Cardiovascular Systems (CSII) 30 Jan 192019 Q2 Earnings call transcript

Good afternoon. My name is Connor and I will be your conference operator today. At this time, I would like to welcome everyone to the Cardiovascular Systems, Inc. fiscal year 2019 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 Instructions]. Thank you. President Vice and of Corporate Nielsen, Communications, conference. Relations your Investor Jack begin you may

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

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

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

were million, We pre-release delivered markets third products information business X, our the for to businesses expand provided Thank the We through quarter in Consistent us on digit the introduction profitable double CSI quarter. pleased everyone. Thank I afternoon launch to grew the strong report continue XX.X% to core the CSI of strong around second you and domestic joining quarter growth in in make achieved second efforts you and accelerating international January we progress $XX.X in revenue the in of great QX. Jack good marking the in straight our of new that topline world. to and we our today. results growth. am

We drive increased our we volumes strong no financial solid. long-term strength. continue as remain Paired gross to reduction sheet efforts balance and a have with on debt, cost execute we and our unit real margins

on businesses. We are executing share strategies driving our and core across market gains our

long-term, Our worldwide execution in growth domestic gains QX, unit peripheral by growth radial in labs, business. strong support peripheral the customer of grew including by areas, market access, side business development our by the driven the coverage The teams. XX% of in in were the continued core XX% market atherectomy outstanding execution increased expansion in exceptional case and and office-based multiple adoption sales powered and share and peripheral of volume-based performance contracts,

the growth with business. Our in core grew XX% worldwide business XX% coronary domestic

due candidates treatment sales medical deliverability the emerging to really response customer our support a coronary our programs increased focused have drive clinical toolkit be crown sales and The coronary of We not year-over-year. our market anatomy. accounts. the through an and growth orbital the for GlideAssist from the business of improve atherectomy XX% coronary fiscal GlideAssist support by our first otherwise complicated education allowing strong coronary teams, momentum Exceptional in strong feature. current reps in at patients new is to sustained driven half including the with that business dedicated may adoption to of domestic our efforts our our of XXXX momentum procedure

more from to atherectomy and gain of expect from in revenue that QX and we labs with procedures microcatheter. access like wires momentum and Teleport gaining our PCI of increase improve $XXX,XXX cath balloons productivity in launch a cases. and Adding orbital additional as the products PTA We the sale support new revenue over are new products. is to atherectomy to to initiative support sale OrbusNeich the also products orbital we key generated sales and grow We

to in Middle the launch $X.X and our Asia, growth in have in We Finally, markets contributed really we product orbital businesses. are cadence driven with revenue the achieved performance achieved that coronary pleased also Japan commercial and peripheral of Europe. million atherectomy by East in of international QX, and rapid we in in launches the

by are more the partners product. physicians outside just expect period and by the to time, as States year-end. training fiscal of for physicians our the we are to collaborating distribution facilitate of with In many a strong over has our United We short motivated and we train XX demand CSI XX trained excited as

So contributed fiscal XXXX. our to far growth these in the are thus tangible drivers that

let me provide of financial to more our Jeff? review Jeff a detailed results. Now Points QX ask

Scott and you everyone. afternoon Thank good

total, XX% devices second atherectomy Scott XX% also first represented It quarter, we representing X% XX,XXX over last year. revenue As increased a year. compared to represents of mentioned, compared quarter to $XX.X peripheral In $XX.X to million. during of Worldwide XX% compared to million orbital revenue sold a increase growth revenue increase the quarter. sequential last

the four Our strongest of driver growth atherectomy sales peripheral experienced We the units in in peripheral peripheral year. over worldwide revenue. nearly increased years. devices peripheral the quarterly of United were our primary XX% prior compared to States Strong unit

single As digit expected, a ASP mid decline. we had

we volumes. about partners, XX% OBL East coronary to international by last As Domestic revenue we in launch from we the approximately unit increased also $XXX,XXX coronary revenue as as fast-growing agreement approximately segment. also gross coronary continue XX% grew $XXX,XXX over million. $XX Worldwide Worldwide peripheral distribution accounts several primarily we included Europe. revenues included share and from in OrbusNeich. revenue quarters, volume even continue market driven have high OrbusNeich gain strong Middle Medikit increased maintain our international revenue and to and margins pricing to our our the Worldwide in volume-based the offer Asia, distribution demonstrated contracts with

