Cardiovascular Systems (CSII) 30 Oct 192020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Cardiovascular Systems, Inc Fiscal 2020 First Quarter Earnings Conference Call. [Operator Instructions]. I would now like to turn the call over to your speaker today Jack Nielsen, Vice President, Investor Relations and Corporate Communications. Thank you, please go ahead.

Thank you, Chris. to XXXX welcome call. quarter and afternoon, our first fiscal conference Good Jeff Officer. me CSI Robb, Officer; and Ward, are Chief Chief President Officer With Scott Executive Chairman, today and Chief Operating Points, Financial Rhonda press Hopefully you opportunity an have release. review to briefly had today’s

We results detail call. first on quarter our will today’s discuss in

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

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

over call Scott will turn now I the Ward. to

has representing for double-digit everyone, of revenue a in Thank report produced I last XXXX consecutive am experienced fiscal million joining at we CSI you, pleased XXXX. sixth compared QX, growth momentum Jack. for continued year. XX% afternoon, to you quarter and fiscal $XX.X throughout to Good In thank us today. the in increase with revenue

our performance hospital of the by business million strong OBL and XX% over increased revenue domestic Our in worldwide peripheral $XX.X to service. with led unit atherectomy in orbital the side growth XX%

continued our in coverage coronary Gross new over increased XX% and business orbital atherectomy XX% procedure for of was better in Japan. case ASPs peripheral quarter. sales represented domestic clinical forecast. coronary and led QX CSII when our and of orbital Worldwide margins specialist both atherectomy growth in above orbital with for support in in XX% the were of to stable for products a used. also our reps adoption atherectomy XX% point cases increased remained high million unit by $XX revenue present

not Our in allows effectively gain in meaningfully products guidewires customer and QX. assures support to Sapphire great increasing presence to procedure are cath more continuing our Microcatheter, labs Teleport it the balloon physicians. only grew of support reps radio also Sales support products introduce and to to sales X.X-millimeter our traction peripheral

of September. Coronary approval Nitinol in our ViperWire the With

Diamondback devices. We’re to complement now physicians able offer of coronary and support a full procedural

novel We system in will also and this counts intervention. launched use enable complete single exchangeable atherectomy of leg to vascularization device September multiple a in the allow to

to achieved markets in Japan market the continues very orbital launch international $X Finally, by summary, of expansion atherectomy in solid the commercial strong Asia, We international East delivered a In million CSII and adoption revenue and Middle in Europe. in driven first results. quarter. produce strong

and margins initiatives, key we gross our portfolio. our in product we growth above continue grow sustained making we’re on market, executing to strong progress We’re expanding

regarding results. you provide first will R&D with our a and additional first regarding our Rhonda further details few Jeff moments. provide in commercial quarter But will pipeline information just progress Jeff?

Thank Scott you, good and afternoon.

better was atherectomy expectations single XX% representing unit trends. quarter sites as peripheral total, than volumes XX% mentioned, digits $XX.X in low service. XX% and are orbital attractive our last in increased increase devices Domestically first the $XX.X our during growth slightly strategies driving of hospital both decline OBL Worldwide year. XX% compared last to represented million increased In revenue million. XX,XXX and ASP we sold the peripheral recent of revenue compared to increase over Scott As to quarter year.

revenues coronary ASPs Domestic consistent million. unit $XX to declined procedure expectations. again XX% products. and primarily increased to with our unit $XX.X modestly grew to increased million driven increased revenue of support by volumes The Coronary million. revenue sales million. domestic increased XX% revenue $XX.XX and revenue revenue increased in coronary Worldwide the XX%, total million, markets and coronary as US international and follows; $XX.X just $X generated domestic peripheral US increased XX% was totaled under revenue XX% International

million international revenue forecast to continue We million. $XX fiscal to XXXX of $XX

to For million. your international QX million model, of $X $X.X we revenue anticipate

