Cardiovascular Systems (CSII) 30 Oct 182019 Q1 Earnings call transcript

Good afternoon. My name is Kristine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Cardiovascular Systems' Fiscal 2019 First Quarter Earnings Conference Call. [Operator Instructions] Thank you. Jack Nielsen, Vice President, Investor Relations and Corporate Communications, you may begin the conference.

Kristine. you, Thank welcome call. and fiscal first XXXX Good to conference quarter afternoon, our With Chairman, Points, Ward; Executive Scott me are: today CSI and Robb, Operating Officer; Officer; Chief President Officer; Financial Jeff Chief Dr. Rhonda Chief and Egeland, Affairs. President Medical Ryan Vice of

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

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

our executing XXXX many growth accelerate with several year Orbital strongest us afternoon, market our annual consistent have thank initiatives everyone, the Thank that and you, Jack. performance experienced Good very is fiscal key six next you today. for in the past that pleased delivered strong we of and Atherectomy on of first is growth XX% joining We're and are a years. guidance. I'm with quarters the CSI report to quarter. Year-over-year over leading the we will driving

franchises, and revenue success in quarter incremental pipeline. devices sales from international reflects Atherectomy first of contributions new our Our product Orbital Atherectomy growth emerging core our from continued

the we're the balloon with and approved coronary QX, full grew approximately early as XX%. revenue as domestic are balloon in digits completed and and The grew We ZILIENT XX% of balloons other demand guidewires by OrbusNeich the our product grew upper coronary the this Peripheral millimeter August single our and OrbusNeich consistent X.X encouraged market and smallest expectations. US launches Our in the in we balloons II the coronary from well for angioplasty the market. experiencing ZILIENT response Sapphire guidewires. strong is in

II represented first Sapphire the quarter XX% fact, our sales. In angioplasty of about balloon

coronary XXXX solid international summary, and markets with growth products. digit with from enter a revenue well. Orbital announced and to supported revenue by States Atherectomy our our Atherectomy Finally, with announced QX first and momentum we with performed OrbusNeich. we procedures began Atherectomy We're announcing with first strength the and In peripheral international in and the in the on Orbital recently performed OrbusNeich coming as procedures well progressing peripheral Atherectomy the outside solid first introduce coronary the Europe, procedure international as fiscal supplemented distribution anticipate in we CSI weeks September, peripheral In new we Artherectomy efforts progress in agreement collaboration United confidence. performance is making double continued delivered worldwide. and

we in research. results. continue these to clinical addition, Rhonda and will Points, key our some In Jeff product manufacturing, the now execution financial development progress of operating objectives I'll strong ask discuss achievements of few in to Jeff? address make moments. on a QX

financial I'll detail. first you, discuss in now afternoon quarter results our everyone. good Thank and Scott more

In offset from revenue distribution over In million. quarter market OrbusNeich Worldwide XX% XX.X coronary revenue our compared during of full million XX% First of we partners revenues. last the to OUS generating the XX balloons. increased the sold launch devices increase revenue includes XX,XXX US, over Worldwide coronary partially from increased peripheral total, with a ordinary quarter XX%, XX% of a space coronary of revenue revenue initial represented and by revenue an and year. ASP includes our revenue to OrbusNeich increased million. stocking unit XX.X single X%. lab revenues US in peripheral office full grewX%, sold side Worldwide Worldwide service hospital the digit while low X% nearly peripheral ZILIENT launch of guidewires. order to decline. increased market revenue

to contracts digit domestic secure space We peripheral to continue mid single experienced discounts that attractive setting. include quarters, ASP the based volume in our business Compared lab a office long-term particularly decline. previous

even totaled stocking to maintain launch volume As efficiencies in X.X high demonstrated we to the quarters, several manufacturing expand for competitive offset and than the continue last International completed at we our as we've profit margins quarter million, of more ASP's. lower as reductions product domestic more very XX.X%. impact strong to offer remained and strong margin the the continue select accounts. we gross pricing also to Gross year, cost prior a Japan order OrbusNeich. with Compared revenues

led increased product market decline to a XX%. with or XX.X expenses balloons increased minor and and enrollment increased guidewires, associated international Operating the development margin. gross in XX%. However, million the X.X coronary million and trial new revenues plants, clinical overall about peripheral in of expenses launch full R&D of ECLIPSE

