The gross margin declined by 160 basis points to 48.2 percent at Volcom for the 2nd quarter ended June 30, but it would have increased by 80 basis points without the costs incurred to start up its new European operation. Total revenues were up by 25 percent to $57.7 million, including a 59.8 percent increase outside the USA to $13.9 million. The company’s operating income was off to $8,849,000 from $9,690,000. Net income declined to $6,220,000 from $6,532,000.