Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). Your first question comes from the line of Jamie Clement from Sidoti. You may proceed.
Jamie Clement - Sidoti
Hey, good morning, gentlemen.
James Conway
Good morning, Jamie.
Jamie Clement - Sidoti
Hey Jim, when you look at this fiscal year overall, Do you mean across the industry from an educational market perspective, do you think all industry-wise things are going to be down? I think your press release alludes to a competitive environment. Has pricing also become incrementally a little bit more of an issue over the last couple of months?
James Conway
I am not sure it has become such an issue over the last couple of months Jamie, as much as it's been a very competitive year. We find pricing to be always fairly competitive, it's just the nature of the market. As far as your comments for the year, I think we're going to have, as we said looking at the fourth quarter, our load going into it is very strong. There is just frankly some unpredictability as it relates to the elementary in high school markets that we have mentioned. But sooner or later, the kids are going to have to have books in schools. So we are hopeful we're going to have a strong fourth quarter.
Jamie Clement - Sidoti
Yeah, and Jim on that comment I mean, with the economy being tough and presumably tax receipts down and that sort of thing, do you have any comments from your publishing customers that would suggest that maybe some adoptions have been pushed off a little bit?
James Conway
We have not had any comments of that to date, and talking to our customers; they still feel that there are going to be books that are produced. And at the same time, we know that their inventories are down so they are going to have to start ordering some of these new titles to get them into the school systems. At the same time Jamie, these education budgets when it comes to the books that are going into the classrooms, its 2% to 3% of the educational budget. So, it's one of the last things that get cut.
Jamie Clement - Sidoti
Yeah and Jim, that I know, and I can understand how your September and December quarters, where it's a little bit more reprint, where there could be some issues there, but I would have assumed that if the States going with the new title, those titles have to be printed, and I would have hoped to have seen some of that here in the June quarter. You know what I mean?
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