Turning to the cost and profit metrics. During the year a variety of items contributed to the decline in operating profit despite an approximate 4 million increase in revenue. All other things equal, we estimate for illustrative purposes the revenue increase would be expected to contribute an incremental operating income of approximately 1 million. Instead operating income excluding the prior-year impairment charge related to expose declined by approximately $500,000.

So, what drove the GAAP of approximately $1.5 million in operating income? First there were targeted investments in the P&L related to the global strategy, notably our expansion into Asia. This totaled approximately $450,000. Next we implemented a significant system upgrade for the first time in ten years. The P&L expenses associated with this upgrade was approximately $300,000 including depreciation related to the equipment purchases.

In 2012, we were required to conduct a SOC’s audit at a cost of approximately $50,000. You may recall we purchased for a significant amount of money last year a coin under our warranty claim and that coin was sold for less than we forecast resulting in a P&L charge of $200,000.

Despite that charge, our warranty reserves sits at a five-year high and we are comfortable with its current balance. Next and lastly, the previously mentioned impact on the P&L from the recording of the vouchers related to our collectors club memberships was approximately $300,000 for the year. This is virtually all profit that currently sits on the balance sheet as differed revenue and for which we have collected the cash.

Collectively these 5 items totaling approximately $1.3 million were the primary drivers to the GAAP that I referred to. Looking ahead we don’t expect approximately 1 million of these cost to recur in fiscal 2012 and 2013.

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