Question-and-Answer Session
Operator
Thank you. (Operator instructions) Your first question is coming from Matthew Dolan of Roth Capital.
Matthew Dolan – Roth Capital
Hi, guys. Good morning.
Paul Meringolo
Hi, Matt.
Charles Kelly
Good morning Matt.
Matthew Dolan – Roth Capital
Question on the sales line, any highlights you can give us there Paul, were there any big orders or categories that shipped during the June period that provided the upside, at least relative to our numbers, and then maybe break it out Medegen versus Medical Action?
Paul Meringolo
Normal business. There were no real anomalies from an ordering standpoint. I think it was pretty much across all product categories. I think – again I think you will see it in the Q, but I think it was pretty healthy across the product categories.
Matthew Dolan – Roth Capital
Okay, very good and then as we look at these price increases a couple of questions, but it sounds like you are getting a couple of big increases in the September period. Can you maybe outline the rest of fiscal year in terms of when we should see improvements in pricing and how that really should affect gross margin. And the second question is relative to your competitors, how are they reacting in this environment, you know, as you balance your plant to raise prices to offset your cost but try to maintain obviously your customer base. What are you seeing the competition doing and is that impacting your ability to maintain your account base or take accounts from them?
Paul Meringolo
The national players more and more are doing exactly what we expected them to do, is raise prices. They are – and some of them are little slower than we had anticipated, but when they came they came hard in certain price categories. So that allows me to be a little bit bullish with respect to the plastic side of our business. China side is a little bit different because you got some irrational players in there that are vying for some position in the market place. So, they may act irrational from a price standpoint but I don’t believe that they are going to be able to withstand that long-term. I think quality will suffer, service will suffer, and on a lot of those items they are invasively used and we are just not going to comprise there. So, we are going to study the course from that perspective and again be fair with our customers. From a volatility standpoint we believe the China side is not as dramatic as the – once it stabilizes as resin. So, when you take a look at our price increases, you have got, they are really all over the place. You know, you have got some that you know will hit in June, you have got some that are going to be effective November 1st. You have got some that are going to effective December 1st. You have got some that are going to be effective January 1st. You have got some that are going to be effective October 1st. So, I think you know it is going to be a – there is a lot of contracts, there are lot of different situations, and they range anywhere from 5% to 12% in some cases. So, it is a – it depends on product category, it depends on commitment, it depends on a lot of things, but again we are fairly confident that we are going to win more than we lose in that process.
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