Cardiovascular Systems (CSII) 9 May 212021 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to Cardiovascular Systems, Inc. Fiscal Year 2021 Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jack Nielsen, Vice President, Investor Relations. Please go ahead.

Christine. you, Thank welcome call. and fiscal third XXXX Good to conference quarter afternoon, our With Chairman, Points, Ward, Executive Scott me are today CSI and Robb, Operating Officer; Officer; Chief President Officer; Financial Jeff Chief Dr. Rhonda Chief and Egeland, Medical Ryan Chief Officer. issued minutes announcing third press XX Approximately a results. release we ago, quarter

the may You on a of section of copy Relations find our release this Investor corporate website.

and results CSI find an which March additional your our our we performance includes management quarter, earnings details moments, will few discuss that also outlook. supplement may ended a you XX, for our Here third XXXX. entertain will In prepared on on questions. After remarks,

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

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

quarter last afternoon, increase everyone for million, of we This today. afternoon, Good joining reported year. Thank X% compared you thank to us revenues and third $XX.X Jack. you, a

in quarter. COVID March cases procedure and the the simultaneous in the improved during in increase decline volumes resulted and in of anticipated, As vaccinations February half second

outside were procedure our strong volume peripheral subsides. quarter, of one-half domestically, our treatment Our a adoption have franchise, temporary deferral the orbital pandemic, as flat were was and complex offset purchases we as in labs of we quarter the as procedure an OBL by important Office-based Throughout lab nearly revenues trend growing which the of as the the complex number seen revenues continue represented of service coronary performed above-the-knee Peripheral third growth for led atherectomy increased of this procedures, an the emerge of during the products unit procedures peripheral site internationally. procedures of even by support sales and pandemic increasing the hospital. were office-based to claudication. generated expect strong for

today, healthcare As are we or do we markets levels most procedure returned serve so. landscape the now to look have pre-COVID either to to poised

growth in commercial of launch the As through sustained the coronary the support a volumes improving of are we we peripheral towards peripheral momentum continued healthcare end in QX. devices. and and QX with has optimistic built well will benefit throughout that we business that The early environment rest of our the aligns planned May, result, our from procedure

peripheral details we will launch provide will launch this of support important growth are But the first, Rhonda quarter. provide regarding our few for this progress results full introduction the of and preparing on this Jeff? and a our financial embolic quarter become Jeff our additional devices, fourth in the stated, commercial guidance. moments. protection and an and will have we portfolio As angioplasty driver balloons, for catheters CSI, details

afternoon, now our QX of financial results. a good and I provide Scott review will you, Thank everyone. brief

XX% a to million. units on sold deck please revenue in by earnings revenue In the increased to sale in increase US, the ago increased X% increase continued of X% of and to the our as XX% combined of the Worldwide, with XX% $XX.X led Worldwide For in strength Europe. the about nearly a to coronary support refer Japan slide million, introduction $XX with products. revenues supplement Outside a additional coronary result coronary successful revenue the million flat in were details, coronary coronary website. US, $X.X OAS period. peripheral year increased

However, from peripheral OBL units ongoing deferral to about claudication. service. compared for of X% year. atherectomy Peripheral of the side experienced in XX% OBL revenues strong sold hospitals the due last we treatment growth declined of again to prior to year increased

in Operating peripheral and million of catheters for Turning profit Medical. came margin to expenses. WavePoint at XX.X%. $XX.X expense a million one-time of acquisition from the included on plan Gross expenses totaled $X.X

expense, flat and were operating year our below about forecast. this with Excluding expenses last

early announced QX During we growth. revenue and we in strategic future investments that drive believe QX, several will

partnership the in addition peripheral We In also balloons investment in develop drug-coated and with marketable and CarePICS health everolimus a will digital cash in WavePoint to early with we to and platform. CVT the quarter borrowings. million we the long-term $XXX catheters announced securities commercialize fiscal novel 'XX, ended an that no

not volumes may expectations move that note, dynamics we however, impact uncertain in the remain future optimistic our COVID I positive a for and the the market system on will have over pandemic healthcare QX, and in that we increase that periods. As increased million, is forecast. quarterly With persist to $XX representing to vaccinations procedure improvement a QX to a the XX% $XX mind, our of be impact million that of X% XX%. year-over-year negatively to QX sequential revenues We of in XX% could and range forecast to

margins Gross impacted Turning factors. QX non-recurring to two by will be expenses. during

early of to over will are these First, end-of-service pumps provides to upgrade to lubricant action older reaching infusion the while fiscal normal atherectomy support uninterrupted pumps recent one-time of orbital at are pumps no benefit capital procedures will course sold our remaining that in XX customers. pumps Upgrading customers. our cost will is saline time, saline that over be months. during replace typically generation incur This provided related 'XX. decision for beginning now assure saline gross goods and the equipment charge our margin to quarters, charge to to over coming we a and a The we infusion our several XX