fluctuations investments As to year. $X.X XX% increased we’ve with million product remains a clinical indicated or margin distributors gross ECLIPSE of of last basis. trial quarter-to-quarter million increased In development Operating enrollment in million on in our associated R&D previously new revenue modest the expenses toward will $XX.X expenses international profit strong in timing XX%. shipments compared or cause $X.X QX, XX.X%. increased and at

we in international SG&A investments As meeting to increased product broaden along due to our with education our at investment XX% value. drive you support physician update medical pipeline use recent accelerating increased with TCT, orbital clinical of we’re trained to shared expansion. and atherectomy and our R&D and long-term at our specialist expand investments offering,

line [indiscernible] our the Protection device. Embolic of is amortization includes WIRION a This acquisition P&L for expense. recent Finally, now to primarily related

modeling, quarter For of should you per approximately anticipate amortization related to transaction. incremental this $XXX,XXX

QX of August, As loss I the highest fiscal mentioned represents on and the call our traditionally net revenue year. in lowest

$X.X remainder revenue loss million. in net increases loss a Adjusted fiscal profitability anticipate improving the was of of and We year. sequential throughout $X.X was million. First EBITDA quarter the

the with related from payroll The $XXX position We decrease items. and and bonuses cash comments on our and results. in and cash That stock WIRION related taxes in in financial vesting August year year-end QX our was marketable cash million commissions. acquisition, three was my securities. expected concludes primarily to on QX consideration the to ended Initial

fiscal our solid Our keep first us track with consistent to deliver quarter on original guidance. XXXX results

approximately revenues of breakeven anticipate income profit additional and revenue positive will continue $XXX to to developments. margin of to to XX% Rhonda? acquisition WIRION commercial in annual Rhonda $XXX asset the We $X EBITDA. discuss expenses million our adjusted XX% of $X an approximately related of now excluding million XX% amortization the representing and range XX% direct of million intangible growth to net gross of million

Jeff. you, Thank

product just heard you our commercial domestic of of XX% of fueled by execution growth sale growth launches revenue will by year-over-year three saw quarter growth atherectomy and support was Strong XX% the unit growth. strong drivers. devices XXX% of As million core highlight first today. procedure key of key momentum We driven revenue representing in our in that sequential and and international growth $X

in worldwide over a Starting that strategies comes QX now grew as in you and from in been executing shared year. for stability several with XX% coronary our we strength previously. The revenue coronary, we’ve

increasingly to our an coronary resources drive representatives coronary the of at dedicated number representatives and increased physicians centers these facilities across excellence dedicated during to country. XX. plan XXXX, clinical of specialist to We double as aggregate of patients directed growth. And and in support sales First, number we coronary the to enable fiscal

positions results Expanding anticipated in XXXX coronary channels, completion fiscal the our expansion on us and of beyond. the it for ECLIPSE portfolio and readout

per now Sapphire Tip to novel providing us challenging with the improve procedure. patient new of of of during tools a care device our Teleport and combined we revenue a ViperWire addition difficult allows the service increase most X.X-millimeter introduce Advance presence to level Microcatheter, of high population, with and we our the feature of Nitinol technologies compelling In our QX, in offer cases. the that coronary launched GlideAssist the In when lab their balloon on selection Flex wire the treatment quality our for cath new a physicians Coronary the our very atherectomy treatment

procedure this believe cases will per coronary offering We to complex allow deeper drive penetration us the in into future. higher revenue and

front, GlideAssist CSI ViperWire combining with resulting in we January On acceleration and share adoption in QX. Recalled, the and coronary Nitinol Japan market also orbital in procedure international since the products success then with seen Japan. we’ve experienced growth of XX% in procedure [indiscernible] our launched capturing have in we an atherectomy in support

