Cardiovascular Systems (CSII) 6 Aug 192019 Q4 Earnings call transcript

Good afternoon. My name is Kelly, 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 Fourth Quarter Earnings Conference Call. [Operator Instructions].

to Investor call Relations like Nielsen, to now President, Vice and would turn over the Jack I Corporate Communications. ahead. go Please

opportunity Thank have Chairman, and Egeland, Medical Operating President Officer; welcome press Dr. and Chief Executive quarter Ryan me Good Points, had today's Robb, fiscal Hopefully to and are release. Affairs. Kelly. Chief Rhonda today CSI fourth briefly With conference of Chief to Ward, Vice Scott Jeff an President Officer; XXXX review you call. you, our afternoon, Financial Officer;

We will quarter results on detail in discuss our fourth today's call.

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

results. investors. refer non-GAAP our contains also news Today's they to for measures to information release GAAP will reconciliation provide We because we useful believe a table

call over turn Scott the will I now to Ward.

$XX.X years. XX% to consecutive This quarter our pleased revenue Thank for fifth double-digit report revenue strongest produced you several year. joining of that growth in Jack. for us today. you, afternoon, to last million I increase am everyone, growth Good marks thank a and the quarterly compared representing with CSI

to you our to performance top continued X growth fourth analyst shared results. with year key ago. that line delivering accelerate strategies demonstrates throughout our during And and the we execute growth 'XX drivers successfully on we desired Our are FY that the in quarter day

momentum. businesses. in Sales last both ongoing we Revenue our Middle products such international of Teleport solid double-digit again strong balloon, commercial continue launch continued support million radio market We atherectomy procedure achieved of Similar in to in markets to by driven gain international Sapphire and franchises. QX atherectomy our in domestic achieved The and X-millimeter to Microcatheter East in new the our growth in by revenue products orbital adoption quarter, support Asia, $X.X coronary growth was and results. as QX the our peripheral strength produce in driven the units Japan in expansion and continues Europe.

our gross and In financial also we executing addition profit profitable key goals. to other were on above again achieving We margin our are in remained revenue objectives, XX%. QX

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

portfolio incredibly including of where XXX and higher. for embolization the results wire our It atherectomy with can their undergoing with QX assurance can Consistent any the Medical acquisition to Embolic capture provide of it with versatile the broaden system that physicians Protection of patients commitment, peripheral distilled the represent in announced strategy . device embolic for our WIRION Our arterial our reach from complex treat peripheral forms used risk to Gardia cases, night peripheral our System WIRION streams. organization more revenue commitment interventions filter that used commercially thrombus. disease. and protection be Acquiring system only embolic we of available complements complex last system be distal physicians also to be more all that that can could the debris making broaden any is an patients The

year, high of atherectomy EPDs approximately plaque in about embolic performed lesions, in X/X runoff. Each used knee with devices cases. are use and long XXX,XXX vessels above we procedures the and protection U.S. those above-the-knee in estimate the typically located are poor Physicians burden

CE begin approximately The manufacturing to the received the in XXXX sales WIRION device Gardia March in from to U.S. plans following system XX CSI. June of XX clearance months Mark in transfer CSI XXXX. and of to FDA

During and we support scale intend this launch. required commercial the as to manufacturing time, improve process to

presence In to to system cath WIRION our in add The broaden per and increase an our lab leverage are sum, revenue system with our procedure. we of portfolio. very product protection excited strategy consistent the embolic to is our offering, acquisition our the

first, QX Rhonda with the In will XX. now you fiscal Jeff for key on a outlook moment results our provide discuss But 'XX discuss fiscal our Jeff? commercial and details will progress. and drivers growth and