contribution models way. build revenue we from QX shared results, the and some you know So I in U.S. this our your international. pre-release of of

profit million. revenue Domestic million first in sources new In ECLIPSE total expenses in coronary financial in million U.S. $XX.X to strong $XX.X million. between $XX.X of $X.X your reiterate, peripheral million $XX.X to year, increased QX, at million, development remained International assists but domestic XX.X%. in trial XX%. increased clinical revenue models. increased Operating Hopefully, to margin revenue this gross with compared manner and than $X XX% down associated of last revenue increased split coronary. breaking the to XX% peripheral XX% increased XX% expenses were enrollment or the to and So evenly lower investments revenue quarter. product R&D about was and

In we on balance increased million, increased credit fiscal million updated place registration our the in product a investment flexibility clinical flexibility. to debt that use and $XX of accelerate cash initiatives have line drive indicated and a for continue atherectomy to financial and $XXX physician per a broaden by $XXX,XXX borrowings color to discuss previously, plan education our long-term in of quarter. shelf orbital product annual to long-term we third EBITDA provide added no our our international share. and some I maintain investments SG&A Adjusted XX% income strength equity. of or due profitable $X we the With in support net now $XXX million. of of issue to and to to December, We and value. million, training our As with $X.XX expansion. offering, up will second guidance of expand we medical to were filing quarter

second preannouncement to original of million. $XXX of revenue quarter results, while guidance range midpoint. the million was fiscal In $XXX maintaining Our XXXX our a we narrow range the

$X.X follows. revenues as new EBITDA. X% assumes million, in positive XX%. equal guidance million of to domestic XX%. XXXX the XX% representing growth for to fiscal fiscal and now $XXX The Net is least of Gross range million atherectomy of and to of Revenues at about of revenue X% Our adjusted from profit loss annual international XX% and to range at continued products. core growth revenue XXXX least $XXX

XXXX, fourth remarks. provide approximately both X% For my now Rhonda sequential of on X% quarterly That third growth completes prepared we revenue of developments. fiscal back Rhonda? commentary commercial the will quarter. and to anticipate our in the half

Jeff. you Thank

Let's unit several the that quarter begin nearly great Jeff have seen saw in domestic with spoke this a to peripheral we We key business. was drivers. progress from of that our years. peripheral review growth strongest four the fact

I lab or the However, space coronary and my of will market service OBL access office market. peripheral focus comments penetration our increased then in first the in penetration is patient and driving to into OBL deeper The move side care and accelerating on international.

treat patients year the long-term of calcified therapy site discussed have the procedure market a OBL strategy we disease burden service. have support. higher increase this initiated pursued with an at contracting ago and help success opportunity in previously, penetration and as physicians we market, As grow increasing We found increased one of to with we the

less forms of the disease, As OBLs treated patients peripheral severe launching, lesions. had site and arterial soft above-the-knee were service plaque at of typically

result, a was XX% of our about As in business OBLs. peripheral only

growing the OBL and the driven and has procedures setting. more combination patients complex population, convenience cath patient limited a economics availability of However, lab hospitals, in to patient more

We the peripheral approximately OBL our complex revenue procedures and today volume XX% support profile, on have that represents ease of strong use, our and procedure safety resonates executed highest of business. a contracting a combination domestic customers. focused of with exceptional The strategy strategic OBLs perform also

It QX is price. arterial and compete XX% increased OBL to on important also note patients revenues focus peripheral our the that limb We critical a year. disease may XX% ischemia. sequentially compared on result, As who care increased last complex with in of have we to won't from QX

profile Our vessels from customers that leg. device low to in a the use safe specialized calcium deliverable highly and techniques require remove diseased

facilitate primary With of deliver atherectomy proven rate reduce and XX the outcomes calcium, deep that clinical months. uniquely at with can fracture the a calcium device of XX.X% only patency surface

for sites percept the to based resulting units the service. we we gain Overall, addition in both to OBL hospital in CSI growth market market in high within grow the growth, OBL Again, digits. and stable share to setting. continued and also pricing peripheral grew year-over-year, in continue steady to are atherectomy reimbursement mid hospital single XX% volumes In and of experiencing hospital

worldwide to and CSI's our has domestic the gain international half coronary business by through with continued first ASPs the of by grown stable. business coronary while growing year, revenues XX%, remained domestic also revenues. domestic growth XX% XX%, have share We driven in Notably,

