Welcome to the Neogen Third Quarter Fiscal 2017 Earnings Results Conference Call. My name is Christine and I will be your operator for today's call. At this time, all participants are in a listen-only-mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded. I will now turn the call over to Jim Herbert. You may begin.

Good morning and thank you Christine. Welcome to our regular quarterly conference call for investors and analysts. Today, we'll be reporting to the results of our third quarter that ended on February 28. Now, I'll remind you to start with some of the statements that we made here today could be termed us forward-looking statements and these forward-looking statements of course are subject to certain risks and uncertainties. The actual results may differ from those that we discussed today, but the risks that are associated with our business are covered in part in the Company's Form 10-K as filed with the Securities and Exchange Commission. In addition to those of you who are joined this morning by this live telephone conference, I'll also welcome those who may be joined by way of simulcast on the worldwide web. Following our comments this morning, we will entertain questions from the participants who were joined on this live conference. And I'm joined today by Rick Calk, Neogen's Chief Operating Officer; and Steve Quinlan, Neogen's Chief Financial Officer. Earlier today, Neogen issued the press release announcing the results of this third quarter which ended on February 28. Net income for the third quarter of this 2017 fiscal year increased 24% to 10.3 million or $0.27 per fully diluted share that's an increase from last year's 8.3 million, which equated to $0.22 per share. Current year-to-date income for the first nine months is approximately $31.3 million or $0.82 a share this compares to $0.71 a share last year. Revenues for the third quarter increased 15% to 88.4 million this compares with the previous year's third quarter revenues of 76.7 million. The quarterly revenue and net income results both for this third quarter, both represent records for the third quarter for our 34-year-old company. On a…

Thank you, Jim, and welcome to everyone who is listening. Jim is already reported on the overall sales and profit performance for the third quarter of our 2017 fiscal year. And I'd like to provide a little more detail on the performance of our Food and Animal Safety segments as well as offer you some perspective of the markets in which we participate. Now before I discuss our results for the quarter, it's important to note that these results reflect the adverse impact of strength of the U.S. dollar compared to other currencies. And Jim said, Steve will provide more detail on the effects of these effects of these adverse currency translations during his portion of the call. As stated in the press release, revenues of our Food Safety segment increased 24% during the third quarter compared to the prior year, now this was aided in part by the acquisitions of the Deoxi and Rogama, both of which reports to our Brazil subsidiary as well as Quat-Chem which reports to our Neogen Europe Group. Organic growth for the Food Safety segment was 12% for the quarter. Food Safety highlights for the quarter included a 29% increase in sales of our rapid test to detect natural toxins. This increase was largely due to the increased sales of test to detect the mycotoxins DON and zearalenone in corn and wheat which is grown in the U.S., Canada and in Europe. Neogen's ability to rapidly respond throughout the value chain to these unforeseen mycotoxin outbreaks gives us the strong competitive advantage in the milling and grain markets. We expect this increased testing from mycotoxins to continue at least through the late spring. Needless to say, Neogen will be ready to respond to whatever grain producers and processors need from us during the growing…

Thanks, Rick. Steve, how about providing little color behind the financials and talk a bit I guess we're all have to know what happened on the currency conversions, but lay that out for us. And more importantly, we haven't discussed our genomics business, so cover that in your comments.

Sure Jim. As Jim and Rick have both indicated, we were overall pleased with our results for the third quarter as we achieved solid revenue and earnings growth. The currency wins did continue to be in our face this quarter, both a little less intensity than previous quarter this year. The pound sterling is worth 15% less this quarter versus dollar than it was in last year's third quarter, with the decline primarily the result of the Brexit both in the UK last June and the accompanying uncertainty on how massive that exit maybe. The Mexican peso is declined 14% relative to the U.S. dollar and has been volatile. At one point during this quarter with all the noise regarding the wall and immigration, the peso felt almost 22 to the dollar before recovering somewhat to close to quarter at 19.8 to the dollar. The Brazilian real on the other hand strengthened significantly during the quarter and was 23% higher than it was time last year, helping boost to be comparative revenues and earnings at our Brazilian operations. Overall, the negative impact of the stronger dollars on our comparative revenues for the third quarter was $1.7 million and this was about $0.01 hit on the bottom line. In constant currency, our overall growth was 17% versus the 15% we reported today and reported overall organic growth of 5% would have been 7%. On the Food Safety segment where all of our international operations report and where the effects of currency movements are primarily recorded, the impact was even more pronounced. The reported 12% organic growth was actually 16% in constant currency. Now, Rick already discussed some of the highlights of our growth in the domestic Food Safety business and a good portion of our Animal Safety business. In a little…

