Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Steve Crowley - Craig-Hallum.
Steve Crowley - Craig-Hallum Capital Group
Could I ask you just for a rehash on the growth profitability of each one of your key segments?
Kevin Wiersma
The overall gross margin Steve was 43.4% in the quarter compared to 46.1% last year. The lab was at 38.5% of gross margin and the POC Diagnostic Division was at 59.6%.
Steve Crowley - Craig-Hallum Capital Group
Can I have just have the year ago comps for both the lab and the products?
Kevin Wiersma
Yes the labs were 21.1% and the products was 62.1
Steve Crowley with Craig-Hallum Capital Group
So for products it was 59.6 versus 62.1.
Kevin Wiersma
Yes.
Steve Crowley - Craig-Hallum Capital Group
We will start with government because it is one of the areas we have a real robust growth. Can you give us a little bit of a flavor for whether or not this is penetration of an existing geography where you have had a lot of success with or whether part of the success story here are new States or new municipalities or new geographies?
Jim Schoonover
It is a combination of both. The growth is primarily being driven through 3 States, one of which is California, which we have had quite a bit of success with in the past and then there are two other, States that we are making new inroads in, State of Texas and the State of Kentucky.
Steve Crowley - Craig-Hallum Capital Group
I trust the success that can happen with LA County has proven to be real bullish reference ability and I guess some duplication of that success on other municipalities.
Jim Schoonover
Yes the success with that program has certainly helped us garner additional business. We are also doing work with beyond just probation, parole and the prison population. We have expanded into child and family services-type organizations and some other offshoots within the States so we are getting a much stronger foothold in those three but there is nothing special per se about the three. We certainly can expand this program beyond where we have gone with it so far.
Steve Crowley - Craig-Hallum Capital Group
Great, as I mentioned the clinical trials business, from what I read in your press release, Dick’s comments and then Kevin’s granularity on the performance, looks to be doing really well. You mentioned being real pleased, I think with the preferred provider arrangements that you guys were able to garner. Have they been the number one driver to the success here and how did that affect your strategy going forward?
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