Let's start with quality control. Help me understand this business. It sounds like a great business that's been around for a long time. It's high margin and doesn't involve a lot of equipment. What makes this business unique? How did they get into it? What's the history?

There are two competitive differentiators. The biggest one is what's called an inter-laboratory comparison. For instance, if I get 4%, the lab down the road gets 3.9%, and the doctor's office gets 5.4%, all those values over a month's time are sent to a central server that Bio-Rad has run for the last 30 years. They perform statistical analysis and tell you whether your laboratory, with that same bottle of control and lot number, is on or off. If your laboratory reads 5.5%, it might be a statistical outlier, indicating your machines might be systematically out of calibration.

Let's start with quality control. Help me understand this business. It sounds like a great business that's been around for a long time. It's high margin and doesn't involve a lot of equipment. What makes this business unique? How did they get into it? What's the history?

This helps with laboratory inspections. They have to participate in some clinical program. I don't know if you've heard of the CAP surveys, but this is a mini, ongoing version of the CAP survey. The College of American Pathologists sends out similar samples to laboratories for accrediting each quarter. This is how laboratories ensure they pass their CAP surveys because they have to get the right number. They know they'll get the right number on the CAP survey because they're using Bio-Rad controls to ensure the machine's accuracy.