1.   Gross margin was as we expected broadly level with the second half of last year.

2.   It is really an accounting problem, and a balance must be struck between channel expense, profit and gross margins.

3.   A manufacturer using short channels is more likely to have high gross margins, but equally higher channel expenses.

4.   The manufacturer using longer channels will have relatively lower gross margins, coupled with lower channel expenses.

5.   Analysts said the narrower gross margin was caused by increased sales of motherboards.

6.   An additional positive factor appears to be an improved product mix, which, analysts said, led to improved gross margins for the third quarter.

7.   Analysts were buoyed by the news that the company also reported higher gross margins and several new contracts.

8.   Analysts will be looking for signs that the company can reduce fulfillment costs, sustain sales and cling to improvements in gross margins.

9.   Analysts who are sweet on Intimate Brands look to Bath and Body Works to generate the gross margin and sales growth.

10.   Analysts said Thursday that much of the gain was due to the improved gross margins, as well as the reversed charge.