In addition, peripheral. alone. XX Returning XX to markets remains demand robust. physicians total including in new QX, now certified In Japan we of international a from

business. in XX% domestic driven XX% Our worldwide over growth business grows unit core QX, peripheral in the atherectomy by

growth not our also innovation to only strong in above and evidence technology. ability market continued producing support drive Our but from best core comes class, medical long-term case on

committed give alternative access physicians such that tibial use option as and to pedal, tools low We to profile site radial. vascularization the are and leg deliver full developing

is above market continued Our and that standard long that space lesions. is developments innovation valued rates CSI to advancing growth the therapy this A key in to in calcified peripheral validate and highlight. few severely treat

peripheral a second of can of a the crowns leg. and the of This new and multilevel First revascularization first a as providing The of crown. economical second The a exchangeable legal since purchasing be than where peripheral separately. up to throughout we’re entire where handle handle crown the with GlideAssist. disease, more three a the in The designed handle. provide disease single exchangeable than multivessel a crown an to with item XX% solution patients at size sold with device receptions and is can different a to experiencing in premium exchangeable crowns, our with needed to that crowns strong sale one QX, the enables have system platform line up their physician sold affordable consists significantly use to launching serve more separate physicians along for more exchangeable are system in a system device? second the crown second is additional case. where the now are have of crown When the With patients attached encounters the removed then the the third system full be ability one was sells

going of are their peripheral a throughout of And value some smaller exchangeable. this that leg. flexibility physicians we line we’re and with generating larger more sizes lesions forward, treating our per and to the broader develop crown will result, customers revenue system vessels platform greater see a transitioning And as and selection the more even encouraged this are to case. We as are provide entire treat our

position radial in new with enables more a for traditional complication has French pedal, lower rates, a patient ambulation radical now the atherectomy as been can Alternative satisfaction. which approach access minimally product spectrum of further time With vascular offer for Second, five greater device faster market the above our radial to tools a and tibial, routes we cath serve lesions. partner atherectomy labs value lowest in treating access. the profile associated including offering that physicians CSI invasive access by or procedural access

low medical to CSI with treat And will advantage. radial support difficult patient through provides evidence our our As device physicians near radial we term, seek the device with competitive in of sustainable very population, peripheral a study. safely REACH our adoption a profile increased

enrolled year. fiscal on are in the XX% We have patients enrollment track this now REACH later complete and over of to

peripheral of arterial this atherectomy of shortened such reminder radial We of study using complication evaluate a many and will access [ph] known benefits in widely of believe the scientific study this As disease. low orbital and medical orbital access demonstrate benefits known key prospectively of the shared outcomes radial the time treatment as to are will supported venues. The evidence clinical by high effectiveness for cost rates, atherectomy ambulation. acute

at amputations and XX% our visit. amputation years. X, X free patients’ amputation. from Of a major Rutherford represented additional outcomes X AMP, and for Rutherford amputation had patients X,XXX of XX% X of indicated no for In Rutherford reported patients OAS Liberty the breaker. freedom XXX with notably, subanalysis enrolled first and quarter were from X the late the patients study amputations and were freedom nearly the our durable candidates two-year as the X outcomes Most after XXX three-year high that’s

the peripheral Developing on using incredible efficiency that outcomes the presented our CSI care challenging orbital of and data, long-term high data suffering from and all short support result XXX critical long-term most patient from even sets leadership can competitors. arterial position and our the patients ischemia. further our for of study Liberty demonstrate limb supporting from amputation. disease from technology of This in The freedom atherectomy safety in clinical provides apart and

that isolated to Finally, in setting business. of to this arterial XX% in modest continue you benefit of I’ll lesions of in any peripheral paclitaxel uplift hospital light of the business. the experience usage for peripheral is disease, treatment a we our our peripheral the perhaps reduced above remind

turning to the in are absence core physicians best of therapy However, and preparation technology for treating vessel [indiscernible] when atherectomy. the orbital calcified lesions

our strategies to drive the and XXXX, internationally to expand In and fiscal our of a start patients. successful innovate, and conclusion, making difference working per or revenue a productive procedure more treatment in our