Additionally, primary was stated outset patients and the the of the we assure our to in duration able pandemic. at of goals our business our to invest support customers as one of pandemic, we're to that throughout the

safety both pandemic-related one XX production the experienced the we that disruption. operated to facilities event our Over past adequate of in maintained our we a months, facilities ensure stock of

factors QX gross in be range stock. QX build range With the recovery the margins result during now in to effort the Combined, to will levels million. in to in these way, will of reduce $XX.X 'XX. gross eliminate we anticipate million an to beginning in forecasted accumulated XX%. under $XX.X the QX XX% fiscal are of We recover margins expenses to be Operating safety to

$X anticipate call bottom now Rhonda? a I who adjusted loss of million over to of will to net loss $X EBITDA QX to the provide and turn million. line, million On we a an update. the Rhonda, will $X $X million commercial

few we approximately everyone. our drivers regarding QX, Thank QX In Today, you, Jeff, for versus some we'll was good emerge business the our discuss and and beyond QX results key I thoughts as will domestic peripheral provide and the of flat then from last afternoon, pandemic. a quarter.

and impacted half growth in QX. the continued hospitalizations through surge December by began Our in the first typical of was that PAD in

PAD the reduction a saw our have with we considerable in knee the in time, CLI be a rebound to this in drivers QX of continued and the treatment complex disease exchangeable adoption we treated. more the of During the Since within patients seen business. strength included the system while temporary continued OBL. claudication, below those continued platform mid-February, Revenue

of throughout hospital. performed outside the have we pandemic, an As Jeff increase noted, the in the seen procedures number

satisfaction OBL restrictions compared an increased elective compared procedures as pandemic of improved OBLs have patient to the to mentioned, setting. service revenues access during Jeff XX% well as less As hospital as year. due important on to site the last become and

to QX the increase March. a month procedures early in Turning to The followed coronary of volumes late disruption revenue February year-over-year. was increased coronary. hospital Domestic in throughout by and pandemic-related procedure in strong X%

admissions patients increased accounts. driving this opportunity are in existing revenue per us penetration and deeper OAS we've cath on back to the As in lab also of procedure. lab access the drive increasingly treatment into decreased, Improving our and support physicians new in to focus of their taken coronary coronary complex helping COVID reps invited cath most is

to XXX,XXX support of opportunities systems the revenues for contracts in and annually. many sold now throughout and contracts sell focused effective by line strength the COVID, of soon peer-to-peer million also largest OAS In now increased training growth. During products, peripheral of representing I QX, and products. International this based deliver three sold. coronary Japan. with in these in GPO coronary to reps Expanding launched be groups exceptional include results. We our continues most expanded new may Today, these $X.X an large over and PCI support on XX.X% into TDI sales approach we executed on full existing products $XXX should launch QX unlocks that continued our million. led totaled of hospital support IDN procedures years to our for have support OAS products every mention in ago products we coronary country, of and $X.X Japan to total,

in and are Europe. our in launch the also January Mark We same CE for received coronary OAS approach the employing

customers new an remote However, European we and the we This coronary pandemic, two to be we with six to continues. in momentum accomplishment, has adoption currently customers in our launch by overwhelmingly our launched training. when The less certifying than as incredible months. positive, look due to continued forward reception and especially been has proven you consider the are countries

vaccinations to improvement QX QX, visits resume and compared COVID ahead admissions decrease. to volumes patients increase, to sequential we as as procedure as anticipate medical show routine the Looking

forward. unit per as peripheral going lesions. balloons XX overall is important positioned our regarding Jade evaluations the and are we've and offering will of facilities designed XXX our peripheral, have non-compliant atherectomy component physicians expected the of In in to interventional for be devices controlled Balloons. the case. an strong over product strong months, Peripheral of to we support XX are begin of These driving their growth case and with per revenue meaningful sales at Jade feedback later Angioplasty with received peripheral more launch opening revenue We In drive in resume resistant we recent exceptionally growth coronary month both this anticipate conducted performance.

