We believe we can get closer to break-even in the current quarter and that we can return to profitability by the end of this calendar year.
We will continue to try drive down inventory level so that we are able to be nimble on pricing.
We plan to be very vigorous in the defense of our intellectual property.
In the next few quarters, we plan to further lower our inventory, reduce our overall level of operating expenses and we will increase our focus on our higher-margin businesses.
We're pleased about the patent and the protection it provides us. We're evaluating all the alternatives.
We are examining each of our product categories to determine how we can improve revenues, return gross margins to 20% percent or higher, and reduce operating expenses as we target a return to profitability in the second half of the calendar year.
We are looking at all our alternatives right now. We have always been very vigorous in our defense of our patent portfolio.
To be able to achieve that, we need to have margins at or above 20 percent.
We had under invested in the marketing efforts of X-Fi as we focused on becoming No. 2 in the MP3 segment.
The patent application was to protect our invention. As you can see . . . the invention is significant.