Looking build momentum look ahead coronary. to in we of QX, our on

millimeters including Advance angioplasty We revenue. to market help and balloons will an of the are the larger drive have and Nitinol coronary of Tip introduction full release expanded expected new offering coronary with up ViperWire X sizes of Flex to

peripheral, and models The have generation GlideAssist drive in several be X.XX Diamondback. deepen already GlideAssist market feature and received both on International penetration devices. we has we introducing with of given will continue below will well training GlideAssist our launched. physician peripheral with these the In next able new where effective the next targeted to with OAS physicians adoption [indiscernible] with by self we knee, we arteries the believe treating and on coronary similarly generation treat find been calcified physicians exceptionally will lesions difficult access lesions peripheral in to challenging vasculature millimeter or

to Before that concludes follow will CSI on I Scott. us I Scott. mention at prepared turn is CSIXXX. Twitter, That over so also the call back remarks, my now please

year, to of consistent this our we CSI strategy you’ve as Thank great beyond. you, and worldwide. first not each three position key In objectives Rhonda. fiscal our only our growth our execution afternoon, was well patients reached by over the in growth in many drivers achieved achieve quarter, this supported now heard revenue successes and of but XX,XXX QX our strong Well we

continued system X,XXX with publications. the XXX orbital Diamondback market atherectomy the the reviewed system world most more data than upon grow atherectomy We based strength safest of than the real atherectomy above and on core student peer our business, is more patients and to

enrolled in ECLIPSE to [ph]. our year X,XXXth years reiterated we updated We on rate evidence to cost in pipeline million of on increased XX to ASP to fiscal study patients remain $XXX sold patient product medical we We plans the landmark the Exceptional achieve $XXX enrol continued ahead. end by in product physician to at you new development, investments erosion. manufacturing in and pace quality our finally, our million and we a and X,XXX our fiscal revenue our and in our lower faster our accelerate and education growth operations goods than

efforts save Guided look into in the for with make you quarters meaningful our progress by a progress updating Thank days CSI to our mission you continues our we in save CSI, to company lives, interest on ahead. and our multiproduct on to reach. and limbs exceptional team transform to your month global forward

proceed would Chris you please your take instructions Q&A. to so now We’ll thanks. the questions, if can repeat we

Instructions] question [Operator our Chris first Pasquale with from Guggenheim. is

line Your open. is

I maybe quarter to mix was wanted any the Scott, back to was what having I was versus seen just had around curious impact circle paclitaxel’s to shift you above comments where Rhonda’s below of business [indiscernible] in the that and the in because particular dynamic.

the think Yes, in what to the the about let and dynamic I’m you know going see. me I Jeff address just But let you bit we quarter. to talk little mix a

really knee said, that’s the the to Rhonda above reason hospital. segment that As it’s in the limited

balloons from segment. is roughly XX knee drug-coated that of two-thirds recall you and below not then are about generally the and our maybe the XX business revenue XX, XX% our comes If OBL probably in OBL of reimbursed segment the

generally the OBL knee below the So presence the balloons. segment as isn’t of and or of by absence result, drug-coated our influenced a our business

knee really our atherectomy physicians that’s the do preferentially of is improve business any the without these lesions durability using see be segment we to treat available influenced above to the to and generating who there, portion dissections. So are

need some they access out they can that, any they other a coming anti patient balloon and have in When back reached may there nose lesion, If the treatments, not and when primarily treatment. the [ph] atherectomy dissection, they’re particularly with in secondary in. lesions form has lesion, are of to confidence can words get [indiscernible]

now highlight to you segmentation where unexpected. we quickly just and continue not increased what want balloons drug-coated the an that’s of was? Jeff, But see think utilization I do that’s to

point by of that in X was kind just and Chris. in or business the moving question looking QX tick our historically of a peripheral just kind We’ve split percentage we’re We Yes above up thanks the to so for knee a but the of knee. above of XX/XX change actually QX. at XX% XX% bit consistent now slight pretty XX-XX knee, saw below little the where it a

you’ve up Thanks side you already that’s the some traction like you’re in nice on see the feels just helpful. there. place on point see whole decent and where say And then a starting following it to got that coronary pipeline, to the bag

remind that like in similar where feel Just a to per the the get really point you case. peripheral want of after us products go you all to you timeline got to revenue additional the

peripheral those and expanding the fiscal thanks we additional so well, starting next with in Yes, FY the question. peripheral We XXXX XXXX. really have the the wires as Chris been early for radial guide be [indiscernible] wires our of and cases that with will toolkit fiscal next our with really balloons in considerably used started with launch and year

Okay, thank you.

is Antalffy SVB Your Danielle Leerink. next from with question

Your line is open.

