Question-and-Answer Session
Operator
Thank you. (Operator instructions) We have our first question from the line of Robert Dunn with Sidoti & Company.
Robert Dunn – Sidoti & Company
Hi, good morning.
James Welch
Good morning.
Robert Dunn – Sidoti & Company
I was wondering just what sort of outlook for us Depot [ph] is baked into the guidance?
James Welch
The guidance that we put out is – on our last conference call and our last press release, we said that there were probably in the neighborhood of 25% reduction in the overall business with Office Depot, and we think that's the – that there has been no change in that and that is baked into our outlook.
Robert Dunn – Sidoti & Company
Was that kind of the run rate you saw in the current quarter?
James Welch
It was a little higher than that in the current quarter. Some of the changes that we have renegotiated had not taken place until the beginning of this quarter, but, you know, we expect to be able to replace any downtrading with Office Depot and others with new business.
Robert Dunn – Sidoti & Company
Okay, great and you know in terms of the acquisition opportunities, you know, are you seeing just more smaller deals come across your screen or is it, you know, now you are starting to see some larger deals, can you just talk about the environment.
James Welch
I will make a couple of comments, and then Ray may want to add some. We are seeing a variety of prospects but it is kind of interesting. It is like their own two different ends of the spectrum, either the companies that are fairly financially distressed, and perhaps not the kind of company that we want to entertain acquiring or they are fairly successful companies, but they seem to have a little higher selling price than what we think a company is worth in this particular environment. So, it is kind of interesting how we are seeing two extremes, and Ray you might want to comment on that.
Ray Schmitz
I agree with James’ comments, you know, we are seeing opportunities of different sizes. We haven't looked at anything really large but anywhere up to $15 million and down is, you know, the range that we see, and lots of opportunities out there.
Robert Dunn – Sidoti & Company
Okay, thanks very much.
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