Thanks, Steve. As I listen to these two guys talk itself like we’re talking a lot of about the international and at the expense of why we're talking about a lot of great things that have happened domestically, but I think in focus the international importance is that we believe and have for sometime that's probably two-thirds of our total market opportunity outside the U.S. and we’ve been growing good both places domestically and international, but domestic has outgrown international, and so we’ve had an opportunity to play a little catch up at an opportune time when we look at the problems of wind in our phase on currency translations, if we're buying properties in U.S. dollars, it will take you back. So, let me talk a little bit about our international performance as a part of the overall growth strategy, that’s one of them strategies that the Company as you will remember. And our operations in Europe where we now have nearly 200 people, once again showed strong growth, up 31% in British pounds compared to the prior year. So, this increase was reduced to 12% when we translated it to the dollars as we've discussed. Our Neogen Brazil operations were up 47% in Brazilian real. And in this case, I think as Steve mentioned, we actually got a boost to pushing them up to 81% when we converted the dollars as the real strengthen from its position a year ago. It's still below where it was the two years ago, but it did get some recovery during the past June. Our Neogen China operations for the quarter were up about 68%. Indian operations were up over 200%. Canadian revenues were about five times what they were previous years. Now, these last three years all are working from a…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Paul Knight from Janney. Please go ahead.

This is actually Bill Mark on for Paul. First question, what was the organic growth rate in Animal Safety?

It was virtually flat Bill.

And then just on the revenue dynamic in terms of Food Safety and Animal Safety coming in closer to parity then what we’ve seen over the past six or eight quarters. How do you think about operating margin and the long-term goal of getting back to 20%? What do you guys need to do in order to get to that figure?

Well. Great. We’ve of course made some progress based on third quarter last year. There is a lot of things to get involved in that both, those who are new to the story, our program for sometime has been to take a look at operating profits and 20% or above there when we get above 20% when we start to look at where we can put money back into the growth of the business as long as those growth opportunities present themselves. When they get below the 20%, we start looking back upstream and you know where we might have some leakage or we might have missed in estimated some. The one thing we don’t know how to do and we’ll never know how to do I guess is what to do with currency fluctuations. The currency fluctuations again this quarter took away a piece of operating profit, had we’ve been dealing with a level playing field and I think then who would win higher. The second thing is you know I kid my folks and friends in the accounting that they come up with all sort of ways to make life harder to by changing the way we report things from quarter-to-quarter. Once upon a time when you made an acquisition, you took all the cost that was involved in due diligence and you folded into the cost and what was leftover you call that goodwill and you amortize it over 17 years and it was all clean and simple and we all know what to do, but it was too simple and overtime our accounting rules have made it more complicated including the fact that now if you spent money in due diligence which you dame sure you should do, you expense to month and month in which you spent it, not over the like of the transactions. So, it's possible to have acquisition that cost you $200,000 to $300,000 in due diligence cost you write-off before you have recorded the first dollar worth of sales. So, those are some of the things that complicated haven’t made all of those excuses will play the hands is dealt to us and you know I think we only get back to the 20%, we got ways to get back there. I feel good about as we mature some of these businesses, we are improving our gross margins asset through the session yesterday with one of our major groups that we're looking at budgeting and as they talking about improving gross margins have single digit compared to where they are this year. So, those are some opportunities that are out there. Our 20% is still our bogeying I think we can still be there that was a long political answer to your simple question, but that's kind of what I see.

