Cardiovascular Systems (CSII) 3 Feb 222022 Q2 Earnings call transcript

Good morning. Welcome to today's Cardiovascular Systems Inc. Fiscal Year 2022 Second Quarter Earnings Conference Call. My name is Candice, and I will be your operator for today's call. [Operator Instructions] I would now like to pass the conference over to our host, Jack Nielsen, Vice President of Investor Relations. ahead. go please Jack,

Robb, Good issued conference welcome are call. President quarter Earlier Officer; CSI Candice. Points, and 'XX Financial results. press Chief Scott our release second Chairman, Officer. Rhonda Executive Chief quarter With morning and Operating morning, you, Officer; to Jeff we and this fiscal Ward, Chief a Thank me second today announcing

also Investor find find copy earnings performance here of Relations our section a on website, our of may includes You you that release may an supplement on additional corporate our this details outlook. and

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

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

caused by sequential COVID-XX. to QX revenue call. where welcome prior but our continue Good This morning be the year. business to primarily increase, representing worldwide X.X% shortages a procedure performance and Jack. a we hospital volumes capacity reported quarter lower reflects related you, and to of decrease versus pressured of by issues $XX.X million X.X% revenue Thank the staffing everyone Today, another

long-term and the Omicron business, patients with recovery cases market deferrable is point dampening but accounts in caused that difficult to know We is good effect created COVID XX% and to havoc for of predict by gradually continue our surges, the more and be was temporary and the return is procedure backlog timing, wave now Omicron regained the atherectomy the staffing the overdue claudication peripheral variant that is after preparation and clinics more our to It of data exact prior that and by COVID. deemed recedes. at latest expect recovers versus these sources entire suppressed Consistent independent was vessel the we the December. acute more down arrival the hospitals impact interventions. through we a of from year. had procedures Our and this atherectomy indicate some The volumes believe segment this The news fades, as healthcare past XX% of search which are turnover peripheral from system the will a susceptible Delta the to preparation peripheral latest is to many the flow to long that chronic in on market. shortages have by vessel

and growth achieve our like in accounts, new new strong We and customers also gain QX, markets. share continue and encouraged trained sequentially all improved that our the in we to business new are international fundamentals contracts in

we market addition, we achieved in share. are some In in and sequential our that we growth QX coronary business U.S. believe recovering

in of we physicians saves for prevent every as of daily atherectomy the sales thousands practice. use in The their We U.S. and continue We cath believe force market. this we life, labs lives clinical of do to improves quality patients standard the the consistent to return imputations year. and expect the work preeminent have

throughout Our surge. latest remained our morale has strong and patients customers have diligently employees this our supported and

moment, second COVID our results will even Jeff? in our markets. our market near-term year, to we though fast adjust supported this has by and additional provide to we revised and us first expansion for details caused and are excited and progress, future outlook revenue Jeff product you growing innovative information our fiscal regarding growth provide with large a but quarter In return financial to Rhonda commercial our additional So our dynamics, guidance. expect will improving about regarding pipeline,

morning, million revenue from coronary while and the million decreasing combined result peripheral of year slightly period. was also Japan, flat coronary last the revenues were Thank the In XX% $XX.X U.S., for $X.X period, decreasing continued sequentially the everyone. Good you, while of strength in revenue the Worldwide launch in with decreased X% compared compared year. prior increased revenue results QX QX to increased $XX.X Europe. to the flat the OAS sequentially year prior a In over at to X% also coronary over year. increasing coronary sequentially prior sequentially, as XX% the peripheral while worldwide XX% prior were year. Financial from revenue the Scott. million U.S., U.S., to as grew million over follows; X% $XX.X Outside

gross XX.X% expenses, quarter. the for margin to Turning was

Net million XX.X%. $X.X and marketable quarter Embolic related charge margins also OAS WIRION a the loss revenues. Operating ended per borrowings. lower System, and and million to $X.XX last of which expenses volumes We share. $XXX in increasing was $XX.X was cash $X with totaled an margin million securities, reflect million, Protection Excluding the ISD recall voluntary long-term and of no QX our with or international about gross mix flat gross was one-time of year.

