Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Larry Solow - CJS Securities.
Larry Solow - CJS Securities
Could you just give us a little bit more indication on the imagining side business? I know that, you’re kind of head into new calendar year. Assuming that hospital orders sort of returning to some normalized level. Would there still be some delay in the OEM, how the OEM orders from here? Is there any visibility on their inventory?
Jim Green
With some of our large OEM, we get a pretty good view directly into their factories as they get orders and as they start to fill those orders. We get signals very quickly, when went to ship our some systems for their need. So we get a reasonable view with them, as far as what we expect to see happening as we get into the calendar year.
Everybody is interested in seeing how the hospital budgets start to develop here. No one, I don’t think is really making large statements about exactly what they expect. Other than just in general, we and our customers are seeing a lot more interest with RSNA coming up and the budget time at the year starting to develop here, starting with beginning of the year. We will see at that point, we’ll really be able to see how it’s developing.
At this point, most feel that with on the lower base here in the US that will just start to see a standard procedure based growth off of that, that’s will most everybody is really expecting at this point, but we really want to see what happens RSNA with quotes and with order taking at RSNA and as we enter into the new calendar year Larry.
Larry Solow - CJS Securities
Not depending down the timeline, but its sounds like at least seems like your imaging revenues are probably, remain relatively stable for the next couple of fiscal quarters?
Jim Green
Yes, that’s actually we said last time to that we expect this quarter, the next couple of quarters to be pretty stable and then at that point we’ll see what’s happening on the new order side and then what’s going to happen based on growth from there, but the next couple of quarters, we expect it to be fairly stable.
Larry Solow - CJS Securities
Then on the gross margin, I think last quarter, I’d asked the question, do you expect to see some improvement, as you had some reductions in workforce and the prior couple of quarter before this latest around the costs? You would start seeing a better impact maybe in this current quarter, obviously that didn’t occur, but just excluding that I mean that I mean that the new trend basis point drop quarter-over-quarter, is that all related to B-K Medical or is other things in there?
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