The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Chris Moore - CJS Securities, Inc. - Analyst
: Hey, good morning, guys. Thanks for taking a couple. Alright, good morning. Maybe we'll start with tariffs. So 6% of COGS imported from China. Is
that mostly scientific and hydraulics?
Question: Chris Moore - CJS Securities, Inc. - Analyst
: Got it. So, and I guess the two primaries, one is looking for alternative sources, and two is pricing. It is pricing power, you have a little more pricing
power in one of those splits, or how do you how do you look at that?
Question: Chris Moore - CJS Securities, Inc. - Analyst
: Got it, very helpful. Right, so it does, it doesn't look like Q4 will show any, organic growth, I guess I just the puts and takes for an organic growth in
in fiscal '26 is obviously visibility isn't where you'd like it to be at this point, but is that more of a of a back half conversation or just any thoughts
there at this stage?
Question: Chris Moore - CJS Securities, Inc. - Analyst
: Got it. That's very helpful. Maybe just the last one on Amarin and Orion, the planned expansion, it sounds like it's about 6 months before you start
selling in Europe but just is there a significant investment required to begin there or just, kind of what the primary, kind of milestones are over the
next two quarters.
Question: Chris Moore - CJS Securities, Inc. - Analyst
: Perfect. All right guys, thanks, I'll leave it there.
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: Hi, good morning, couple of questions here, in the guidance that you gave us for Q4. In terms of the organic decline, is it going to be very similar
to the organic decline in sales that you saw in Q3?
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: Yeah. No, when you say sequentially up and I'm just, back of the envelope, Amron, let's say it's you bought it, had $100 million of revenues, you
had 25 their Starlight about $8 million, that's 33. So, yeah, I'm just trying to get an idea of when you're talking about the changes you're seeing in
or contemplating in or the growth you're contemplating just what we have to work off there. So, we really shouldn't be looking at about an 8%
organic decline in Q4 as we saw in Q3.
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: Okay, that's good to hear. I just want to ask in terms of fast growth markets, were your sales last quarter about $26 million? I think I went back and
looked at that and you were about $60 million this year. Is that kind of correct or this quarter?
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: I was looking at last year's Q4 Q3.
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: Right. So, I guess phrase the question this way, given that Aron had a pretty good margin profile, how has that changed the margin profile, adjusted
operating margin profile of your sales in the fast growth markets, is it, could you give me an idea of, the magnitude of the basis point increase year
over year let's see.
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: Okay, a couple of 100 basis points. So, as they grow, as this grows, it's going to become very accretive. Yeah, Okay, and then lastly, on the, one of
the things you mentioned was the tariffs, you say it can offset some of this with price increases, and I realized this is rather de minimis relative to
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MAY 02, 2025 / 12:30PM, SXI.N - Q3 2025 Standex International Corp Earnings Call
other companies, but, have you informed your customers that you're going to increase prices as of yet and I just want to get what's kind of been
their reaction to that.
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: Well, let me ask you this, with your existing sources right now where they're coming from, say, China and India, can you go back to them and say,
hey, you guys got to share some of this burden? I mean, is it, is what you're getting out of China, is that coming out of mainland China or Taiwan?
Question: Gary Prestopino - Barrington Research Associates, Inc. - Analyst
: That's it. Thank you very much.
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