost rationalization plan that aims to streamline and improve our operations on a go forward basis."
According to James McKenna, Forward's Chief Financial Officer, "Our gross profit margin in our third fiscal quarter was negatively impacted by a significant level of quality remediation charges, as well as transition and termination costs in respect of the restructure of our sourcing and quality operations. We believe these to be nonrecurring and when stripped out from our third fiscal quarter results, we estimate our gross profit margin would be closer to those seen in the first half of fiscal 2012."
The tables below present our Fiscal 2012 third quarter results and are derived from the Company's unaudited, condensed consolidated financial statements included in its Form 10-Q filed today with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete, interim financial statements, and more detailed information regarding the Company's results of operations and financial condition relating to the three and nine-month periods ended June 30, 2012, as well as the Company's Form 10-K for the fiscal year ended September 30, 2011, for additional information.