Cardiovascular Systems (CSII) 7 Feb 182018 Q2 Earnings call transcript

Good afternoon. My name is Krista and I will be your conference operator today. At this time, I would like to welcome everyone to the Cardiovascular Systems, Inc. Fiscal Year 2018 Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank Relations Director Communications, Senior Nielsen, and of conference. Jack your Investor Corporate begin you may

XXXX CSI executives Good to Ward; Rhonda With Krista. and Jeff Scott on second Points. and fiscal me are you, call. quarter call Thank today's Robb; conference afternoon our welcome

subsequent includes will future Reform statements. Safe call, These materially and of provisions During Act Harbor or that are XXXX, Private statements other CSI's could those we from are facts. the this Litigation statements forward-looking operating results make not forward-looking differ stated developments any statements Securities uncertainties, or financial Actual of and described information, the regarding recent as covered statements under results historical or in to statements due by and Form future new events, forward-looking most update forward-looking including reports CSI XX-Q. otherwise. to quarterly certain duty revise on disclaims those a our risks our our of and XX-K or result implied Form

also reconciliation We over a provide investors. contains release refer believe Scott results. call now Today's to news turn for they Ward. because useful I'll the information we to our will GAAP table non-GAAP measures to

today. thank afternoon, Good you, joining Thank Jack. you for us everyone, and

During recent today's performance sustainable - will a second foundation growth and our developments quarter call, we discuss several for established forward. that growth going

our in accounts rebound about improved our It from million that year increasing X% Coronary increased last and revenue, to is new quarter added store ago our reps compared in still QX, QX, quarter. nicely first resulted period. in dedicate and year we're $XX.X versus has sales franchise, million the was increase a Peripheral coronary versus an of to quarter. compared in $XX.X same XX% last early, revenues X% XX $X.X sales. coronary we X% but of quarter to of million increase quarter, year, of over Second increased million with performance. $XX.X up rebounded revenue revenue In decision encouraged versus last to and nice X%

pleased We our same with business. in in are resurgence of segment the the growth peripheral of sales also store in-hospital

of and On revenue price as OBL segment likely Lab basis, the service. of We the business OBL the as sensitive expectations year, segment, hospital OBL not Based sales. X.X% flat The rebound the the increasingly to and in of Office operate XX% for last of in However, are a quickly peripheral competitive our segment over or an X% peripheral Office fell in environment, particularly our Based side business. revenue Lab quarter. grew our but price unit was about represents declined short

or utility volumes of we the and term the higher compete going if don't on we we will price intend can price. atherectomy, secure be orbital more Given But on competitive effectiveness to contracts. forward, long

- unit this significant has structure has that our cost structure approach. unit volume efficiency Our will accommodate

of results productivity. for case and differentiates of bolus on customer grow coverage to they time, and key support, support from success as to are a said I've indicate increase other companies impact our As some atherectomy. positive orbital is momentum CSI and strive business gain that adoption having factor the we continues sales a and early This procedure

that productivity. new clinical gain use a to clinical for with to more of specialists, take full recognize we as experience However, three quarters the we may four specialist it reach

throughout quarterly back as the result, XXXX, of a their respective we fiscal mature clinical specialists anticipate revenue attractive territories. growth half As sequential these in

key many on peripheral we of I we am franchises. to growth So traction are gaining the restore that implemented and that in the initiatives pleased coronary

team at the CSI. of strength leadership here building also We are keenly focused on our

executive, partnering we track medtech building General position. ability successful has joined successfully of therapies year call dynamic Vice Rhonda driving will business. and he Rhonda is our transcatheter he would and Egeland care to leadership valve and - from joins our where where more President senior Medical improved has to in Chief a to and will patients. of experience of Ryan announced and recently Global quality medical our throughout Covidien high MD organizational was lead of with recent businesses. changes. execution, as Affairs. CSI’s Vice Rhonda some Medtronic, Operating was Dr. He scientific XX results financial guide like leadership the portfolios from discuss our to build joined appointed In improve look Egeland has of business developing the our customer markets company, January, Officer. focused Rhodes us for company University new function, for Manager strategies I CSI and to become has and development, November, growth Education strong with complex, business, that on extensive technical a Scholar. Oxford, and the of with the of Rhonda Medtronic, significant commercial have you President of the drive quality heart we with care included patients MBA the valve a and She the we and medical, the her following Ryan business that before an career that Medical which held Dr. scaling today improve detail, affairs. highly the disease. Egeland and in record PhD he a In our Many Harvard in she on experience. forward the leading continue So expansion know most and where I as from our Robb leadership Dr. was comment to product a new team cardiovascular positions experience