of WIRION protection month. system, In will the of the recent addition, clearance following launch embolic initiate full FDA our market this this later product we

OAS used a Our comment morphologies. and market of atherectomy being the orbital can calcium and resulted to imaging devices. atherectomy peripheral. Economics demonstrating the coronary, Medical XXX we of It wire-agnostic leverage our that extremely lower and one drive in access while OAS of PAD-related variety authors types, is total final from mechanism to any of provide simultaneously highlighting increased increased The our of both customers tests be published received that of article years mean atherectomy on is cath LIBERTY increased use lesion population. challenging orbital our patient and core evaluated high In utilization, procedure. device. recently with provides recognition cumulative of Journal in convincing Overall, marks with patient-relevant at two healthcare locations WIRION an of support benefits trial. With resource-intensive and and continues XXX after identification found outcomes, of costs data, the and costs LIBERTY the our there One unique and sales this its action. lab in utilization reducing will improving durable better

orbital As lesions deeper a by ablating to a as and device a atherectomy increasingly treats superficial appreciate providers and calcium range easy broad that's fracturing single and versatile, pathology. healthcare of solution result, use both

infrastructure along many of sites adopt targeted experience surge cases look We In to to be and Europe, quickly. with we in focus the the international. and parts interest recent coronary in continue very of that remotely build treating OAS will to train certify COVID severe the have medical in experience light on new to with Turning will in calcium care OAS and patient on strong Europe, physicians. in

will our drug-coated received intend launch we you recently plans in with Ryan? now to That Health approval a my update from regarding also Canada remarks. Dr. peripheral hand, coronary our prepared completes on OAS. there in approval for balloons. Egeland We And recent our Ryan QX. develop both development to

Rhonda. you. Thank

patients report few earlier. with launch over to Vascular you back Chansu we both recall, its to the first-in-human help a will of portfolio. to now CSI and CVT's disease. coronary received products The intended has calendar products be an where to Technologies advanced to provide effectiveness threatening on DCBs continued add confidently pleased debilitating DCB for January, really DCB. the as breakthrough portfolio. of customers Scott. balloon of new or we As our the was to device schedule Under CVT coronary its reported with CVT no will artery forms recently priority develop drug-coated the this to the to communication breakthrough designed development XXXX, approved and designation for device as options to its development pleased exist. we're seek everolimus CVT or and devices, coronary treat program DCBs in research program review in strategy, our to receive more demonstrate enhance important the working And breakthrough everolimus-based peripheral partnership diseases and of innovative CVT year plans. program, patients the peripheral access FDA to product FDA entered call or development for to has We're by that clinical FDA to bring life treatment pass end with most trials I'll This remains timely

Ryan. Thank you,

Our taken diversify to and business. new have in add recent drivers CVT our example actions just of is one the we investment many to growth

on related to these we and are And rate pipeline impressive as calendar new product the In inflection by growth execute renewed of Each including initiatives. pandemic. We important us, quarters muted driven momentum the to we growth products, international. our have GlideAssist, and and ramp an few had our directly are exciting in portfolio an poised several to recovery, COVID expect next Radial launched OAS. a in of Exchangeable XXXX XXXX, extremely

more very environment. to subside, and we excited a remain normalized look driving products headwinds these As these about adoption forward their in

is Our new robust as been. it as has pipeline product ever

few 'XX Zilient and ViperCross catheters embolic WIRION device, support Our and beyond. and family incremental the of revenue launched peripheral meaningful fully angioplasty next will peripheral over be protection FY contribute months the Guidewires Jade will catheters, the in

renewed we continue in growing from international outside our with strong product Aside in and see business. Japan of momentum expect OAS Europe. growth pipeline, our we And to launch coronary US invest to the in the

longer robust we years the ahead. out in to term, positioned the growth have company sustain Looking

our for on pVAD momentum enrollment fiscal product months. trial ECLIPSE our which market we This to is XX continue access progress PCI We pace in to make about $XXX to 'XX. Enrollment targeting XX an gaining are will and program, million in we are in patient provide to support. on complete

are used this a a report procedure, on chronic to and fiscal collaboration WavePoint, complex We $X,XXX per opportunity our million to treatment total trial $XXX of specialty the PCI. revenue in and targeting CSI market per These penetrate be of In significantly portfolio with occlusions out developing CTO $XXX 'XX. microcatheters increase in we catheters case. million will to adding revenue coronary potential will in allow are

