• Revenue decreased to $339 thousand in the first quarter of 2012, from $2.4 million in the prior-year period.
• Gross profit for the first quarter decreased $483 thousand, or 81.2%, to $108 thousand from the first quarter of 2011.
• First quarter total operating expenses increased slightly to $424 thousand from $408 thousand in the prior-fiscal year period. T
• As a result of the impact of the prior business model, net loss for the first quarter of 2012 was $348 thousand compared with net income of $107 thousand in the first quarter 2011.

The Company generated $455 thousand in cash from operations in the first quarter of 2012, a measurable improvement of the prior year period where $462 thousand was used in operating activities. Inventory increased to $661 thousand at the end of the first quarter from $59 thousand at the end of fiscal 2011, in support of the Company�s recently launched domestic sales business model.

Stewart Wallach, CHDT�s President and CEO, commented, �During the quarter, we expanded our approach on how quickly we deliver product to our customers by implementing a domestic distribution program which includes warehousing inventory for expected customer requirements that we can deliver in an �on demand� manner for shelf stocking in their stores. This change increased the number of retail outlets that will carry our products by approximately 4,800 stores. We believe this approach will result in additional revenue growth over the course of 2012, and as a result, we expect our revenue stream will be more consistent over time.