Question-and-Answer Session
Operator
(Operator Instructions). First in queue is Mr. Glenn Wortman. Glenn your line is open.
Glenn Wortman - Sidoti & Company
Yeah. Good morning, guys.
Bob Ready
Good morning, Glenn.
Glenn Wortman - Sidoti & Company
Yeah. Can you just talk a little bit more about the pricing pressure you are seeing in the lighting business, maybe level of magnitude are you seeing it across all your markets?
Bob Ready
Well, it's not fair to say we are saying evenly across all the markets. Certainly, the commercial industrial market is the most competitive, and our market position there wouldn't logically dictate that we have less impact or less influence, if you will, on the overall market level.
The competitors as you have well, I am sure review their fair announcements and their results are all fighting and as we are for a smaller [hike]. And the natural reaction is going be that the prices are going to be subdue because of that.
So, in order of magnitude, it's not horrendous, it's not some thing we haven't seen before. And frankly, it's not something that we are unprepared to deal with. We are working very-very diligently as Bob has mentioned several times this morning on sizing the company appropriately, and structuring the company appropriately to make sure that we can remain competitive regardless of where their pricing goes.
Where we have stronger market positions in some of that niche markets, we certainly maintain much more influence on the overall market price levels. But in those cases, we have probably, as we have mentioned in the automotive industry, petroleum industry, certainly and that's often, certainly the retail side of business, there is just less volume opportunity regardless of what your market share is. So again that's how I would characterize it.
Ron Stowell
If I could add to that, Glenn, this is nothing new to LSI. We have been in this position before as a smaller company. I think we know how to handle that. The fact of the matter is that, the fact of the matter is, is that we have done a great job in the last year and I was so glad we have in brining in a new procurement direction and working with our vendors and creating new opportunity, and working on price reductions, I mean those guys are feeling it too.
So, this is a big pond we are all in and the survival of the people in this pond, I think really belong with a strong balance sheet and working on that bottom-line as we are doing in many different areas. And then give the reps the unique products that they need to go out and create the interest and a lot of it, of course, as we all know is based on energy and certainly maintenance and those are two key areas.
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