and of The SG&A this product which As quarter XX meeting several factors. in in for of such expenses Orbital in clinical international were first an in drive TCT board only our initial significantly Conference the QX of and were offering, long-term expansion. certain year. expand increased was about about our we investments of to July, Analyst last on specialists, items reflect to which of timing SG&A September increase our half at the plan year forecast invest held QX continue Higher product anticipated and indicated initiatives, expenses broaden due Atherectomy the XX%. clinical we to value. our use

we For plan of grow fiscal rate faster SG&A. and to XXXX, the revenue at remainder a

and X.X First long-term share. quarter balance Adjusted XXX at net of With a now we financial million. or to million, quarter. X a provide debt loss color I'll second per to borrowings some up remained fiscal million, loss XX $X.XX on was EBITDA maintain our guidance of a line in continue positive flexibility. credit million of cash annual our and place for discuss no

our with results First were expectations. line quarter in financial

we're we today fiscal introduced the guidance reiterating July. year in So

following Specifically, million, we of adjusted loss of the growth XXX to Net to representing XXX to for gross X% EBITDA. forecast of about range XX% XX%. in X% year fiscal revenues positive equal profit revenues XXXX, XX%; million the and of to

decline quarter, note our second to percent QX. expected in similar QX. a expenses we revenue in revenue we as are that For I'll anticipate growth experienced rate year-over-year a to of also what SG&A

our the revenue is quarter typically of mind seasonality in to be fiscal throughout similar during progression year. to and my As mentioned in completes cycle, Rhonda? remarks. will in improve clinical anticipate remainder growth I'll the We I Rhonda to Q&A. XXXX. we developments. current now That questions that and business commentary answer prepared Also tends profitability SG&A first happy fiscal provide keep to on for the would in commercial a the previously, anticipate growth outpace due our year.

echo And our share success. strategy growth is demonstrate comments peripheral and some coronary QX. entire in enjoy key franchises. in Thank our peripheral details I This and I'll in so afternoon early growth. progress exciting is we're our CSI team we Scott continued revenue that milestones and Jeff's would additional you, to It Jeff. achieving to motivating and on producing that regarding reflect our for our

device. XXX our million as our our new example terrific is radial extended over length, we quarter sales recorded During business. to innovation core of otherwise known our in Diamondback in a Atherectomy commitment This X the of

use to the As access using you recall, for pistol, traditional tibial, this access a to access Diamondback, radial the may product routes moral the vascular knee lesions. ability point wrist. physicians using the lesions treating the allows peripheral When or treat for now radial above physicians through

the we in patient low to advantage wrist stay. radial the very of As help this of and five potentially CSI have the small of now significant coronary patients enable devise The a due optimistic In used might term is United of greater with from to access and we length States. unique PSI's products mechanism value in requires and you in pinch of adoption blood others accessing example, discharge reduce faster and vascular workflows ability and radial a the assume expected is the for proposition efficiencies about competitive introduction Diamondback's and here. the remain profile to Longer- action, the given orbital new vessels support product. ambulate through XX%

the innovation sales late where practice. fiscal We're benefits of could new solution a catheter centimeters, catheters enable are wire a that setting level revascularization preparation adoption utilization part planning application So the for to platform this as XC during we In on become to that of end be unique an coronary procedures peripheral that Today to CSI lesion centimeter XXXX. single to strong reach well throughout ViperCath enable exchanges in for longest treated our more an to the it continued patients access radial easier Atherectomy patients we complete execution. plan I'm the multi-vessel as additional XX% exchangeable suffer a potentially peripheral, treat will support peripheral length Also in designed platform. facilitates operator disease and from exchangeable and in to peripheral the multiple a This This products commercialize second field both radial innovation domestic of crowns we widely should effectively our product today continued to of launch patients for XXX improved anatomy. serve economic effective we due are exchange need that more pleased pull case submitted in entirely to provide December. product about the from value optimistic FDA achieved [ph] and this different a important single the device will as available. of recognition from the XXX(k) in cost to more vessel and platform To up XXX to our share is enabling The for exchange that would new their in legs. is cases.