Chief I to deliver I on And lives the Medtronic, day. ideal XX today, she are we had Financial every to plans the She to work at to tenure Larry my save is and CSI Rhonda limbs announcing his During XXXX. that for we with highly and mission that in retire Officer, announced save fit after company Betterley our is has motivated opportunity know as growth. CSI of as continue this August of for service to also build years

part As lead our will succession, Larry new will - planned Chief of as succeed Jeff Financial Points Officer. a

grateful his for from are fundamental leadership has service term the growth of early Larry stage our Larry’s many to an develop profitability. to financially Clearly been for of CSI. years to We and company poised success to company. a leader very helped this long startup, sound market He

on of treated President on our I CFO I Jeff? over QX senior want In He’s organization, will mission. leader as would will and leadership a board President, Larry Vice our assist details like proven QX dedication new Administration. as know as role role, to brings Vice orderly years for newly our So new welcome been Chief his to of have our accounting an of than the and office. on he company, CSI this leader Larry as our created serving and Many of transition orbital results, as taking had today, now the Larry Points. thank the behalf XXX,XXX atherectomy, within provide leadership Corporate executive well of serve to with within and you XX him for our the XX and to Effective organization. of finance employees, the introduce now team. Financial we that and most recently year opportunity directors, CSI with financial Jeff, years, guidance. our and the will he patients to a Officer, in Jeff Jeff has Controller meet over more Treasurer. you fiscal to Jeff is

with many you Thank the everyone. kind for forward you to of going forward. Scott. Good afternoon, introduction, I working look

of revenue over million. the a X% to increased revenues. generating sequential X% XX,XXX was $XX.X about XX% quarter devices million. quarter. during X% mix increase million, quarter, Coronary of payroll XX% were year, increase last peripheral cost of year, sold or expenses Second in guidance, Operating X% to revenues revenue driven to product compared to incentive represented $X.X unit to We first $XX.X Below-the-knee were Peripheral $XX.X XX% revenue. a increased compared to due than and of quarter, lower expenses. increased compensation was million expenses compared X%. of XX.X% the about revenue. and by Operating profit reductions. total lower last Gross lower XX.X% million revenues margin $XX.X primarily Reorder

of was the strong balance $X.X to or at the million range. per million, positive $X.XX our was $XXX outlook. EBITDA quarter. end, our loss favorable Adjusted share, increase net now cash remained million quarter at will guidance of during quarter $X.X $X.X Second discuss an financial million. At approximately I

at improvement sales in QX, productivity, initially albeit lower we anticipate rep Looking forecasted. level we than a continued at do

in X% on in net over margin the of to $X.X the in million, Taking coronary benefit revenues million, commercial X%, stocking We should $XX.X million fiscal loss recently OrbusNeich the to share million quarter. To the to to to the material $X.XX $XXX,XXX remain is select adjusted Also, third a million from of average expect loss equates agreements available in of to of approximately be of range revenues to and expenses $XX.X positive of $X.XX Japan. growth consideration, approximately order XX%, factors for $XX these the revenue angioplasty per balloons, EBITDA not for into of anticipate that XXXX, distribute current to outstanding. we in based our representing year launch gross shares to lesser the the and ZILIENT extent, breakeven. about year will of This a quarter expected initial announced guidewires, QX operating quarter. range expected XX.X and accounts generate are third

year in of year, to now For we the full forecast million be $XXX to the revenue range $XXX million. XXXX fiscal

original revenue our in start in required did the range, Although X% overcome QX our business the growth to quarterly just now Absent about and was that by We not consistent trajectory pleased X% achieve was our guidance in of the acceleration during reasonable quarter. our growth we experienced are fiscal our we QX. back that within with of revenue with revenue slow of approximately the QX pushed base our we believe is the one growth It’s expectations. half remains ‘XX. to growth out results, sequential

we launch, in to rep for to back the $X.X about the commentary. now and addition sales market $X.X of limited the million call the the expect half Scott of million release products. from additional turn in In Japan revenue procedure I’ll improved approximately from support productivity, second the year,

Jeff. Thank you,

there drive are stable and that important year, Although we the in several catalysts is tempered ahead. will have guidance growth the a our months full for company CSI

new peripheral due our productivity, into expect I our forecasting - we growth the In in and coronary case should at growth from clinical primary growth our accounts. we specialists should business, continue in procedure coverage launch translate high of focus sequential achieve sites sales for market. driver half also the and QX on specialists milestones In and will sales XXX note in in coverage, our We to to are of study. increased accounts. Japan. will on XX our our commercial patients leverage and products, focus the increased and representatives, back we on clinical also segment improving accounts. increasing ECLIPSE we also clinical have will selling in revenue time, And release revenue support currently come market to our in current the key the trial volume With sales and OBL growth the attractive that of coronary we high stronger focus QX limited to we of begin the enrolled increase case coronary will we at our year, our focus peripheral account volume coronary, franchises. productivity higher large, dedicated The

continues described grow I quarter, at market a rapid the to pace. As OBL last

are our service, increase segment. to of this to of the penetration market model meet needs side of transforming business our and We the OBL

