Skullcandy Management Discusses

Good day, ladies and gentlemen. Thank you for standing by,whisky rocks and welcome to Skullcandy's Fourth Quarter 2012 Earnings Conference Call. Presenting on today's call will be Rick Alden, Interim Chief Executive Officer; and Kyle Wescoat, Senior Vice President and Chief Financial Officer. As a reminder, today's call is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Mr. Seo Salimi,ice stones General Counsel. Please go ahead, sir.Good afternoon, and welcome to Skullcandy'sFourth Quarter 2012 Earnings Call. Before we begin, let me remind you that certain statements made on today's call, either during our prepared remarks or in response to your questions, may constitute forward-looking statements. These statements are made pursuant to and within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to both known and unknown risks and uncertainties that can cause actual results to differ materially from such statements. Those risks and uncertainties are described in Skullcandy's quarterly and annual reportson Form 10-Q and 10-K. Investors should not assume that statements made during the teleconference today will remain operative at a later time, and Skullcandy undertakes no obligation to update any of the information discussed on this call.Thanks, Seo. Good afternoon, and thanks for joining us on our fourth quarterearnings call. You've all certainly seen the news about the CEOtransition here at Skullcandy. It would be difficult to describe what this company, its products, employees and shareholders mean to me personally in the short amount of time we have today,but let me just say that I'm very energized to be back in the role during this transition period.

Clearly, companies going through an executive transition like this don't typically do them at a high point of corporate health.That implies that my first role when arriving 4 weeks ago -- actually 4 weeks ago today, was to do a deep dive into what is working well for the company, but most importantly,scotch rocks to make an honest assessment of where things has gone off track, then to keep the organization moving on the right direction. I think that will be the theme for my call today will be "honest assessment.Xinjiang Tour Guide"Our fourth quarter results were within the expectations that we set at the beginning of the quarter, though at the lower end of the plan. This quarter capped off a year meeting the financial goals and growing sales by 28% and net income by 39%.Menu Titanium Keychain But as you will hear in Kyle's discussion, we are unfortunately going to lose money in the first quarter and be down for the overall year versus 2012.Part of this decline will be driven by important changes to the way we do business. So I'm going to spend most of the next few minutes addressing what is behind this outlook.