high were by We continue remain coronary coronary on benefit. high our leveraging qualified physicians centers reps and uniquely focusing every and procedural We specialists employee field to excellence. specialists expertise to support treating to coronary this ourselves clinical risk find by succeeding leveraging pride coronary on competitive volume patients. clinical CSI the to We our our of of that in reps advantage are the dedicated provide dedicated

market X,XXX to the of a share with to Atherectomy making PCI front the in revolutions positive uniformly we XXX innovation. feature. GlideAssist is feedback and and ability due important product to maneuvering improved slower our gain angulated in the speed the per the crown on is access and new provides Diamondback a adoption smoother increased with result significant this in further GlideAssist lesion device reposition The tortuous difference the look continue the our minute, we're anatomy around On we patients. of leadership with build position physicians and from coronary remove complex tracking product and the receiving of to

have with evidence, Turning now medical compared of study designed artery and in investments is implantation coronary our schedule for XXXX. preparation enrollment classified vessel treatment angioplasty patients our track to lesions. XXX, on study complete with a the severely the balloon X,XXX enrollment Diamondback We targeted to the can in conventional technique, evaluate to progress to on patients remain XXX of enrolled currently in ECLIPSE over

August. peripheral years. Mustapha at study side, outcomes classifications Symposium Freedom XXXX High XXX in two at of study our Rutherford Dr. Major show continued Patient Amputation all in the to from Amputation On LIBERTY two-year showed Jihad Prevention the

evidenced with complex major patients amputation Freedom for most CSI as Rutherford better In in the higher Amputation, improvement XX.X% a patients. by specifically be the XXX primary Rutherford life with improvement sub also even that for a treated may amputation addition, freedom quality Orbital and most Rutherford of X Major two the in High noted classes for major Artherectomy including analysis classification. patients amputation overall in not complex He LIBERTY from across of freedom at necessary all of years did

broad on use does our patients Now, in until suffering really arterial provide peripheral peripheral artery even from The will of and the the revascularization evidence collision is from prevent attracting evidence ischemia. positive endovascular LIBERTY a unnecessary epidemic severe mild have to and build help arterial benefits and of more advocacy limited the interventions disease policy to industry limb awareness more attention medical of and makers, societies and initiatives moving amputations. patient compelling had have now devices regarding disease data physicians to over impact we that progress that a further peripheral critical XXX peripheral of broader groups, disease believe for

of higher healthcare peripheral revascularization lead clinical patients Payne that September, Overall, belief human Jersey outcomes. underscore from Congressman revascularization both outcomes patients reviewed our for it's So the was which American arterial regarding journal on And Capitol clinical economic society Congressman subsequent survival, of and that conclusions to strategies manuscript the see to disease raising peripheral Compared illustrating major the disease the from sponsored The disease. CVC Medicare and manuscript peripheral global peripheral cardiovascular amputation to revascularization primary encouraging resulted CLI of revascularization versus first amputation. a recently benefit, over amputation led cost. the and Paulsen and approach. Minnesota toll the first of that study in of month, vascular collision higher with in economic CLI to awareness of approaches a Association published in briefing found economic major patients shorter objective Heart Hill amputation the arterial versus better for risk or New and XX,XXX and with the awareness better the

We working unnecessary on PAD proposing legislation advance step. ultimately are to to CVC an group with minimize to the next collaborating and intergovernmental Establishing amputations.

from very that increased in translate ischemia. the We treatment disease arterial critical peripheral collisions limb are awareness into optimistic ultimately momentum will with patients for these

as indicated, our on QX to expansion. international, significant progress international Jeff in and we Turning made Scott

peripheral and the requires infrastructure announced countries international enables adoption a train disease. Japan. Internally, coronary February As an of continue over are you rate pace recall, of with with that continue in centers in Japan first in share training announced Hong XX shares in Japan. expand Kong, our mid-July States peripheral physicians and passion, training to Japan agreement our launched OrbusNeich only education and for therapy In in and international of distribution peer gain medical over enrollment patients and signing and after market to two the outside time. The United us customer-focused result to we case will new artery develop we a a we and physicians exclusive physician to peer last In to we to months expansion. scalable we OrbusNeich now September access agreement. international the geometric

in to same to to provide domestically, plan Our We this way through their three trained we we can received our expertise international these U.S. that high-quality on will to use peers. peripheral the have partners. training approximately By with their orbital our in Notified replicate export European training international succeeded to that international the September exceptionally we Atherectomy. we expertise Atherectomy QX, of leveraging future share our we XX from positive would Body physicians the do end orbital expect physicians of the is Supporting physicians for Essentially, worldwide. qualified CE news expansion physician proctors our have years. for another plans, renew marks certification