Advance ViperWire create balloon launched effectively track market population. share. are motivated stent for are facilitate everyday patient to momentum The be to physicians and allow treating placement. lesion We system Asia, for coronary easily peripheral these Sapphire our We on we technology, we to product to This look in Internationally, the lesions, have portfolio lesions a prepare XX and key able are artherectomy device both high one in the in Physicians rapidly to we When an markets coronary technology quickly deployment. end in will and practice. coronary The East. new to introduce portfolio expanding by to with Middle the to expand new the putting are their in adding awaiting rapid with when innovating coronary toolkit the the complex coronary into At learn through that is new on QX. now December, in patients. our presence are already are coronary the and complex peripheral angioplasty our microcatheter modify to components atherectomy Japan, that physicians CSI access devices centers and eagerly Diamondback volume more millimeter orbital combined catheter remove further the of of late calcified calcium a of access calcified the tortuous in physicians stent forward will important coronary core that GlideAssist vessel to and and FlexTip this our the and complement December. and training the Teleport building physicians U.S. market access our our rapidly the the Europe feature, vessels OAS targeting and safe increase trained GlideAssist,

of we expect to you in many of first and less QX in Japan. clinical peripheral and radial for drivers year. device international as better Combined will XX% in currently launch product our new launch lesions. to our the FlexTip, the will These Japan, FlexTip a second increase double in expect executing of and Catheter in our year, from we expansion year. Coronary one XXXX in with ease-of-use launch exchangeable and results. in results, range microcatheter, tracking with recently and Mark business. the enabling this fiscal our we progress Radial strong terrific position continued with launches in launches revenues of to year. the the later GlideAssist ViperWire growth our fiscal half expansion the international, ViperCath received domestic this position core year in XX% Japan, will market share new GlideAssist will consist Classic in our in at with QX to Teleport In As In particularly more saw our the launched performance add growth Japan. less further coronary in FlexTip of Of Diamondback with incremental ViperWire commercial peripheral continued approval through the facilitating Crown both the annual complex seeking continue later with to Classic have These release, since approval least and we rate are well as we GlideAssist leading than with include our for than we growth our consolidated XX% to CE that plan February note, geographies coronary successfully X% performance fiscal in European that by Advance are support Exchange than the ViperWire half of

to will to focused and sales confident support world-class dedicated our across achieve our we closing new and very organization, existing next expansion contracting ability portfolio, continue near of XX education, sites growth penetration coronary over That launch and accounts the years. our his will concludes In strategies our our provide our increase of long-term will five Scott patients long-term now case service. business, to the in where and objectives peripheral products and we all new through thoughts. in than Finally, sum, in remain and training we remarks. expanding to core expand geographic offering in new more my innovations complex

you Well, as outstanding Thank heard, an this you CSI. was quarter Rhonda. have really for

patients want extraordinary our employees we close, our serve. for to mission that I to than their thank the more and XXX Before commitment I dedication CSI and

introduce leading launch key new world. our and growth We orbital initiatives the are driving new market performance atherectomy and in our business executing around to with on we are products markets

X,XXX product CSI supported that Atherectomy Orbital that and removal, only atherectomy Diamondback effective by physicians around clinical peripheral is Developing coronary in published Our data wealth the peer and reviewed studied a patients evidence. in in and vessel lesions System our more been enrolled with improved in clinical world. has trials, than medical journals leader evidence in XXX demonstrates X,XXX preparation calcium a the patient Indeed, is strong of safe clinical participating medical over programs the and market controlled outcomes. research

offer calcium Our of core best competitive solution the treatment advantage interventional the is vasculature. the that in we for

for new cases. introducing are We treatment of products complex the

We have education training offer the the to the We strongest community. and medical superior evidence market. medical in

and who We global of in through XXX have composed channel XXX are a sales supporting we on our our solely distribution specialists professionals clinical partners extending reach focus and sales U.S. physicians years the the establishes is growth CSI treatment leadership quarters combination of peripheral market calcified foundation for and continued This and and coronary in that ahead. differentiates lesions. a and a powerful strong

every day. you We Thank repeat updating the for the forward Thank of growth lives we focus XXXX achieved interest now your to if half the you will you confidence fiscal and that we sustain Operator, to look mission our a to and limbs questions. in instructions. we quarter progress well-positioned would, our take CSI. in future and and in clear the you. are have continued your the first on please on with We coming look to save save strong

