<A Mark Layton>: Yeah. This is Mark. So Marco, just to clarify what Tom was saying, so
those quotes that he just made were revenue impacts, to give you a feel for the two, the two things
that impact the SD business. In terms of criticalness of the business, this one is a very important
piece of business for us, as we as Ive mentioned in my
comments. We get intangible benefits out of many of our entities and this one obviously brings us
scale, because of the size of the business thats out there. The business is now fully our
largest client is now fully owned by Ricoh, this was previously an IBM Printing deal that weve
had, since 1995 through a joint venture with IBM. They created InfoPrint Solutions, which is now
wholly-owned subsidiary of Ricoh through the terms of the agreement that was there. Ricoh is the
manufacturer of many of the printer engines that are used in this business model thats out there,
and they own a lot of technology and capability in that. So we understand that they are very
committed to the space. There is an ongoing effort to freshen the product offering thats out there
and to increase market share for InfoPrint Solutions as it looks to the future.
Weve seen relative flat results over the last few years in terms of the consumables that these
printers use. The good news is, is that because consumables are kind of a trailing-edge technology
when printer replacement/placement slowdown, there is still an existing base that are using these
products that are out there. Now that doesnt go on forever, but it trails a long for many years
behind that because of the legacy use of equipment thats already placed.
Clearly, were hopeful that Ricoh and our other clients in this segment will continue to grow as we
look forward to the future, but weve got pretty a pretty modest outlook on our sales in terms
of where we expect things to be with that piece of the business, but because of its scale and the
nature of the way the contract is oriented, it is strategically important and as a strong financial
contributor to us as we look to the business going forward. Now, transitioning into that while this
one is a business-to-business deal, as I mentioned in my prepared comments, we are seeing a lot of
clients in our direct-to-consumer channel interested in a similar buy/sell model.
Now, the arrangements would probably be somewhat different from a financial perspective in terms of
how the buy and the sell happen, if you will, but I would expect that we would see over the next
few years, a growing product revenue component of our overall financial results with a higher gross
margin component to it than what we see in the Supplies Distributors segment or frankly even in the
eCOST technology portion of its business today. So were reacting to what clients are asking us to
do. We have a very flexible platform, weve got a very flexible attitude towards working with our
clients and customizing the way we work with them in order to be certain that we can be the partner
that they want us to be.
<Q Marco Rodriguez>: Okay. Thats helpful. And then in regard to the eCOST business, I was
kind of interested that you mentioned in prepared remarks kind of a movement away from technology,
electronics towards more consumer type products. Do you have any sort of a timeline when you think
that might transpire?
<A Mark Layton>: Well, again, the only backdrop I would provide is what I provided in the
prepared comments, which is that we want to make this segment financially the financial impact
of it much better for us in 2011 than what its been in 2010. So our eyes are open to all the
options that are available out there, and our team in L.A. are working
very hard to have a successful fourth quarter in this business, and well continue to look for all
strategic options that we have with this, but the timeline is improved financial impact for 2011.
<Q Marco Rodriguez>: Okay. And then kind of a housekeeping item here, can you discuss a
little bit the DSOs or your account receivables in your balance sheet, theyve been kind of picking
up here the last three quarters, and then also the cash flow from operations and CapEx for the
<A Thomas Madden>: Hold on a second. For the quarter, Ive got the net actually, one
second, the net free cash flow for the quarter was use of 1.2 million, let me with a I think