Thank you. And then just a second one on the genetic testing business. What's driving the growth in that segment and then have you seen any increased demand associated with your partnership with Illumina?

We're in budgeting process that's where I can speak pretty knowledgeable as we look at wrapping up the year and starting a New Year. I guess without saying to me things that actually you shouldn't say, but Steve is looking at me across the tables saying don't start telling things that everybody else don't know and I won't. But the Illumina partnership for instance continues to be good, we had for those people who are unfamiliar with that story, quickly, we had developed our own models for genetic prediction on bovine species and some other things. And for Illumina we gave that to Illumina, Illumina made the chips for us. We used the chips but then also we're also selling those chips to other people who were using their own equipment to get results. And that was when the Illumina thought maybe they are to be getting themselves. So, there is a part of the process, we said we'll license due to sell your chips with our content. And you paid us what's total like a royalty fee on what's your sale. I think that helps us in the long-term because it makes our genomics model even more popular, but it also gives Illumina stop to sell their and that program come on pretty good. And I think it shows opportunity for expansion around the world, I don't remember exactly what the numbers were probably I shouldn't say that I did remember, but that one is doing well. What's driving that business? Well, its we've did some with our sales by increasing where we are last, I think last month we did 218,000 samples in one month, which pushes us to well over 2 million samples this year, which would make us clearly the world's largest animal genomics testing laboratory.…

Thank you. Our next question comes from Brian Weinstein from Williams Blair. Please go ahead.

Maybe we can start to just on the dry culture media and other segment that was up significantly in the quarter, up from frontline. Can you just talk about more specifically about what was going on there?

I want you to take it Steve.

Sure.

You're talking about the dehydrating culture media there?

Right, it's in the 10-Q, the reporting on the slide culture media and other. The other includes our genomics business that’s running through Neogen Europe, includes our Animal Safety product line and running through Brazil and Mexico. Those are kind of the things Brian that are running through that other line. The genomics business in Europe, we talked about the lab that we expanded in Scotland last year to increase our capabilities for the European market. The genomics business there has grown tremendously. So, that’s kind of the biggest line item in that number.

I'm sorry, you can ahead.

Yes, I just was going to blame it on my accounting buddies again in an effort to simplify sometime we complicate it so.

Yes, I mean percent trying just in that line rather culture media and other heavy trending kind of consistently in that 12 million or so. So, the top up there, you're saying is all really related to genetics over in Europe. Does it seem like a big jump in the quarter?

Well, there is another piece that’s smaller than that, but of magnitude and that’s our forensic kits that we’re selling into the Brazilian market to serve the commercial labs in that market. There was a law that changed last year requiring all commercial drivers be tested, drug tested prior to getting their license and that’s a big piece of that.

Okay. And then on the rodenticide?

I mean it might Brian just to kind of bring focus on what we called the dehydrated culture media business, we run an operation here that we’ve acquired back a number of years ago, it's important that what we’re doing, we call it our Acumedia media operations. And we sell, this is media that growth media that causes things to grow. It's very important in the diagnosis of certain microorganisms because you got to grow them up to get the quantity enough to be able to find them. You know I mean this goes back to the invention of Louis Pasteur. At the same time that dehydrated culture media are used to produce useful products and they go into vaccine -- they used to grow for vaccine production and things like that. So that business is strategic and has been its important in what we have in the U.S. as we serve the world. But then we acquired the Lab M operations, it’s been about a year ago and they guys are just a little over a year ago. Again, that’s a middle England operation in Manchester and that’s helped expand what we’re doing with the sale of the dehydrated cultural medium products. These are -- some of that is for plates where it goes out to companies they have the petri dishes a streak them and decide on things. So it’s very important part of our criteria as we’ve grown maybe in an effort to improve transparency. We might have put them in the same bucket with some other things it might have been a bit misleading, so I apologize for that.

