"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."
Forward Reports Fiscal 2012 Results
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