Question-and-Answer Session
Operator
Today’s question-and-answer session will be conducted electronically. (Operator Instructions). We will take our first question from Derek Leckow - Barrington Research.
Derek Leckow - Barrington Research
A question on the internal growth commentary here; just want to make sure I got these numbers right; I think you said that the implant business was positive outside the US, but negative inside the US; is that the right interpretation of that?
Bret W. Wise
No, I am sorry, that’s how it came across, but the implant business on an internal growth basis was essentially flat worldwide. It was positive in the US, very strong in the US actually, double digits; it was positive in Europe, including CIS, but of course it was more positive excluding CIS, and thus because it was flat for the whole world, you can imply from that the rest of the world regions it was negative, particularly the developing countries.
Derek Leckow - Barrington Research
Is that something market related you think; are you still gaining market share in those markets?
Bret W. Wise
I think we’re clearly gaining market share in the US and Europe. There is not real great data on the rest of the world locations because we really don’t get sales by country from the competitor filings and nor do they get it from us. So, I think it’s hard to tell on the rest of the world, which comprises about 20% of the market, but I think clearly in the developed countries, we’re still taking share.
Derek Leckow - Barrington Research
I have a question here on the gross margin pressure; it sounds like you guys did take a price increase, but it wasn’t as large as last year; is that right?
Bret W. Wise
Yes, that’s correct.
Derek Leckow - Barrington Research
Was it about a 2% point increase or what was the average?
Bret W. Wise
It was in that neighborhood Derek, pretty consistent with what we’ve historically taken. The price increase we took last fall was above that, but this is much more in line with what historical norms would be.
Derek Leckow - Barrington Research
So is it fair to infer that perhaps we saw some delayed purchases that would otherwise have been occurring in this quarter that may wind up actually occurring in the fourth quarter this year?
Bret W. Wise
I think, I don’t know that it’s delayed purchases Derek as much as it as our dealers probably didn’t buy inventory at a higher rate this year as they did last year. Meaning, they still bought ahead to get the pre-buy discount; meaning, the 2% or 1.5%, whatever it is, varies by product, but their buy-ahead was less robust than it was last year.
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