Brian, the biggest thing that I should have mentioned right out of the gate was the two acquisitions, the Quat-Chem and Rogama acquisitions are also running through that. I was talking more when I was giving you the earlier color it was more on kind of the continuing business, but then there is the those two acquisitions are also what will do so those numbers as a fall.

We need to look at that when we report those. That based in Brazil mixed up with vaccine production in England something is wrong. Thanks.

Yes, no problem. And lastly, I have a question on the rodenticides and the insecticides and disinfectants sectors, I know you have the wall operating last year but just a trend line on that seems like net-net, we're sitting about 19 million last quarter, down a few millions sequentially here. So, can you talk about the sequential change in that line and is this sort of more normal type of a revenue trajectory that we should we thinking about? Just to remind us, if there is anything last quarter that was kind of unique there?

Steve, I don’t think it feels okay, I’m not sure what -- it feels good I mean it's growing, I am not sure what for year-to-year it was in reporting you Steve.

Brian, if you’re talking the sequential change, we don’t focus specifically on that but the third quarter of the year for those, particularly those businesses is kind of our lowest revenue quarter and then we talked a little bit the rodenticides business is a little bit soft with the vole outbreak subsiding and then the insecticide business. It did about what we thought they were going to do, but little bit lower than last year. So, no, as Jim said, there is no issues in the businesses I think there were some explanations that made sense to us and we think that the fourth quarter those businesses will rebound a little bit.

It’s certainly looking good going forward I mean we’re right in the middle and particularly when you look outside of the U.S. We’re strongly in the middle and the mosquito control and I don’t need to tell people how important mosquito control is to human disease spread and what those problems are though there is a lot of mosquitoes they can grow in stock tanks where cows drink too, so there is good opportunities to for this insecticides business. And it's heavily influenced by the weather and did we -- everybody is wondering now that we get a cold enough winter to kill insect all for basically they're going to come back and our guys are listening process trying to plan that because you can't start making them overnight. So, I think the insecticides side of our business it fits right in with a strategy. There will be some seasonality as Steve pointed out and some issues based on weather, but in the long-term it's a strong place and we're not overburdened by competition there.

Okay go back to the first question. Let me ask one of them on operating margins. Can you talk about specific things that you think that your team is able to do to drive gross margins higher in the short-term and I want to extend on any of those specific items? I mean what you guys are doing to drive other than sort of even integrating acquisitions in the more mature increased markets? So, it's a specific set that you guys are doing about the growth in the operating margin side, you alluded to exactly to be more specific. Can you be more specific of that?

I think from two standpoints, one way to improve your margins is to increase prices and I think we've got into a position that we're in a better spot to increase prices as we look at and where we stand with competitions. And we're looking at pricing not just that pricing but if we do something for our customer that saves same money or make same money and we charging more for that, and our people have been pretty creative on pick up the significant area. I think we're going to have an opportunity to increase prices whether we haven't named any name to the wall on that yet, but we're starting to do our budgeting process I think that's there. It's that because we do all those things other than we're not in a commodity auction that we can make it or we can sale it the cheapest. As we've gotten bigger economies of scale coming in. So there are clearly helping and are going to continue to help our cost as it relates to that raw material. We're continually aim for more economical raw materials on our animal safety side that's the cheap cost. And our direct labor cost are good, we're not squeezing money out of our employees that makes great, but and as we've been able to automate, we've been able what might have been 8% or 9% direct cost which is down a percent or two now because of effective automation that's helping us. And we've got kind of a fixed amount of overhead and administrative cost, we don't have to have one Rick Calk and one Steve Quinlan and the more dollars we dividend them over. The better off, we look there. So, I think and there is a lot of things working for us, the economies of scale and ability to increase prices. It's just too early to say what I think the margin is going to reflect the next year because we're just beginning to get into that process. But what I've seen so far looks pretty promising.

Thank you. Our next question comes from Charles Haff from Craig-Hallum. Please go ahead.

First question I had Steve, you mentioned $440,000 gain. Was that foreign currency or can you just explain that a little bit?

