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The company has been focused on 3 primary goals, growing its core business, restoring profitability and strengthening infrastructure. It had targeted $35-40MM in cost savings which included numerous job eliminations. Product launches have been ongoing and innovative. Here is a piece of a press release that is encouraging.

FLY(TM) Pentop Computer was selected as the best Toy of the Year, the Most Innovative Toy of the Year, and the best Educational Toy of the Year. The highly-lauded FLY Pentop Computer, the first single product to sweep three T.O.T.Y. categories, was honored at the sixth annual T.O.T.Y. Awards, held February 11th in New York City in conjunction with the Toy Industry Association's American International Toy Fair.

It seems to reason that this kind of acclaim could translate into at least short term sales momentum and widening margins. With the backdrop of infrastructure changes and cost reductions it may in fact translate into longer term success.

This stock is out of favor at the moment and I think there is a potential for price appreciation. We'll find out when earnings are released on 2/16/06.
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