Cardiovascular Systems (CSII) 2 May 182018 Q3 Earnings call transcript

Good afternoon. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Cardiovascular Systems' Fiscal 2018 Third Quarter Earnings Conference Call. [indiscernible] Thank you. Jack Nielsen, Senior Director, Investor Relations and Corporate Communications, you may begin the conference.

Chris. you, Thank welcome call. and fiscal third XXXX Good to conference quarter afternoon, our With Chairman, Jeff Ward; Executive Scott me are: today CSI Officer. Robb, Operating Financial Officer; Chief President Officer; Chief and Points, Rhonda Chief and

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

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

thank you QX. am you, Jack. Good is strong results in joining momentum achieved financial afternoon, everyone, to and us today. gain Thank I announce to for and pleased continuing CSI that that we

X% compared QX, quarter million. of were results in revenue adjusted and income EBITDA second in line million, with to quarter $XXX,XXX, of increasing at X% Third was net expectations year-over-year. our and with profitable CSI $X.X favorable $XX.X

drive as important delivering well, increased exceptionally reductions perform to continue operations unit volumes. manufacturing we Our cost

no at cash gross we our and with the debt. margin As and $XXX ended XX% million a remained quarter has strong of long-term result,

by encouraged company. We achieving we our the are across are progress

franchise well the is coronary Japan, Following of to business markets underway. our in expansion now international our launch of the commercial

also well guidewires our product Sapphire coronary ZILIENT angioplasty launches as other are II progressing the and well. balloons, as New including peripheral PRO

Our and treatment exciting solutions new the R&D developing for complex of teams disease. coronary artery are peripheral

ahead solid schedule our delivered are franchise, In stream new and franchise, revenue controlling or driven programs in delivering QX, increased and X% of our in continued revenue. clinical year, expense strength team from versus peripheral is performance of momentum Japan. sequentially franchise last The sales a X% of the our franchise market sales coronary while peripheral XX% Our the strong approximately quarter. lab of peripheral revenue based In our last added primarily sustained and peripheral gaining million we leverage. $XX hospital in and segment growth up the segment of versus our quarter OBL was also hospital the grew setting. represents office-based The by in peripheral

in X% commercial contracts, discounts coronary launched OBL driving we new increased of coronary revenue the once time, and last revenue improve, market needs procedures. support. to growth growth. coronary million dedicated reps and orbital volume-based Coronary peripheral volume you and sequential year. quarter-over-quarter accounts And new With X% in recall, secure share as atherectomy U.S. X% by again our programs the calcified Over programs will existing added these in addressed of case grew QX. continue that including Sales the by we in physicians QX, $XX.X versus coronary our our the perform a in In During long-term of labs designed productivity that franchise, our accounts. QX. customers high driven specific in are XX% increased U.S. was our and increase quarter-over-quarter, position growth adopting franchise above-average to

business. fulfilled in coronary to growth for our in our launch initial QX. commercial stocking is Of distributor key Japan driver course, a orders And we our

for and goals am development clinical growth, profitability a pleased in procedures. sequential solid exceeding foundation research. customer training, strong and In with of in strong summary, and adoption building I execution manufacturing, very delivered and Japan, CSI QX we account a product are new the We our key that international, atherectomy objectives are operating

Importantly, updates regarding additional few Jeff for in and we and Rhonda with some Jeff? our a financial and momentum will now But QX provide strength. enter will progress QX our discuss provide detailed QX. commercial results moments. first, outlook

share everyone. I sales peripheral And coronary Scott. in you, our performance QX Thank on details good progress franchises. some afternoon, will and now and our

sold to the during revenues. We represented our year increasing to to current of a range. compared generated during revenues a remained million. million rates and XX,XXX XX% increased quarter. guidance quarter Reorder sequential quarter. the revenue Third X% quarter, second Peripheral $XX This X% devices compared the increase middle X% last of very of to approximately near $XX.X increase was XX% strong,

Our peripheral strong experienced growth. sequential and hospital revenues year-over-year

