For the quarter our comp sales in music were down 7% compared to CD sales for the industry that declined 24%. Music represents 36% of our business as compared to 37% last year. Comp store sales for electronics accessory and trend increased 5% on a combined basis and represented 15% of our business versus 13% last year. Comp store sales in our game category decreased 41% and represented 5% of our business as compared to 8% last year. During fiscal 2009, the company eliminated the game category in over 200 stores; at the end of the third quarter 135 of our stores carry games compared to 347 a year ago. John will now take you through the financial results for the third quarter. John.

John Sullivan

Thank you Bob, good morning. Our net loss for the quarter improved $6.2 million to $16.1 million from last year’s net loss of $22.3 million. The loss per share was $0.51 compared to $0.71 per share last year. Our gross margin rate for the quarter increased to 34.1% from 33.9% last year, a 20 basis point improvement. SG&A expenses were $56.2 million, a reduction of 22% versus a sales decline of 20%. As a percentage of sales, SG&A expenses were 43.7% this year versus 44.8% last year, an improvement of a 110 basis points.

EBITDA was a loss of $12.3 million in the quarter versus $17.6 million last year, an improvement of $5.3 million. Net interest expense was $900,000 in the quarter versus $700,000 last year.

At the end of the quarter, borrowings on our line of credit were $8.6 million which was $46.9 million less than last year's $55.5 million. We accomplish this through the management of working capital. Year-over-year, we lowered our inventory by $98 million. At quarter-end inventory position was $271 million versus last year's $369 million.

If you liked this article you might like

Towers Watson & Co. - Analyst/Investor Day

Cresud's CEO Discusses F2Q12 Results - Earnings Call Transcript

Ocean Power Technologies Management Discusses Q1 2013 Results - Earnings Call Transcript

Microsemi Corporation - Analyst/Investor Day

Lattice Semiconductor's CEO Presents At Deutsche Bank's DbAccess 2012 Technology Conference (Transcript)