Thanks, and everybody. good afternoon,

represented fourth $XX.X the last a orbital atherectomy unit million. Domestically, service. OBL mentioned, driving devices $XX.X million strategies quarter to peripheral we increased in to quarter. of growth increase our also Scott year. of as increase compared XX% volumes total, year. a to XX,XXX represents sold quarter revenue the to growth both sequential third representing compared the peripheral of X% XX% XX% increased nearly and XX% are In sites Worldwide revenue compared It hospital last As during

experienced in As anticipated, our decline with mid-single-digit a in we expectations recent periods. consistent ASP peripheral,

domestic volumes. coronary the unit by generated grew anticipated. as Worldwide U.S. increased $XX coronary ASPs to revenue increased in increased follows: increased XX% modestly Domestic million. XX% revenue was $XX.X to revenue XX% International international driven $X.X XX% and increased totaled million; and revenue to XX% approximately markets to Coronary million; revenues $XX.X Total coronary revenue declined peripheral U.S. The revenue million. million. $XX.X primarily as Domestic

enrollment Operating remained margin year. $X R&D In or in last about million and to XX.X%. ECLIPSE compared expenses the investments at increased $XX.X with product in new associated trial development QX, profit XX% million gross expenses increased clinical strong of XX%.

in value. atherectomy accelerating expand offering, long-term our We drive use of the are orbital to product investment our and broaden R&D

$X.X expansion. and increased marketable per $X.XX training in adjusted with share We SG&A in international with of investments ended increased $X.X specialists cash our fourth million We million to education profitable EBITDA physician securities. or in were support and investments the year XX% due quarter $XXX medical with clinical of along income net million and to

on That our QX concludes comments results. financial my

fiscal Before WIRION I System financial Protection the Gardia Embolic the 'XX discuss surrounding details from provide I guidance, now will Medical. acquisition our of

related Consideration paid be million is up of we asset which to $X XX completion our transfer, CSI purchase the which million, upon million, XX% successful to manufacturing $XX XX to at closing to in XX% of to can which The occur expect months. stock. was at stock be is and CSI in at of approximately the cash $XX form paid XX% balance election, of paid

in however, to related 'XX. plan, amortization intangible plan our on expenses call. a we anticipate expenses provide some revenue in an half direct QX in WIRION fiscal I of earnings along no launch on fiscal the 'XX is of expenses and first these update full the asset amount timing There with to our of anticipation

EBITDA. 'XX asset XX%; on comment approximately with or of acquisition; guidance. adjusted of revenues now in amortization the asset profit gross XX% million million fiscal expenses and our annual $XXX revenue I'll intangible to annual XX% and anticipate growth of of associated breakeven, WIRION loss direct range XX%; $XXX income positive the margin excluding to We representing to net

from support 'XX. in in our commercialization combination is million fiscal to devices; toolkit of and million and of $XX which our X outside fiscal position revenue in come drive continued the XX% finally, business; $XX revenue 'XX revenue increase in with from growth atherectomy come of XX% 'XX orbital U.S, fiscal in to, in grow coronary double-digit at our growth the 'XX drivers: the in product continued streams growth a attractive atherectomy is 'XX and X Second, Combined, Consistent for emerging revenue growth expected radio and results, revenue to to adoption procedure core will company forecasted to overall fiscal growth support beyond. fiscal increasing these

drivers. breakeven our continued net fiscal we of in composition a continue these reflects into percentage investments leverage will spend in income investments favor growth to increased the revenue in investment shift as of as The R&D. 'XX Our of guidance SG&A key

models, our refine you QX As that quarterly your seasonally lowest note is please

year. the of quarter

of years, expenses AMP X our quarter be was will If year. key first conferences, our QX to TCT, prior X% and timing revenue the national meeting as you to the of Also, higher. our due lower X% look at and in such last training,

result, improve sequentially to lowest for revenue period our fiscal loss largest and our represents similar fiscal revenue typically the a net 'XX profitability and both throughout to QX year. fiscal As We XXXX. in anticipate experience

discuss now will our Rhonda developments. commercial Rhonda?