OBL peripheral as contracts case during with long-term negotiating successfully volume-based and that along Our result of revenues grew providing increased sequentially stabilized QX a discounts support. include

U.S., to low the basis more X%, by was offset a decline. as ASP product of units decline. amount mid-single-digit the Below a about increased XX% knee XX% which execution declined On has low-single-digit of units increased sold blended result Coronary long-term peripheral to were of increased OBL million. some accounts In revenue. mix our $XX.X in As large significantly and competitive conversions. ASP a a a successful contracts, of by of X% coronary expected, involved revenue partially the peripheral ASP offset partially

modest cost due of in stocking hybrid dedicated revenue growth mentioned, In and ongoing gross decline focus to consistent manufacturing broader improvements coronary forecast. margin reps. our $XXX,XXX the cost million and ago with a the product was in in higher with our Japan, strong with profit with associated were Gross expenses along Operating clinical voluntary primarily increasing saline We $XX XX.X% our both to $X.X initial declines to our primarily was in the by development efficiencies The quarter coronary the and to million last reductions year new total, volumes. of period $X.X year. product line or As was margin pump. ECLIPSE expenses X.X%. gross million with increased on R&D compared targeted due this trial. production X.X% about recall remains that our our was about and due call due associated ASPs from market reduced across our expectations order trends. margin higher increase was productivity the Despite XX.X% our noted or ASP In to

trying on grow faster invest a orbital revenue X%. We offerings X% and to growth forward. expect SG&A going about use our continue the versus atherectomy. initiatives forecast. to increased expenses product clinical in product We was total, while operating lower broaden about and expanding significantly of rate of future the expenses in to SG&A In $XXX,XXX revenue plan were to in than

$XXX,XXX balance per at increase or million, range. share result, third was remain our $X Adjusted our quarter. remain $XXX at positive quarter-end, guidance a income to an quarter of favorable strong the As At of cash $X.X EBITDA during million $X.XX net approximately million.

We to financial continue to million have financial credit a for $XX as no outlook. of place long-term now future borrowings maintain debt up line flexibility. needed in for our discuss will and I

growth drive Looking beyond. that revenue rep believe in sales in will continued we improvement and ahead, are catalysts forecast there QX productivity. several We higher

specialists without saw clinical clinical territory significantly in a support. QX, supported During higher by growth territories

with a Rep orbital market the coronary should more present modest and ballons case treat from can help release guidewires. trend and our atherectomy. we into and CSI this coverage. specialists OrbusNeich as our are the gain to clinical boost during also ZILIENT reps patients our limited QX productivity provide beyond When receive experience of specialists continue case, expect them angioplasty increased peripheral We and

approximately $XX Finally, fiscal fourth of range to a from of to of growth $XXX,XXX our revenues XXXX, X% Difficulty] will launch to to revenues million we will now of $XXX.X commentary million. a of in $XXX.X Rhonda year-over-year of XXXX, support developments. drivers Japan. an million, the [Technical the to for consideration, benefit anticipate rate $XX.X provide range order Taking into in commercial and commercial the million in on QX plant For narrows clinical Rhonda? stocking the XX%. these Diamondback representing quarter revenue also additional

drivers especially priority a segment. the a This for coronary in We markets, I at several innovation recently for tremendous by that strong productivity. of XXX in feature we our first new products I of leadership the and it's and Thank GlideAssist growth Diamondback innovation Scott focus, launches and called technology new new that details has products. have with core how the the at I'm is into on atherectomy had foundation But for the saying evidence, quarter. and Continuous am a CSI, the is handle for this with enables significant And ease the of the launched treated our division and excited to and differentiated strength an opportunity we and increasingly approval that time. with thrilled new are you, with be its technology, tracking, forth. future categories want PCI and by are fulfill excellence. removal start important being centers quickly feedback, benefits growth important Today, patients base early that is repositioning incredibly of the came clear impressed drivers people CSI the especially of set lateral development some at and CSI orbital in in team with smoother additional This to the quarter growth Jeff. highlight just which yielding complex at CSI use. to I'll procedural important

to treat to point length, the working with a our XXX above smallest lesions length value Accessing access low-profile advantage very Diamondback radial and profile we about using also introduced stay. of to workflows, the small vessels blood orbital the the wrist the given the greater ability have action, knee competitive the physicians vascular here. in to Diamondbacks do this. and, the requires patients of which here enable We the through emulate the also faster are a device only efficiencies company extended a unique and allows length ability optimistic we proposition very due and reduce We're in complications patient to and potentially mechanism in length significant

