"To this end, we have recently implemented several key measures, such as partnering with an exclusive, Asia-based, sourcing agent that we believe will yield meaningful, long-term benefits, in terms of negotiating favorable material costs, improving the quality of our products, and diversifying our supplier base. We have also reduced our fixed overhead, by closing our offices in London, Dubai, Saarbrucken, and Santa Monica; relocating our corporate headquarters to West Palm Beach; and eliminating headcount dedicated to our retail business. A portion of these costs savings are being reinvested to expand and restructure our sales, design, customer service, finance and IT personnel focused on growing our OEM business. In addition, a rigorous cost rationalization plan is underway with regard to other components of our operating expenses, which we believe will result in a more streamlined and efficient use of our working capital.
"We continue to see the underlying strengths of our OEM business, as evidenced by the 29% sales growth achieved during fiscal 2012. However, we have also seen our margins compress in fiscal 2012. Our primary challenge is to restore our gross margins to levels achieved as recently as fiscal 2010, which we believe is attainable through our ongoing efforts to diversify our supplier and customer bases."
The tables below are derived from the Company's audited, consolidated financial statements included in its Annual Report on Form 10-K filed today with the Securities and Exchange Commission. Please refer to the Form 10-K for complete financial statements and further information regarding the Company's results of operations and financial condition relating to the fiscal years ended September 30, 2012 and 2011. Please also refer to the Form 10-K for a discussion of risk factors applicable to the Company and its business.
Note Regarding Forward-Looking StatementsIn addition to the historical information contained herein, this press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect Forward's current expectations and projections about its future results, performance, prospects and opportunities. Forward has tried to identify these forward-looking statements by using words such as "may", "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities in Forward's fiscal year ending September 30, 2013 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. No assurance can be given that the actual results will be consistent with the forward-looking statements. Investors should read carefully the factors described in the "Risk Factors" section of the Company's filings with the SEC, including the Company's Form 10-K for the year ended September 30, 2012 for information regarding risk factors that could affect the Company's results. Except as otherwise required by Federal securities laws, Forward undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
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