We continue to believe that no company is better positioned to benefit from the success of PlayStation 2 and the overall expansion of the gaming space as move into a new platform cycle than Electronic Arts.

Electronic Arts is up 40 percent since the company reported second-quarter results on July 25. Though this has occurred faster than we expected, we are confident that there is still plenty of room for appreciation as we approach the Oct. 27 launch of PlayStation 2.

The management and board of directors of Interchange believe that the launch of the Local.com has been a success, with considerable gains in traffic, market share and revenue achieved thus far. Two primary goals are to become number one in local search and to achieve profitability. We believe that becoming a pure-play local-search business will enable us to focus all of our human, technical, and financial resources on local search. We further believe that shareholder value will be created to the extent that we achieve our objectives in local search.

Our success in one facility gave us the foundation to cross-train other staff. We rotated staff through the successful WMS warehouses to build their confidence and prepare for the rollout.

While this quarter didn't feature the growth acceleration of the last two, the degree of upside in spite of the impact of buyer confusion over the change in search results is encouraging.

Yahoo's revenue in the quarter was just below consensus, with profitability lagging further behind.