And domestic QX, in that business physicians Thank establish atherectomy combination result our complex device is of you, revenue CSI stable. peripheral The stability and fiscal a treating our 'XX, for partner been Jeff. strong of our together coronary core of factors as grew Throughout and has XX%. disease. franchise of atherectomy choice core the orbital

by driven QX in XX% domestic the over grew business unit worldwide our atherectomy peripheral, peripheral in in business. First, growth XX% core

the key case through number to on continued execution growth initiatives. continue We deep market office-based We acumen. support with successful lab the focus clinical success of drive market. drive a development We and in exceptional above-market provide of

We action and offer our innovation pricing access mode GlideAssist. of continuous with on products our provides volume-based And including advantage. driving continue sustainable long-term novel core to exchangeable radial competitive execute launched contracts we're like device And on dual stability. a with that technology, the sites recently

to evidence we new recently, the ECLIPSE support increased the generate and in products. continue of the use And the our programs most peer-reviewed new we finally, education launch publications medical and expand accounts journals study, and radial XXX, medical Liberty Our users. of REACH to

Sustained continue and growth environment. in and orbital in encouraging is a as particularly atherectomy to we increasingly competitive OBLs compete both hospitals dynamic in

access account of XX% are over to they we shared now As for and procedures. patient have OBLs peripheral we accelerating believe atherectomy previously, care

contracts increased And CSI For targeted XX%. have a third nearly long-term increased over with from in procedure has successfully OBL offering row, quarter OBL the volume-based for X now support. years, revenue sites high-volume we combined

unique sequential with In X due balloons incremental we sites surrounding system, to some of see in accounts we novel growth the advantage radial paclitaxel-coated that continue finally, utilization And controversy and adopted French and addition, access with revenue are growth to the generated XX% like competitive pedal; have access. seeing increased we stents. and radial our

over 'XX. providers fiscal in medical medical education front, to our On differentiates strong and CSI from support training dedication trained patient ensure appreciate competitors, the Providing we improved and education outcomes. to medical physicians procedure X,XXX

can medical evidence market. where sales robust years, clinically We clinical for duration orbital and including and of clinical expansiveness and And have area support technology personnel over sales with our now we to versus CSI The evidence programs X medical exclusive studies. an invest will that to we atherectomy, to a continue to of follow-up education the our competitors. large vast differentiate our and peripheral up clinical follow the strongest in is educate physicians our XXX and focused We have discussing by introduce over representatives channel.

Turning to coronary.

Our QX results. QX with worldwide consistent business grew XX% in

over in the coronary sales implemented year, Continued the Sapphire strength in number our the we Microcatheter including and result commercial of of increased users the past sales the medical and dedicated X-millimeter Teleport toolkit, balloon; was coronary investment complex the coronary programs representative; and train education to new growth. of strategies several focus including international launch

outside U.S. XXX now have atherectomy, sequential 'XX, orbital XX Japan. strong -- The And encouraged XX atherectomy remains the and launch strong. use atherectomy demand the Europe now U.S. physicians account East. the outside across In about we coronary launched market. in surpassed launched we We Asia, this new the and orbital are for we growth our Middle And months now orbital are the in to by into countries goals. we FY in certified

we with Flex users. have the ViperWire or 'XX. and introducing Tip on products capture fiscal Since in and seen track XX% QX, to an remained new in existing Japan acceleration of more Advance market We've Coronary in Classic

peripheral will initiatives. such access study of arterial of the REACH study. we will cost the demonstrate believe to June, low clinical shortened announced now high the orbital R&D prospectively This first radial outcomes rates, using treatment to radial of enrollment this of In benefits Transitioning evaluate access our atherectomy complication We known as disease. acute effectiveness for ambulation. the and study many peripheral radial time in

device. assist conducted the FDA also and our the we second with discuss for preclinical meeting our requirements percutaneous June, clinical to ventricular presubmission In

We in And we trial, in now coronary human. Liberty X-year will endovascular look fiscal last randomized, 'XX. our X,XXX-patient target our the to XXX are 'XX for first year, presentation controlled ECLIPSE, our a at for for fiscal Enrollment continue landmark breaking to XXX forward major resulted study all enrollments; targeting in this topped enrollment we classes. high where study finally, across patients of from week, this showed data Recall Rutherford X-year completion late presented. next has and AMP that freedom in be interventions that data amputation

include will expansion Looking growth CSI business. of continued to fiscal domestic 'XX. drivers ahead atherectomy core

continued Diamondback driven success the peripheral and including the will markets will feature of with of the market OBL the the toolkit; of with GlideAssist; continued next-generation and include launch exchangeable support market products, balloons of our our launch which on Stealth full radial select and platform hospitals of GlideAssist Our late access of by launch the models; addition emerging JADE in procedure franchise peripheral additional fiscal full be adoption platform growth 'XX. angioplasty the and platforms, in peripheral