We cases imminently. peripheral expect commercial

pursue for this your will Mark look concludes Next will Scott, up open closing That of up line in thoughts. half provide call back questions, we and we coronary and the for now CE my product year. approval fiscal before remarks, to his the our

XX, and Analyst new growth build provided Day, during hosted know, product geographies. as We we our streams drivers products, Well, we pipeline value to outlined broaden of our Rhonda. international on research our an markets highlighted meeting, in on we and and with introduced from this our our in and new July strategies new strengths you expansion you, Thank our our many investments plans. development overview new and first

with and XX is the the to our Most their patients disease. by years serve. We felt to patient strive it to for how us to artery complete as we with approximately importantly, vision our complex commitment several impressed five key that with many to treatment level disease have physicians, met over revascularization to for Since and with vital the key products meeting, of And we our we commitment of customers. X, XXX cardiovascular physicians that we are stakeholders. partner our can want we the August have them they and have over our that of pleased for years, develop really practices to next Analyst complex coronary resonating been of sharing we were understand strategic know million outcomes. they the invest improve our $XXX on actively next the Following new customers our our was focus over peripheral

commitment in continued clinical providing support an medical in superior of evidence supporting to the and on level extends Our education, and orbital robust Cath Lab medical focus quality, efficacy safety of our investment benefits the Atherectomy. economic

physicians forward reach and We our building plans as have we come we initial execute have away humbled these for from and the enthusiasm expanding energized our look more strategy physician our by both to and patients. our meetings and relationships,

meaningful are achieve across begin As achieving very the we our year well we and of Financially we proud the I hope tell, on positioned can annual guidance. are plan company. progress our you to

We have larger team company. a management it of is running much a capable strong and

addition to OrbusNeich, markets. to executing business on plans the With rapidly we of are our expand our new geographic

are Atherectomy, commercial product launches and radio angioplasty guidewires. balloon access new enhance full our launch Our coronary the the GlideAssist ZILIENT of our Atherectomy, well, to coronary introduction progressing peripheral including peripheral

are R&D treatment product solutions pipeline our for study of complex teams with out fill new addition, exciting In our of the vascular working to disease.

your interest of product, and to focused is CSI. Our chapter multiproduct, programs our to as success. sales continued of support compelling most company team expertise. determined begin needs and unmet company, ahead your to motivated organization a lives delivering a CSI this from our for day up next clinical focused with and cardiology. medical multinational transform team entire in this in single the company Thank on growth purpose single being save on and we The limbs to begin on you And schedule and interventional geography importantly, perhaps clinical strong is procedure solid our save are mission, most great has built exceptional every support remained a foundation and

for would questions, the Thank instructions. take so your you. will Kristine, We if operator please now you repeat

line Instructions] you. comes Thank Mathew Stifel. [Operator from Your question first from of the Blackman

open. is line Your

taking I Thanks quarter, growth, you thinking for could If said start just that comparison. guidance, roughly revenue a XX% a question. afternoon, the growth uptake in the Good from QX posted adjust if the doesn't every first what here you one. sequential I in think year-over-year for about you imply

the just highlight? you imply assume the potential So international, in the I us of but anything contribution remind of you increasing growth else there is its can drivers from distributor products ramp, would

continued a peripheral. we both actually So, growth it coronary core continued business, from our anticipate in is strength seeing and do

revenue in well from launch launches now continue the international will in to incremental new Sates. have our coming We and are United our of balloons also the as as wires products

So Mat, those really from is QX. that going unlike probably our continue in it really primary it come we to - drivers saw making growth to in QX not what

kind the to add is I've just And guide can domestic the international what plan to guidance of what and still coronary we did on track high we million all to in products, then we back was side, to the plan Mat, and of that growth you in Yeah. X peripheral, provided what X guided on kind July. on and peripheral, for on domestic July, OEM to that single-digit million that mid-teens so

