"We are experiencing margin pressures in the licensed t-shirt business and continue to see weakness in reorders from several key customers. This is not consistent with our previous expectations, therefore, we are revising our forecast for the second half of the year to reflect this concern. Strategically, we remain focused on broadening Junkfood's range of licensed products, developing our 'Sweet n Sour' label for the mid-tier channel and growing our foreign distribution."
"Despite the near-term challenges in our business, we remain confident that we are building a strong platform for growth and believe the competitive position and operational capabilities of our business remain very healthy. We look forward to working through the remainder of our FunTees integration project and pursuing our many opportunities for enhanced profitability and sales growth."
The Company plans to report fiscal 2007 second quarter results during the first week of February 2007.