I OBL hoping how a get also do high this a how was been side growth faired you growth? it’s XX% in of sense of, sense and in get that the to range. and segment I the on follow to think think that up durable mid to quarter just

that trajectory As we durable look forward, growth that segment? how is for

Jeff of durability in But very Danielle. will terms kind you we of details the growth durable. think there OBL, on give is

complex do to for alternate care labs just the and not disease, space trend is a and but You States patients look peripheral be have segments. cared a capacity these these treated. months areas probably segment, and way in always as going continue epidemic that there’s it’s bit to in on isn’t any an to in are of that little – only we arterial office at There’s hospital think peripheral not of these the in disease in the in believe know we so, we But arterial be and the other OBL elsewhere leveraging United and slower your several medicine. sites these treatment

segment treatment the and expand of expect in cases to terms of of continue do in increasingly the number expect there. it we that of more to expand complex OBL also, we to So terms accounts

on application? do comment you to So the want Jeff

absolutely. Yes,

still So in Danielle, XX% the OBL, had very as previous flipside, in QX the in that high you we in several we digits. than single growth mentioned quarters growth had attractive so that actually XX% our ended quarters, OBLs plus even we another we on business prior hospital the grow the had was the quarter we strong growth the three actually in more up

of strong quarter in service. very So both sites

a so it from just what you there, much curious sounds segment quick of perspective foolproof ancillary for [ph] [indiscernible] a you’re at point. into success this products on coronary that just you’re cases and Thank it. and a Got like for the sort selling seeing follow-up what seeing the these lot support

have with to to our that. growth pleased penetrate we good continue there progress are we Yes, ability really continues to there, accounts and

With the coronary ViperWire Nitinol launch now Nitinol guidewire. our the

As adoption have this everything offer can indicated [ph] we’re full product out offering so we and earlier increased what across is I from now Microcatheter, now Chris we full balloons we because not but increase mainly spectrum seeing an the the had of think those only improvements the of to the all the growth, combined then us of course really accelerate Teleport GlideAssist now synergy the have wires gives and and there penetration.

and that’s are penetration increased headed So, now. where feel an we seeing about good

[ph]. half our are it’s coronary TCT, about now our at said ISD’s We accounts of nearly using

Perfect, thanks so much guys.

with from Your Lake Street Capital. Frank Takkinen question next is

open. line Your is

was First the year, the I fiscal of end the say I year. this that study of by I the of by heard REACH complete assume end believe you

Correct.

Enrolling status.

them more. physicians there, you’ve might the And looking Okay. tipping in the to side that regarding getting with over point be the data, from field specific over learned us for the provide moving they anecdotal practice them feedback tipping then what get radial any point over you could

concept access intuitive talking But on Sure. been out the mean radial reached it. I so there’s route. think done in side physicians this the reality peripheral I as coronary so, physicians significant about to is the of is, very a the the really for use think and before we and started is and space body to I never evidence

lower and collect we’ll it’s in data that today a produce want not want it’s that to look get there’s foundational general be patient really exist we just and in greater evidence FY be a think peripheral complications, we the initial to to I from XX’ space ambulation. But but feeling take faster the some there’s a then determination never because if that to that does done been make acknowledgement satisfaction, to more, able readout that, at before. going just building first

I Frank making evidenced giving think and that’s that So key it of available.

several offering they product quarters. The and that’s probably most they also difference. about Physicians they may a released to and radial key product been stint, a for make doing know having full other their you this balloons, the able important that catheters wires to have [indiscernible] recently drop so is that It treat past key we’ve is if need complication, does offering just which the so there, example product and to talked be will want on, important is driving full thing the out over offering full will and and and so if the a having in adoption. a dissection the factor

its Great a and a guidance and to year between second, that, further range? share a low little bit your then fiscal takes your different the end and [ph] XXX. given high us you of the puts large out with between of you looking and Can end XX’ XXX thanks

kind Yes, I builds of that. that it range. a to to considerate far of But would that also, the all into don’t out puts is and we be I it takes be guess it to that provide when difficult of large look