In will we field coronary, resources reps on PCI of accounts. plan focusing coronary focus coronary number coronary disease. In to FY we the complex allocate to on high-volume to dedicated continue complex target to 'XX, centers double artery high-volume

competitive and in provide Broad the coverage, advantage lab. coronary innovative clinical acumen case a with reps unique cath tools CSI

with Flex approval the balloon, we complex, with compelling GlideAssist the and lesions. with with We coronary challenging a toolkit effective will build Teleport the also most offer Microcatheter X.X-millimeter Tip. of ViperWire look the Combined to toolkit Nitinol with coronary Advance treating the Diamondback and for coronary Sapphire our on anticipated

the with current and announced XX to of finally, rules our plan increase in launch XXXX and for to in in in will markets And also to recently anticipate stability we our payments, products adoption continued in-patient Internationally, FY look outpatient reimbursement. we proposed OAS 'XX. countries new up final

our continue new and will we opportunities position XX. an at and Thursday, portfolio excited as optimize September update and also to we're product growth. the TCT provide And portfolio coronary to complex Our our peripheral on for change to evolve spaces identifying in

happy remarks. questions thoughts. his prepared address closing after I'll your be to my provides concludes Scott That

for Thank quarter you, real and with we CSI, Rhonda. 'XX now momentum. QX another exit outstanding was fiscal strong

their and CSI friends XXX the In difference patient-centric our care commitment to for company. positive thank customer-focused a in mission dedication Before of for employees them. over more 'XX, I lives a extraordinary close, I serve. families want is our to we and XXX than patients our the and patients employees and CSI the fiscal and made that XX,XXX that

with build As past, discussed plan the management year I and complex med team in experience leading presented tech have strategic strong And about in to significant X-year ago, company. CSI grow businesses. our X at have we a assembled we and scaling high-growth here this

strong just of expansion. in have fiscal the results we first of with solid our and you initiatives. In each orbital growth with 'XX, As products core from growth we plan concluded year of that achieved heard, international key introduction new progress atherectomy with the

new physicians, $X Teleport throughout peripheral cases traction the certified Microcatheter and procedure Our revenue $X million core business Internationally, balloon, more began grew geographic fiscal and coronary revenue atherectomy generated year. orbital to revenue the in as produce markets. X,XXX We products ZILIENT 'XX, we nearly selling million the new in in and gained XXX revenue. XX% generated products nearly Sapphire wire. conducted the nearly $XX generated we these per in from including X-millimeter new support and new atherectomy We products procedure, million

business 'XX atherectomy XX% and growth new to year, raw XX%. our and material for we full commitments combined revenue Gross chain remained represent support productivity, accelerate for fiscal expansion quality control savings. an Operational and international advantage manufacturing In competitive on to our core our margins products quality and over success. excellence and like delivered CSI. total the from are believe we supply spend above Growth rate future strategy revenue part streams to fiscal important of implement teams 'XX, our initiatives improve long-term and and

our at As ASP result, rate than a a erosion. of goods reduced we cost faster our sold

reinvested develop evidence by market clinical to products We 'XX disease. leveraged expenses, our increased investments, and in and R&D artery XX% complex and to necessary fiscal of fiscal and research spend new year-over-year. our planned, we include the remain medical expand and products through which in the SG&A As committed new million development. $XXX in patients investing with treatment to coronary 'XX, peripheral

addition we our solid also key milestones. results, executing delivering In financial to are on development

single into product, are company from with transforming reach. As a CSI, geography worldwide multiproduct we we to build a company continue single

as we sustainable day. highlight attractive look limbs fiscal mission deliver goals. a that save successes and our early positioned we the offering, growth achieve our internationally growth. financial and our to revenue and confidence We QX product 'XX to expand results with we have save focus to strategic Our well the and clear lives are on broaden future achieved every

continued you We would at on interest repeat CSI. Thanks. we your your in will the for this Thank instructions updating forward look time? now you progress, please and take Kelly, you to our questions.