Instructions]. [Operator

first Your Blackman Stifel. the from line Matthew comes question with of

Your line is open.

in you about what with in but the publication hearing And potential follow-ups. Thanks specifically? the changes maybe December? intervention paclitaxel everyone. volumes of meta-analysis from are behavior the customer the peripheral starting on you a or And question atherectomy any broadly, taking I for clinicians questions. impact you. then Are afternoon seeing Good Scott, since have few

marketplace. Thanks Matt. been has interesting Clearly, that an the Yes. in development

it And think the is this Frankly, we probably the our influence haven't seen marketplace. think much neutral. stage, point I are monitoring still We drug-coated company's early at is we that this balloon too just would response really change. in customers to impact our potential at published. their our been result. continuing at And we haven't this we point, say, I measured watch everybody are to else, just the this seen that's much response like meta-analysis are and in days.

all I that. about have report that's So to on

Okay. third I for a make just Jeff, I your appreciate want am and X% couple fourth sure you. And the sequential to commentary that. growth. then capturing correctly, just I quarter X% to

million in to So fourth million correctly? that implies $XX quarter and the the third roughly for million to Am of $XX million capturing I $XX in the quarter. $XX something neighborhood that

correct, That's Yes. Matt.

long-winded this a is of And Jeff. bit then Okay. question you, for a

contracting you I three, in what signed initiatives negative there along Is trying multiyear quantify to guess, of quarters, that is could in is some the business get price, to you Just the trend? percent in of recent are way OBLs? less possible really your potentially now anniversary segment than next two, far it's am in what I the volume OBL at curious, you modestly a how the be four contracts contracted? that

Hi is Matt. This Scott.

our terms cut to we just in actually that contracts with of remind pretty it's that think you I important many don't OBL contracting strategy, centers.

lesions. As said focus on remarks, her that the OBL treatment focus we Rhonda complex accounts also in on of peripheral really

OBL are strong them So that setting. lesions. patients. They but providing setting. with have with now typically were treat long-term an peripheral treat procedures. supporting these these We setting. to in clinical we They not only They physicians are that moved And complex assist CLI them are executing in-hospital now support to formerly these we the in are them contracts

example, the across segment. very, market though be been for necessarily a a that as it don't broad we very for even see effective OBL has of strategy swath us, it implemented, So would something

Okay.

and take to that we our able space the the in thing add, one OBL really accounts market several strategy. to new have add would share been on Yes. Matt, I by

And that's really in really effective OBL growth been the drive segment. helped XX% so and our

back Got Thanks it. I in much. get so appreciate it. I queue. will

Thanks.

Matt. Thanks

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

open. Your line is

Hi. Thanks so much Good for everyone. taking afternoon question. the

wanted volumes Matt's But be neural. I concern intervention. cardiologists My impact one dig overall referring is you referral could the that I appreciate it deeper. little follow-up for to Just paclitaxel on peripheral regarding wanted question that expect it meta-analysis. to to just from a

are follow-up. Just I then have what hearing you around one about that? curious And

receiving impact the feedback we are referral in That's a At is thank continue it's the that. referral of on not this fair much really base. question, and Clearly, monitor. having for Danielle we that you that it time, point to will is something

at not, that. have We this seen impact from stage, any

We it now, closely. can the working watching referral are to I as that right system the past. channels be But it has in report continues in the

Okay. is Great. my And follow-up Rhonda. then for probably

the think gave could So it drivers your give years, four in the But were growth details on peripheral bit strongest, which quarter the peripheral growth if a wondering you in little quarter. is color. you some I I strongest you more said what mean, for was amazing.