We also to orbital share clinical evidence continue of compile use atherectomy. supports that the and

X,XXX the ECLIPSE controlled over enrolled and sites of XXX continue largest active by forecast currently enrolling have enrollments randomized patients coronary We market. new to early about year. in study our in is patients, we currently the XXX fiscal targeted the our With trial

a of that millimeter the lesions. coronary very in towards events across across shortly Arkansas improve our peripheral presented thrilled CRT, this at from in study major the a showed of and side, On was similarly Rutherford unique limited that completed from millimeter XXX° our Rutherford and angioplasty X. classes a balloon high in from Heart freedom complexed receptions of and Sinai amputation months cost the that encouraged balloons, from coronary a the outcome from very LIBERTY all coronary at by the year II Rutherford positive including this look QX, ZILIENT XX.X% with balloons recently United launches A end cross cases strongly device, high adverse XXX°study classes, Sapphire show reception PAD-related economic demonstrates freedom an worked after the we're of most guidewires States. impact uniquely surprisingly, Hospital product In York not new first with with we cleared market the peripheral access cases sub-analysis the amputation OrbusNeich to the forward data to fall Sapphire particularly Sapphire is evidence have X-X, to balloon. freedom guidewires. continued In It disease. the We first Sapphire that We're PRO, to broaden by commercial peripheral the peripheral occlusions we release in major encouraged a to a end, LIBERTY major the the were XX the patient portfolio and peripheral To patients millimeter suffering our in the study on Mount mid-March, believe mid-March. analysis FDA also were two X began and on this We early healthcare six from tight X X ZILIENT suited we interventions year. sharing of patients. calendar market have initiated our only complex complete to to balloons, we the New

early the feedback early we and learning’s and are gathering of During for news are market launch 'XX. preparing phases FY full the in release,

This an portfolio. quarter CSI important our was one for expand to

position market-leading that our offering on coronary peripheral high-quality interventions. physicians in our and technology core products build to continue by will atherectomy in complements We

began in to accomplishment was approval as shipping we and orbital atherectomy launch U.S. we Japan, indicated our on February, plan. reimbursement received the orders, we Another so coronary now in is launch for In previously, underway outside significant stocking quarter

physicians training The gradual to new Japan deliberate United have have been training taking Diamondback, XX at additional used centers and we completed physician in of are controlled Japan time. to date in We result physicians June training will States. will of that XX using an rate established with March, cases accounts we the have rigor very a enrollment that in over and and a of of end the of To-date, of nearly approach adoption the Japan peer-to-peer the requires XXX in forecast be X certified. and, in accounts the physicians applying end same continue trained a and total by

of While broadening the CSI. of our our important will orbital become modest drivers to international markets revenue growth will attractive impact and revenue sustainable initially, expansion and geographic product for introducing product while be offering atherectomy

complex international delivered in XX coronary artery reps we they of to franchise. revenue have on of coronary in PCI These patients that now the with high-volume specialize growth productivity, U.S. above-average the on and about focus Lastly, dedicated our reps treatment disease, sales accounts QX.

well segment. an is potential the medical We the our that market clinical strongest study the have as so already recognized evidence are this in of has and standard positioned to important We care. change trial

have of our and GlideAssist the and future support launch we and ease extending advantage. the best use We with of improving our continuously products Sapphire customer the our millimeter of X balloon, are competitive the

the up provide open will questions, we closing Before call Scott for now out.