[Operator Instructions].

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

a gave have Congratulations on and comprehensive. questions. do the of and a But was terrific outstanding overview year, you couple just thought you I I us

I'm Scott, the morning development change say up expand you first, to about philosophy? a curious. evolution yourself? your exactly Historically, you philosophy, and in sales it you internal sensed think ramp you Would growth how of announced favor your line. So kind this represents an strongly I've of product acquisition Or do

for Yes. those kind Thanks, Brooks, comments.

products terms In will to revenue that WIRION current line have complement Gardia, where we pursue we we product acquisition transactions per that the allow our will can of add from increase said our procedure. us and

vascular that on this product is not our of very we're This of to to addition course, add fall be meaningful well. products, of catheters And ultimately selling, consider where line, revenue balloons. an selling you be we're let's product the We'll support addition would device well. so used said, we're that to to to say, in wires. the as our into selling, our focus intervention product can the business. an currently as this is during potential requirements addition atherectomy really only quite I devices context, a fits embolic And think but I protection and during those this because, add excited has any really peripheral

to a our this support addition good product line. So is

Great.

more X or X quick ones. ask me Let

slip fiscal gross investing you're years significant the know which view but talk business, of Could outlook now? XX% margins margin gross many about is year you new how guidance does I XX%, I for you areas the mentioned below applaud. heavily think the just over think a calls in above First, in all you maintaining the include or the I possibility XX%. you sort of feel you how of -- many

as products. I look some product our tell of company cost our future, very make in intend every I sold support adding is correct. Well, gross respond so streams But goods as in reduce to to your well And can of strong continuing to operate we'll that full yet be clearly line we you to to revenue lower-margin manner margins. still we continue effort pressures international the this observation markets -- us gross as retain to really we these pricing lower-margin market margins. and to from a are across to But and do strong allows the with

is So continue do a in market confidence great that. sold real believe strength in we manufacturing our as to goods we we're commentary, hard work -- to And I challenges. ability are have competitive our of address to cost CSI, I our and operations reduce for as continuing I these said my that to

Congratulations again.

of Your line Blackman the Stifel. next Mathew from from question comes

Rhonda, just in mentioned Let volumes start. I paclitaxel-related you me from think controversy. the an uplift peripheral

that? sustain of last follow-up. think F X got And that growth. piece like a added 'XX And did the And then correctly? that have X tailwind maybe of the of it's I half would in one I've is But that in question, quantify could feels It there or expect to know that's follow-on that, that you First Do way of I your challenging. outlook? to 'XX back type then hear point you multi-part of to all, just reasonable?

I is that Sure. particular hospital believe paclitaxel Yes, mention the me correctly. you benefiting our from in did we business hear controversies. did

increased QX with physicians option, and we're in doing a -- just X.X% area. business lumen placing of focus -- preparation it's in a market about lot And me. atherectomy hospital hearing the absence lot X%, a of excuse increased restenosis checks, Our are on vessel increasing anti-restenosis

this, but positive market we what year-over-year, is some quarter, atherectomy. a of piece So the it piece last also think forces gain, of is think, share in particularly for we

of or much way as to the it, And whole? it's there. X gave a But points a do color too think little Okay. you bit sort X as is think to we adding point the about of you think frame peripheral that business

this -- Scott. Yes, Mat, I think is

it's that. difficult I to think quantify

the out that XX% X many not been OBLs, controversy strong in so where radial, growth influencing different typically we're have that growth drug-coated Naturally, used. growth in We amount. have DCB is that initiatives in the to hard underway see the we our real and by it's seeing and flywheel balloons frankly, our say strong tease business where,

OBLs, I say, would in from and used a that that drug-coated focus market is issues. revenue balloon you overall, let's due only peripheral below-the-knee our drug-coated really the have segment of typically comes of revenue just XX% about, where our to been not influences reimbursement because small balloons -- we cases and business our typically of remind comes peripheral XX% from

of is means to open that business that XX% our say, roughly, So XX% let's to influence.

