Some quick thoughts before hittin' the sack:

http://biz.yahoo.com/prnews/040722/cgth080_1.html


           1Q2004     1Q2005
Sales:     $17.5M     $16.5M
Income:    $ 2.8M     $ 1.7M
BR Sales:  $12.5M     $12.0M - domestic
BR Sales:  $ 2.9M     $ 1.9M - international
FC Sales:  $ 2.0M     $ 2.5M

Cash generated is 1.4M, largely either put in the bank or distributed as a 5 cent/share dividend.  Cash in the bank is now $50.2M.

The main positive I see is the very nice growth of FiberChoice, as it looks like consumers are taking to it well (I personally think it's a
great product).  In the press release, they mention several initiatives to revive growth, and a new FC product is among them.  That will be interesting to see.

I'm not too terribly worried about the drop in profits, as I suspect they're spending to do market research and increased advertising.

What I think is a big negative is the drop in sales overall, and more specifically, the drop in Breathe Right strips.  I don't have a good
feel for how bad or good the allergy/flu season was this year, but that can't totally explain a domestic drop of $0.5M.  The international drop
of $1.0M at those relatively meek sales numbers is terrible as well. Geez, did the Japanese distributor buy $15M worth of BR strips a year ago?

I think they should strongly consider what so many on this board have suggested ... start rubbing shoulders big time with athletes.  Athletes
can move so much product, and can make these things ultra-hip.  Fork over $2M to Brian Urlacher and/or Peyton Manning, talking about how BR
strips help their performance, especially when they have a cold or allergies.  Lance Armstrong would be great, but I would like to keep
some of that cash in the bank. :)   Imagine making BR strips with each NFL team logo on it, and distribute them at cost to the NFL.
How about NBA players?  Anyways, nothing original here ... HG members have recommended all of these things in one form or another.

I will still give management time ... I'd rather they be deliberate then rush into silly ideas.  But "testing of marketing initiatives" is getting to be tiresome.   

It's time to get bold.

Good night all,

Tom