ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying financial statements and related notes included in Item 1 of this report as well as our Annual Report on Form 10-K for the year ended December 31, 2007. Overview
We currently operate in two business segments and engage in the following principal business activities:
Animal Identification (formerly known as Animal Applications) - We develop, manufacture and market visual and radio frequency identification ("RFID") products under the brand name Destron Fearing to customers worldwide. Destron Fearing products include visual and electronic tags, and implantable RFID microchips that identify, track and locate animals, including bio-sensing chips that measure an animal's temperature. These products promote recovery of lost pets, livestock herd management, environmental protection, and animal health while fulfilling the requirements of certain government regulations aimed at insuring the safety of food supplies throughout the world. Our animal identification business is headquartered in Minnesota, with wholly and majority-owned subsidiaries located in Europe and South America.
Emergency Identification (formerly known as GPS and Radio Communications) - We develop, manufacture and market emergency identification products that are enabled through global positioning system ("GPS") technology, and sold worldwide under the brand names SARBE™ and McMurdo. This segment's principal products are search and rescue beacons that safeguard people and high-value assets utilizing intelligent communications and emergency messaging services for telemetry, mobile data and satellite radio communications. SARBE safety products are sold to government and military customers worldwide, while McMurdo safety products are sold to a variety of commercial maritime, aviation, and recreational customers. We also develop, manufacture and market alarm sounders for hazardous industrial areas under the brand name Clifford & Snell. The emergency identification segment includes the 98.5% owned Signature subsidiary, and is headquartered in the United Kingdom.
Our business segments are more fully discussed in Note 6 to our accompanying condensed consolidated financial statements.
Significant Factors Affecting our Results of Operations and Financial Condition During the three-months ended June 30, 2008, as compared to the three-months ended June 30, 2007, our revenue decreased approximately $7.0 million, or 25.3%. During the six-months ended June 30, 2008, as compared to the six-months ended June 30, 2007, our revenue decreased approximately $7.3 million, or 14.4%. Our operating loss was $9.0 million in the three-months ended June 30, 2008 as compared to an operating loss of $5.1 million in the three-months ended June 30, 2007. For the six-months ended June 30, 2008 and 2007, our operating loss was $11.1 million compared to a $12.7 million, respectively. Excluding restructuring expense, asset impairments and inventory reserves of approximately $4.4 million, $1.9 million and $1.2 million, respectively, our operating loss was $1.5 million and $3.7 million for the three and six-months ended June 30, 2008, respectively. We attribute the majority of the asset impairment and inventory reserves to a restructuring plan that our board of directors approved on June 30, 2008. The purpose of the restructuring plan is to increase profitability at the gross margin level, which management believes is necessary to achieve in order to competitively price our products and still achieve positive earnings. The majority of affected employees were notified by June 30, 2008, or in some cases will be notified throughout the remainder of 2008. The annualized cost savings expected to be achieved once the plan is fully implemented is estimated to be approximately $4.5 million (before expenses associated with these actions), or approximately 10% of current annual revenues for the Animal Identification segment. It is anticipated that the plan will be fully implemented during the next 6 to 18 months. The cash requirement for the restructuring is presently estimated to be approximately $3.8 million over the next 6 to 9 months, and $4.0 million in total.
Critical Accounting Policies
Our revenue recognition policy for Geissler Technologies Corporation ("GTC") is presented in Note 1 to our accompanying condensed consolidated financial statements. Our Annual Report on Form 10-K for the year ended December 31, 2007 contains further information regarding other critical accounting policies.

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Impact of Recently Issued Accounting Standards For information regarding recent accounting pronouncements and their expected impact on our future consolidated results of operations or financial condition, see Note 2 to our accompanying condensed consolidated financial statements. Consolidated Results of Operations
The following table summarizes our results of operations as a percentage of net operating revenues and is derived from the accompanying unaudited condensed consolidated statements of operations in Part I, Item 1 of this quarterly report.