We variety extensive trial growth have our of drivers the additional ECLIPSE and radial we’re forward clinical additional in a course future. bringing portfolio and trial products, evidence very PVI a and peripheral including in trials new broad medical of of

through international against and of kind they our but strong an go be opportunities, would out how great play growth have exercise. basis, are of might all a other course they of a extensive portfolio expansion these all of form each also We to

remain the XXX in confident So that I’ll just we that to we land say range. that portfolio, XXX across can

great. Okay, you. Thank

with Blackman from Stifel. Mathew is question next Your

open. line is Your

question did portfolio have quantify you Jeff, support If the But procedure I I for housekeeping from the could in quarter? contribution missed. with may the start

comments. $X.X I products No total was not, did Mat for in in my QX. around million in It support procedure

and then quick year sustainable that and a just specific I is is particularly PAD and something in surprise, questions. and driving I’ve about follow the stable we a pricing nice the think got couple The appreciate remainder that there that commentary trend of with of quick up. one how as

the we’ve that that place kind that single-digit to peripheral we think erosion and with you, we more going peripheral mid-single always see think stay and to in in We that, I operate OBLs think expect guidance Mat continue said I of would forward. being as to will like continued anticipate price mid original digits. increase utilization continue in I in market drive there a competitive so I if the it our probably

the the coronary Scott think move seeing salesforce accelerate growth in coronary that that growth should franchise Okay expansion last that, growth? about question. I appreciate How potentially segment? we’ve sustaining the could been and relative that dedicated to or sort we then Is of

to be the business So to yes. the would I the if to guess years. sustain us say growth look growth at let’s intended answer currently my term of to our contribute course portfolio it you stand. and help is near we In our as of our over the But next five that certainly three

and results in that ECLIPSE pVAD device and With then late our of period. launch ECLIPSE the the the of introduction

that We’ll company transforming to a coronary from on of business atherectomy be on coronary focuses being overtime. dramatically will care complex being our and patients. coronary expand focuses point business really We to that our offering a our the call

that’s can prepared responsible you sustain see our to So continue to a way build future. allows but but franchise in for a growth expect way, us today, that to that also in it the us

congrats quarter. Scott strong that. appreciate another I right, All on

from question is Needham Mike Your with Matson Company. next and

Your line open. is

wanted First, quickly I one questions. on follow-up to just Danielle’s of

with or the the other growth due slowdown OBL at slowly for seasonality there were On reason dynamics to play? any the at XX%

so were year-over-year and No XX% that mentioned. seasonality would three XX% that in the XX% we that quarters where attractive keep time I revenues mentioned periods. ramping grew in with last very erosion plus comparing over both is against so quarter, ASP kind ago, we we mind, growth we’re have so OBLs in nominal existed still really the up earlier four of

Okay, quick you’re pace and you Japan, thanks. follow-up. And one share market have trading wanted I thinking gains of then, about just in have there given the the see how just XX% to so then [ph] so share a dynamics

we think to there. our to we actually grow, expect early are I launch quite still continue that in

As said training and I’ve new dependent launch expecting peer-to-peer continued make would before and been forecasting growth continue in progress our overtime. Japan that opening time in there so we that we training on as is some really for have peer-to-peer to and of accounts the we see

see our So kind just we of where to coming of continue into we’re not the to curve, expect portion do that growth accelerate.

