Question-and-Answer Session
Operator
Thank you. (Operator Instructions) We’ll take our first question from Tony Brenner with Roth Capital Partners.
Anton Brenner – Roth Capital Partners LLC
Thank you. I have two questions. One is regarding the shipment to that new Canadian forensic laboratory. I’m just wondering how meaningful that is and to what extent it might impede your revenue growth rate this time next year?
James Herbert
Well let me let Lon answer that. I don’t think it’s big enough to make a big difference. Your concerned about the quarter-to-quarter comparison would be, Tony.
Anton Brenner – Roth Capital Partners LLC
Right.
Lon Bohannon
We have a number of our product lines now that are, sales are helped along by the sales of instruments that are used in conjunction with disposable products. So we may have a quarter next year as it relates to the forensic product line where if we don’t have the same number of instruments sold, we’ll have an issue with comparisons. But overall we could have instruments sold in some other product line in that same quarter that would more than offset that. I think that’s one of the strengths of the Neogen and one of the things I tried to get across in the comments was that with our diversity of products and serving in so many different markets, usually that kind of thing is not anything that will inhibit our growth. It was certainly helpful to the forensics group for this particular third quarter, but it’s not sizeable enough in terms of the sales of those instruments to have an impact for comparison purposes next year in that particular quarter.
James Herbert
Tony, I think $175/180,000 probably is about where that came in.
Anton Brenner – Roth Capital Partners LLC
Thanks. Also the tax rate in the third quarter came down about 300 basis points from where it had been. Was there some unusual factor or is that just a correction of over accruing in the first half?
James Herbert
There wasn’t any correction of the first half. It really was effective the option activity in the quarter, Tony. The way that’s accounted for now, it does effect your tax rate and also it makes a difference where our earnings come for the state taxes because we have quite a bit of diversity in how much state tax we pay by area. So if I were looking forward, I’d say that rate for the year-to-date is probably a good rate to use for the fourth quarter.
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