Question-and-Answer Session
Operator
Thank you. (Operator Instructions) For the first question, Quintin Lai with Robert W. Baird, you may ask your question.
Quintin Lai - Robert W. Baird
Hi, Good morning and congratulations on a nice quarter.
Douglas Berthiaume
Thanks, Quintin.
Quintin Lai - Robert W. Baird
You kind of mentioned during the call a backlog of the high of end mass spec, has the G2 begun to ship now and could you touch a little bit about the backlog and your capacity to meet that back log?
Douglas Berthiaume
Yes, sure. The direct answer is the G2 has not begun to ship as of yet. We fully anticipate it will start to ship in the next few weeks. The interesting thing is that even though we don’t have any G2s out in actual customer hands right now. The initial response has been a strong for a new introduction as we’ve ever seen.
So the backlog build is something we totally expected, because we knew we weren’t going to be able to ship this until the fourth quarter and the third quarter build in this order rate is very encouraging. So watch this base for further notice, but we’re very high on the initial reaction to the G2.
Quintin Lai - Robert W. Baird
So then the guidance that you gave for the fourth quarter really only assumes just about a month and a portion of a month of shipment for G2 then?
Douglas Berthiaume
That’s right. Although, we anticipate shipping a fair amount of G2, as you appreciate the manufacturing process fees, a bolus goes into production and then all go on test kind of at the same time, that being brought up to shipment status. So while it’s true we’ll only get the equivalent of a month or month and a half that truly reflects a lot of instruments that were kind of in process for most of the quarter. So I wouldn’t have you believe that what we wind up shipping in the fourth quarter is going to be a small amount. It is not going to reflect total full quarter output, but it will reflect a pretty representative sample.
Quintin Lai - Robert W. Baird
Then with respect, you put out a press release a couple weeks ago about the FDA adopting ACQUITY for food testing. Is this similar to kind of what you saw in maybe emerging markets where governments maybe standardized and then with those regulations, maybe the suppliers then have to then start to think about conforming to what the Regulatory Officials are using?
- To read the full transcript on Seeking Alpha, click here »