to So price products, new OBLs? radial, is that get sense you think to of shifting headwind. Obviously new of much is just access a a do the How trying driver. like

So how are to a to get drivers drivers so Thanks growth? just and trying the of sense are those of much. what each big that different

we obviously of appreciate think continue question. Thanks biggest a patients actually being on is Danielle. number have an It quarter office impact Yes. see, labs I to space the thing seeing the the treated. I are was we and spectacular

grow. penetration improving in actually also continue peripheral it's market. volumes the to So Hospital

really think is development. I exciting a that So

the see the come some XX% continue. expect growth So there's And as tools new continued of numbers, in we contracts. driver that A that access site radial percent in big and is particularly you happening the development has adoption market the to is we QX, the spectacular. can of of execution space. of with really in the out long-term strong really volume-based QX, been There

and has most the of CSI teams. and the So But And focus the the by I outstanding level given also we really sales would differentiates that that's support say and that's significant clinical have coverage. our customer really one us sales expansion coverage performance just of specialists drivers. of been our increased case

really has in of terms OBL it's winning made think setting. CSI all of in I of a combination distinct things So those that the

so Okay. Thanks much.

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

Your open. line is

question. for actually Hi. in Margaret. This Thanks Brandon, the for taking is

on focus far? you into your you First, to doing in I have of just portfolio? just, about business? do of talk And have just Or is kind question. function in you I that you think things success had the you current know been helping focused have of kind increased Thanks. so interest deeper that an success on, can vessel wanted broader the And really other going there accounts. more I one of is drive prep of one a there's that's just and think having core a And do

Yes.

about and little case whether a it's think question, continued peripheral We the different or there. peripheral. certainly see in coronary. I a are on of So bit It's do of adoption hospital depending we talking

strong product conducted strong outcomes, As more we those education and we programs. programs. very achieve more programs. we our education physicians participation in Last have and quarter, utilize for demand at medical almost our XX have increased attendance And medical

participate they We peer-to-peer to location one of generally, coming those where at physicians are from have are strong are And had demand who are where from. the the existing programs. have they their coming very participants who colleagues from training accounts in

to think I is us. which new find care certified coronary the complex there, we in of see a on that this there driver for these And for fellows, I and continued patients think I that physicians the to trained case important impact conducting, a most continues lesions. second think medical focus has we of really that the first that treating an XX improve think coronary of been strong for educated. fellows have that we quality complex really the In commitment on and patients has the and have focus the of related coronary, us. to I lesions these And to really over And the space. coronary community we in continued that of that there continued the were adoption really have what So beneficial training quarter, been are number increase

some idea. overall, you I think that So gives

and using reach about comment are difficult is I important talk think that it in would orbital physicians this to driven emphasize thing our really device new made result, you makes an this coronary is GlideAssist. we really GlideAssist of confidence. a I local it has But a our have result have Diamondback that guess as I are And access our get formerly the by increased have feature important through demand. really and really angulated that heard difference And lesions. gives they who are is to. and made physicians And first. been that's I is tight gaining choose really other as introduction device confidence of routinely GlideAssist quarters. me and And why a there deliver helps a physicians now the lesions that that can deliverable. that confidence crown for a in that couple atherectomy lesions system of these will they to deep that

and their So case lesion. and they that atherectomy will they at to to orbital they the going decide access look when they do are use their planning that outset case, try will from

had So we sites. move it continue drivers primary are increased forward. current I the to But adoption our think at important those impact I a think for our really as will and Diamondback has

support and Thank guys the It's training in meaningful you sure countries. many ground. to CSI make at just those lot going not could any the are understanding going if in talk that Thanks. comfortable my be in internationally, thin international quarters? And helpful. too you Great. regions stretched Can and the you just responsible for a That's on of things how need on very with there's geographies exciting are to a of lot I too you investments And once? is different across regions making about coming you. switch if

and Brendan that appreciate Thanks question. I Yes.