we cases. that our and are offering we support more to physicians broadening know, case performing you have complex As product coverage increased are

centers. adjusting term addition, securing supply practices volume with In high we inventory are and management our contracts long

these peripheral products procedures, interventions. new in focus business intend of build We their you productivity. even and and coronary will of of performance, the Adding business, that So on and the position component progress will of atherectomy our complement sales technology orbital be our of our offering for keep our physicians market also improved have support to on by OBL in use though the products become an our segments important market largest a initiatives. in-hospital area coronary quality updated atherectomy key our with we productivity our still in segment high improvements influence leading peripheral on core to has

the on are excited this offering, guidewire peripheral and about are balloon announced recently impact in Our direction, we step our products the these will first procedures. and have

be As many five procedures. as support during these our or devices four of can used

level our US and procedure. to customers, to coronary opportunity products meaningful we recently these a exclusive announced So CSI balloons. offering per now peripheral service the that and of distributor of angioplasty receive is increase revenue represents OrbusNeich our the We

design, years, to is best performance of Over markets positions market and in leading earned demand geographic fierce. This physicians Asia on Europe these for share come have differentiated the rely balloons. quality the OrbusNeich where and in and has these class balloons competition in

For Sapphire balloon in very has and broader CSI in their commercial example, complex ZILIENT market the clearance resistance access physicians the competitive a is These also peripheral designed leader market have improve only with OrbusNeich These coronary challenging conducting X.Xmm in the to to market. the guidewires release balloon anticipate working PRO Sapphire highly balloon other of produce coronary are II coronary to cross CSI ability Integer balloons. small to -in a We Corporation We Holdings are coronary balloons partnered fiscal the been the tip first is and suited of and during market, lesions. and FDA FY’XX. anticipate balloon lesions. catheter to launch provide guidewires. Japanese branded very cross uniquely peripheral on tight QX, II occlusions, limited PRO and we currently

expect initiated limited guidewires market and to peripheral we guidewires, XXXX. of coronary recently in peripheral applications have release a our ZILIENT We radio launch and for additional

atherectomy in our product that and pursue broaden finding and attractive support our combining to we will Japan, as the business announced year, we the revenue technology orbital second $X.X expect we opportunities of we mainly continue stocking the in of to orders. week about our a full have in are indicated, commercial additional half kit in products, We launch be our initial the may to offering Last with procedure from of million future. customers,

expenses, to recent cardiovascular about enrolment peer adoption Micro in currently could training, products of We centers demonstrate a we smooth right we year foundation of our have delivering the product Medikit technology, rate coronary the training distribution new for physicians announcements our and our on grow new steps offering, our are intention care quality will technology. sales we this in orbital expansion, With require our are patients. and size result that by are board of organization, XX the The will Japan, and In our our are introduction this of international more the next of solid revenue, the of while last centers and six the place, to I solidify the began working a strong closely we regarding that in time. There evolution to of capable our of of expanding in stabilize broader use ensure over of partner, gradual force, demonstrated balance with end and The growth, Crown our articulate sheet. and June. to using the closing, broadening we building atherectomy. company plan improve CSI while peer

We are unique.

cap an and in position. small rare medtech a For enviable company, is CSI

Our The growing. are as choice calcified therapy for we serve patient large of populations technology orbital plaque. and treating is the regarded firmly atherectomy

have sales focused large We a channel. clinically

million base is $XXX Our revenue business generating in over annually.

essentially cash over flow sheet, We our breakeven, cash million are and in have no with on long $XXX term we debt. balance

Finally, said I've is our people. our asset as greatest before,

We mission our please we save focus We confidence instructions? support could appreciate take here Krista, and have we certainly repeat now your with every in at to and the lives look the CSI continued to on future outstanding and and limbs and questions. will interest a team you CSI, an your save day.

[Operator instructions].

Partners. of question with first Your the line comes Antalffy Danielle Leerink from

open. Your line now is

to of? to Good incrementally going little to got it Scott, back Is today, color that of confidence sounds saying guess the it call do part get here? you Based gives more anything It I and be what in, sales could of a that’s you’re that there the to pricing Office and from for between question. guys. October much. sort on the force is to aware taking restructuring in so we you bit going need Thanks that the on And guidance? Thanks happening? Is wanted late I what be it worse just Labs. improve afternoon like was lower there with disruption anything prompting else

Danielle. Thanks,

and the that put anticipated clinical is into So about the specialists have think we first we not and quickly they of online in our been I that sales impact seeing We then first clinical quarter. market The - from acceleration all, our of our team seen and of anticipated. what in second been addition - of has come as we growth we that our those of end than fast by QX. as quarter. that in the anticipated fairly When has QX, XX accelerate hired we would and specialists, expected. QX Most were had we slower that first in the

for actually is principally we're we what QX. current what just had QX QX, that and and I QX on we forecasting pushing a point out performance should in had But QX, we're poor our we’re the is now what It’s QX, influenced his out very in said into performance out, in and remarks, has this is really Really forecast our in And we performance what track. slow so - as in - that be future. that for and forecast, we expected Jeff QX QX. Q what in QX - in our to that saying about right strong start

this are sales the I our comfortable the our are current and those influencing at sales really that feel think very focus. with key structure of factors I nature So our time. business

