Usuario:ZacheryMcAdams
The expense rate was favorable to our guidance of 61.1% to 63.3% due to expense management and timing of approximately $1 million of marketing expenses that are expected to be incurred in the remaining three quarters. Excluding severance charges, our operating loss totaled $3.5 million or negative 3.6% of net revenues in the current year compared to operating income of $2.9 million or 3.7% of net revenues in the prior year. By segment, direct operating income was $6.8 million or 9.9% of sales compared to $12.1 million or 16.6% of sales in the prior year.
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