Well, we market-leading a to excited Great. to company XX,XXX and Most CSI year really think company our and with of this notably, tell, Selling puts devices save with balance is this passionate nearly are a in great day calendar our patients you orbital motivated an profitable March success. patients technology, limbs many customers with Rhonda. a disease. mission on atherectomy every remained employees important purpose to care focused sheet, on during help and run with quarter treat indeed solid was for I quarter you, lives over in quality and collaborate most we XX,XXX improve XXXX. as who CSI CSI to proven the importantly, Thank and can so strong for Cardiovascular rate a ways. build and as

Recent management, steps We have multinational of product management a now and of is continuously with product company. first have running the broadening international expansion capable preliminary introductions strengthened portfolio. crucial our announcements a in are company we the our that leadership, evolution regarding our much senior assembled new and first larger the team with our

from to for well is an the really So this us, time technology, worldwide reach single an a exciting with innovative company single CSI underway. transformation leader geography of a is

NASDAQ On the morning of in July XX, we will host our first Times Analyst headquarters Day at Square.

our strengths strategies geographies. meeting, new and products, streams this introduce our our from new drivers broaden During markets will growth to build and we value on new with

an be this strong investors our understanding gross over growth meeting our Further will to with outline support regarding meeting long-term years. research We of will for and details your continued CSI. pipeline sustainable our investments attractive and our product from margins overview in away five and Thank We next forthcoming. interest come the development, that expansion believe profitability provide highlight plans drive and and you will plans. better a international new with this of

will questions. take We now your

if to could we'll Chris, So please instructions, you move the repeat Q&A.

question first Lake comes Your Instructions] from Capital. O'Neil Street Brooks [Operator with

expect a The you one to of, qualitative, and in commentary and on CSI? me growth international that strategic Can increased at way clearly say, thing today's to you by is of, led the additional these obviously, leaps guide significant impact fast potential Japan. expansion, profitability about sort moves products how for out focus your revenue sort X

qualitatively hard I as to you little state bit think Brooks, a describe. that it's

these of which in be coronary the we particular we're patient, up example, cases, we CTO that's gain millimeter doors those obviously doing been result, used identified really that balloons, is quality product as for these of the of cases, trying is we patients. used that present to lesions, has physician pull look that had out episode. that focus as if opens the our our introducing like to so described commits now, actually and for when can of customers on our we in Sapphire a like improve during to a great more and during product find II is now, revenue the is present, very until complexed channel by a that rep care are sales sales what leveraging and U.S., leverage and peripheral we're introduction the and before, at of really can are that of treatment And reps be the be balloon, to us to for present. to have And and each products is our coronary that just And balloon X.X prep. novel a be really example we I think vessel our a calcium means more the in that cases treating

those of think to types our that, accelerate we growth in United States, care. products synergistic episode will that like it's be So that'll during adding continue the of more we'll improvements and that allow us

Customers on we in Rhonda during other foundation her trying Japan, comments, reps and as are really at really would sales customer each level our to to As of we've strong look allowed need we're Japan in Japan, here. a cath dependent can't in build the and remarked as labs. support about talked we we are that provide not same peer-to-peer train there, We training. before,

strong to So training training, starting Japan. a about a steady XX more pattern let's we be continue next months, to growth of, of XX customers, of more the out say, just of, think probably And training a, course expect small really from more growth, to over the peer-to-peer geometric customers. you coming kind Japan see as more we'll

market and leveraging revenue States, profit broaden a in on company As continue to becomes global outside now to really and however, stream that the my Japan stream remarks now United I our scale. first said our we're

And of expand expand Diamondback we use so use markets and other have now to begin we'll our international globally. just the atherectomy opportunity moving where to the great of

So you guess, that the more best that in on We'll provide together July. we I as I can with description is, qualitatively. do get

the ask Would one commentary in taken competition? give more labs. for think what all taken of pressure battle? going us sense And is you to Great. address just commented to the I Obviously, to you've spending I'll pricing do that. an out had the just Or about it just is office-based your heard now. off you a about you try pricing previously at extent to you've there be that the now? been environment like initiatives successful the what have steps ongoing

our anticipate Well, that. We at with projected across peripheral our ASP had ASP we level declined that that mid-single-digit what and a consistent low we've to before. described always was erosion business

environment, think see we've price time, that. to in this see I we'll we'll throughout healthcare continue continue I about as and in OBL be the talked think continue before. competition We'll fierce. erosion to our over continues that segment to market The price see just to