Sure, Charles, that's a couple of pieces, we have our hedging program is in those numbers and then it's really -- it’s the difference between what we collect when we actually collect the receivable and what we actually invoice it at. So, the difference in the currencies in that time period is where we recognized that other income and expense down in that line. So, we just happen to have fairly significant activity in the UK where they sell in some cases dollar denominated sales and then they -- the dollar actually improved against the pound in that period. So, we have some pick there. So, that’s really what sides there 440, 000, it's kind of fall of the, it’s the Brazil, the Mexican, the pound the euro all is compared to the dollar in those markets. And then there is offset to that four additions to that with our hedging program.

And then for D&A revenues which were classified in Food Safety this quarter. What were those?

The absolute amount?

Yes. In the food safety segment and then also forensic kits, if you have it?

Our forensic is kind of spread across and we have forensic products going into need in Europe. Forensic product it’s a part of our Lexington operations and then because of some of that now going to Brazil and some of that gets recorded in Brazil. The product might have been in the company transport at the Lexington and so. I'm not sure we’ve done a consolidated forensic that’s not been too important for us to look at that we are do.

Okay.

I know it's better but I don’t think we can get you a number on that right now, Charles.

Genomics is about 2.7, Charles.

Okay. Great. Thanks, Steve. And then Jim when you think about your international distribution infrastructure obviously you have a lot of opportunity internationally you mentioned about two-thirds of your total opportunity there. Have you kind of view your current international distribution. I know you did an acquisition of a Chinese distributor couple of years ago. What are the things pockets do you see that need to be filled going forward in the next couple of years?

Good question. John. Thanks. First of all, if you look at Food Safety and Animal Safety a little bit separate. The distribution system on the Animal Safety side is a big different. They were dealing with larger products we’re delivering about pallet load by 50 gallon drum whatever. So you need truck and warehouses and so that means that you need to be a part of what's already very efficient and existing distribution system. So, regardless of where we are in the world a big part of those products move through the distribution system to the people that are going to get it to the end users. Now, to support that, we’ve got a group in the field that are calling on their particular major protein producers, be there dairy, be there chicken, pigs whatever that are same and when you place your order as for Neogen, and that same group has also able to sell things like I did in ample replacement program where you don’t have to have trucks and warehouses. So, that’s kind of hybrid system on the animal side. We’re in the process of expanding. We’re in good shape there with the U.S. I think we’ve had everybody we need in the U.S. and are properly addressed. We’re not that good a shape in the rest of the world because sometimes we’re in a good shape we’re expanding. Then if you look over at that might exclude safety side they will allow for your customers and you don’t have as many branches and farmers get it around the world s you do. This is naturally of the world that are running in process and plants. So there we are able more to go direct in the U.S., Canada and Mexico, we have our own feet on…

Okay. I’m just trying to understand you know you are putting up very strong growth in these countries. All you are in Europe as well but then thinking more about Brazil, China, India, Mexico, you’re putting up very strong growth in those countries and I am just wondering if distribution becomes a constraint at some point argue pretty well you have a pretty good line of sight for the next couple of years and it’s not going to be constraint for you?

I think that is true it doesn’t take UPS and FedEx moves a lot of our Food Safety products around. There is cigar sized boxes that contain biscuits. So it's even much easier to move those around. But in most of the countries where we are today, there is an established what some people would refer to as an animal health distributor business and our products did well there. We worked with the couple of major producers. Merck is short of a partner of hours in working only animal genomics there because that gives their people who are selling vaccines and pharmaceuticals sub master sale when they go to the field. So I think we’re okay.

Okay. And then last from me Steve on Animal Safety organic growth or reported growth you know for the fourth quarter you got a lot of cost currents going on here. It was about flat this quarter and I am just trying to figure out how to model Animal Safety growth in the fourth quarter. Is there any assistance you could give me there in terms of my inputs and how I think about that?