Turning to our outlook.

could February to procedure Omicron in may to mid-March. public improve this since constraints and our upon continued February. begin capacity gradually expect surge the in has sales we begin the hospital Our late been health in Based in forecasts constrained volumes began have trend by the ease December from experts, and

result, quarter. As third sequentially improve revenue the a expect we gradually in to domestic and in decline quarter fourth

to the labor less shortages, of accommodate to hosed are difficult the for expect shortages, is predict margins adjusting related growth by due Although our by staffing will approximately ending a XX% gross and sequential hopeful are and constraints consistent and sequential fiscal we will XX%, get we COVID to loss the now over to recovery To Revenues quarter. XXth, XX% introduced I million the To new magnitude turn $XXX provide revenues. guidance fourth will Omicron we do dynamics who of follows. loss period in of of year of the $XXX the as call resume million, back a June of XXXX Omicron to adjusted where timing Rhonda, in disruptive we XX% our EBITDA by range is update. to to and commercial of range will an in close, a growth. followed the revenues net be that

decline last declined and issues. Thank you, peripheral for regarding morning comments the believe will in the the and some thoughts COVID QX XX% drivers back good incidental share the revenue and Jeff, performance is In staffing half everyone. key for noted market due We XX% preparation had provide vessel year. patient declined of market and to Today, opening chronic of Scott to versus the U.S., I XX% that behavior, 'XX. entire my as fiscal

being of are As managed many periods medically result, patients for time. a longer

to our of believe customers And collaborates treated. working to that there our we patients these are with of market a need research such We recovered. procedures and believe that is will rebound. As we prepare be that a do backlog some be for

likely is side increased pandemic, the be represents the much the of recovery peripheral resilient The service OBL of progress procedures. in barriers However, our rapidly OBLs X% service is the the Throughout the procedure the of pace migration quarter. to recovery our hospital in the has increasing OBL more OBL side volumes to to are than sequentially and predict. now proven more peripheral to the and difficult continued patients XX% to where of settings of lower. volumes

share our QX. in have pleased We that since the setting and OBL are dynamics have organization market recaptured sales stabilized market the

early still are Although from seeing impact changes January OBLs implemented with on not coping are COVID, the Xst. PFS it's and we much

efficiencies but of initiatives critical drive will them Our high forms of and that volume these striving the and series are OBL supporting programs customers with care OBL changes, limb support a are and not other on to happy build they we're and focused PAD. account about ischemia complex are that of

that will transcend XX peripheral been patients will trained increased we new training resources the based adding Our the OAS In future support, and new to users in XX on initiatives reimbursement new competency peripheral and has quarter of J customized program assistance care and of volume successful Customer adding IFCs education assure changes are clinical $X.X we physicians accounts new our and the our Sales the balloons. U.S. management, and physicians, effective programs, claims include a at QX, (ph) of OBL following adoption efficient procedural in our launch the core and other setting. million always and key outpatient for future CSI, pipeline education, accounts. in inventory pricing to focused

opportunity per OAS PAD ramp to fiscal going X. our the expect large (ph) approximately this case contracts number We the given significant January considerably of our launch U.S. and per secured XX% a X by our J balloons the income significant quarters, $XXX end and to are to increase revenue of effective year. in into of approximately next represent to

Turning to coronary.

U.S. This $XX.X IVL an launch up is of important last X.X% grew step million. revenue Our coronary coronary the to sequentially February. following

the fit are is in a cath year, close, the a where algorithm. past heavy to with of lot labs resume lesions that treatment multivessel eccentric nodular the to calcium, IVL the in of and stenosis, as [indiscernible] as atherectomy for would a we their device our labs business outdrawing began coronary Over see treatment and driving trialing use trialing of cath disease. intimal and And rebound

are encouraged customers we use consistent standard these course, daily our that atherectomy typically the are their practice. and to of in OAS are clinical returning cases, Of