I orbital I of us. overtime. calcified business lesions approach contracts for perform think really high-volume for manage worked that is ‘ for has customers a to think atherectomy and it secure way us a our business our a to long-term with approach, volume-based really and it's good

is strong a see continued price I to growth us segment But quick really your strong working, it's customer time. in in guess, expect competition case over relationships combined I yes, to in to time. that we OBL a those and that sustain think continuing over to also help question, summary drive segment OBL So our with support,

question next with Partners. from Danielle Your Leerink comes Antalffy

you've big in positive? at can I the Rhonda, sort there. I'd for surprised most your you there would where but hear, first quarter love in to think get commentary is know qualitative What to you what a And full question of, role? that's just First question, CSI? have new to learned some the impact love your Rhonda. you

for first a certainly the done Yes, really amazing CSI of I lot I really launches of team My really And the strong huge this all, assimilating a in products has focus of a just first job it's so and -- strategic initial the was about on about plan, the the time I've the launching of about really an bag, that pretty and the Highly our access, the internationally, with all observations, growth working an a ambitious done Scott high time that business, mean, there's have for and expanding kind has just here, you'll about team team. been ambitious environment. is first hear learning work time been been focusing customer. quarter It a great. motivated, on people first alternate was plan a July the fast-paced important my people with future. lot think, And incredibly quarter time just on in in launching

leadership execution. to So just new really that team entails for And ourselves and up in new products, with segments. global growth, set build I'm working the

drive Looking to at place that resources, our we ensure competencies to expand growth. systems, have global that and in portfolio

So we're been doing that's ready and been the more July. forward, spending my time way moving unveil I'm anticipate I what to just and in -- getting

the Analyst very I'm And about excited Meeting. Awesome.

'XX Just of be to a have trying should guidance fiscal I look about growth and as we sales all pieces think the the we you the question, moves 'XX, into thinking strategic guys force, about guess, year you the but to all moving the additions acceleration. not fiscal made here, as front-run if

Just different helpful. would fiscal on going the I don't drivers can -- any give 'XX into color be you

look really much ask I wait here. to you forward-looking however, we optimistic before that give we can the to you've sense do growth what of job Analyst first I done anticipate I -- guidance. until would confidence why Meeting July a or for of our you great sense say, future any probably have all, Danielle, with I to nice and think we're we why really a thanks, Yes, characterizing of at

comes Hopkins of America. with Your Bank next from Robert question

ones. Bob. two have is This [indiscernible] I on quick for

point X% one was on top calculating. decrease achieve And math, from the to XXXX the that to to my end? that by gives guidance you being on on drove to growth about a and had I implied curious able about the X% XXXX by guidance? to first the And So that was QX I what growth as I'm end confidence guidance, the topline what down top X% X% came

think what it is is also that now does consistent we talked -- correct. to about we that X% I had your within math range is the over we our believe does can we what quarter. growth revenue the franchise achieve also the of Japan. reflects coronary require fourth continue course with the X%, And reflect think to coming to it, that, peripheral and in They're from strong now and us rate additional before of

Got one coronary. more it. then And on

So QX about curious coronary specialist that, QX, was contributed in more it your the on market? the looks Or to XX%, like was something was longer growth it structural now coronary clinical sequentially believe that a that just I ramp-up was it and generally? Or side? for thoughts where slowed from I X%. to whether it's as what

you're I -- QX think to know to to strange I I well, referring QX, we quarters. you're referring assume? have But

sorry. yes, Right,

Yes, okay.

growth to had remember almost QX have in of we -- you just quarter-over-quarter. XX% that anyway, So sequentially,

