Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Matthew Dolan
Matthew Dolan – Roth Capital
Good morning Paul, good morning Chuck.
Paul Meringolo
Good morning, Matt.
Chuck Kelly
Good morning, Matt, how are you?
Matthew Dolan – Roth Capital
So first question on the revenue side I think Paul there is a lot of noise out there today regarding your purchasing patterns that hospitals especially into October and distributors holding on the less inventory that they may have in the past given the credit market.
So, can you give us a feel for your assurance there on the revenue side that you are seeing related to your sales force your partners and that’s channel and how that impacts you during the next couple of months?
Paul Meringolo
Yes Matt I think it’s too soon to tell. I’ve been utmost field and that’s stock was one of the questions I focused on when I talked to an end-user and again its little bit different in the distributor, on an end-user basis and I had a plethora of answers from declining surgeries to increased surgeries. So I think it’s a little too soon to tell or even comment on.
From a distributor standpoint I think we have done a fairly good job keeping their real inventories fairly low because of our service related issues and so and I don’t think typically distributors carry rather large inventories because their margin parameters are relatively narrow and the only way they are really going to make money is by turning their inventory.
So, I don’t see this dramatic effect from a distributor adjusting their inventories but could you have a slight impact in our coming quarter? I would be guessing. I think we’ve got to let some time go and let’s see what happens from that perspective.
My thought is if that is going to happen to offset that again. I think we have spent a lot of time from our sales perspective dealing with service related issues and price increases I think if we can get back to basics and not have to focus on raising prices and service related issues and some of them at the same time which doubly complicates it, I think we will be able to focus more on some of the opportunities that are out there and maybe we can grow our business a little bit faster to offset any of that kind of stuff that goes on, that’s our hope.
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