Question-and-Answer Session
Operator
Thank you (Operator Instructions). Bill Quirk of Piper Jaffray. You may ask your question.
William Quirk – Piper Jaffray
Thanks, good morning.
Richard A. Flynt
Good morning Bill.
Dr. Gioacchino Eatz De Chirico
Good morning Bill.
William Quirk – Piper Jaffray
The first question is on guidance. You guidance implies effectively flat to down EPS for the balance of the year and that is considering the fact that you guys have already absorbed about half of the quality improvement charges and also arguably ForEx is going to benefit now, so could you give us a little additional color here, Rick?
Richard A. Flynt
Sure. Bill, there are actually several reasons why EPS came in above the expectations in the first quarter. The first thing, our pricing contribution is front-end loaded this year. We have about $2 million of price contribution in Q1 that will be higher than our average for the next three quarters. Also, in our international operations, we had about $1 million of orders that were pulled in the Q1 that we had expected in Q2 and finally we had higher margins in our instruments this quarter at 32% compared with 17.4% in the prior year and that was primarily attributable to a larger-than-expected favorable variance related to refurbished instrument parts. And we just don't expect that to be repeated in future quarters.
Dr. Gioacchino Eatz De Chirico
And Bill, we never changed our guidance after one quarter.
William Quirk – Piper Jaffray
Right, certainly very much aware of that Nino. Thank you. A couple of additional questions for me and I will jump back in the queue. The BioArray margin, it looks like it declined fairly significantly here in the quarter, it had been trending slightly positive. Did you guys ship a bunch of instruments related to BioArray in the quarter or is just a function of the fact that it is obviously a very small contribution at this point and any little expense line can move that around quite a bit?
Dr. Gioacchino Eatz De Chirico
Exactly the second point you made the volume is too small and it has to absorb all the costs on the operation.
William Quirk – Piper Jaffray
Okay, very good. And then the last one for me is just a housekeeping question really. Can you provide us with the North American both capture, as well as traditional reagent numbers?
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