Question-and-Answer Session
Operator
(Operator Instructions) Please stand by for your question. The first question comes from the line of Casey Flavin. Please proceed.
Casey Flavin – CJS Securities
Before we get to specific questions on Collotype, I’d like to better understand the revenue shortfall in the quarter. Can you help us understand how much of it was due manufacturing turnover, or is it more of a demand issue?
Francis D. Gerace
It had nothing to do with any manufacturing turnover or any manufacturing inefficiencies or problems operationally and what we experienced in the third quarter were just a general pullback, predominantly with a couple of customers, and moderately with others, it was a general pullback in the third quarter and our assessment of that is that there was some inventory adjustments going on at those customers at year end. Now since that time, over the last two weeks, we’ve seen a significant increase in new orders entered in our system. As a matter of fact, I think last week the number of orders entered in our system hit an all time record high since I’ve been here. So, I expect that we’re going to see a solid fourth quarter.
Casey Flavin – CJS Securities
Okay, and given the current environment, it is obviously soft, you spoke a little bit about the customer demand. Looking forward a little bit more, the increase in orders, do you think that’s more due to their adjustment? Or what is your expectation looking out over the balance of the year and, more importantly, into fiscal 09?
Francis D. Gerace
We don’t get complete transparency into our customers’ business, so it’s kind of a judgment call and assessment on our part having – trying to get as much information in discussions with them. I don’t think that the surge in orders that we saw over the last couple of weeks is because now, they’re filling the pipeline with new orders as a result of their year-end inventory adjustments. I think the inventory adjustments they made, they want to keep and from a cash flow perspective and all that, I think it’s just – again, we’re in the consumer products, fast-moving consumer products business, and a lot of the brands that we support are what we call kind of staple consumer products and I think it’s just ongoing new business and ongoing business. As a matter of fact, our new business by the way, our sales organization have done a great job this year. A lot of these increases that we’re seeing in organic growth and in sales revenue is coming from new customers.
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