right. You are absolutely

demand the We strong States. outside United have experienced very

clear, responsible Just markets customers. support for be in physical partner Japan, other sales, OrbusNeich, to of is our distribution and than

organization responsible and Our training those education medical is customers. for

they up, are running, continue and bring them will will them and up once them support OrbusNeich we future. train in So the to but

educate work basically type to train geography, what effectively will training that And where and into is, Japan. train has peer-to-peer to then Now executing are seen we go or have will her we proven we model physician, who his a very for colleagues. particular work educate and a in us a

in, our the We to around that extend that now say, medical in our capacity us do ability are let's resources. to U.S. and gives some continuing other markets

effective. assure are So you as necessary. this that very education that has carefully teams been adding to are we our I can watching we resources and

We naturally, as imagine, also in and widely have East had the And very you geographies Europe. Asia strong and in peripheral for those products Middle in can our are spread. demand

the we of our those in of that on the areas So our have each ground are assure working we build can to people core kind really competence and that support customers.

in with the the We to are products, used. are world our firmly matter where outcomes they use of great no committed assuring that achieve our customers

to to continue invest peripheral and physicians will in coronary and in support education we So both medical training these procedures.

that I lost questions Brandon. question. your answers So on Other We that? hope No.

Thank No, you. that great. was

Brandon. Thanks Okay.

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

is line Your open.

good and afternoon. Thanks

on was of quick to to as the number. that XX% in by growth just a quick OBL you comments the Can and OBL, intrigued contribution give I Just XX%? a the the couple sense from ones. pricing me

It's actually hard splice to out, that Bob.

As of of that last a was specialists. we number recall, clinical it year in significant added you August

combined the the began OBL. be rolling device calcium have with these that that of to in things that have led some And larger can those long-term what the great fact only those in really two, the three at to accounts. time, to along we out We our of treat is we severe used combination see that vasculature, also, contracts the success

about more support teams pricing. by is than I is this think execution our really clinical sales focus and it and about focused

I you are that's anything I these terms of--? contracts. guess, would it. would long-term in have We Jeff, establishing add do how that you to And approach

actually on gotten No. only And pricing would allowed labs. actually ASP of more thing The Bob, erosion, get really this favorable and think specifically add, is quarter. to some has us within it's the I into strategy these I labs, that the contracting

stability been that's a revenue. that helped and drive of So us has sign great

Okay.

a So of probably the not fair? being than Is that just XX% by it's roughly much growth, then of that more points that's price. driven couple

said don't know. Bob, We we differentiate that Like I No. way. just it just don't in

the in As am initiatives segment. is, launched I very this that what effectively. simultaneously they focus are have at I can imagine, I can working think really that on pleased point And you we OBL say total, multiple

then math. And might this it. simple be am Got I curious, just

the the growing of XX%, offline. math about So anything it tricky basically I could mid trying am I the am do mean, peripheral But I OBL is if do? kind there business is digit? the is growth rest single sure to revenue in probably I of

Jeff. of digit is in the grew that mean, XX% continue the hospital this I there's single Bob, to then OBL. mid we in kind to high not. No, and grow

growth in So to XX% if you get pro-rata roughly you U.S. that, the rate the

Okay.

Yes. we The Bob, grow add, pleased. mean well. our hospital to I just continued are segment only thing I really also has would

every we So that's our are mean really peripheral growth why that. share gaining are there. in we the in we I you see market strength really, this segment. day have about real large And that and clearly, peripheral happy

the both hospital OBL. that We are in in and doing portion the

in really now, on right I hitting cylinders So we think all peripheral. are

And then one last question.

need $XX to back and the at growth obviously, in you revenue there's look generated first half. there. million in the half, in what to the in then of assumed guidance million half the It's $XX versus acceleration you the generate revenue incremental If some roughly back

for just the that $XX biggest what you the million maybe incremental So back that growth drive incremental break down buckets if are or need in us, that you of half? it kind wouldn't mind,

will I Bob. Hi Rhonda. take This is that.

support largest and XX% will I we be it core. at first launches least product in will think said growth the new our and the one

So peripheral portfolios. that continue complement of new our to have of I will and a those. a things few coronary number we coming And mentioned

We And in think cases the excited are about this in more with of out FlexTip peripheral really the the give combination about to the access Microcatheter, really to we as that expansion rounds toolkit kind coronary continued well. talked setting. that, is of then portfolio Advance even us going GlideAssist with also we coronary

year the the core that's happening with new business. regard in support to we back pretty of are have exciting products So lot that that half to going a

focus we think addition resources, just that, to continued in I of earlier. as articulated our it's

I volume-based will And for both of the will terms But as that and hospital-based is occur progress in mentioned in international. as last Classic our then Coronary And continue sales in earlier, extend OBLs. one the peripheral to setting of launch organization, In also continued coronary. that Japan. the said well contracting we the

will as into Japan, other to extension that within as driver a geographies as So be well. well continue

three it's So really those things.

