Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Jamie Clement with Sidoti, please proceed.
Jamie Clement – Sidoti & Company
Jim, Bob, Peter, good afternoon.
James F. Conway
Good afternoon Jamie.
Jamie Clement – Sidoti & Company
Jim, first couple of question on manufacturing then follow-up on publishing. Your -- I know that the second quarter typically is seasonally stronger than the first quarter and obviously revenue on manufacturing played that out. The margin that you got on that revenue was a whole lot higher than in the first quarter. I mean was that simply a function of capacity utilization in the seasonally stronger quarter or was there something that hurts you in the first quarter that turned around in the second quarter, can you give us a little bit more color on that?
James F. Conway
Jamie it’s really just capacity utilization
Jamie Clement – Sidoti & Company
Okay and the follow-up to that would be -- I presumably -- you would expect a -- you would expect an even stronger margin in the second half of the year and that obviously, I think speaks your guidance and that sort of thing, I mean, is that the right assumption?
James F. Conway
That would be the right assumption, Jamie.
Jamie Clement – Sidoti & Company
Okay. When you have a decent amount of press time that is already has been booked as it sounds is the case in the third quarter. Is pricing effectively already locked up or is there -- or do you not necessarily have that locked in quite yet. Like can you explain how that process works?
James F. Conway
Well, for the most part Jamie, the pricing is locked up, we have pricing negotiations with our major customers usually in the fall, which tends to lock up pricing for the year. There is some spot work that comes in from time-to-time, but, you can assume that, the pricing levels for the most part are locked up.
Jamie Clement – Sidoti & Company
Okay. Have you -- is there any -- there is no evidence and you certainly didn’t say anything about this, but, is there any evidence at all of any kind of relative price deterioration vis-à-vis the first half of this year or actually are you -- or do you think things are relatively stable?
James F. Conway
It’s relatively stable, Jamie, again you see some inspiring things happen from time-to-time both up and down, but, for the most part, the pricing environment, I would classify as stable.
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