Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of James Sidoti - Sidoti & Company.
James Sidoti - Sidoti & Company
Good afternoon Clint.
Clint Severson
Good afternoon.
James Sidoti - Sidoti & Company
Lets start with the quality issues. Is it safe to say that those are result at this point or you still have a few to work out?
Clint Severson
Yeah, I think the quality of the instrument is improved a lot and the infant mortality was the real issue we had out there, where machine would get installed, then go down within the first 30 to 90 days, and we have seen a huge reduction in that. We're in the process now of scaling up additional vendors for internal parts and we believe that some these vendors will be able to provide not only the quantity we need, but buy them with the quality we need as well.
So, that project continues. I think the fact that we were able to process 3000 instrument through our factory and reduce the problems in the field at the same time is a good indicator that we are on right path.
James Sidoti - Sidoti & Company
And with the factor at the current levels now: what do you think your capacity for instruments is?
Clint Severson
Well, I think the capacity without working a bunch overtime is over a 1000 instruments a quarter and so, I think we are in good shape. I think after we add the additional vendors that within two or three quarters the capacity will be unlimited.
James Sidoti - Sidoti & Company
And then on the distribution front, you mentioned, your distributor in Japan was not able to get approved. Can you quantify that in dollars what you think the impact with that was?
Clint Severson
Compare to Q3 last year it was $351,000.
James Sidoti - Sidoti & Company
Alright, on Piccolo shipments that number is quite a bit above where I thought it was going to be: did you see that ramp up in December after the waiver?
Clint Severson
Yep. I think, Chris mentioned that 105 Piccolos were sold in domestic marketplace in December.
James Sidoti - Sidoti & Company
And: do you know what their number was in December of 2006?
Chris Bernard
I don’t have the December 2006, because we had no reason to keep track of December 2006.
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