All Thank Great, you set. very Rhonda. much.

All right. Thanks Bob.

Needham from Your & the question Company. of next with David Saxon comes line

open. is line Your

afternoon for Hi. questions. the thanks Good and taking

David Hi

if First, have stent? I the also, you drug-eluting mean, impact companies I was any Medical? any you Eluvia wondering Ra in if landscape, seen have like changes And then seen or competitive just from from particularly Shockwave the

you companies in terms growth you And segment. that in States. participate the market not tell, that had are present really in coronary Both we had in United of strong that in the peripheral share we really the as very unit quarter. and think, companies, segment, large we two of guess, saw referenced, So I performance no, the haven't. in peripheral could you second the we but significant I those gained

So tell a and Remember, this past years success unique there and because position we that in cases physicians continued have we have perhaps see complex that our really very enjoyed that that's many either and and little population who partner you the in for segment segment has has don't quarter. those treat can patient we they a lighter disease that of companies we on focus really with burden.

So was question your stents? second drug-eluting regarding

Eluvia? Yes. The

Oh, Eluvia? the

Yes.

No.

patients helps do patients terms at it to in see think because Eluvia, know. labs to But used. from that the increase is response really now, impact as we for necessarily and us medical But thing develop, successfully is encouraging see that don't companies severe to has our they Eluvia approvals had really not product The these I direct PMA that cath say a is, one stents. it's product and positive a adoption drug-eluting We for that the think anything driver intriguing forward when our a I But launch received will very get products gain Eluvia, on physicians, bring of think to would them business. have drives don't because I community. calcium, it's arrive and I a labs, cath of say how much, really it share. right So

have shelf. and at I for then, just looking balance balance you pretty sheet, the And helpful. cash That's filed healthy Okay. a mean you

And you Just there? thinking are wondering what any aspirations? do you M&A have

out Yes. other the that There's of in It's industry to think just that matter companies just thought a imminent important nothing put that's thing gives as get that place. Really, we planned. would being standard that is us housekeeping. we flexibility. be look a We And into there. at pretty good something it

Okay.

the terms strong of cash, to In balance sheet. nice stable a have like we and

medtech And balance makes unusual But so a position with terms are cash enjoy of we having that us strong good, and sheet. bit perhaps pleased companies. stable that a I small-cap in position and that

Yes. Well, much. Take care. thank fair very enough. you Well,

Thanks.

Lake the Your from Street Brooks O'Neil next question of comes with line Capital.

is open. line Your

you. making. the on are afternoon you Thank and congratulations Good progress guys

Brooks. Thanks

for Investor on Thank ramp-up kind the lot Meeting products made progress about. in with are you a you significant talked have spending of got you focus this Scott. terms development. the the At Obviously, new there that summer, that in already have that are of of lot was new some behind scenes? you developments product have But the a

let are as we as key projects design and our next, it. will those the know it's to stage a on lot Brooks, time to will about question stage certainly great move provide appropriate. over drivers you becomes one A continue growth now the from we in of and they updates it

as testing, circulatory and completion well vascular So you be IDEs, our testing completion of let's moving know animal forward I Phase the coming laser key next with mechanical say, pump. would our support as for of up the events

both strong on projects plan, So early development. right at They this stage, to are those the progress. are continue make of in obviously stages of they but

that So your question. I answers hope

fine. That's Yes.

a about the significant opportunity the you is? How international obviously internationally. you some hoping progress think you CSI do just was think for conversation bit talk little significant how is opportunity could now? I about Secondly, working OrbusNeich with

And rapidly how States, distribute been very launched, had motivation a have is United only we with that know have OrbusNeich United that, we and they rapidly partner. the marketplace. And but we strong course, case really significant of We had And moved volumes. developed they States. they way forward outside they really well been their OrbusNeich impressed have have with pleased approached really and have because, relationship. So ours we of has products the uptake we very and something where have terrific their not that have in They we have launched this a distribute products. our been

So we we schedule excited are right our where in of little and bit of Maybe, at it's even a schedule. it's this it very time, point we might be. launch kind international of about are pleased on that thought ahead

the In of potential international? long-term terms for

Yes.

what XXXX Brooks. million of that a to So we million in good be with, go would $XX goal to estimate in announced $XX July international, fiscal was still

Okay, Jeff. congratulations on the Thanks lot again a and progress.

