Question-and-Answer Session
Operator
(Operator Instructions) We’ll pause for a moment to compile the Q&A roster. Your first question comes from Hamed Khoursand – BWS Financial.
Hamed Khoursand – BSW Financial
Just a question on the AFC side, with the loss of this one product are you seeing an increase in other areas from a standpoint of you guys being bumped up from being the number three manufacturer to the number two and number one?
Joseph Carleone
We do see some increases in other products that have made up for major decline. I want to mention that we did not lose the product, we will continue to produce the product as far as we can see into the future but at a lower level especially at a lower level in 2009. We really look at that as an inventory problem.
I didn’t quite understand being bumped up from three to two to one. What were you referring to there?
Hamed Khoursand – BSW Financial
Your status as a manufacturer for active pharmaceutical, you guys in the past have said that you’re usually the third choice for manufacturers and sometimes become number one and number two. I just want to see if there’s been any status change in some of your bigger products since you have guys have moved up from a number three status to number two, specifically the [inaudible] off of your product?
Joseph Carleone
[Inaudible] product as we mentioned in the last call we got a firm three year contract with minimum quantities and there’s only two producers, we believe the other producer has slightly more than us but we’re not sure of what the quantities are.
Hamed Khoursand – BSW Financial
On the Aerospace Equipment, is there any kind of smoothing in terms of the revenue recognition with the acquisition that comes on?
Dana M. Kelley
That segment typically does not experience the same lumpy revenue trends that we get in the Fine Chemical and Specialty Chemical segments because its revenue recognition method is the percentage of completion method. When we do get decreases or increases in that segment they tend to be as a result of the timing of contract awards.
Hamed Khoursand – BSW Financial
Because in fiscal ’08 it was lumpy from a percentage standpoint quarter-over-quarter, that’s why I asked that question.
Dana M. Kelley
In fiscal ’08 that segment in the middle part of the year where we were anticipating the contract awards coming in and they ended up coming in a number of months later than that, but did come in and that’s what kept them with the good booking award rate during 2008.
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