we exceed everolimus targeting peripheral estimated over we're platform in finally, telehealth offering wounds. and with CarePICS, anticipation look recently optimism. and exclusive the small patients a to In for to fiscal the to years, first-in-human billion $X described We coronary next are is future The the to we in 'XX Ryan balloon great size improve company, CTO five a option a designed trials targeting and and And launch program. lower for closing, announced CLI begin outcomes 'XX. market with investment portfolio. date DCBs the drug-coated in for in digital extremity and a acquisition

the and to these save and and our progress save for support for to and Christine, our please limbs make organization CSI CSI the all here team in Q&A. to our meaningful will to continues entire multi-product serve. opportunities, our execute their current CSI I lives, the continued our at revenue to growth repeat efforts improve thank appreciate into by is the a patient mission we and extraordinary quarter. in your CSI commitment mission your to take that instructions questions. We excited patients on now Thanks. transform reach. customers, exceptional accelerate employees care Guided would company beginning of we on worldwide dedication interest our with you Our our want

Matson line Needham. Mike [Operator comes Instructions] from of first the question from Your

line Your open. is

is fits you investment it This about guys. I just maybe talk in to and start how Mike. Cardiovascular? with the on Hi, can Joseph that off, for CarePICS guess,

Yeah. you, Thank I question. the appreciate Joe.

over shared the patients times are physicians fragmented years, quite or diagnosis and really you As data of is we've to with unable peripherals often the care themselves. among really often share information,

and patients care So difficult. it referrals, just of poor this patient led to fragmentation the patient has outcomes these really more slowed made it's

So our CarePICS care referral everybody and have patients to care that shared of primary wound with these them physicians, agencies, our podiatrists, vision to skilled to available home have really now providers, touches network facilities, robust most healthcare nursing interventionist. integrated really is the

management the with the this this we'll accelerate ultimately quality can appropriate So care improve believe case really on frequency patient of access right really facilitated really the multi-disciplinary to of approach that we this the amputations. reduce platform that be and at time, treatment

and look business. we to channel as accelerate the So our this for at a consolidate way referral really in us

you very well? Europe, there? guess, opportunity guess, I on Thank tell a us And coronary more helpful. Okay. you share sell overall to you guess, maybe opportunity how the then much. market also moving about I little how is an And I to the can in is big atherectomy the guys bit That's to there, Thanks. product gain? peripheral then expect Europe And as market? much

Sure.

I'll $XX extremely right go distributors well. going it's a through that. launch in on ahead don't product, market But is just I'll million that And and work just a we comment Remember It's Why distributed Yeah. there. take Rhonda so have Europe. our that. now

Yeah.

with the particular. reception just countries into the clinical really, said, to As I and to launched in of product really number outcomes, we've a excellent

referrals, and launch directed and optimistic we're in with in share prepared a really there going to as of that our going said geographies. attractive consistent very comments, measured the QX for well a just market in not United continuation example, in those Europe other so terms drive We But bit million Europe a is a throughout ultimately our appreciate Western the is States, is the and well, therapy, as organization, the we're I very really I'm it position for in the been in established thought development it roll is we're has I question. little have our raise peripheral lift as of more leaders patient That's Peripheral COVID. to better awareness continuing though. it my due to working $XX and for market Europe with in As out. of to bigger share do market. be drive

much. seen you just you and for of atherectomy? you've briefly pricing And peripheral very also then trends Thank Okay. guys that on some can touch the coronary

Sure.

segment So very for stable. peripheral of also trends and OBL have the in both to continued trends be And the pricing have stable. in-hospital been frankly, coronary segments pricing in our

I increased past the a there, saw than more where rate in think in the in and consistent. to pricing actually our growth patients being we shift Otherwise quarter an treated quite setting due what lab the what we have we saw COVID-XX was was mix sequentially, just office-based seen largely setting. in-hospital

Thanks for questions. taking our

Joe. Thank you,

Thanks.

