Question-and-Answer Session
Operator
Thank you. (Operators Instructions). Our first question this afternoon will come from Donald Ellis with Thomas Weisel Partners.
Donald Ellis - Thomas Weisel Partners
Thank you and good afternoon guys. Darrell I just wanted to kind of reconcile the old versus new guidance and the way I'd like to do is do that and net out the impact of the Sular buyback, the inventory. So your old earnings guidance was $1.99 to $2.11 correct?
Darrell Borne
Correct.
Donald Ellis - Thomas Weisel Partners
And the new guidance if you were able to net that out and add $0.11 back is $2.01 to $2.13. Is that correct?
Darrell Borne
The new guidance is $1.90 to $2.02 per share. The thing I was trying to do is I want to make sure that everybody is clear that the new guidance is full end. Its on a fully diluted basis with all charges for Sular and it also has the returns for Sular and the revenues as well.
Donald Ellis - Thomas Weisel Partners
So the returns and all that added to about $0.11 is that correct?
Darrell Borne
That’s correct.
Donald Ellis - Thomas Weisel Partners
Okay. So netting that out you're actually increasing earnings guidance by about $0.02, if you didn’t have that $0.11 charge.
Darrell Borne
Correct.
Donald Ellis - Thomas Weisel Partners
Now on the revenue side you have about $10.2 million charge and you are lowering that lower and the revenue by $10 million, but you are lowering the upper end of the revenue guidance by $13 million. Is there something else in there that's making up the extra $3 million?
Darrell Borne
As we go forward as you can see we are getting closer to the end of the year and we're looking at the products on an ongoing basis. So we've tightened up the range a little bit on the top end, but we've actually increased a little bit on the bottom end.
Donald Ellis - Thomas Weisel Partners
Okay. And next question is regarding gross margin. Are you able to quantify a little bit how much your gross margin was impacted in the quarter due to the buy back?
Darrell Borne
The gross margin won't have any impact, but we did have a $2 million charge for Sular validation and Twinject inventories.
Donald Ellis - Thomas Weisel Partners
The last question is regarding the head lice product. Do you have any color as far as timing, how long you expect it will take for you guys to submit a response and then once that response is submitted how much time does the FDA have to get back to you?
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