Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question is coming from Matt Duncan of Stephens Inc. Please go ahead.
Matt Duncan - Stephens Inc.
Good afternoon Dave and Mac and congrats on another great quarter.
David Little
Thank you.
Matt Duncan - Stephens Inc.
First things first on the gross margin line, it’s very impressive gross margin performance you guys put up this quarter ahead I guess. I know you mentioned that innovative pumping solutions business had a little bit to do with that. Was there any one project that was exceptionally high margin this quarter as this sort of a sustainable level that we can think about going forward?
David Little
Well, it's, all of our capital project business are obtaining higher margins, as we are planning in that area of sellers market right now. We continue to work on our price metrics for our DXP service centers in differentiating between B2B solutions in our bricks and mortar offering. And so, we've seen margin improvements there.
I think, what were they exactly Mac there, 31 something is that, what were our margins? Gross margins,
Mac McConnell
Yeah 29.8.
David Little
29.8? Okay. Our goal is to get to 30. And so that, you saw that so I am pleased with that I don't know it will bounce around a little bit, but we're coming to 30.
Matt Duncan - Stephens Inc.
Okay, great, makes sense. Looking at the SmartSource business for a minute, I know you guys have two, two and a half integration teams there right now. Did you add any SmartSource locations this quarter?
Mac McConnell
We added one in March.
Matt Duncan - Stephens Inc.
Okay you did add one in March.
Mac McConnell
We now have 18.
Matt Duncan - Stephens Inc.
Okay. So, should we think, I guess it takes these guys a lot to get these sites integrated. So should we think about adding roughly a location per quarter there as we go forward, is that kind of a goal? Do you have a goal for how many you would like to add per quarter going through the year?
Mac McConnell
Yes, we would like to add two to three a quarter, and so that's how we build up the teams and the implementation normally takes 90 days. That can depend on the size of the plant site that we are dealing with. Whether its $1 million annual spending or $5 million annual spending. Would you talk to Mike?
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