The Company reported net income (including discontinued operation) of $1.0 million for the third quarter of 2012, compared to net loss of $0.1 million for the third quarter of 2011. Net income per diluted share for the third quarter of 2012 was $0.03, compared to breakeven for the same period last year. Net income for the 2012 third quarter included loss from discontinued operation of $ 0.3 million, or $(0.01) per diluted share, compared to loss from discontinued operation of $0.4 million, or $(0.01) per diluted share, for the same period last year.Mr. Cazenave continued, “The momentum in our Direct business is encouraging, and the positioning of both the Retail and Direct businesses for more profitable growth in the future is advancing as planned. New products remain a top focus area for the company and we have a number of exciting products hitting the marketplace during the fall / winter season, including a new and unique DVD based exercise program, new and refreshed items for our Retail segment, and the marketing re-launch of our CoreBody Reformer. Our new product plans and restructured operating platform are key elements of our strategy to successfully grow revenues, leverage our operating expenses, and continue to improve our operating margins while expanding our product portfolio.” For further information, see "Results of Operations Information" attached hereto. Segment Results Net sales for the Direct segment were $25.1 million in the third quarter of 2012, an increase of 10.9% over the comparable period last year, reflecting strong demand for the Company's cardio products. The higher sales were also partly driven by increased advertising effectiveness and higher U.S. consumer credit approval rates, which rose to 31% in the third quarter of 2012, up from 27% for the same period last year. Operating income for the Direct segment improved to $1.9 million for the third quarter 2012, compared to $0.2 million for the third quarter 2011. This improvement reflects stronger sales as well as a 590 basis point improvement in Direct gross margin. Gross margin for the Direct business was 57.9% for the third quarter of 2012, compared to 52.0% in the third quarter of last year, reflecting successful execution of the Company’s key initiative to improve product margins.