Question-and-Answer Session
Operator
(Operator Instructions)
You have a question from the line of Larry Haimovitch of HMTC.
Larry Haimovitch - HMTC
Congrats on a nice solid quarter. Going forward on your guidance, I guess probably J.J. or Dave would be the best to answer this. What assumptions are you making on the Euro? Obviously, you got some tough comparisons in the next couple of quarters because the Euro was so much strong in last year than this year. Are you looking for the Euro to be about flat with the current level?
J.J. Pellegrino
Yes, thanks for the question Larry. Clearly, last year the Euro made a couple of moves went up during the first couple of quarters and then down later on in the year. We’re assuming basically a flat Euro from here on out and that’s what included and incorporated into our guidance. We are sort of not in the business of prognosticating what the Euro will do going forward. So, we assume that it will flat.
Larry Haimovitch - HMTC
So, if that happens for the rest of the year, relative to your EUR 48 million approximately guidance for the year. How much of a haircut would you have taken because the Euro declined a couple of million bucks, I am assuming, something like that?
J.J. Pellegrino
Yes, I would say, blended overall year-over-year, probably two, maybe a little more than 2 million is probably a fair gage of the impact of the Euro year-over-year.
Larry Haimovitch - HMTC
And was the reduction albeit relatively small on the guidance on sales, was that mainly because of the Euro or just a caution of the economy that, we don’t know how the economy is performing and we maybe seeing a little bit impact on procedures.
J.J. Pellegrino
Yes, I’d say, it’s a couple of things. Number one is, clearly we are coming out of maybe a softer Q1 and between the AlboGraft transition issues that we described and the export issues that we described being down by about 50% or so in the quarter. There is probably 40% or more of your guidance revision and so coming out of that weakness, I think you expect those things to repair over time, but they do repair over time. It does take a few quarters, maybe and given the broader economic difficulties, I think it make sense to windup, where windup in terms of guidance.
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