Question-and-Answer Session
Operator
Yes. Thank you ladies and gentlemen. At this time, we’ll be conducting a question and answer session.
(Operator Instructions)
Our first question comes from the line of Michael Gaugler with Brean Murray, Carret & Company
Michael Gaugler - Brean Murray, Carret & Company
Good morning everyone!
Scott Jones, Craig Sheldon
Good morning Mike! Good morning!
Michael Gaugler - Brean Murray, Carret & Company
I wanted to follow up on some of Craig’s comments regarding interest expense. I was wondering when we could expect to potentially see interest expense decline and if you have a quarter that would be terrific.
Craig Sheldon
Before 1:00 am, on the gross hour basis, you will not, clearly not see that in the 3rd quarter because when you look back at the timing of the five acquisitions, the first of the five with GE, which was the big one. And we didn’t borrow for that year until March 30th.
So, even in the 3rd quarter, we have a full quarter of interest expense for GE compared to only one month in the prior year. Then as we move into the 4th quarter, the GE interest expense will be in there for both quarters but its still won’t reflect the borrowings for the other four acquisitions.
So, that will take a while to kind of work its way through. So, that’s the answer in the question on the gross dollar basis. As far as the rates are concerned, I know you can’t see that, just looking at the press release, but rest assured the underlying borrowings already reflect some of the impact of the interest rate decreases by far does not reflect the full impact.
As we, I would see by the end of July, the end of our fiscal year, almost all of our?,in fact by end of June, almost all of our borrowings by that time will have rolled over and can do that which will be at significantly lower interest rates. So, that’s very good news as we move forward. And since that is already happening in March and that will happen in the gradual 3919 for the balance of the year. I hope that answers your question Mike.
Michael Gaugler - Brean Murray, Carret & Company
It does. And then back on the endoscope reprocessing segment. And you guys give sales and didn’t really give any indication on margin. Can we assume that was basically a break even?
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