Sean McGowan: So you must have ended the quarter with inventories of headsets just at a very lean level and you see reloading some of that into the second quarter. Would you expect at the end of second quarter you’d be kind of caught up to sell-through? I mean that would imply an unbelievably strong second quarter, right?
Cris Keirn: We will be back up to the normal levels of channel inventory, that’s actually — we’re almost there now as we’re kind of midway through the quarter, because a lot of that load in is happening with those launches coming up in the next few weeks. So yes, we did actually end the quarter quite low on inventory and we are seeing the load in happen. So you hit it right on the head there.
Sean McGowan: Question for you, John. Is there anything — I mean, the gross margin came in a little bit higher than I thought, but that’s good, maybe that’s because the sales did too. But is there anything in that quarter mix wise or anything else that would be kind of unsustainably high like that would have boosted it unsustainably?
John Hanson: No. The first quarter, for one, for better term, is pretty clean in that regard. And what we’re starting to see coming through the P&L now are the cost improvements as we — as our mix transitions into the new products, you’re seeing lower costs, which we’ve been talking about now for several quarters and that have been working their way into the P&L for us. So we did signal and guide to higher margins throughout the year and you’re starting to see that here in the first quarter. We do expect margins in the second quarter to be slightly potentially a point lower as we complete this transition of both the wireless and of course, the brand transition of ROCCAT to Turtle Beach. We do have some higher promotions planned in Q2 that will have a small impact on the margin percentage, but then that would quickly then improve back in Q3 and Q4 as now we’re selling all of the new products that we’ve been working so diligently on in the last — over the last six months.
Sean McGowan: But would that cost issue that you just mentioned there in the second quarter, would that not be over offset by the volume related upside that you get to margin or are you saying that we shouldn’t expect that…
John Hanson: In terms of dollars, yes, but it’s more of a percentage game. My comments were, I was talking more about the percentage. So we would expect slightly lower percentage, but certainly more dollars.
Sean McGowan: Two other questions for me. One is just, what do we make of the fact that there’s still, in the appendix of the presentation, commentary about the Dutch tender that got canceled. Is that just to kind of tweak us a little bit or is that a preview of something coming?
John Hanson: No. As announced, that tender has been replaced with the share repurchase program…
Sean McGowan: Just — it that summary financial information following tender completion, so I didn’t know if that was a preview of something to come.
John Hanson: No.
Sean McGowan: Last question. Is the 10-Q going to be out today?
John Hanson: It should be. It’s probably in the works right now. Don’t know how far behind the SEC is backed up, but the Q will in fact be filed today.
Operator: [Operator Instructions] I’m showing no further questions at this time. I’d like to turn it back to Cris Keirn for closing remarks.
Cris Keirn: Thank you, operator. And thank you all for your participation and interest in Turtle Beach. Have a great day.
Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.