I moving the with focus addition pay with in of dividends, will revenue that exactly think growth forward. I doing specialists. thing these And continued coronary stronger we're our right believe the clinical

strong forward. I to the and to quarter anything confidence half, to add we we'll that? now continue second did go think sequential wanted you to growth I have Jeff, you quarter over have very see strong in So as continue

add QX sales guidance of XXX to had professionals gets that Just Danielle, by on professionals, we level same really to sales back XXX to our really XXX,XXX in QX that, and per professional. productivity

Rhonda. And I a question a then in Okay, that's follow if quick up throw for and then could, helpful. just

So a Is develop in relationships just taking more business longer, have delaying peripheral did bit it training not ramping account? quarter, the of it specialists to where at it’s little quickly, what’s there on weaker. there to them came the that’s the progress is one just think clinical is affected? do want what’s looked And you Because longer their coronary going you're as today? taking a strong like but you on? be now Like sort you sales and

Yes.

I think labs. specialists concerted Cath right to came out did of very effort a make really that we hire clinical

So deep specialists clinical most our clinical acumen. of have

accounts, We at are develop the relationships, time takes seeing it them and case account. an that it actually drive volume then for to to takes that get these clinical specialist to just to into for availability of do increased time coverage,

kind go - learning business. So for we're that we is particular here of this as

up have historically time our we medtech, growth volume that we clinical accounts, where us rep accounts. spend physicians I in and opening up high of think specialists that can freeing know other to while go spending we to or drive current educating accounts, know sales training time at account, new adding allow

get is at we're strategy. time. just sequential we'll And happen full expected quarter quarter a true of just than a and CSI slowly productivity. quite could addition but bit clinical these to more specialists know the quickly, long for it we that up anticipated. will that we So take What don't to going see but very take I some this specialists, finding that to And it's happen to it's is - honestly, these of it how what over going that little growth we think because do tried just

ahead. that’s fair. Okay, And sorry. - then Go oh,

you don't answer have question recall. I did - I in Did have - another you did there?

you then all also And of well think the and it. to no, congrats wanted first I Rhonda. promotion think covered on - I I Jeff, say just then

well. could working in that to a with to Medtronic be CSI just ask to you. was this able big keep from I saw you wondering excited at you if as And what was job you brought what I So very

there. So anything can say you

talked is out to opportunities was And laid and company the Medtronic. I CSI, key impressed vision opportunity. Thanks, also to excited plan team reason. through focused an incredibly that a company, that Danielle And for here And There was incredibly with I part about very and just and company of that unique patient for came that as has very mission from more think and really a basics, you I just being to what Scott I And thought a compelling future there's and the here very growth exciting. really work employee the saw well. I and of. me. that with mission as a a was I driven me role I important I distinct and keep know And this base building I'm and guess think myself the was just is very this an CSI working through tremendous strategic down to you team company, leadership that and that a strong was is thought your a really

key the were feet have ground excited the to on my started. and drivers and those So get here

guys. Thanks right. All

Kaczor next Blair. of question from with Margaret comes line William Your the

now line Your is open.

afternoon Thanks taking question. the Good guys. for

the us was it Was earlier. color your more Lab all underlying pricing, comments demand Was give the I of contracts Anything any hurricanes, First Can of it terms deeper Office impact me, what dig what in space? sales. said you to it shortfall? expire? addition caused Based Was you share? hoping for on in that beyond in the into

tell it factors. One can other certainly weather most Thanks was for hurricanes, is not any thing or I you that. extraneous

our - peripheral in OBL in said our - volume I segment the in as of commentary, think our unit OBL I actually X%. my business the grew

a particular had was there, ASP as result, about and growth see segment. reduction flat. a but pricing pressure And we strong So revenue X% in volume we that had do in unit we significant

We're with our as business the play support. engaging larger opportunity long So contracts segment the these now, - going and that business and of about increased only do in OBLs. an And strong. my we in role grow is our OBL term case larger in XX% lot is remarks, to a have Right OBLs. peripheral and coverage to volume a higher to try said I that, by of OBLs with to

we there some that pretty in optimistic to we've OBLs, to and in feel position access future. about got So good the our good place strategies we're continue the

Got as follow then And it. Rhonda, up since you're with on I’ll the phone you well.