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

open. is line Your

know competitive Rhonda, of launch, ongoing don't IVL taking - the decent IVL it so only Hey, necessarily question. this with and for put two competitive, but up But the good this to think the take afternoon, Shockwave launch. so or or is you weeks guys everyone. I who the question. numbers shock Scott around characterize wants don't pretty Thanks much as or

from high business there to you And more launch Thanks your the the they out about what to in long-term Just much. filing your controlled how And to you're business? then coronary a market perspective? evolve a a from of launch? sort impacts at think level, could as - broader so a the go curious to impact seeing

Thank you, Danielle.

can I in quite results but coronary. year-over-year that think we see growth had it's you our early strong days, actually from

the coronary our So of pleased actually with performance I'm business. very

third Our coronary despite COVID. quarter really throughout by posed remain quite the that were business continued strong, to challenges

your to that patients require the other early the orbital confident I for seeing, think times question have some we So for feel been don't of our technologies. and some albeit require right approaches, certain of different checks, The treatment requires do have what we're in and technology to It's are cared would market somewhat actually we our thing and say us at in complexity the difficult of may multiple using But one likely this data data. different can obviously point, I really, quite lesions, quite share. be types market know is for and particular, optimize they confidence. is too positive. you to is does it as that described, technique that of that and They we to use to really incomplete, customers on long We how really know to utilization the know They now, And have experience often know expand how use this our coronary IVL will technologies, have patient it atherectomy. it the these market. how is when it answer really care. take. and They have they use know to complex

center is these trained for a better and to come lesion may the see competition I we it and seen care our we The device among use now IVL - and balloon and may or to a say, have I it for difficult able It or on believe in across as patients. that that will market, more guess, may to across their care use as to more would who it's complex now of awareness still device interesting awareness, pull choose calcium in come required is when Shockwave day-to-day the treat those recognize okay, going that practice, balloon and of a they more is cardiologists say, they their referring has they cardiologist, entered this patient increase patients. somewhat been I the this calcium their beneficial. refer in So I'm it to an real that use, also to

that expect in we prior in that than with is were do in to here. we also even short strong think And delivering to to to do back think get that achieve expand maybe market, that I low-double-digit coronary. we've I to better that growth the long consistent continue range, expect but COVID. to the fully historically we that delivered run So in we the this And and to what do expect run, very

to Okay. of That's guys? just I critical And know mean, peripheral, the for question helpful. conceptually like Thank I'm is way. have differentiation of limb that you feel But and and how story. - guess, I guys your that. next have piece the increasingly the It's for around you it's much know, have limb if on guys that, the and to you is business. that's most about hear like an quickly I then question you critical important it I where ischemia, piece near-term the ischemia where that let numbers monopoly can feels mischaracterizing sort asking CSI growing my the thinking I'd a market don't the becoming be of most, biggest but me a I parse patients. curious benefit you or and because If opportunity. am

or years so two much how you so? sort - Thanks next, of or it, c, and be year of market ischemia much awareness how then, therapy how is hear; to the there, I'd the because be critical your sounds big expect it development; a of business like limb to piece that So growing what percentage growing; b, fast a, is call much. over curious like that's

of number have pandemic. what Danielle. over observations patients critical our that both growth, is important affected we have been patients that care we really important ischemia our learned population, treat has by are key and our It just lessons quite people ask has Thank been one that extraordinary. that remarkable of is I we've rewarding, to of ischemia. limb this critical our limb have Probably that's not the a you, lot and pandemic of negatively will And of me, in the the the most and patient at made course how technology the device see that the think, times,

remained which of CLI We have device claudicant face shows that condition steady, in has claudication you seen these patients market is obviously product, often of impact for get and patients our but very a our used the care knows in good pandemic, outcomes. have customer a to have in have our care that serious the know that's stable or that very and they this their these use how care. most patients they used population how consistently times And and because and even to

I of our And result a so is think right. part business. important as of CLI you're I - think CLI very a that,

to see obviously result, continue limb do X% right critical and this expect I patient We that diabetes. driven the that to of think complex rate in increase prevalence it to particular is continue most going forward. X% see This the range, to population. expect, And ischemia increase. that in a the believe market continued we market is growing is by now at unfortunately, a as we

the also, knee those case the above have embolic lesions, protection patient make course, There lesions. are population. very WIRION improvement we And to same target above of a critical products the device that for launching quite quality think now that that that knee that's below the and patients. in have or expect can care of limb have ischemia where patients that our knee they We often really the be an of also patients it place we in and utilized where are

forward. described, as it we important a think I continuously on critical are we business ischemia. so, move part focus excited actually our appropriately you've more And as about limb will become So and quite of our

of all know. me anything I If I there. questions missed, your think addressed let there's I

so Thanks was much, that No, great. Yeah. Scott.