make orbital strong is to calcium confident vessels a imaging of replacements the Japan they to atherectomy remove and very atherectomy to use prior stents we’re So plaque. community very cardiology to of adopter of in our business and in to and put prepare interventional now modify Japanese

that confident So see business in in continue our believe to be growth there. strong we’ll we continue and to Japan

color the laser on reasons program? atherectomy the and you more some then lastly. why discontinued you Okay, Can give thanks just

and the on the comment on I’ll a Thank with I’ll this is are of principally going we’re versus other provide competition our Rhonda you to combination products. or investment. that growth and hand effort to best return the very the device products an this company let part Rhonda, much. moment. drive But after, you in that this manage a to investing on in our continue our show to portfolio

was was technically the with the earlier of had onboard range, and broad novel peripheral progress program developed, [ph] of of market cutting is best the our It for that that, that structure equipment it each to the mechanism between system, that most race it just sizes, sense just sure. have a broad those, to a the service Yes, regard that segment obviously sizable the vessel types ATK with and our looked to engineers directional able capital and just sizes really laser serve we’ve we discussed CSI. being in the horse made atherectomy decision for and expenses that We the with felt financial system been aspiration felt at invest made technology.

Great, thank you.

Your Margaret Kaczor from with next question Blair. William is

open. is line Your

little main think year. follow-up which double a press reps, on call around specialist the release you bit A the on you of this said referred the the are going which clinical to I corner guys on

from you’re So keep more on guess some and how we to productivity seeing. focused much on are seeing offenses been versus opportunities of where that up [indiscernible] hirings you is strong which you’re they groups, just, incoming think guys how with these should the about based trying rep growth the I the of

it improved largely come Margaret, good there our support present. we of themselves channel do clinical cases for we’ve and case the an rep specialist and of has last outcomes and which and quickly deep think clinical We my of addition our about We’ve assure in we to usually as specialist an I couple acumen, of and XX% because sales as we said that they’re adding sales that staff labs in all that we time. clinical specialist get ago is contribute have introduce first the really or cover get productivity very present for we cases, support very that and specialists lot opening able a to is have to physicians to you clinical of know cases coverage clinical great cath these as been specialist ability we competitive year, advantage clinical A great of years our think and those out a to us. has the individual thanks comments. actually of important Having remarkable as that now and our customer so started reported observations a questions some

of our So difference specialist in makes rep sales important an the productivity. clinical presence enhancing

In we still coronary terms a of our there. addition, are bit nascent

We’re just moving we as dedicate really from to time lot a the not of channel sufficient to large that where like counts providing we so it’s have we present. present currently XX XX, not a larger were where across there’s opportunity these not to know at result, or country the we’re support and have a reps

very volume complex in cases, receive for high enough just States many accounts the lesions calcified get we bring we reps reps sales have have already position we and the don’t this So hiring really to where care expertise them about by where being thoughtful productivity. as coverage, are United up by we in space, look these patients so and at that strong rapidly in aggregating deliberate can really reps to in

the It is market. it is in you about heard past, as difficult talk us a

reps been pretty So slower, overtime about time is We about ramp that these the time to here it roll this. to and product experiences and XX, adding these that then some a our now of sales we up we’re first improve our the and lot overtime, are targeting and careful for productivity. they we rep see learned that in improvement continuously have so they takes have reps about XX placements we’ll in and learn continuous but more we’ll

said is channel looking earlier see the we I we when where of some as that also patients Hemodynamic program. our after and that course think I this ECLIPSE be dramatic we’ll improvement is really launch So Pump complex then will results our release

rolls that I really answers questions. hope your of So how that’s all together, that

you. Thank

three do that the not it’s of think of to questioning all true good really terms specific you spot kind them you Are this was a clinical relative right hunter-gatherers’ game? reps got of case in there. or ratio of in I of guys game, coverage ratio to a now specialist. only in is follow-up You a the guess line

achieve coverage. case coverage, Well really actually a I what is think it’s that’s to we’re case trying

“The” essence company provides a at I the focused trying customers this. a do a that strategy other is bundle, be don’t our physicians so because we’re support We’re a as case, and peripheral patients. through that or way assure the assure there When cath and doing want really are sell to present be in to the that that support when our outcomes. we’re our know coronary patient trying to customer we’re best is we has our what the is pull to and lab, the to that. enhance for That of We that’s think break that great on our is to products lesion present, us, patient in get of necessarily our we market that bundle complex that good carrying we to job and