on lumen patency, broad But in achieves obviously out. good it rate, was Now more in that of say for good getting or are outcomes that it the focusing said, us patients, that per it start opening segment, devices our treat run. hard at assuring really to that using as physicians X be lumen, X would if a tease month let's Rhonda long their better to to

on that's probably you give I at think color can the I point. it best this

my that. No, a more appreciate I bigger picture. Scott, that's question, then And follow-up of helpful. really just

process, support Just Is per for way or Is frame procedure more capture? that is along left in opportunity are a down more much it's how revenue there you want to revenue of much per far that, to the to is whether quantify there to how procedure line? there back you to to a strategy portfolio. procedure adding the night the last adding way go like how M&A

half now least we There hard now the our the of one we can balloons we've our that have We well, would tell a procedure. I are got There, seeing in us during at about a coroner the in that right coronary order have we case almost have is don't of and out, of strong how to devices I full bit it's coronary, say in our with quantify now probably opportunity our on where per available Teleport little coronary support wire Microcatheter. you much using just for out. out product think a $X,XXX really market. full accounts is remaining. I -- line progress

our somewhere So probably max $XXX order there on $XXX. the theoretically, is of or

So right in we're of coronary. now providing line a good products

for Staying a though, We companies lot obviously contracts with that or on Mat. much our with compete access that catheters, than hospitals companies other larger coronary we stents their complicates and balloons, ability moment to that's with large do, a of have offerings wires have that these this support include products. will and marketplace bundled products, because maybe and

for difficult us those it's crack accounts. Sometimes to

So used think We would see in our to do support the achieve. cases, see to expect devices. striving to accounts I majority of of want our XXX% using that's our our devices what support I don't we're and

good So we've progress. made in coronary,

in year balloons our wire -- really in PTA We anticipate we off And products and is meantime, our line, as think said, support time, fiscal point at fiscal there. launched in our peripheral our launching offering I grow. we'll In take the late our see balloon yet peripheral, 'XX. peripheral. Rhonda haven't In our continue ZILIENT to that

be that in scratching really generated we're so the revenue peripheral. procedure surface only support could And on product

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

positioned of guess not this protection WIRION provides. that kind downstream the So with meeting starting kind acquisition. your thought products thing as just orbital have guys of that the I I you

that change products just have to go going competitive out the after messaging Or new you there? are and to talked are maybe cases being a really your to is of of you some used the kind there? that of subset So this about

to circumstances, And President in protection. use embolic at devices I'm tell ask for Ryan used and to makes those cases; used not just I'll physicians want our sense intuitive of all cases. orbital that. do, atherectomy really orbital are in Egeland, you it times relatively before respond our going to complex devices atherectomy But are who Vice under simple our Medical Affairs, I to just that of

So Ryan, want do add to that? you to

Yes.

distal course, burden of distal And significant guidewire disease course, I combination and both exchanges. disease embolization stenting, mechanistically makes of both think with but said, preventing compromised and large occurs intravascular as simple said, trapping concept sense only that just Scott protection Scott our appealing intuitive in as atherectomy of clinically balloon the and is particular but angioplasty with and to for embolic complex with just disease atherosclerotic runoff, even debris, specialists. not in with

And it I I device would in is it truly in and an us that, Ryan, CSI this any maybe what's just atherectomy with market be in add for on any opportunity particular. further system about morphology. unique ATK to compete And gives to is the universal think can used that plaque

advantage an with that's any So important wire. along strategic

could so maybe atherectomy? I they atherectomy, cover setting, don't or -- If what inpatient decreased to covering that And they're is that. on something mean I there you there to Medicare just those if use covering then that setting? do guess the was happens for Or the they there that, just see setting, really comment ASC just if in potentially for not and wanted start cases in a CSI? proposal more around does PCIs hospital risk saving that a of are of leads use they procedures atherectomy and that guess doing just they in there more in

where hospital are setting Yes. typically surgical cases complex a backup. performed really that in there's are These

anticipate that, we'll time. So this continue don't market that, to we will but at that our influence monitor

of final inpatient proposed we're procedures early maybe X%. And our coronary being add looking outpatient, at potential and CSI in for analysis though, just to Yes. up the

assessment. So reimbursement continues to the at move with in direction least a favorable early

it little, follow-up, was needle terms that be But in setting. get a atherectomy down reimbursement there a it on would just enough guess I mean I using wanted to the that And did Yes. look it the as move really seem thoughts in OBL of just well. to didn't I your like like big I but guess as

