Net loss was $82.6 million, or $0.22 per diluted share, in the first six months of 2005, compared with a net loss of $97.1 million, or $0.42 per diluted share, in the first six months of 2004. Cash flow used for operating activities in the first six months of 2005 was $46.8 million, compared with cash flow used for operating activities of $100.1 million in the first six months of 2004.
More Detailed Outlook
The Company indicated that the positive net sales impact anticipated from the initiatives in 2005 is approximately $50 million, which includes an estimated $40 million to $50 million of incremental returns provisions associated with the launch. The Company expects that the combined incremental net sales potential of the two initiatives for the full year of 2006 could be well in excess of double the benefit that it expects to realize in 2005.
For 2005, the positive net sales impact of the initiatives is expected to be essentially offset by accelerated amortization, currently estimated to be approximately $10 million to $15 million, associated with certain retail display fixtures, as well as various upfront expenses related to the launch, including development and marketing-related expenses. As previously indicated, the Company expects that the initiatives will not have a meaningful positive or negative impact to Adjusted EBITDA for the year.
The Company expects its performance in the third quarter of 2005 to include the impact of much of the anticipated incremental provision for returns, while performance in the fourth quarter would benefit from the incremental shipments associated with the launch. Given the magnitude of the initiatives, the Company also expects the first quarter of 2006 to benefit from incremental initial shipments associated with the launch.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
