Question-and-Answer Session
Operator
(Operator Instructions) And our first question comes from John Franzreb from Sidoti & Company.
John Franzreb - Sidoti & Company
Good morning Laura and Sue.
Laura Hamilton
Good morning.
Sue Knight
Hi, John.
John Franzreb - Sidoti & Company
My first question is the Nano business. The operating loss, I think you said it was $0.04. That is for the first three quarters -- is that correct?
Sue Knight
Just let me double-check the year-to-date, John, versus the quarter. The impact in the quarter was $0.04, and the nine-month impact was $0.02.
John Franzreb - Sidoti & Company
-- was $0.02. Great. Okay. And the acquisition of SANS, can you talk a little bit about what your margin expectations are for the business? Will it be a contributor to EPS or not, once complete?
Sue Knight
John, we really haven't provided any financial details associated with the transaction at this point, but we will do so as soon as we close the deal.
Laura Hamilton
This is Laura. The one thing we have said is it is a healthy business.
John Franzreb - Sidoti & Company
I am just wondering if it is going to be accretive to margins? Is your expectations of it will be, will this be a drag on margins? What should I be thinking about once it is rolled in?
Laura Hamilton
We are going to do detail at that level once we close.
John Franzreb - Sidoti & Company
As far as you are raising your numbers, how much of that is the exclusion of the Nano business built into increasing your EPS estimates?
Laura Hamilton
Not really. Well the $0.14 is -- $0.14 we have added, and then the rest of it is operating results. And you are saying is it really getting rid of a loss?
John Franzreb - Sidoti & Company
Exactly.
Laura Hamilton
I know that -- that not really is. No, it is really about the business at a net income level.
John Franzreb - Sidoti & Company
Okay. The gross margin -- I mean, it sounds to me that the cost overruns in the custom projects due to customer delays, is what I think I heard you say, Sue, will spill into 1Q '09. Did I hear that properly or no?
Sue Knight
We do have two projects that could delay final acceptance. Not because we are not ready, but we just need the customer to provide us a final acceptance, and they have had some site delays. So I do not expect there to be material cost issues associated with that. I think our cost estimates currently reflect it. It is just a matter of us being able to say we have passed ownership final ownership from MTS to the customer.
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