Litigation - One litigation issue remains for Neogen. The trial is scheduled for late March. Management continues to be optimistic that Neogen will prevail in this litigation. Acquisitions - Management dropped a couple of acquisition candidates from the list of possibilities. Management did not like the growth numbers for these companies.
Active negotiations continue with two other candidates.
Decisions will be made after the numbers and audited financial statements are fully reviewed. Management continues to be optimistic about these opportunities. We make no apology for not spending your money on bad acquisitions. The retail grocery industry is picking up interest in monitoring deli, seafood, meat and produce areas. The FDA is beginning to tighten its regulatory authority on the seafood industry, and has issued several citations and stop sales on products due to histamine, Listeria and Salmonella contamination.