In the and your XX going networks, opportunity yet? six, over market to first you’ll where have terms peripheral? your spending on? as you're of of structure? target, it development, sales one largest kind months, of focus be see the Is What you place do XX, you it things the next anything coronary, referral time Is do in

we that clearly execution, large Yes. number diving executional in priority. component in the continues company, sales and learning mean us just and into but up two I’m and to clinically front develop That the really speed. spending in QX, opportunity to I and week of QX is and channel get so ensuring this grow business sales a so top a of time the I'm have lot focused

bottom margins top reimbursement does what Okay. sneak you you approval, - guys little through approval how hospital Japanese further? more go to Thanks. the And faster? up Helpful. can the And or terms how a out one in the on going in the in. process? and terms then do reimbursement of impacts of I’ll expect line, ramp but was hospital on that bit by affect it line, hospital your then gross Is the

peer the there. It to peer hospital is on hospital question centers. Japan good training, So to

as influence geometric kind And He accounts sales time. expanding because begin kind see hospital comment we’ll six reps to in - really And physicians. cannot are The that Japan, geometric trainers. that. we'll on But and leverage we’ll we kind educating Cath of Saito physicians allowed impact train received do there we're will in we model. train have you so as see that training then going to are other will training want rate expansion. to the - this over was a Professor not Those roughly really trained, in reimbursement what the He’ll we'll currently is hospital accounts, Japan. be that. be this labs And of about result, of $X,XXX. and peer additional peer and to We that really we of expansion subject

Yes.

selling effect. devices controlled price, it Medikit follow but XX-XX Margaret, margins item slower first a your we a months. to our that about transfer is won’t significant is the So a question it’s margin, significantly be price, on because affect to the gross expect up a XX around $X,XXX. It's To on don't - will launch, a growth in

Thanks guys.

of line O’Neil Your is from the next Capital question Lake comes with Brooks Street Markets. line your now open.

seeing over And you I is little of time? X% business sort of there you’re guess, more coming in going what addressing bit markets in overall straight any orange? a to might the growth on we expect there? out chase, the coronary on juice the in the side is Good afternoon whether that Or and just you’re what hoping there’s Scott, I was competitively, amplify changes everyone. should

All right.

with market. start So let's the

to We growth a high continue obviously operate marketplace. in

and that seeing care to patients. crises - complex of in we're complex continuing very and and diseases, with these there positioned that peripheral well of of peripheral the we're advantage and for obesity With quality player other epidemic to important And an the metabolic disease. an arterial improving or diabetes is coronary looming be things, take

Scientific. another competitive Boston the they have have have distribution names Medtronic, because well compete large large, Philips These and into changes well brought some there's have we that channels, consolidation, companies, been core obviously them some the Philips, best top August, against against company our large Certainly think do technology. in sphere. We amongst having in I seen We Now, last marketplace. and yet acquired compete medical established we they are and technology, capacity. established the Spectranetics

the evidence channel. best the strongest medical we have market, the have and We in distribution

competition changed. of the our hasn't nature So really

coronary calcified the peripheral we the continue and We disease. have compete because to best just treatment solution for arterial

we're look year, more grow has strong satisfied over that. no, going year a we expect The you quarter. much we’re coronary and know, really at with that grown, than I to not pleased forward. think coronary, all rebound over don't quickly had X% that as I business historically growth continue to we quarter to I would see As at was - see very

growth XX% So we to had what almost, QX. was, QX from

So we nice rebound some saw there.

is have that participate the calls an high and that evidence that treat to in our of patients. for in technology amount And that although impact of seeing these our We this do now continues enrolled - it’s coronary, physicians use. we're and We our sometimes of focused that achieving we've CHIP these now is in seeing conducting grow exact is Abiomed the fundamentally important the and patients think treatment we're population with And of continues increasing clinical as XX in ECLIPSE of I what We cardiologists available from improved channel. or disease, coronary medicine have performance the same coronary. A unfortunately, out market meaningful have and getting forward. increase. seen the It to calcified from to on clinically study. change early, interest we practice marketplace a this interventional will continuing into expect positive lot to indicated complex, and a patients have is really multi relevant really seen vessel patient that focused of sites trial technology to a going utilization goal risk

Brooks. So your that question, addresses hopefully

the I covered think all topics. I

still in little juice there’s summary in So in orange. summary, a that bit - quick of

good. I that. appreciate That’s

There’s a of lot juice, yes.

creeping it a there, not noticed it just get And on lot sure more products? you're up willing you working into that on what I'm spending indicated I'm I products? to about good. your improving are That’s but as have new a curious, to is opportunities existing thinking talk is you you’re R&D would. on focus some of about Or

Yes.

related reasons for execution the you've most first, ramping the So up ECLIPSE see and R&D to do we increasing of clinical is But expense them. captured trial. a of and few R&D

accelerate ramp obviously in the that. continues with So - enrolment will also to as in patient concurrent our clinical there, spending

for been systems, well to to have line of usefulness continuing time, ease as we We atherectomy improve expand as improve extensions to continuing use. its our some our product and orbital are in investing, in its system, orbital as atherectomy

us R&D product to continuing organic and investments the So I our broaden forward going in are to think making can then do expand that. our And see to business in also now you offering, we future.

that, seeing distribution bringing you then the are a launch be which guidewires, in distribution R&D. from OrbusNeich. of but doesn't example course in Some peripheral with and our agreement forward already of, angioplasty a agreement, ZILIENT for the balloon impact we’ll catheters of

That’s that. of product And about continue expansion R&D activities, excited very first other going our think with offering. we’ll the we're expand organic I and forward. So that to

great. That’s

know right Just in excited I about opportunities you the at Obviously going. cusp in opportunity other one all at comment Japan, Would international and about we're getting more. the of that markets?

