Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from [Jay Kumar - MedSouth Investment Fund].
[Jay Kumar - MedSouth Investment Fund]
What percentage of the revenue that comes from Brink’s is residential?
Roger Tannery
We really don’t know the answer to that. We supply their installers primarily so we don’t necessarily know the type of application.
[Jay Kumar - MedSouth Investment Fund]
Do you see any slowdown in that going forward because of the slowdown in the [inaudible] market? Do you see any slowdown in this fourth quarter that might affect the earnings going forward?
Roger Tannery
We really don’t know what’s going to happen in the next quarter.
[Jay Kumar - MedSouth Investment Fund]
Has the commodity pricing affected your business?
Roger Tannery
Yes, in fact it does. Some of our products are particularly affected by lead and copper and a couple of other metals, and it’s been very volatile in the past several months.
[Jay Kumar - MedSouth Investment Fund]
Now that the market’s down about 50% to 60%, do you see that adding to your bottom line?
Roger Tanner
There’s a significant lag between the time that we see those changes in the commodities and by the time it gets converted into products for us and gets to us, there’s a significant lag time.
[Jay Kumar - MedSouth Investment Fund]
How much have you seen it go up in terms of expenses? I know copper went up quite a bit and lead went up quite a bit. How much did you see your expenses go up because of the growth there?
Roger Tannery
Are you talking about lead again?
[Jay Kumar - MedSouth Investment Fund]
Yes. How much of the expenses went up in your business because of the rise in the commodity prices?
Roger Tannery
It would affect not our operating expenses but it would affect our cost of goods. We have reflected that in our sales.
[Jay Kumar - MedSouth Investment Fund]
In this new acquisition, how much do you think that’ll add to the business, the Monarch business that you recently bought? What percentage is that going to add to the revenue?
Roger Tannery
It’s not a large amount. It’s approximately $1.5 million a year.
Operator
Our next question comes from [Jamie Willin - Willin Management].
[Jamie Willin - Willin Management]
On the Monarch side, obviously you’re just getting $1.5 million of additional revenues but you’re doing this acquisition because there must be some additional synergies to capitalize on, whether you’re going to use their relationships or yours or try to expand your product lines piggy-backing with them. Could you expand a little bit about what you’re intentions are here?
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