Okay. Thanks.

comes the from Instructions] Oppenheimer. Kalia [Operator from Suraj Your line question next of

Your is line open.

Scott. you all Can me right? Hey, hear

Yes, you. Suraj. Thank

Perfect.

following taking here just questions. question. start thank me on on let So side, for you Scott, up the coronary my out Danielle's

the treated that's have lesions right, atherectomy, OAS relatively with coronary about it, that more it, longer complex I way lesions the up IVL. and are we of your OAS, being that or POBA are the at the the the seeing still picked lesions least commentary entry or So market I about a get you way? just for stratified thought more focal stratified in are IVL. as wrong Did shift it's

seeing We it to. stratified that way. still That's are I'm absolutely exactly what referring

able is I typically benefit our I patients it the that lesions of - to treat get they think And get of longer. as an cannot most definitely say, can is it, look population, lesion, are are and you it our product. our our if you been stent device should severely patient a the ultimately through always at it wire is, device we that treat, typically calcified so and has that advantage more we lesion, still our of to up pre-dilate stenosed and be open are that and down

it. just our side, could give Scott, some so you we the us of rate directionally cases peripheral you independently can goalposts the characterize utilization on would start number that arms it. Got getting just center? if Yeah. and being done around How per

in mean of lab? question do the performed cases number a Just office-based cases for being you being done the independently, you number of on the

without - just a rep No, specifically And on site.

see. I

Sorry, go ahead.

support Yes, I you're saying about what understand we cases. No, our now. apologize. two-thirds actually of I

clinical of site on the a may a are I to note sales reps cases be time should XX% in about or XX% that our and rep our So peripheral specialist.

we Got the cases how per average should it. In that? center, about think

of suppose? have center, how a think should that. don't we about Jeff, per sense cases do know average I I you

to about at active look it way X,XXX I Yeah. accounts. we've think is Suraj, the got

accounts. could see per devices you and that we sell quarter assume many about how you active X,XXX So can

great. if of Got and And that about be may, applicable you derive it. last changes in we a could only you demand question, I supply? questions. back color excess hop one Any in if one guys, you Scott, we Because now. any queue. more is not what curious, to there you're but this I'll sort is question are global certain of there the my that any inventory the is correlations pattern would a seeing And in maybe kind or themes what discernible broader of specifically that is picking of the shift, sentiment give are inventory up the and related some pick if I'm could seeing seeing field you field. is just pre-COVID, to that in Thank to of for to COVID, taking up field? suppliers shifts pull-through you're

say you Thank described. would I what that experience you, is to our counter just Suraj.

had - they want in is basis, not We day ever would efficient inventory us customers in now the purchasing it's just on buyers, time their have about field purchasing. to Our this And or because result, lean COVID-XX, our purchasing many a only rather they to agents infrequent as don't seen and been. is we of a with prior as as maybe be quarter. do twice but so volumes, their to purchasing every they're because their large deal necessarily a buying once

our moving came COVID lot much of toward frequent of on more a As fewer devices. more saw institutions we far buying board,

our exactly of manufacturing daily to a really to frankly, hospital systems think our result, lean of that their continue basis. daily much to patterns more are doing. manner, conserve our sales as average that well do on We what average an that in devices exceptionally change. that as-needed to cash business At really least and, today, we this of reflect like to and these allows that to going they're to So and my buying our is going not manage operations specific our perception that's out us our expect continue business course, we because procedures. a And understand it we're

as purchases. is across hospital - large is would this certainly say consistent the shouldn't that still at Now do providing being that say part advantage, at But most competitive group. of that for point present, least it we delivery. supporting systems this core JIT I the is labs, particular, at toward support, cases, customer are that board, And particular office-based is large there I it's our more a this look that JIT trend our in

hopefully me please let So question. not, addresses that your If know.

referring on was Scott. should global more me, specific. to I I saying I been you have little a guys, Forgive a wasn't just level.

a wasn't field that. question any CSI, to inventory check specific in pattern. or and in Just terms shifts of differences about sorry That ordering

the It's That's right. mind environment problem. we're bit. operating all in. No I quite certainly a don't

Thank you.

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

you we Thanks. quarter. Okay. Very in update giving We your next appreciate interest CSI forward everyone. another look good. to you, Thank and

Thank you participating. for today's conference This concludes call.

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