Question-and-Answer Session
Operator
At this time, we will open the floor for questions. (Operator instructions) Your first question comes from the line of Andy Schopick with Nutmeg Securities. Please proceed.
Andy Schopick – Nutmeg Securities
Thank you and good morning. One or two questions if I may, one of your competitors yesterday mentioned some issues with DSOs becoming a little bit more extended in particular in the international markets and your receivables look to me like they are in fairly good shape, I just wonder right now if you could comment on if you are beginning to see any kind of collection issues or ageing of receivables that may be of concern to you in the quarters immediately ahead?
Paul Weiner
This is Paul, that’s a good question Andy. About a year ago, actually a year ago this quarter, we changed our policies as far as shipping and revenues due to the tightening in the credit market. In the third quarter of last year our DSOs went from where they were previously at around 60 days it jumped up to about 85 days in the third quarter of 2007 due to again the beginning of the tightening of the financing. So in the fourth quarter last year, we tightened our credit policy and have kept with that and that resulted in our DSOs lower than it was even in the past to around 50 days or 51 days in this particular quarter. So we have got pretty good control over our receivables and probably tighter and even better now than they have ever been.
Andy Schopick – Nutmeg Securities
I wonder if you can just comment whether there has been any revenue recognition on the Aspire shipments that have occurred to date or when you would anticipate beginning to recognize revenue if you have not done so already.
Paul Weiner
We recognize revenue on Aspire systems this quarter. Even though we shipped these first systems to some of the training sites that we anticipate needing throughout the United States and internationally, we still ship those for revenue.
Andy Schopick – Nutmeg Securities
So you do basically recognize revenue upon shipment.
Paul Weiner
Yes, that’s always been our policy, yes.
Andy Schopick – Nutmeg Securities
Okay. One other thing on Kendala and I don’t know if you are going to want to comment any further on it but have you ever given any indication as to what the back-owed royalties from Kendala might be within the range should you be successful and if they wish to go to trial and pursue this matter any further than they have already have, have you ever been any more specific about what the recovery could be in terms of royalties?
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