Reduction of Charge-Backs and Returns. During
the second half of fiscal 2000, the Company
became lax in the enforcement of its 30 day
cutoff for return of merchandise by its customers.
The laxness was caused initially by the normal
conversion problems related to the Company's
new order entry and customer service systems
(part of the enterprise wide Oracle installation),
and because management gave customers the benefit
of the doubt regarding alleged billing or shipping
errors.

Northern Light

-- spider (spider0@usa.net), September 03, 2000