Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Brandon - Bank of America - Merrill Lynch.
Brandon - Bank of America - Merrill Lynch
Could you discuss perhaps the organic revenue trends you saw through the period; did you see trends improve sequentially through the quarter and any comment on the momentum whether that’s continued into July?
Jost Fischer
Yes, I think positively we’ve seen sequential growth and we also have seen the growth continuing into July. This is especially true for our US trend.
Simone Blank
Looking at the third quarter we are encouraged by the performance in that quarter obviously and the AC launch has gone well in the quarter and we have the opportunity for the AC upgrade program for the rest of the year, and we had an excellent IDS, and I think that’s very visible in the quarterly numbers; TENEO is doing well. We’re looking for an improvement in imaging in the fourth quarter and the comps eased a little bit in the fourth quarter for us, we have our short-term cost savings in place, and we will also benefit from the mix towards our higher margin products.
Brandon - Bank of America - Merrill Lynch
Can you talk a little bit more about what you saw in the US during the period particularly on the CAD/CAM side; should we expect that to bounce back in the fourth quarter?
Jost Fischer
Absolutely. As you see and Simone has stated on the call, we shipped every unit that we have manufactured, and while our upgrade program in the US was running during the quarter and just ended I think a couple of days ago, we will address this market in the fourth quarter, and add to that we will fill the demand and the backlog is healthy. Certainly, we are not losing any orders because of timing here.
Simone Blank
We had a record quarter just to add to Jost’s comments in international markets as I just said.
Brandon - Bank of America - Merrill Lynch
In CapEx, looks like it’s running a little bit light here; I think you previously talked about it being a little lower than $35 million for the year. Is there something in the fourth quarter that we should anticipate or would you consider this a steady run rate, perhaps into 2010 there?
Simone Blank
The normal run rate for full year is 3% to 4% as we mentioned before. I would think the quarter was okay. You also have to always take into account the impact of FX on it. So, if the euro is strong, that number could look a little bit lighter and vice versa.
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