Charles, Rick talked a little bit about the ThyroKare that's going to be a $1.8 million or so whole in the fourth quarter that we have to make up. So and I think we will make that up, but anytime you're trying to recover a $1.8 in the quarter it's going to make your organic growth look fairly sluggish. So we can talk after the call, I don’t know that I can give you much except to say that the markets are still strong, and there is a lot of pieces and parts that are moving in there. But I can't give you anything specific now.

That business is growing. I mean it's in the casualty on because LANXESS. There is probably $1 million worth of product in there that we would have sold it belong to LANXESS that they’ve taken away from us that we would normally gotten in the fourth quarter. But we're bringing on instead though more than that by adding the Preserve acquisition which came on this year.

Yes and Quat-Chem.

Thank you. [Operator Instructions] Our next question comes from David Stratton from Great Lakes Review. Please go ahead.

Really quick, can you dive in a little bit on the dairy genomics, huge growth this quarter and just kind of what you see going forward and maybe how big of the business that is right now kind of get some color around that growth?

Yes, it's a true place to easy place to be able to determine the value of genomics. If I can take a day old dairy calf little black and Holstein heifers calf and inner Magnolia China and I can pull dozen of half out of retail and put it in accordance, send it to Lincoln, Nebraska and they can come back in 10 days and give you a prediction, it says how good milk producers she's going to be, what kind of feed conversion you might expect, what kind of -- how quick of will she breed back, what kind of calf what kind of mammals would you make. Those are truly, truly game changing kind of things and that's really kind of where we are. The milk production around the world is competitive based on supply and demand. And the successful dairymen are going to be those that are make sure that they're saving the right genetic stock. And that's exactly what our program does it allows them to from a group of females to select the one they want to keep for replacement. So that's become even more and very important as we move along. And that it's now become pretty well established as I can do sex semen I can go through. I can take the semen from the bull and through a process eliminate those that would have provided male calves and inseminate those cows only with the female producing semen. So, now I've got a lot of population of their efforts to select from. So, it is the selection process makes it even better. But that's -- I don't know whether that's the almost comparable another story. But I don't know whether that helps you or not, but that’s the importance of what we see. And the dairy business around the world is important. It always has been important with that’s why we’re there with diagnostics to be able to check the presence of antibody residues in milk. It is important going into the diets of infants and children and I think always will be. So, anything that can happen that be able to improve the cost production of milk for the safety of that milk, if you want to continue to be important.

And then when we hit into that disinfectants, you mentioned that generic disinfectants and can you just give a little bit of color on that? And is that included in the veterinary instruments line items or is that with the other biosecurity things?

I'll let Steve answer this the way he puts this on the segment.

Yes. That would fall in the cleaners and disinfectants area that instrument is pure vet instruments.

And then on the long on the disinfectants, are you seeing any early indications of people stepping up their disinfectants and purchasing due to the bird flu in Tennessee early signs of that. I know it's only maybe a few weeks old. I was wondering, if you're seeing anything maybe there?

Well, probably I can’t pinpoint exact gallon s and where, but that’s where our products come in as number one not just when you get an emergency, but on a regular basis last story putting a clean animal in a clean and keeping it clean, you got to start with the clean house and their can clean consignment whatever that might be. This was the situation in Tennessee where I guess the whole secret they're largest poultry producer in the world had a breeder block that broke. I don’t think we know how the avian flu got there, but their systems being tested where they found it, pretty quickly. Here is I can tell they when see they destroy that block, and so they will go back in after the clean up, they'll go back in with one of our disinfectant products we’ve got a couple of avian influenza and they make sure they got good and clean before they go right back with the next line of birds. So, that’s -- it’s not a widespread as it was a year ago when a lot of product care across the upper midwest and hit all the egg production areas up there. But, we know it's a waiting to happen anytime. We don’t know where it comes from. Sometimes it’s a fighting rooster that came over from Mexico in somebody's coat pocket that had it. Maybe it's a goose that brought from somewhere in, but it's always going to be an issue and as we continue to raise more animal on the same confined space and try to run them through same kind of processing facilities, it will just require more and more safety. Anything, we can do to get a safer product to that farm gate is going to be big help and I think the world recognized it.