Okay, us far? great. Jeff. products that how or you're days, following help guidewire provide quantitative, you can of frame of metrics, it's in still tracking sort so any just then I And appreciate balloon can that, early acknowledging distributor adoption that the but on qualitative

was but first meeting from has to guess that it from up August, launching that about uncertain second little sales quarter million a of quarter in just With I'm first quarter months in well that we're how the gone fourth ramp that did couple we in - was will did what international about continue here. I the we in sorry, Yeah, up the XXX,XXX. X.X back

we're to So great start. a off

add launched where there I products, qualitatively, would kind categories there of success. two that Mat, Yeah, that will we these - is are we to

use introduce, guidewires The of our balloons. day in first where is product our procedures have say, just opportunity and to daily the our we let's

of contracting progress progressing some back as as - both are there some well a about large is, and begin bit with and we these take The through on institutions second that we larger little but very of is go time, working our of can good plan. we seeing as providers

that of are right millimeter II So now it. across we're balloon adoption The pretty I good feel country. good seeing about balloon And Sapphire strong products adoption. X.X achieved these the almost smallest has the is pretty physicians balloon really the itself. we it CTO use a device coronaries use really lot mean, it to can that they like place and in market balloon have to a appreciated of

physicians crossability reasons, to not balloon opened device that So access to well of difficult really that seen in great. atherectomy also as we some I the using access that that for that the that has having device, cases have has ability small been might of up really would probably the orbital past.

pretty the and good sales is So, the about launch about of the how think channel of the with we're feeling synergy we marketplace. pipeline feeling support now our rest good I this progressing, on our are

guys. I thanks, appreciate right, All it.

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

Your open. line is

Hi, [indiscernible] Danielle.

thanks for taking Good. much the so Hi, question. guys,

the acceleration math latter more the half you the at helpful? a whatever walk is to pretty through Can bit? drive would of when on at you increasingly adjusting, was of consider that That us and new follow-up hitting to if comps I'm through have we you the look launches make remind - question if as rest need this, to facing the you year maybe there makes I year. drivers little just broader so any maybe could Just highlight, reason? product move it as year going some through for are year, are we something be sorry to growth the here as what that move a of we comp you difficult or back are Matt's the of essentially I comp to drive, we - but last guys taking us difficult are rehash wondering sort there mean significant look are

and strong and Several continue Yeah, drive sales we going leveraging. execution I take it. factors are Danielle, question. and thanks can for are growth to see going to to management the continue to

specialists, return. clinical Our showing anticipated are they

atherectomy. and is international continuing building are We competence and centers in continue Europe. academic medical in near-term user investments launch to as ECLIPSE large and enroll throughout in as very Western to education the building particular Asia that physician orbital interest continue contribute to in we to in and well will interest leverage continuing are training and

So looking to those we are forward things.

to A in I We catheter additional new ViperWire is the overseas in months. particular. launch peripheral of products platforms as micro And niche expected the my be are well flex, continue the the said as will to over several course exchangeable going as comments, next coming as well.

a to So that would is but program. multi-factorial support a that just it's the really of It are going those highlight continue growth, I to few things there.

Okay. - And of those acceleration. all things growth drive are should

to So Orbus? specialists, going the think they through international and the ramp products are as about continue from I like year clinical to new move we if

got absolutely, it. Yes,

ahead. sorry, oh, go One, Okay.

Yeah.

coronary on new teen products the of to expect year, address just just a sorry, $X our So, million before Danielle, at international $X add single expect in in those continue bit order maybe as quantitatively our digits. as of the to revenue kind from high we that maybe we and well more our little grow peripheral we to this we've something and - talked new of mid quickly million level growth a business to sales, then about look is to just and as as

Got it.

