Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Lewis – Morgan Stanley.
David Lewis – Morgan Stanley
Shawn, I just wanted to begin where you left off, can you kind of just walk us through the updated change to not disclose Pipeline revenue? And, can you give us the estimate in the third quarter?
Shawn T. McCormick
I’m not sure I understand your question David. We said originally that we were just going to disclose the $4 million to $5 million for the full year impact of the Chestnut acquisition on revenue. We did not break that out by Q3 or Q4.
David Lewis – Morgan Stanley
Can you just share with us just the third quarter number given you’re not going to give it going forward?
Shawn T. McCormick
Well, we prefer not to. We’re very pleased with the start we got as you can tell by the increase in our overall number to the $6 million to $7 million range. We’re a little more bullish on the momentum we can get in the fourth quarter with that product. But, for various reasons we’d prefer not to disclose the specific product numbers.
David Lewis – Morgan Stanley
Given there’s no direct competitor to the product, I’m just trying to understand the rationale for not disclosing the specific numbers either now or going forward?
Shawn T. McCormick
Well, there’s not a direct competitor but we do believe there are plenty of competitors that would like to know exactly what we’re doing with that product.
David Lewis – Morgan Stanley
Then Bob, your comments on the US business were helpful, can we just get more specific as it relates to atherectomy procedure support and stenting all were a little lighter than we were expecting in the quarter. Do you think there was an economic effect or a destocking effect at all affecting your business in the third quarter?
Robert J. Palmisano
Hard to tell; the quarter started off fairly slowly in January and August and picked up a lot of momentum in September and October going forward so it could have had some effect but that’s all anecdotal David. We don’t think on an overall basis the economic environment in the country will have a big effect on our business one way or another.
David Lewis – Morgan Stanley
Lastly, Shawn the gross margins were very strong can you just help us understand the drivers of the gross margins maybe on a percentage basis because peripheral was weak and neuro was very strong so how much of this was a mix shift in the quarter and how much was operational improvement?
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