Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Larry Solow of CJS Securities. Please proceed.
Larry Solow – CJS Securities
Hi, good afternoon. Christine, could you talk a little bit about trends you are seeing in the life sciences market and stimulus funds, I know they are not there yet but are they knocking on the door or how is that playing itself out?
Brad Crutchfield
Hi, this is Brad Crutchfield, I will take that question. We are now beginning to see, like a lot of our competitors, the early stages of the federal stimulus plan rollout. Some of our customers are now getting their grants and we are starting to see some of the sales. Again, most of that we would see the impact being for the fourth quarter and into the first half of next year. But certainly now, it is becoming a reality, not just something theoretical.
Larry Solow – CJS Securities
And is there any way – I know you guys have spoken in the past that perhaps it was sort of the anti-stimulus, where customers were actually holding grant money they had. So now that there is security in the stimulus, is there anyway you could – I don't know if you can quantify what you would potentially see, but would there potentially be a pent-up demand, where actually giving a revenue, you got a nice little pop or bonus over the next couple of quarters?
Brad Crutchfield
Well, yes, this is Brad again. Yes, there certainly – we expect to see some upside, but it is also countered by the downside of potentially state governments pull back funding for state universities. So there is always – there is sort of that pull of both of those. And again, we are talking about only primarily the U.S. market and 50% of our business in Life Science is outside the United States. So it is going to – we haven't been able to quantify specifically, but we are optimistic that it is going to have a positive impact on sales going forward.
Larry Solow – CJS Securities
And have you mentioned – are there similar programs, I know Europe is also – you mentioned the (inaudible) life sciences. Are there similar type of stimulates, money or talk on the table at least of helping out in European countries?
Brad Crutchfield
Yes, there is a program in Germany, and that has had some impact in Germany, much smaller in magnitude to the federal stimulus plan in the U.S. China has been looking to invest and investing in their life science sector for a number of years, but even sort of accelerated this year and we are seeing that in terms of double-digit sales growth. And even Japan now is looking at a stimulus plan for later this year for their internal biotech market. But then, there are large parts of Europe and in Eastern Europe, have really been impacted by the financial crisis as well. So it is kind of a mixed bag.
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