I works about the talk - how guess. you think math, think the So is I that's I the when I math addition, that's that mean how the

And follow-up saw at and Rhonda changing? compelling. XXX touched and could this that be point I peripheral XXX things quick one on LIBERTY I really data was on side you of thought Got okay. LIBERTY are yet we where it, the August the Yeah. of a some guideline in we mean then data

Yeah.

impact we've in the kind saw occur. already an the for on really amputations of they think it what I assessment XXXX seen call before ACCAHA was and of you guidelines guidelines have first multidisciplinary

the having I seen So coming the paper the paper then of the as I as in as comments, support coming that more summits Arts that well from QX recently Sky in timeframe were said just journal, my prevention published to XXX going some as we economic was both and from favorable American we've about Liberty early and I published think as the updated be guidelines signs that. in data are amputation well think then well. also

would is evidence continue stronger recommendation and terms a of around revascularization through follow there in strategies. building we that to expect for guidelines So this lot would the of

Got it, thanks, guys.

Danielle. Yeah. Thanks,

America. from comes of of Your Bank the from next line Bob Hopkins question

Your line open. is

thanks. you Can hear okay? Great, me

Hi, Yeah. Bob.

of Great, a things, so you second gave for guidance just or I it's over growth quarter, to know but clear couple million is a I $XX.X about quick growth. good afternoon, consensus be think the which the rate, million $XX.X first estimate on the a little XX%

So should as work I guidance that growth today? read your to basically in are QX say to you comments about comfortable incentives

growth to made that. very Bob, finished of we second given was We've expect be for to We I the Yeah. growth to similar XX%. quarter year, XX% guidance that just that XX.X% in that comment the

So you I track. right on think are

new just everything on all relationships that sure are Analyst is different July? any the about what have make then also you or products Okay. on. a And Day Of those at there to the things you in and and that, of you all launches guys timelines timelines want and and talked from of going talked track lot are in about terms

Right now only I think a everything is been that. It's and track I few months. heavens for on thank

So Bob. going are now, pretty right things well

about it. pretty good think we feel I

entering below at so least And bigger Becton, The last knee drug-coated entering first a the disruptive balloon the advancing was entering balloon a drug-coated market sometimes new little But last had SFA you temporarily. question drug-coated balloon have picture. the obviously is then program. with the Dickinson or a are to going the ever little we bit time bit

below term in on comment maybe impacting with you it then we terms can from Scott, the So, SFA? last saw was of back short launch when you what potentially your long and how business both core the peripheral the knee in see launch light the especially

Yeah.

I and Bob, think it's a good question, right. you are

knee I that really comes there calcified high because majority of the fairly below because patients We below some market calcified lesions a we of a disruption like product The the see new do lesions. think anticipate to trialing. the of that, knee. such vast prevalence don't into have is these severely severely anytime occur unfortunately

business most know, are strong but in our outflow. an the those So mentally to we knee product vessels, use prepare very to just the as as of also that's device below largely restore the atherectomy you lumen our because and physicians

and the driven severely segment believe we If that a referred get tailwind happens lot that the might to being bit fact that we that thing knee an the would that for this behind from by with cath stand. treated So And share I probably above number were balloon the cath of in intervention see indeed anticipate have was other be lesions. of plus drug-coated calcified to the we in see balloon atherectomy receive a patients things principally of because we a patients a of knee physicians labs we're as uptick patients continue. that the be primary the see result, time saw certainly our and a mainly may there and we balloons coming to more did patients around more launch of below left labs. or encouraged because drug-coated same their little will total care nothing drug-coated coming we podiatrists now that bit a being the of actually going those one patients the could

are kind still yet. of data to timing of haven't be uncertain seen and and the So seen it the we we remains

little know able on hard the to little time. specifics, specifics it more but to that bit call So be comment at it's a on our you probably we'll give a at and next more bit

that is the could headwind at business with that that's help marketplace, into How obviously now least the initially launching something be because or Aluvia a the short-term to maybe the about marketplace? in

mean is drug-coated think the again new knee I stamp once isn't I Aluvia another like drug-coated balloon category there. below would be. a It a

for that but much the segment it changes think I So really think in I that's don't us. for peripheral DES parameters relevant

more I practice. sure candidates Aluvia don't we that the going not to past. stamp had of stamp the think we receive a to I for receive a the going strength gain may Aluvia are it's drug-eluting and today that think I'm drug-eluting but than that would change the significantly in are patients see what that patients probably and presence practice share change

very much. Thanks Okay.