Japan do. international great us. said - before, for is I've a It’s We is market. first as market Japan our

more lot in IVUS. We’re of very imaging. utilization use well positioned They much atherectomy is their consistent The vessel interventional They’re model. with a lot use more discerning because cardiologists, a care orbital there very preparation. physicians, more Japanese the

a global. next. we advantage in company, will really other develop to take to geographic Japan on CSI for now And have will of as us keep our we're certainly additional focus resources build do is And we the the coming term. that and that the - necessary that where Japan we’ll to that the here from we’ll in and aspect near coming focused we into stream of intend our to to just that's Japan infrastructure to the expand business important try opportunity for the international forward, plans we're But globally. you leverage on now we're revenue So give informed expansion. of as But look take now we go certainly defining going expand we process to other

Perfect. much. you very Thank

with And your line the of America. Bob Banc comes question of from next Hopkins

open. Your line is now

just this very Scott, to the Thanks everybody. hit the for appreciate I much call. wanted thanks second. here taking announced of things, it’s quick talk okay. a But few A in and again, to and I questionX, changes for guess chance I lot a to if congratulations

about for Did balloon you Japan catheters. say million guidewires I $X.X wanted catheters? terms guidewires balloon year heard on the that the Did guidance correctly? from this hear both and and and First, the clarify Japan be expect I million and to you from of to $X.X revenue total in I just what about

Yes, that's correct. Yes.

you And did that say percentage of then stocking? what was

stocking initial of For is that majority Japan. the - is Japan, stocking orders in

Is part a nearly your are or? there that Is on why year reason Okay. and conservatism there through launching. halfway wouldn’t procedure be much just We’re revenue? the

Yes.

said, limited I peer think, our start peer it six I to in training. with because it's as somewhat We’ll we're launching launch accounts. - Bob, mean I We’re

we physicians geometric the participated as will utility June, We had by clinical about accounts to the But who the that this the They in is then a this running. our expect the have trainer. train trained time train that on the in model that expansion and XX we'll get with have up trainer trainer, been we'll sense who of technology. will indicated, kind who to closed trial the train will start I of

result a geometric I is our out XXXX, of our expansion there as into perhaps coming expect growth time. more in of gradual a business. we will that So Japan head nice a that over should growth see do we FY kind

Okay.

then the topic Just one I to the numbers make declines the on wanted right. OBL got want was And hit I price to sure business. other in just

us business. won't price in nervous of incremental little we that But you to think seeing price - and just what bit conviction pressure you're I we dynamic price other a laid about shouldn’t not price talk understand there. that why gives I more the there Why be you percentages see pressure could pressure and the out like nicely. maybe XX% the

I'm erosion see low that that have X%. expect to range we've for projected, we that digits expect price pricing. Well, be do typically sorry, to price single over and said Bob time, to in the the of we reduction in we be overall

four historically, erosion price have we the over our years, you that. continued in much core three performed think will But know, I see we or past we've than Now, better as markets.

As low mid to I've said, range. it probably will digit be that single in

we we've hasn't but Now, it can we and now. expect materialized, that before see do that said that

Labs kind backup. and settings. there at environment the I patients. it’s in as these a Based would The oftentimes The are in of where core cause consider A peripheral they Based these them pricing treated of important you lot between Cost in in are Labs limited to will is and focus challenges OBLs. patients treated available hospital resources that an containment types hospitals. market, example practice that comparison for that look them to of are surgical differential there is other really the owned. are are mean complex really have OBL treated that comorbidities physician They for in are Office be to backup. have If in-hospital more patients Office the them lack to

so patients, that influences patient of their types And the selection.