Yes.

higher a with And rule. Just it'll The proposed comment are than still where year OBL inpatient setting. -- Remember be in this on is is was the at those those even a setting rule. time. last it the OBL final reductions,

So where that I about we're point. this cautiously at stands think optimistic

hospital was also kind positive on and of Yes. our are where The proposed procedures taking so place. with balance

as We flat to be until rule positive expect peripheral the that it the well proposed CSI But final. in we becomes for to won't setting. know

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

excellent Congrats on really year. a

question wondering seen relatively sticky you're stickier, setting. but I you the far get bigger what piece customer? less a on change sticky bigger a going revenue. sense of becomes as your of so a Just to on just That's percentage dynamics OBL revenue. you've a customer? just Is as price, comment What that becoming say to And how are of your that is can the trying a OBL they assume focused most to whether on? if competitive

have of you the really on full We well, comments for first thank appreciate the -- that. year. we all, Danielle, Danielle,

strategy have to over And setting products trying very deliberate. would OBL is As pursued we you were in recall, consistent our the a we in did time. which the assure where we in so we of use a OBL manner setting, maintain that

cases, in focus on we setting OBL calcified complex that the the complex to really physicians that recall So treat cases.

them with preferential the settings, hospital move normally those we OBL, also may in And would contracts provide we they so, And as we have more support. move so them. offer to in complex with some performing as been clinical doing would would cases begin in And to physicians obviously pricing. long-term

of the and field the on that we specialists now clinical in much as marketplace, providing OBL setting. XXX force know, you over is support have So focused in

with in can with, surround really market we a we have really a tried service longer the best period customer product contained time find that the that then fairly of to that, and favorable and way, that So in In they first, extended contract. with out support pricing that business. best that's and becomes long-term then the have over that sticky the think

characterization? Got a up actually Is it. you And guys say before, your you're Do is from this -- case think have perspective the actually clinical technology a comments that on aren't that just larger perspective also I it you safe a in but had leg OBL? competitors you not coverage that support. providing think but to safe from larger a

do the competitive a our meaningful the the And strong on I'm clinical field a support. have but really acumen in have with in capacity, clinical of really OBL, the provide support particular of based pleased we not competency. think marketplace. have that advantage we to core extent I we the Yes, we only

we think of positive feedback frequently on organization. from support the acumen customers or get very we clinical get -- I obtain field our

that the rationale question be And this just it then, Rhonda, the conduct announced. Is clinical guess radial like Is just change I something to this to What's on a you that something study the for adopt for question of number going -- going something you be is the study. guidelines? access? strategy that the -- physicians the and could expands What that is why the study? radial

outlined seen see never But clinical prove low is study maybe about clearly trials, start for this. the an it. in and that I'll then coronary Egeland whether want there's feeling opportunity we'll I competitive and done We've learn types benefits benefits, in mean really Yes. ask clinical and radial. in Ryan peripheral similar more really us so our space it's been take help augment of it. increased CSI was this a evidence before, ambulation, the and in to unique to radial advantage in complications, we to spirit, really true that it coronary collect the to and differentiated

strategy really additional it. maybe you Ryan, can as commentary that's add of the kind so behind some well. And

No, I on. think spot that's

is terms stated, in there, Rhonda coronary hasn't studied are community well haven't in in course as complications to the The validated that. time and patient this both setting. Just intuitive the peripheral the and early studied, just of we benefits of the experience radial but ambulation

that So the value well generating as proposition peripheral validating and and that in taking evidence space. role leadership we're some

that's intend we to what So do.