QX. actually and seeing very to XX%, So focused good that good growth momentum sales we reps. sustain and coming QX almost are to into QX coronary from grew strong able we contributions were now meaningful that And our felt we

traction. job continue support some Our do of get is a addition beginning and clinical with to ups the additional now to out specialists our great there hybrid case

good pretty is where feel we So in our United coronary States. franchise about

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

and radial access the length wanted product. questions Just on few extended a to ask

I'm are I at? your to words, a is get Or I the to price of you a guess product? it going are guess your this this size contribute [indiscernible] of the radial because to just too be to large how get premium for you first all, have access is So something maybe advantage, In going growth competitive of able competitors other to what to that's offer trying capability? where

size I and we've I'll of our we're it growth But the parity length. I go and clear as terms driver launching X a now at important an first in French take We said be before, do moving with ahead the forward. going very pricing. think to existing have is, advantage mean, extended with device that.

I'm to, more complications, the point able be patients radial are the decreased down States, in clear stay patient to coronary we of improved differentiation unique have terms length coronary ambulation. think United customers of to come being with in how the main So may I treat done to radially. has But of Because about this to approach. even terms segment the taken going and XX% in off. the benefits improve In procedures segment of of now look some of

And a which radial movement, of broader supportive. very the very, are so also there's societies the

So differentiation going driver. move growth and be we to that's our the are after going here,

and that I thing One this mentioned Mike, would quarter. add we last

a others are We products bit dependent the on for radial. that required support are companies supplying

on, to we're at progress necessary. least the time, see hospital. longer peripheral in in now I access required pleased the one But XXXX, make length over the company for so for these companies think that So seeing wires, catheters radial -- we procedures. and of are more beginning And were are products they half now we'll launching support here the first

also adoption access. to side come market, the drive to products catalyst those the of an will As serve that I important of radial think as

of guess possible it is up, I if systems for radial mean, competitors, But approach to they're X, large to them work by or a just -- is X mean I Okay. that I it French and adding too convert for device? your their just longer with lengths is

it's a side I too large those Generally for just will device. speaking, the radial of just access. Well, think large be too of

can and come competitive low-profile small we because device, we an can mode do our crown cases where orbital gain can't. to it vessels. a I does ours. action, we access mean, result, advantage is And of radial now, others So a atherectomy unique a really of is this really from as the this perform radial, really can use

opportunity to Okay, is have only you'll of starts the be there, market and correct? be not those if if the used procedures, shift really so that'll types the to peripheral or in only of then one that market can real radial -- that the device

a have is And that's correct. here. And that's unique we we highlighted stated. reason think very that's Yes, the we well competitive advantage do

And over right, all know that in how products, I on kind to then a ramps support lot not fiscal think it's how of things. we Okay, mean, that the of just should clarify about, I expected kind helps 'XX but? time?

sub-segmentation And as balloons, used we shelf. our have. the that's if that used, Well, quarter. all product. total physicians been of very cases. here out that this they the revenue we from wires that's come is the reach order achieved. catheters on think II anticipate times, product. be X.X balloon cases. a we the There all anticipate opportunity in about But all balloons, a into coronary used is use. some with And about going of the all how pull-through results We inclusions, And balloon early positive, And used talked just $XXX, and If our that real they could smallest don't from chronic on balloon in this what Sapphire OrbusNeich our for are how every will millimeter product across the This without the getting our competitive often don't there will probably case, very $XXX We catheters the in be will per last smallest of case. products these result, get gain when specifics, just they'll be wires products be about our the the on. for have is share

us allows novel atherectomy. anticipate. orbital pull-through this balloon always as that quite doors for pull-through interesting opens balloon a having it's our had balloon us at looking actually to that like one balloon, been didn't often atherectomy, increase a our But like the a orbital of catheters. and We how So we enabling actually having the novel

that to to X% can thing one total always supplemental products revenues. digits We next see is couple into that right, products low-double have our or add been of support around over All of get the years. the

Okay.