Thank you. Our next question comes from Kurt Kemper from Hilliard Lyons. Please go ahead.

Thank you for taking the questions. I got to kick off the call for a second, so sorry if any of these are repeats. Steve, could you give me the revenue contribution from Quat-Chem and Rogama in the quarter?

It's about $4 million combined.

Okay. And then I noticed allergens and toxin sales are pretty strong, the categories are up by about 10%. Could you give any color on how drug residue did?

Drug residues were down and that’s a business that we have a very strong presence in Europe and we think we’ve lost a little bit of share there. We have a number of new products that were working on that are due to be introduced near future but in that category the allergens were up I think approximately 14%. Mycotoxins were very strong and those were up 29% and then the drug residues or dairy residues were down.

Okay. And then last question, could you kind of broadly speak about the margin profile or some of your acquisitions targets. Is it generally lower margin in emerging markets or higher margin developed and any sort of color around that?

We really are not focused on emerging markets much. Our product line is probably still a bit sophisticated for the emerging market. We are focused on those more developed markets and I guess you can say China and India are emerging markets I suppose. But they're also where we’ve got a huge middle places that are developing that are already demanding safer higher quality food. So, to that extent, I think we’re doing good where our margins are, we don’t look and you probably remember if that story. We try to focus on operating profit, not gross margins. You know I can have a product that’s not a whole lot attractive in gross margins, but if I can run it to the same sales force and don’t have any big sales and marketing cost and it's already fully developed and not only needs a spin 10% owned R&D, and it's truly bolt-on then I can get a big part of the gross margin all the way through to the net operating. So that’s a reason we prefer to look at net operating because as you look back even at the acquisitions I talked about this morning, it is essentially all bolt-on. We’ve got three rules when we look at acquisitions. Number one, do we understand the technology. Number two, could we manufacture if we’re willing to. And number three, do we have access to the marketplace. And in all of those they hit that category.

Thank you. Our next question comes from Peter Quill, who is a Private Investor. Please go ahead.

I won’t take much of your time because I know you’re getting hungry and it's chill time, but I have for a one question concerning. Are you receiving any feedback yet about pushback of federal regulations for your products like your Food Safety or Animal?

I think the answer is no. Nobody wants to mess with Food Safety. I mean that’s we’re going to rebuild, we can't on that with unsafe food and I think that, that’s sort of around the world. Will there be some changes over at EPA, actually that would probably mostly think that that’s in the first place like we’re there is some relaxation of some places. But you know it’s a relaxing and that will make it easier for us to get product approved. But to certain I don't make any changes and having now to kill the insect or something that will take care of killing the microorganisms of the viruses of animal disease. So, I don't really think whatever game is, we'll play the hand, but I don't think that's caused anything that really at this point will be big concern there.

Well, that sounds good I'm impressed with your 100th quarter of revenue increase.

Thanks Peter. Most of them we appreciate that.

Okay. I'm getting a little tired of having to say for 100th time I guess. But again good luck and keep up the good work. Thank you.

Well now we can try to say it because don't need any opportunity to contain these.

Okay. Bye now.

Yes.

Thank you. I will now turn the call back over to Mr. Herbert for closing comments.

Well thank you very much and thank you for your time this morning and your questions and your continued interest. I think you could tell from the comments here today and hopefully our answers that we continue to be really excited about where we are and where we're going. We're going into the fourth quarter now we've been wrapping up the year. And we will be back to you quite as quick next time. And if we get the year in close, I think probably the next scheduled conference will be sometime mid-July I guess. So, in the meantime those that are looking at don't ever hesitate to contact me as it relates to anything having to do with the investor work. And he does the great job on top of those investors work with them. And obviously, Steve and his team, we don't make forecast and they won't give you forecast, but they can help you develop your own model probably. So, thank you all once again and have a good week for all.

Thank you. And thank you ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.