Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Quintin Lai - Robert W. Baird
Quintin Lai - Robert W. Baird
On the overall environment, could you talk a little bit about testing volumes? To us it looks like that its still pretty stable here both in the US and Europe and so would be interested in getting your opinion on that. Could you talk a little bit about the instrument sale cycle, have you seen a shift, especially in the United States to even more operating type leases then you saw in the previous quarter?
Nino De Chirico
The first question, we don’t see any impact on our Reagent sales. We have not seen any material impact on the Reagent sales. That’s because our Reagents of course are used for basic needs in medicine. In terms of instruments, yes we see a shift more in Reagent as a matter of fact for the fiscal year we are 75% of the Echo are sold in Reagent rentals and less business in capital purchase.
Quintin Lai - Robert W. Baird
With respect to Europe the Galileo order number was a lot higher then what we expected. Could you talk a little bit about that, is it customer take aways, is it migration from manual or is it actually maybe replacement cycle of the older Galileo.
Nino De Chirico
I would say that our strategy in Europe started to see some results in fact out of the 20 instruments in Europe 10 instruments were to an export country where we were not present before and we got also an outstanding new order, new customer, in Spain with seven instruments. That basically was performance to new business that we are going to gain in Europe.
Quintin Lai - Robert W. Baird
Could you give us a little update on the development of the second generation Galileo?
Nino De Chirico
We are moving along with that platform and we are still on time for calendar year 2009 and to the product release. The project is moving along as expected.
Operator
Your next question comes from Joshua Zable - Natixis Bleichroeder
Joshua Zable - Natixis Bleichroeder
Can you repeat what was the contribution for price increase, I just got cut off for a second I didn’t hear it.
Rick Flynt
Contribution in the quarter was $5.9 million.
Joshua Zable - Natixis Bleichroeder
On the gross margin I know you guys had some manufacturing variances, obviously been moving that facility. Could we see any more follow through in the fourth quarter just because timing wise or anything like that?
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