more also over how we time, complex that will Labs, use train Now, of to the with how Based treat on do they on expect and them and our these them patients Office treat perhaps that complex want partner to really towards evolve we educate cases. And technology more and that to cases. types

the what complex have think, that differential summary, more on an say generally, between pricing important perhaps pressure in the where or comorbidities. cases those the you're segments. of in been And more let's lesions. patients least are with there, up their OBL treated in one peripheral, as until a the treating and kind the got So two traditional sense quick peripheral as are segment, you've not hand I drives at severe known pressure in to pricing result, now, In that's environment be of

to of That's it updated coronary. Thank I lastly, sort just and that been very in it $XX.X had And bit helpful, to of I But $XX.X the wanted million million know Scott. you it's business on kind now little talked already. your on a call kind views the, call you. then range. of And get spurt little bit a a nice stuck growth about

gives light for point you from Like you conviction conviction real that growth us of here help give see think that that slowdown the some to would sense for do growth what are and Just what incremental in So the you better we've to seen. trying of what we'll when would coronary get see happens? that ahead? a that could drivers you

course Yes. Bob, couple as over said of think I’ve quarters, I mainly the past it's kind focus. the of of

coronary accounts, very having really And be much that well that’s market calcified our that. doubt coronary these these quickly, in we’ll is we'll coronary and that of marketplace specialists And now well to have dedicated think trained so we're volume reps, clinical no lesions, positioned patients in stable positioned advantage I growth advantage roughly business. well by complex get feathering these our more consistent growing XX take take by in then that the and particular is and opportunity of is this There there. to - highly high

important. be to have clinical focused. We got to that Case have We’ve support. is coverage

complex really as so to continuing their to partner I with really key more these closely physicians the And now driving dedicated growth. is treating result, these a to patients, think who are practices

we'll coming I OrbusNeich products the be care over trial. for difference We’ve of talked can X.X segment. continuing balloon from will our also We And coronary the continued that millimeter in a ECLIPSE and products clinical really time, some think about the patients. of to benefit these quality other improving that see roll into new make

particular to on will a dedicated focus So I think that a we're having group real here. just make difference and it

questions. Great. Thanks very much for the taking

question line with next Matson of Mike from & Company. the comes Needham Your

Your line is open.

with guess, congratulations Hi. Thanks my for start way. questions. Rhonda, of just hiring wanted I I by Rhonda. taking the Scott, to the

know I stepped in originally interim So as CEO. you

as plan within really to the take You you I'm Is timeframe. that went what taking succession But that through plan? a a a up certain I is the CEO wondering, ended search here Rhonda guess role CEO over role. have permanent and taking

Well, of still guy. young I'm minute. hey, kind wait a a

So been so move let's on two here, long weeks too far? not How quickly have this. you

even. Not

even. Not

isn’t That no. case. the no, So

our And who Chief I end was Officer organization time that as Officer until think our Chief Kevin have that as Operating at you left now may the Kenny, Rhonda the very new reasons. comes various seen, for fills same role. in Operating and really November, of

Medtronic than worked that's this. has to together how operate have Rhonda businesses. commercial critically larger we what's and to partnered And cardiovascular drive brought at frankly, the completed there stent knows past we eluting is a of and drug think together business. lead important had that growth on time. in course business transcatheter deep I when I business acquisition experience. too said, was our of in Rhonda coronary the I launched business where valve And as the We She the I running to the to then me Rhonda CoreValve, I've

create medtech. closely innovative have made really together in really to drive in that partnered have success the powerhouses tell real we to scale And a can I been - and to so growth you have past businesses, think

have while I So of here we again. around little a as to that plan kind forward be me. long you'll doing And as for to look

Okay, for understand. FDA And then had I clearance radio peripheral know you your device.

that, So was you I by kind some launched hold access I of some on know it another about being radio I’d spoken with products products when company, guess. pending

to So that drive peripheral at can you something the give think that? And us is an update on all? potential you has that business

right. certainly forward, of coming to And access growth radio Mike. going question, in our be of that side driver and you the for business thanks - important use Yes, is an going peripheral the are

at partners waiting some particular and the of complete launch been support the and that are peripheral to catheters commercial the and to for of the other necessary products other radio development in have SFA facilitate guidewires for We procedures, level. access

but can you longer. smaller, have these very be also - to very simply, very just all imagine, As much longer

that of launch So see can soon. the launching think coming and cusp now on our radio that right to I we're you expect peripheral

Okay, thanks.

more on the one Just OBLs.

because if using something? they just a do like So with not of product a Rotablator reasons or mean they calcified or curiosity, using of if whatnot. just patient atherectomy out there I lesion, Diamondback not do they’re have cost competitor's or they’re -

currently peripheral like - I business severely OBL do using our use said, the treatment the OBLs they're XX% the calcified of No. lesions. for and Diamondback in about of

I Based was calcified patients of trying result, perhaps And of I as up lesions when severely been that backup, historically point not because wind was are treating Bob's question the have they addressing to the severe. prevalence of. Office as oftentimes a make think that is don't because These in lower. surgical has Labs, the nature quite I they OBLs

increase that we're - that and change that Now time. we may seeing over and evolve see

it's at patient of So selection the level of nature criteria than the products. OBL it is their selection more

think physicians calcium know when use is severe to present, I Diamondback.

a right. All Thanks lot.