And I per guess so I it's, say, potential case. mean $XXX, if $XXX

of growth say at couple $XXX or? to to add Let's be you reasonable revenue on average, may could that something that that points $XX I guess. got looking that we're a of Is your

same it's the the dollars to a couple that it's point. case Yes, reasonable. chance I seems of revenue and add per mean, at hundred call

upside. definitely it's So

William Blair. with Kaczor Malgorzata from comes question Next

is for actually in Alexa This Margaret.

device you actually long-term a your in I been about business. And each should of segment talk bit data physicians? peripheral you the thoughts or hoping further market first, referring peripheral quarter, we and the over referral this better next the growth And amongst and so treating alignment think X was development the little push updated So so? has on years could LIBERTY on accelerating XXX° has strong helped the parents how X it actually for call

physician leaders the a think, development country, market working of big societies. a push CSI. there's And educational On very with we've been the educational engaged with throughout had by I definitely number programs

particularly XXX I think provide, the LIBERTY having the change. a can is patients that to amputations this that physicians incredibly more that benefits terms -- has who Rutherford been study are these really in like have and historically important technology of would starting visibility bringing patients, in sick to done

amongst amount well all physicians, combined the are those now addition our ACCHA a in I who at an to looking as refer they all avoid of awareness think guideline as to visibility, have So amputation. tremendous increasingly options patients things given physician updating XXXX

big what's That happening. additional of looked the Scott, really think this and what have you as at be is And come kind what's really think that's may the I've peripheral in So market. company But to happening. insight. tailwinds in are I I just

rate world. and good And Unfortunately, in business the disease is segment. states we growth country over the driver that peripheral. a vascular we time. a Well, this We there that are Alexa. around Rhonda sustained in see growth our for low-double-digit that have double-digit is to disease continue of underlying peripheral an many aren't -- that high-single And case I think peripheral digit, as the at unfortunately, in of just said, right, and strong has you growing epidemic are just

so, don't it's you the then of lesion. has really of then calcium, referring physicians. behind. you And we're benefit about where a from becoming really treat as really grow that. lot to procedure, But remove increasingly we paint And The been that. pleased now continue being name. that rate, and referring physicians attractive And balloon at above code are leave to use interested or what's I drug like the you that in to anything called and fan don't pretty a We the

that that I many will are atherectomy of likely I more they future been of much balloon, to they physicians. of confidence in has think that And approach the combination amputation, prevent to using refer have when type their they drug patients encouraging occlusions. future with referring a code the prevent think of

I think So been driving that's the probably the one that's of factors adoption. underlying

to how X up to on their as curve they specialist laid then they nuances before drive about quarter utilization? aware X expectation question maybe for one go then last taking quarters if and should of their to are a you And increased more follow-on coming about And new further begin the productivity with are establishing that you clinical even your about the to to me. is tracking helpful. what in that, how to can just relationships physicians That's out comment regards we be ramp? Could

specialists occasions, many patients market the on can cases, is we strong reps, advantage care quarter. seeing on important improve are we sales are our now a great spent a part said really rise good that support And to Case of a fair present steadily. question. continued this specialists. our are I in clinical competitive are it's as And we And -- our amount of present present. by we Yes, from And last being are has that we when clinical in impact quality time of I've our treated. an being think

our support cath was new now as towards not coverage with level anticipated go to educate impact. in have we're as presenting to pleased and achieved. accounts. other hiring train and longer specialists, And only well the our of case physicians their see to And clinical from bit labs. took than acumen into as deliberately that QX, a -- come specialists deep it we clinical we it we But we we're very were -- So clinical is head that then freeing leveraging that and in that, up other case now move reps accounts sales opening but beginning having cases them

think I for now. is dividends us. we're case -- we're yes, rolled the to strategy So, support at good about out feel we really pay pretty starting right that have where I And

to conference. it any for Q&A This closing back now the Scott concludes for I remarks. turn session to like the

today's Thank you. conclude And call. that will

continued you, to interest in for updating Thanks, CSI. everyone. York our So of everyone, thank look in us. appreciate And you we City New forward joining progress on July. your We at end the

This concludes today's call. conference

You now may disconnect.