Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Lawrence Solow from CJS Securities.
Lawrence Solow -CJS Securities
Congratulations on another good quarter Brad and congratulations to the CEO and I am sure with the management team you have built we expect a seamless transition.
I just have a couple of questions. First of all on plasma, could you maybe talk about kind of the revenue outlook? With 12% expected growth in collections would you expect over the next 12 months, even though you have been taking market share, to at least achieve a number kind of in the mid single to the mid double digits?
My second question would be what your cost outlook is? With the Pittsburg facility, I think, near completion would you expect some further improvement in plasma margins specifically?
Brad Nutter
As we look out, and as we have talked about in the past, we have some pretty good visibility with our customers as this market is consolidated and our position with four of the five collectors of plasma. We believe that this is a business that will continue to grow in the mid teens, minimally, over the next couple of year.
As it relates specifically to the margin we have done a number of things that will improve the profitability of our business. Our new automation is now on line, as we burn that in, in Pittsburg, and we qualify that equipment over the fourth quarter. We expect that to provide us some benefit, as we have talked about before. Our contracts that are driven by CPI and PPI have escalated, so nominal impact there. And, we have launched our express product which we expect to be a benefit for us, particularly as we are more aggressive in the focus of that going into FY10. So, I think those are the factors I would consider.
Brad Nutter
I would also add that, as you know, we got the approval from the board a couple quarters ago to launch a commercial plasma manufacturing facility out west. That will be in Salt Lake City and we are really working hard to get that up and operational. Again, that will be another opportunity to better serve our customers out in that part of the country.
Operator
Your next question comes from David Lewis from Morgan Stanley.
David Lewis -Morgan Stanley
Brad I have a picture of the stock chart over the last five years in front of me, so once again congratulations on creating a dramatic amount of shareholder value, you and the team.
- To read the full transcript on Seeking Alpha, click here »