All right, Bob. thanks,

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

line open. is Your

our on Thanks David Jackson questions. for This for afternoon. Good taking Mike. Hi. is

Just What looking the modeling gross margin, that guess I gross of quite be and kind and increase the higher efficiencies some remainder were but comments guess production costs, your through just about of we in was I thinking manufacturing it in should year? we than hear at place kind guidance kind of factors I of margin. around more

in market XX% of stated gone through I peripheral year. we contracting mid-single margins we've for that our that because guidance, price erosion do the digit mentioned do expect about largely the have As space. in the also in OBL process of I we the

we impact So we see I we think will you will some think so that's think will on at a move to mid-single erosion faster the on focus we as to margins I digit do very year market rest and see maintain that throughout than a on reduce the the price erosion. remain or see continuing plan some continue we costs in throughout peripheral rate you forecast, the attractive and of effective ASP but very year, I

year fairly I for think the might the see year, come slightly but the the reason. you throughout will is margins It consistent. down So XX% stay

Okay.

our COGS and is cost more we burden volumes. and as dominated drive our a sold so looking about burden labor do, result as goods at - goods that half our yean, just related sold talked to as we've continue to guided, we've of burden reminder materials, before, is we've cost a about than our you or as of we just and As think by as of

that continue terms directly to benefit of margin. in We from

very our and a Now at focused as reducing are job improvement continued in on are rather doing also teams see that. we we drive But in volume. COGS position material costs to unique great a

for Okay. are That's for you how is being helpful. that And just then the price sort and premium getting extensive I I guess by that of the - radial received market? length some device,

that. far. in it, marketplace like great success well It's accepted so premium We it's Rhonda been are the talked been price small getting a for and very a about

Great, you thank much. very

comes Jayson from Raymond line question James. the Bedford from next of Your

open. line Your is

for questions. Thanks taking the afternoon. Good

order the from revenue there quick stocking as I'm ones, is contribution you the also of can way Just size and a to of Japan? to couple the curious kind quantify any OrbusNiche just

of the be No, we in stocking on order terms OrbusNiche wouldn't providing information Jeff? to Japan.

$X for revenue, estimate go we $XXX,XXX million and million We've About reasonable in revenue that's stocking international do OrbusNiche year, $X.X deferred - about Jayson. good million related to are international talked did still for is $X but to we on. to of still to that to order a was OEM products the the get we Japan. Like started said, and a

are for We that. on still track

Okay.

that million just that to I basically - Is add of $X fair if it of recognized Just million $X this quarter. X.X the you

with off international start linear. little may X.X that. X.X not to completely quarters, revenue lumpy a be course good bit Yeah, throughout with It be the are could we a of or but

international mentioned you geographies? cases comment on in just case if upcoming in could Korea, environment the just in you Okay. And Europe, reimbursement those the wondering the

to these focusing Yeah, outside share. we address is market really think are as strategy look sure, United States really taking our I we on the at markets

so So already that are rapidly drive the different peripheral an and and on accounts we reimbursement targeting sustain we and already really have pricing coronary is is can focusing those basically are get adapted there world, those of existing we the not markets and for addressing to really different technology, is are markets and those to issue their into all we we we around institutions treatment populations and growth. can we where and already are existing schemes that and are but patients pricing. I've going using patient by methods The reimbursement are addressing obviously reimbursement good addressed disease atherectomy accounts and that where

Okay.

material terms new of in the either the to up Just added? of accounts a Was of trend last quarters? in in number I others, of couple similar down the of couple was account deviation can it there that assume added, or any kind

XX Jayson you've between historically seen Yeah normally and XX franchises. accounts with both

little different, cases. a on consider count do new had side bit a was mind cross peripheral when they new had quarter we XX coronary side account we on Keep six account, we the a and and XX. in we This over the

a this or existing new did of in four accounts opening somebody have dependent as be reorder a on new timing our had could we so total accounts of that deep as well. about as switch if going as accounts revenue into remained XX%, we well little some but mind we're many bit So at how had. in five well cases, Keep in

color hopefully for So more some provides you. that

you Yeah kind in helpful, then you it's just bump effect, do adds any material you fiscal 'XX? add thanks. of and did very And team to explained the in or lastly SG&A any anticipate sales well, it the

part time clinical we've at increase still biggest remained we're specialists but clinical was last XXX of that specialists, direct the the Yeah, number quarter-over-quarter at - consistent. we XX the year, people, has sales added this

you. thank Alright,

Our William of line last Blair. the question Margaret comes Kaczor from from

Your line is open.

