Question-and-Answer Session
Operator
We are now opening the call up for Q&A. (Operator Instructions). Your first question comes from John Kreger with William Blair. John, please go ahead.
John Kreger – William Blair
Thanks, very much. Jim, just a quick clarification question on your guidance. Its looks like you are taking a fiscal guidance up by $0.01 to $0.03 for the calendar guidance down $0.01 to $0.02. Can you just sort of help us to understand, how those two are moving in opposite directions?
James Winschel
No, John. As you know the world is still a little off kilter, at the current time and while we have very clear visibility to the fourth quarter. We certainly also aware of the reports of some of our competitors and wanted to just be cautious as we went into the latter half of the calendar year.
John Kreger – William Blair
Okay, great. So, we should take from that conservatism as to suppose to visibility on any specific negative developments in the next couple of quarters is that right?
James Winschel
That’s correct John. Okay, and secondly, your tax rate. Could you quantify the tax that catch up that you realize in the March quarter?
John Kreger – William Blair
Well, essentially that the full year tax rate was estimated. I think previously at around 40% and so, we brought the full year rate down now to about 38% and you see the catch up, then for the first half of fiscal year being reflected in the third quarter, as well as the normalize 38% rate for the quarter so, is about four points.
John Kreger – William Blair
Thanks and then finally, can you just, Joe, maybe expand a bit more on your comments about Perceptive? Where are you seeing weaknesses in that unit, and should we think of that as being tied to ClinPhone or distinct areas?
Josef von Rickenbach
Hi John while generally as I said we are actually pleased with the progress that we have made with the integration of ClinPhone. And particularly, we were encouraged by the fact that new business have started to fall again and also with the, on the costs control that we successfully implemented in the business, where we have some challenges is actually in the medical imaging part of the business, which is in the, if you want legacy Perceptive part of the company and actually was not particularly involved in the integration at all. So I think that has to do more with the specific trends and market specific trends perhaps.
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