Question-and-Answer Session
Operator
(Operator Instructions) At this time you have no audio questions.
Paul Meringolo
That being the case, which I was hoping it wasn’t, again I would like to extend my gratitude to the team in Tennessee. I think Ralph Pena and that team down there has done an extraordinary job. We actually held our board meeting there the past two days and the board is excited and we’re excited about the progress that’s been made on all fronts in that facility and I think for the first time that facility will be a strong asset and contributor to the future growth of the business.
On another note, I would like to extend a sincere apology to our customers for which we had caused them some heartache over the past 12 and 18 months with service interruptions due to our issues in our Tennessee facility. I believe those are well behind us and I appreciate their support in staying with us. I know we have some damage control to do, but we are ever stronger as a plastics and patient bedside business and we intend to make sure that we prove that to our customers’ day in and day out.
Operator
Excuse me, sir; you do have questions in queue. Our next question comes from Matthew Dolan.
Matthew Dolan - Roth Capital Partners, LLC
What is happening with revenue in terms of unit growth versus any price erosion you’ve seen and just generally do you see your customers starting to loosen up and order more after a few tighter previous quarters?
Paul Meringolo
I don’t think I could that granular. I just think that we are continuing to make progress in the field and in a number of initiatives that we’ve been working on. I think there is a piece of that growth that is coming from unit increases and pieces of that growth that is from price. In the upcoming quarters I think we will see less from price and more from unit.
Matthew Dolan - Roth Capital Partners, LLC
Okay. The gross margin, it looks like you are seeing a relative stabilization in terms of China and resin; how much of an improvement quantitatively speaking are you anticipating getting out of Tennessee over time?
Paul Meringolo
Matt, you know how we operate and we tend to be fairly conservative. I am excited about the potential that exits in that facility. Do I want to quantify that at this point in time? I would rather not, but I think that it will help mitigate some potential increases that we could receive from a resin side. Again, I want to give them the continued time to make the progress and continue to have the progress that they’ve made, but I think it could be a good number.
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