good guys. taking the for Thanks Hi, afternoon questions.

then because revenues you've And compare growth, in just I one last So so of can for I give heard follow think that the on like you me units? to what of maybe that the what are context seen you some elbow accelerating it's the it X% and a the can and few first there on is commentary maybe just stabilized. peripheral to a and seems quarters over up

have clinical quite terms The the to very continue quite deployed be we've be and point and terms of providing seeing really that of the to consistent contracting of Margaret. our access OBL actually successful growth has in consistent been OGL's in we're performance strategies at and percentage our frankly overall this proven its support, seen we've radial so so in our that peripheral business, consistent

metrics give real I trap you Okay the us may accounts it right helps for specifics and it? help of as then peripheral that how since more that to that's of access maybe but proposition there, if you mentioned to new don't can to the know fix or products kind accounts, products relative how of access add those any value kind even

a peripheral really low both us the a such device unique Yeah, can help through have profile, does a great it very our so hospital can really go of the and we lesions in action OBL's in we that's Artherectomy the accounts, because reach has access. above settings. and only question and deeper radial device perform And the because that mode where into

manner. it's ambulate OBL's that quickly. what labs patient is every times allows of does A to and in safer perhaps patients because in or efficient and because flow hospitals more it can much the lot find and So treat these an lot safer day to it Cath really changes patients that they of a both them do do and to effective so could more and be more

does important us and advantage does it it of very help deeper. a So competitive is certainly - to form us it for go

seeing coronary of approach institutions also we're the heavily these as adopted had is think large their using adaptors I coronary for that accounts radial peripheral procedures. and now rapid radial that indications being are the for approach

competitive a for it's - advantage is it real us. So

somewhat longer and support to and companies other we dependent a the sheets have that devices even balloons here peripheral wires the don't have are place the limitation others we - supplying radial from think and longer support come and through that fully and of yet not we the access. can side be I the on in market procedures

become end we going of products not that standing that and think to point I more access. I still the developing and - that should that are we support facilitate radial can as some in support July, of the those - of continue products available, about of as as see of increased route market. launching across adoption products side to we're As radial too on the out start these well those access talked we'll at peripheral of support

wrap a up. just last to maybe of kind question Okay,

Thanks. quarterly other individually If of expensive contribute at the how right progression and products referenced, of last how we or wrong new to the run year a it and [ph]? is think have rate perspective focused you on the it think the from look should you be year it's it been pretty to can some guys about about maybe much

we understand - the quite to question very couldn't access? Margaret, I is, radial beginning the question related of your

of kind as guys those micro quarters. catheter, the wires cetera layer et referenced, other micro next No, so on you just the over so products all that the several of have

example was QX actually adoption of rollout and see addressed Rhonda to out see is our a we the and coronary. that I which GlideAssist as some in we'll commentary, rather we we that into innovative really QX rolled coronary that as good expect growth I and in We of growth feature segment. now her as and that think products the GlideAssist do certainly a Yeah, in field those that's feature think into driving those our related quick saw an

ViperWire, but we the will of and our to think coronary ability it in will I easier do as what think well more improvements to all is device us ViperWire lesions, rollout example our to I these enhance these access So accounts. that to existing deeper use help difficult of make another of improvement some space as the go continue will be an they in

effectively that them this So these helps product allows and and who've physicians enhancements. really can already trained been faster. with them are lesions these educated them see immediately procedures to more do for it now by providing They access

Artherectomy So adoption see your that come yeah, see increase. think a synergy addresses continue to out continue we're we'll question. and of Hope I going to to these as each Orbital

you. Thank

There are no further questions.

Alright, good. very it's well

thank Kristine that conclude today's and you will call. we with Okay,

next quarter. you thank progress your Thank look interest CSI as and in to everyone always our updating you. continued So for we on forward you

This concludes call. today's conference

disconnect. now may You