Cooper Companies Earnings Call NUGGETS: New Product Launches, Origio Impact on 2013
New Product Launches
Kimberly Gailun – JPMorgan: So, I guess if I am limited to one question, I’d like to pick up on the 2013 commentary that you made in your prepared comments Bob. So you made a comment there expecting another year of, well a year of low double-digit EPS growth, and then you noted the (med-tech) pack there for women’s health. So, I just wanted to clarify that you’re talking about double-digit EPS growth, despite the tax and currency headwinds.
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Robert S. Weiss – President and CEO: That’s correct.
Kimberly Gailun – JPMorgan: If I could squeeze in a follow-up. Just curious with the new product launches in the quarter, silicone hydrogel daily and then re-launch of Avaira Toric, could you guys quantify the impact of those two in the quarter?
Robert S. Weiss – President and CEO: Yeah, new products was fairly de minimis in terms of impacting top line growth, by de minimis I mean, we’ve got products out the door, the impact on our third quarter was less than 1% in aggregate.
Origio Impact on 2013
Lawrence Keusch – Raymond James: Just quickly here, with the Origio deal now being closed obviously good strategic acquisition for you guys, you used OUS cash but I’d love to get any thoughts on how you’re thinking about the EPS accretion for next year and then the other quick one is just given all the startup expenses for Avaira, getting that out and the 1 day silicone. I’m just curious how that impacted your gross margin. I’m just trying to understand what sort of underlying gross margin level you’re going at right now.
Robert S. Weiss – President and CEO: As far as the impact of the Origio acquisition on 2013, we’re still expecting it to be marginally accretive next year and near a break even this year as far as its impact on this year. Relative to Avaira Toric re-launch and the single use silicone, given the revenue was so small on the quarter had marginal impact our margins for this period of time. In the fourth quarter guidance as well as in our outlook for next year assume that the re-launch of Avaira Toric and the roll out of single use silicone is going to be certainly a negative in terms of margins since we are investing behind both products and since you may recall that Avaira Toric when we fixed the problem that led to the recall it did result in a step back of efficiency of making that product ballpark 30%. So, we do have to hurdle some of that going forward. Longer term we expect like anything else we’ll get more and more efficient and get paying some of those costs back but short-term meaning over the next year, year and a half we are going to have some waitings on that which is built into our 2012 guidance and built into the comments I made about expecting a low double-digit growth in earnings per share next year.