we've engaged say, the forward that I'll before. And participate shown bring been really they're to investigators that's never evidence in to that, excited

innovate way field. a it's evidence us medical So for in the to

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

guidance can that the a the double-digit atherectomy have market atherectomy market assuming And just for you I you So are as now. you dynamic your comment But is few on don't peripheral peripheral? year, to for secondly, growth? right questions. realize information, then you next look full growth, quite what core and

for comments. Thanks Thanks, Jayson. Yes. those

the So that grow high marketplace range. single-digit continues we in to think peripheral that

sorry, in just of any has the part was seen strong. continued that. pretty really what It stable to and remain I'm question? haven't We second change your

then a ask second I'll follow-up part. Well, that, the and to kind I'll ask of

basis? on high Just, Scott, a a that's dollar unit or is... the single digit, there basis Because

a so presenting large and continued just this disorder. of digit single disease basis, that epidemic that on we're patients to with high number unit are The is the that tracks back in the vascular facing peripheral

of trying are was guidance and assuming -- terms for core coronary. double-digit I I out peripheral then when you comment just atherectomy, in the break to on you ask was And versus just Okay. what

coronary XX% to single-digit then to Similar what our in Yes. We about digit, at kind revenue balance Jayson, growth support that in around products. before, in talked the high and a the international about talked mid-teen $XX growth peripheral a rate business. being million of in core interventional you lands and we've double $XX million growth

number. how And that's guidance to so we got the

$XX the think million I right to XX more Okay. fiscal you you'll you do many to $XX countries think how now. through for what's When enter? new And that mentioned plan just in 'XX, million we international, countries? look

Yes, that's that into already number. correct. pieces continued launched. of really X adoption we've that go where There's There's kind

within we've at penetration and year, the countries will in then then countries as accessed really add adoption and So already XX that well. to past XX deeper 'XX FY up this new in we looking

new Will countries. add XX

you've What plus captured 'XX. size that on in the XX% of the in think Japan you fiscal the What's Okay. market mentioned And you is just international, the just market? of finally, denominator?

to in we The size of year. level above would this XX,XXX X,XXX-unit coming getting anticipate Japan about the units, fiscal in that is so market

Instructions]. [Operator

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

the more just another Margaret. kind back acquisition for little is want can to enable atherectomy earlier Brandon a real the having some revenue? I that procedure approach in get more This something do discussion product and maybe to a you it is maybe having it were the benefit the is you capture of if WIRION think I as of think more first comfortable go actually having procedures curious maybe with we Or to bit orbital filter. doctors was of differentiated support different.

emboli. we that treating, this offering access orbital procedures. physicians use will types to circumstances atherectomy And enable as now, going where of concerned those patients. full There referred are for atherectomy. in think many use that cases, using you're about to do well of to, think these of are expand is when really definitely product do Dr. cases, we Under a as complex orbital We their radial the Brandon. can you're the that as when physicians different Egeland provide may choose circumstances Thanks,

So we do increase anticipate utilization atherectomy will that orbital of this the acquisition well. as

other Okay. one just one. sense. That then makes And

just as get and OBL maybe maybe that is into is would XXXX guidance? we XXXX? especially declines it see you some look would ASP side, peripheral the to annualize fiscal some reason kind in into you guess And ask headwinds the of I are digits? mid-single continued these As what accounts, headwinds Is -- in of deeper of the of some ASP I that factored specifically of part kind offset of the

the for questions. Thanks Brandon. Yes,

of the On price that peripheral continued mid-single-digit we're low forecasting erosion. kind side, to

expect coronary we we're look would in ASP coronary sticky as erosion mentioned, really that If focused those outpace higher continue bit well. producing but very hospital ASPs really space. lower at marketplace. the more costs, -- little that OBL We've the had to space erosion seeing on of and And space, offset course, have the stay the we Scott to been a consistent. in course, on the side, we Of as erosion in by

no this for questions time. now And Scott will call there further to at Ward turn back I are closing remarks. the

We Once and today. an you. Thanks, be for call. that'll on your in And September on dialing interest Thursday, product to everyone, continued Great. look our TCT. Thank you That'll update seeing again, forward conclude our you you, XX. Kelly. thank CSI. in for all providing portfolio Thank at

today's conference call. concludes This

You now disconnect. may