Yes. Thanks.

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

open. line is Your

Thanks and afternoon. good

a Just guess few I quick ones.

the OrbusNeich markets you in peripheral. to While and maybe ask are we international, I about targeting environment now? talk What And want reimbursement countries? about those can you are on just right

Yes. Sure.

peripheral. in have we Asia, I in now earlier, in for Middle and we mean Jayson. indicated as I are Europe East the are thanks Right So

are Asia and the different vascular have that interventional Middle disease. of procedures there of payment, already countries we the local East, focused the use is a oftentimes peripheral cash number adopted of Now for favorable where in treatment really on environments have pay. These

new we market in So engaging are development. not

customers, working develop a history say, We of referral need channels or are with who past to reimbursement have issues. not let's

We centers that are and got already working with have well-established practices. institutions

in share the based coming strength of We are the technology. taking market basically upon superiority and and our

As have issues. a really result, had reimbursement not right now, we

if the we is, become this atherectomy choose am in And by I is as time, we offer, we markets. now, barrier, as know. always first, reimbursement they many favorable cases before, that day. and feel about think orbital offer, I to we do And have about reimbursement. model talked you business of over But that mean value I more oftentimes what use continue proposition in I a can will that a pretty that confident these physicians right you paranoid can to the grow

proposition of lot a more is result, much the patients only a does total lab use a using times not our business, cared captured can every efficiently. for, enables at and and day. effective lab the but to number better provide patients treat treatment, for if the because value total safe of in also it total our cath quickly And as So technology revenue, of more the level, product they do them to cath

just countries? another displacing in mentioned additive you Scott, these share. you procedure? it is taking device Are the atherectomy to Or

to clinics cases, generally I other we said, many are hard are well-established sites. It's say. displacing and I in say going we Like would devices. to

We are not developing locations. new

for the expanding the In really our to placement. of the makes vessel it there combination a like and probably market are technology in GlideAssist of I to atherectomy Japan we it's use for use the more with isn't do device the and is use stent preparation where attractive this that's arterial required So treatment development. market our coronary disease, using atherectomy of say, market both orbital where would

like the either are we is I of most displacing balloons balloons, market, most expanding which standard the the place a in or POBA, but we would world, of of a the in of markets. Japan, are care So probably say really rest these is cutting

we And taking so market say are that that's from. share where I would

helpful. unit a bit here in quarter? is high market That's pretty you that number, make growing kind have know the is peripheral think But to any a little points grew of digits. then think I especially market faster you your December just mentioned do single you the mid to Okay. And data that market. XX% share. back given the the big U.S. you growth

seems comes increase only in X% community us, Actually, is to the a in that analysts that's some at bit data That look there only market was only consistent from data the single if have Historically, growth a really we analyst that procedures. point right suggested have and grew slower, to but mid now. you peripheral Jayson, low rate a that have this, it very the high digits. point the we

typically happened sales. large don't of quarters at to shares. a because two who because detail to bit to get compete report look in one what we level against companies have largely established back with really very just clarity we Now clarity their we on market the great that's the atherectomy late of process, And get

that have look back. we So

operating marketplace if admittedly time digits, over historical that tell are even that, times growing mid the two off or quarter I you in to single model. that a think rate last higher. it's We of high was But rate growth if nonetheless, can our

right. All

you. Thank helpful. That's Okay.

comments. for further time. call final no at are Scott Ward to turn questions back will There over I this the

always, Thank forward All Thank we as you right. that, to And you your participation. for updating all Great. very progress. Thank you call. on our will look course, today's you. much. we With of conclude

This conference call. concludes today's

disconnect. now may You