accommodate our growth. By streamlining our operations we expect to realize greater efficiencies and cost savings by making this move over the long run.

EBITDA declined (ph) 14 percent in 2005 to 8.1 million versus 7.1 million in the year earlier period. Excluding the 1.4 million of incremental relocation-related costs, EBITDA rose 34 percent to 9.5 million. Our net loss for the year was 747,000, or three cents per basic and diluted share, compared to net income of 226,000, or one cent per share, in 2004. Excluding the incremental relocation costs of 1.4 million we are pleased to have met our target of net income totaling 634,000, or three cents per basic and diluted share, for fiscal 2005.

Turning to the balance sheet. Our overall financial foundation remains solid. Cash and cash equivalents totaled approximately 15.9 million including 2.2 million in restricted cash. Trade receivables increased slightly due to increased sales volumes. Net inventories as of December 31 were 43.7 million compared to 44.9 million as of the December 31, 2004, period. As of December 31, 2005, working capital increased to 23.4 million versus 22.6 million as of December 2004. Total assets were 131.7 million as of December 31, 2005, compared to 130.3 million in the prior year. Shareholders equity totaled 29.9 million as of December 31, 2005, or $1.33 per share as of that date. Capital expenditures including capital leases totaled approximately 3.9 million for the year primarily including about one million for the new South Haven facility that I spoke of earlier. We continue to — or we expect to continue to incur capital expenditures to support new contracts and anticipated growth opportunities following our merger with eCOST. Based on current projections, we anticipate capital expenditures for upgrades and additions to facilities and information technology systems to be approximately $4 to $7 million for the next 12 months depending on our success in winning new business. Our normal capital expenditure run rate is approximately two to three million to support our existing client activity with the remainder allocated to support targeted levels of new business. To maintain our existing cash position, a portion of future capital expenditures may be financed through debt, operating or capital leases or additional equity.

Now, in order to provide our new expanded investor base with a better understanding of cCOST’s business I would like to turn the call back over to Mark who will take a moment and review some of the highlights of cCOST’s performance.

MARK LAYTON: OK, thank you, Tom.

All right, as Tom mentioned, we’re providing some performance date for eCOST to give a better sense of where we are today. Clearly there’s a great deal of change underway, but we believe it’s important to share with you some key metrics. First and foremost I want to mention that the financial data that we’re providing is based on un-audited and preliminary results. Other data points that we will track are important performance measurements that we are focused on for purposes of gauging the impact of our integration efforts which we believe will ultimately translate into stronger returns for shareholders.

OK. For the fourth quarter of 2005, eCOST.com’s net sales were approximately 40.4 million. This is versus a $58.1-million number in the year prior period — or the year earlier period. The decline in revenue was a result of the company’s focus to improve profitability and was