Question-and-Answer Session
Operator
(Operator instructions) We’ll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Erik Schneider with UBS.
Ron Zwanziger
Erik.
Erik Schneider - UBS
All right. Good morning. Was the 6% number for the -- or since the organic core growth, can you describe which areas have caused that deceleration over the last few quarters and if that’s a product or economy-driven? And if it’s economy, are those sales necessarily permanently lost? Or is there some way that we can consider them deferred?
Ron Zwanziger
Well as you probably heard that the organic growth on the cardiology is actually well above that. And so, what you’re seeing is you are seeing, in the physician office, the same issues that you saw in the earlier quarter and which we actually commented in Q4 as well. So there is a reduction of people going and having testing in the doctor’s office. And so it’s clearly recession, clearly, clearly recession-related.
Erik Schneider - UBS
That’s just more of the same there in terms of--
Ron Zwanziger
Right, we haven’t seen any trends. I would say that I think we may -- we may just have seen a bottoming out. It’s sort of hard to be specific about this, but it does seem that there maybe a bottoming out going on.
Erik Schneider - UBS
And then, can you go a little bit more on the manufacturing (inaudible) that affected gross profit. You said there were two different facilities. Give us just a sense of when you determined there was a problem, how did you take to resolve it and if it’s all load through with all the product or affected inventory that’s closed door, really?
Ron Zwanziger
Well, the two, the larger of the two in our talks over the yields went down precipitously in the quarter and it took a little while to figure out what the problem was. And it was a change in one of the chemical and one of the key materials that go into the product that had been unnoted by the supplier for years. And we didn’t know about the change. And it affected yield, and it took a while to figure it out and to correct it. It’s been corrected and yields of that but it won’t flow into the income, not all of the benefits will flow into the income statement in Q3, but it should all be back by Q4. Actually, in a way most significant than the temporary decreases, the result of the yield was the fact that we actually lost some sales as well because we were back ordered for a period as well. But that’s behind us and while there’s still some impact in Q3, it will all be gone in Q4.
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