Its loss, at $20.6 million, increased though, from $14.6 millionduring the same year-ago period and a $16.8-million first-quarterdown turn. Total Q2 company revenues were $80.3 million, a 25% fallfrom the same year-ago period.

Sharper Image continues to cut advertising, spending $9.3million during the second quarter, a 52% drop from last year's Q2.Since last year, management has completely cut spending ontelevision infomercials and mailings, while focusing more onnewspaper advertisements and inserts.

In attempts to concentrate more on event-focused shoppers,Shaper Image management is gearing up for the holidays byidentifying with vendors the top products for the coming season.The retailer is also introducing Microsoft's Xbox game system inits stores.

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