Question-and-Answer Session
Operator
Thank you. We will now be conducting a question-and-answer session. (Operator Instructions). Our first question is from Mr. Matt Dolan with Roth Capital Partners. Please state your question.
Matt Dolan - Roth Capital Partners
Good morning, Steve and Ashley.
Steven Anderson
Good morning.
D. Lee
Good morning.
Matt Dolan - Roth Capital Partners
First question on the guidance here looks to be relatively across the board in terms of your revenue segment. What has changed your outlook relative to probably some of the issues we've seen here in the past. In the terms of hospital inventory, volumes, pricing et cetera just walk us through the rationale behind the reduction?
D. Lee
I think the primary reason for the rationale is that when we gave our initial guidance it was in October of '08 and that was really right at the outset of the really challenging environment that we entered into as related to the economy and hospital spending. So I think its really just a reflection of -- that the environment in which our initial guidance was formulated and after we saw what happened in the fourth quarter, in the first quarter, it was apparent that the environment that we're in was affecting just about every healthcare company that was out there. So it was really just a function of the timing of when our initial guidance was generated.
Matt Dolan - Roth Capital Partners
Okay. And let's take your expense expectations have also come in a bit of that. Is that a strategic initiative or is there a reason behind that?
D. Lee
No, I think a lot -- some of it is due to the fact that revenues are down slightly, the guidance and so things associated with that like commissions are down. Also we've seen a negative impact on the top-line as it relates to foreign currency, exchange rates, we're seeing a little bit of a benefit as relates to the expense line. So no really strategic initiatives there related or they were causing the decrease in the expense guidance.
Matt Dolan - Roth Capital Partners
Okay. As you start thinking about moving into 2010 with your sales infrastructure. Do you feel that you're well covered now as the approach to possibly ramp that up to further drive revenue, maybe next year?
D. Lee
We currently have no plans to increase sales force at this time. We think that we have enough at this point to continue driving our business with the product mix that we currently have.
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