D4ADermatology for Animals (Campbell, CA)
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In the Netherlands, we continue to experience additional costs related to our D4A project, but we expect that we will experience accompanying reductions in certain operating, marketing and other costs as we more selectively target the roll-out to our analog video customer base.
5) In our D4A project, we provide a digital interactive television box and digital service at the analog rate for six months to analog subscribers who accept the box and agree to accept the service.
Excluding results of the Netherlands where we have our D4A project underway, our rebased OCF growth rate for the quarter would improve to 19%.
These risks and uncertainties include the continued use by subscribers and potential subscribers of the Company's services, the long-term success of our D4A program in the Netherlands, changes in technology, regulation and competition, our ability to achieve expected operational efficiencies and economies of scale, our ability to generate expected revenue and operating cash flow and achieve assumed margins including, to the extent annualized figures imply forward-looking projections, continued performance comparable with the period annualized, as well as other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Excluding results of the Netherlands where we have our D4A project underway, our pro forma organic OCF growth rates for the year and the quarter improve to 16% and 18%, respectively.
13) Additionally, we expect flat growth in the Netherlands in local currency, which may be impacted by the pace and success of our D4A roll-out.
Also of note, our D4A launch in the Netherlands began last month and has received a positive reception from both regulators and customers.
We are incurring higher operating, marketing and customer care costs in that market related to new product launches, in particular our D4A initiative.