Question-and-Answer Session
Operator
Thank you Mr. Rumy. (Operator instructions). Our first question is from Stephanie Wang of Merrill Lynch.
Stephanie Wang – Merrill Lynch
Hi Zsolt, hi Kevin how are you? Can you give us a better color as to I know you said a comment on your carbon fiber side that you missed several significant orders due to some of the customers existing inventory. Can you just provide more color about that?
Zsolt Rumy
Well, all I can, the major one that I reference is one of our wind turbine customers probably sort our which one I don’t want to name it but they have been actually behind in their production because of prime molds and so on and so forth they continue to buy their contracted quantity until December when they had so much carbon fiber and they began they were confident that it’s no longer a problem with us supplying they asked us to suspend shipment for the rest of the year. They’re back on buying on contract level so again it was a temporary judgment on their part. And that’s the most significant one. There were other little guys, 20-30,000 pounds to hold and which again on the last conference call I mentioned that given where the holidays fell, we expect that it would be some of this going on.
We have increased our finished product inventory by about $4 million so I think that’s a good news in two respects one is we now have a somewhat of an inventory we can take advantage of immediate spot sales and also it takes a lot of pressure off of everybody and so I don’t again it’s not a long term issues.
Stephanie Wang – Merrill Lynch
So that doesn’t give you any concern that maybe there’s waning demand in the market and that’s why you’re seeing some of the customer’s resisting some of the inventory.
Zsolt Rumy
No I don’t think so because I’ve been through things going on it’s like I say the last year or so some people have kind of cut back on their activities because they were concerned about the ability and also this year including ourselves there are several other carbon fiber guys to come up with new capacity so I think that gave everybody some relief and as far as the long term requirements I don’t think it changed anything, I think it’s the capacity is catching up and so I don’t read anything more into it.
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