Question-and-Answer Session
Operator
(Operator instructions) Your next question comes from the line of Rick Kempe [ph] with Robert W. Baird, your line is open sir.
Rick Kempe – Robert W. Baird
Hi, good morning everyone.
Alfred Brennan
Good morning Rick.
Rick Kempe – Robert W. Baird
Hi just a couple of questions firstly on the equipment side, I was wondering if you could help out with what percent of the business that is, I think we used to think of it as trending in the 15% range but just as we look forward from here, whereabouts is it right now?
Alfred Brennan
It’s been in that range historically, that is not something that we have broken out but if you look at the historical numbers that is not inconsistent. Clearly in this quarter we are a little below trend line and most of the cost for us to drop out of our 4% to 6% historical internal growth rate which we have talked about consistently through the years is due to the panoramic performance.
Rick Kempe – Robert W. Baird
Then is your new system launches (inaudible) over the Q4 and Q1, when do you think we could start to see some benefit from that or do you think that this quarter’s shortfall was more because of the comp and because of the economy?
Alfred Brennan
I think it was three things really. One, it was continued struggles we have had internally with sales execution which I think we addressed during the month of September. We clearly saw some issues in July and August. Quite frankly people did not make their specific targets and we went in with different sales managers at the end of the quarter and we saw good results in September. We also saw and we had done a number of focus groups which Denis [ph] tends to manage their practices with cash while we had a number of properly qualified accounts with credit, we are either financing with cash or financing with credit. We did see significant increase in the delays, people requesting a delay as they waited out to see how things were going to go for the rest of the year. I think credit tightening did affect us to a degree. We did have a couple of comparable areas in some government sales and some international sales that have been there prior year, that were not there this year but overall it is a small business those things come and go and our focus right now is on selling effectiveness and really the launch of the new product which we think should affect our fourth quarter and first quarter results and appears to be in reasonably good shape. But to be clear and certain, the business is still in a condition that needs continued care and attention and focus and we don’t think we are totally out of the woods there yet.
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