XXX XXX specialists so reps about ratio. sales our we So to I XXX right and that little clinical two maybe specialist. plus an It’s gives in we field over reps think now now, right have around idea the you have of a one clinical

different I and that in grow think do that as towards type We’ll probably one continue that increase and our I to see we’ll additional that we’ll warrant and one to size probably ratio support. overtime guess. ratio; overtime increase territories move or type of decrease,

off, and [indiscernible] just Japan on share the in I’ll I gains wrong I’m think then for wanted and follow you’re you original year, for I more said meanwhile I more that comments that because opening question you had Great doc, which correct was why the saw already for in that In XX% think an you the and if guys to but hop in shouldn’t year. this we and see guidance the guide increase – so thanks? me training Japan

aren’t in the of did feel indicate factors, time for and right we schedule so like are you’re of we’re we well in year and point placed correct. share appropriately progressing that, number and of different XX% right early the we end our the now, we’d range it’s that year said, have but ahead guidance we thought that remains Japan. by in We very this increasing Well guidance a but at have going us now,

pleased business So with well to our the quite and making there. Japan we’re progress business, our do international continues we’re

guys. you, Thank

Jayson Our Raymond comes from last Bedford James. question with

Your line is open.

Just questions, follow-up. a just few maybe a

adding how this you specialists, year, new coronary In many to-date, you’re of XX do roughly? added terms that the

about year, added XX so We’ve far Jason. this

Okay, thanks.

rise there. shake benefit increased to general share it DCB’s the back getting a drug-coated up Just more the form in balloon or Is in of the it procedures of fewer used? being market is there’s from because atherectomy

we kind quarter. this last of said, said we’ve As

the seeing, sales reps probably and seeing dramatic one if of atherectomy per you in a you’re maybe. went have two out not, in if at there, of and necessarily issues utilization or reps or balloons. out level, level. because that say, But talked we can increase month customers, perhaps know, to in utilization drug-coated not our not to We’re of see macro with are we XXX talked you going to tell sales atherectomy you doing rise an yes a they’re they’d What micro is or nod, you if

of small trained from So in they returning to that that the which creating physicians prepare to remove calcium is were and to to seeing in out then where coming we’re all that’s really behind. think increased injury, we’re or from I what the and seeing, it a to lesion, access treat of leave dissections the the is portion lesion get lumen, try what is is to vessel balloon segment are do but that is on, that originally business, without adoption medial calcium of that and to the it nothing

still lesion, increased seeing are primary utilization that’s device. kind the of what With that they and we’re our of doing

beginning utilize in that atherectomy we device probably that’s this think I as result, and there we’re often device have because seeing that the those are cases. more a primary to out physicians safest why

days now we it of business March, to just reporting of now end and early peripheral kind first benefit our this of through in our quarter at fourth we’re the see this We’re that still time. kind flow that continue reported we at started

Maybe just helpful. a Scott. one last that’s Okay,

atherectomy peripheral, tough and growing and this coronary XX% just You coronary I a realize in seems obviously or in the mentioned market will comment above really growing comp, competitive certainly market on market landscape growth to be any this but is in is the faster but in be case helpful? the was

I and in the I we on think overall that saw market particular above growth business as is it, feel is we think above certainly market.

information peripheral. each both that specific our difficult because this about we both before have; is atherectomy peripheral market and believe report that getting most in detail. in we’ve know of As every level this you and information coronary does of talked on and very coronary Based not quarter growth about is and competition at detailed we the above and

was So and was we our basis, about that, continue to very good global it strong. as look coronary on you a feel obviously strong business pretty growth

this in we’re So our confident time. at coronary business

All right, thank you.

to over now gentlemen, this for I’ll any does back and turn it Ladies the Ward remarks. Q&A Scott conclude closing period.

Okay, very good.

then. So with for no today’s next Thanks we’ll Thank we quarter. progress further you everyone. participation and forward you updating on all our look questions, to call your conclude

Ladies you participation and call. and today’s for conference your you this gentlemen, Thank may conclude does disconnect. now