Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Sanjay Shrestha - Lazard Capital.
Sanjay Shrestha - Lazard Capital
A couple quick questions; number one, you guys went through this numbers, but I couldn’t jot all of them down. Can you guys talk about the pricing increases you guys were able to implement during the quarter?
Ed Reich
The price increases, Sanjay we had two of them over the last 16 months. So as we sold C200 and C1000 product, we were able to fold in two price increase, 6% on the C200, 14% on the C1000. I think that’s even more impressive in light of the fact the dollar strengthened quite a bit over that period of time. So for our European customers, they saw a very large increase in the C200 and C1000 product and it’s still managed to get great market penetration.
Sanjay Shrestha - Lazard Capital
So you guys also talked about the gross slots related to the higher component cost for your C200. How much will you say, what that impact during the quarter and how should we sort of think about, if there is a way to think about excluding that a normalized gross profit line even at this point in time?
Darren Jamison
I think the twofold, Sanjay. One we’re shipping product at the original prices before the two price increases. So most of the backlog is burning up now is the older backlog at the older price and then we’re just now seeing kind of the leading edge of Mark’s cost reduction activities.
So you’re going to see over the next few quarters the 30% cost reduction comedown and on the C1000 a 14% higher ASP. So essentially, a C1000 we shipped in Q1 and the C1000 we shipped in Q4 could have a 44% difference in material costs, which is extremely, obviously.
Sanjay Shrestha - Lazard Capital
A few other specific questions, if I may. You guys talked about also the end of the UTC relationship now. The funding ended June of 2009 or at this quarter if you would. So how has that relationship changed in that going forward?
Darren Jamison
This relationship is influx. I mentioned last quarter that we had not received an order form UTC for a couple quarters. They’ve now finished locating the share comfort group from UTC Power embedded now in the carrier organization. Several meetings during the quarter with senior management and the new team at carrier, we did get an order during the last quarter from carrier for another grocery store chain, not one that we’ve used before tested markets third grocery store chain.
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