of comes And with Jayson line final question James. the Bedford Raymond from your

open. now is line Your

Good me afternoon thanks and in here. for squeezing

Just a guess the number quite estimate, than the was couple new it's of terms in our I customers added in of think time. and questions. in it's I quarter lower of some the lowest been

to trying terms sign just your this this love but is is suggest it, thoughts reflection of going deeper a reps to of is I'm dig wondering, forward. new - I accounts? in customer So of a into market this Or saturation? hate And I’d adds

Okay.

to question and great of So two want peripheral, point a first I things. to I lot we mean all, have of accounts. in that recall

isn't activity account that generally new our So great. there

it is. The second coronary - but thing

problem a of our QX out account we The second our in selfish point and indicated hopefully hopefully pumps pumps new one last more not part, recall summer. But recall personal bring didn't We in times year, thing of of to last that that is have had new recall, to have we available, when refer of I’ll year initiated last from gap created a is this the this but is on or we my did QX that pipeline. because and this on I’ll accounts.

current our many accounts. shipped became pumps new we we As did bring we new shipped and on available, or accounts, that our accounts accounts not new to

our there for new there's in a was gap - accounts. pipeline So

that Now, units. a than we new has a six remember greater center new we a account account call now used that count -

means used bring a haven't them accounts on. We any that ship pump. we that yet, them if So

train board, they then we as to educate new when have them, in this to accounting We and account. them bring on get them, a count six, them

we did that our that that account So working in influence going QX. to address there's in new We're a gap pipeline and our forward. make hard performance sure

expectation XX moving Jayson, would that, and reasonable being talked to about always that forward. we've reasonable to add a to accounts be XX just

in as on We accounts our existing focused well. are driving adoption

follow just up on So that. to

XX coronary? peripheral and be just Jeff, clear, Okay. to And that’s XX in to

Yes.

sorry. Okay. apologize - And I

And I - think Jayson. sorry,

I really current growth of mean I that. deeper at the more accounts do numerous and comment our one is Just for how on where current really the our drive we here current accounts real our and the said technology peripheral adoption go final use we've and opportunity from we to in accounts. increase have our to coronary occasions, to technology physicians train our mean both opportunity on educate procedures. on as

our focus. So that continues to be

remains revenue at which has reorder quarters previous well. been it in our XX%, as And

Right.

helpful. that's Okay,

the you it, dedicated growth see serviced being those were You reps? but coronary may mentioned by who quarter, better the coronary the from did centers on centers from those side have in

focused improved almost some reps, see specialized before, group now. what’s has group. are lesion, described referred comorbidity complex more tertiary that Yes. roughly coronary other or in their healthcare did good become Well, and growth that we're as lesions. broader use that effective seen of we where accounts. so have low products. growth community is really stents when at patients are to easy group the large focused like case shows the eluting makes centers marketplace But patients that fraction more and And being these there patient community, to more really hospitals on patients say XX, seeing now a aggregating XX, placing of strong that let's are injection those these has from up We’ve concentration that complicated, Drug in complex accounts, can very I’ve or a be happening this a who coronary so coronary treating and at on of are

reps that more focus that's a those of taking in And and real and leveraging group large accounts, focusing really opportunity we're where so channel. see coronary forward we're and on focused to this them going going

in QX yes, see So an group I that and did sequential QX, from we'll see think growth uplift in and QX.

- that there disruption used that from the a on just And reps topic, drop see there? did usage accounts last the you Peripheral to or coronary any been in accounts just Okay. Has off cover?

If peripheral million was on could get as a and I on I few with the sites our them or time, don't could we revolution. than they - rep, and that mean they they said coronary I this call, a see over those I more had - sites a other always account they And possible or you made where they wanted I really board coronary can felt we coronary meant peripheral I've - we we think it. to had co-located a great that. a hand, for - qualitatively, go we're last now was their they managed do do $X evolve And going had right, resources that on focus accounts. our that they dedicated to this to evolution opportunity, allowed dedicated doing best rep really return something, they cover dedicated were could - And do dedicated the that to a these having have had on a if in that take in larger places an I back this decided to high in already was We group that QX coronary, here, can't I because coronary data our investment. answer that of of just and don't reps. in tell begin came - volume target that and into quantitatively. we don't always I all to number group I at really we mean what have saw it so. to regional managers that since focus say their particular to

peripheral there So that reps, well sales result, our territories. adequately an as as think I evolution present accounts revolution were by those specialists in covered and time hybrid more of than a were over a our as clinical

on And see the QX an didn’t peripheral we increase in Jayson, coronary. on flat. QX But in disruption follow per up and just that, actually to in side. It account was devices we see did the

that would I the big to it a So think that disruption. be answer was not

Fair Thank you. enough.

there any Krista, other are questions?

turn call We Scott. the the have questions over in no I’ll further queue. to

call for you you thank conference very everyone. our CSI. this concludes Thanks in your interest the future, our We Thank much. look today. everyone updating for on progress and forward you Okay, in to continued

conference today’s concludes call. this And

You your lines. may now disconnect