in to our working customer XXX high XXX new forward QX, coronary a and began look with training XX training we products. serve new in complete and of certified are We the users over atherectomy. in for utilization seeing to physicians continue months by ahead We certification these expanded opened the to coronary their In the and excited enthusiasm the we accounts demand U.S. fellows, are

growth. strong remains future and an important of pipeline indicator is training Our

products opportunity During since offerings. million base QX, the this relatively the In and over a here period. OAS $XXX product more We our $XXX than QX, was for of quarter. prior sales make our we we was every continue still coronary in group product of new, customer sold. roughly support flat $X.X This to total, but is with higher sold of large coronary year products have were aware support

pressure portfolio coronary compelling clinical ISD controlled PMA States. pattern lesion approval, rate launching This to [indiscernible] process the $XX following in the in coronary our data will States adverse safe a facilitate stress continue United of and and highest believe creates to the of and local balloon plaque instant market be a a We balloons recent NC indicated expanding and dilatation novo and in received. well are one ScoreFlex the also ScoreFlex ScoreFlex million has represent balloon the NC growing NC is the for modification. we we scoring the are Scoring FDA de by in United U.S., the restenosis. backed

Turning to international.

pleased to $X.X QX international results with revenue growing We XX% with million. are our really

strong training Europe. in to and with to accounts continue and the continue share our Japan demand we competitive in for over strong atherectomy in gain international track countries in on We X certification physician progress ideal QX, to coronary Like serve in and markets. U.S., fiscal our and during remain commercial coronary year-end. over interventionalists launched U.S. the certified XX XX by countries We device be outside we and

drive back COVID fiscal During several revenue expect of in OES strong we despite we to adoption and growth the continue new launch countries. half 'XX, as

with FY our progress on revenue pace pleased now $XX to new 'XX. trained, turn accounts, new strong product back of and are customers we of business in strengthened closing markets. in fundamentals also We $XX I'll over new And the launches. recapture million new share international course, QX, strong gain In million our call growth to to with in Scott. deliver the contracts and in for we're

you, Rhonda. Thank

are a are but which by operating defined performance we obviously QX. our environment, We by in COVID dynamic so really in is encouraged very

Rhonda, with leading heard outcomes very of many on just of from you favorable a our As lot indicators.

we really chaos, delivering progress efforts company and despite all opportunities, the making into So a great and transform have strong to our some consistent in multiproduct, growth. do CSI capable we're profitable multinational of

while business, to of expand a we and continue orbital robust core new we our protect forward, will grow Looking globally atherectomy products. and portfolio develop

launch U.S. to customer will serve quarter, ScoreFlex new coronary also and pVAD pipeline procedure the products some next an drive progress scoring I'm to the plan of to MACE, the first a be includes the treat balloons in In drug-coated coronary in-human noncompliant Last our that knee, crown microcatheters representing report larger orbital line the expand great in products the on happy market, and vessel of mixed X.X expand the PCI And announced balloon coronary next balloons will revenue year, the Over which of and large Longer including applications, introduce peripheral will for the which we're chronic and our for our per launch really and fastest-growing above everolimus and peripheral a soft drug-coated atherectomy. IVL base, each And use fiscal artery will higher near the disease. vessels total high-risk the innovative we programs. segments making we for that plaque we of offering the first accessing we balloon. these experience XX term, for several to term, for occlusions. months, in coronary is MC, coronary the

development Our And with fiscal treatment development clinical an artery several team trial for and and to expect we announced coronary milestones recently, peripheral experience IVL R&D disease. that this year. OUS in and important later the the recently we of device our our of conduct for pVAD first-in-human balloons most device, completed preclinical

you total we've assembled our think over impressive billion that $X.X $XX can in an platforms the today market diversifies growth from see and addressable our that I expands about future. billion portfolio So to

to growth asset CSI patients have disease. greatest continued with and We a people, thank challenges of have will business execution strong product of I'm also pipeline. our and continue near-term our our transform during employees their will exceptional all to and this and resilience I in time. while I the your we in progress our support deliver like like continued you extraordinary leading our we overcome your CSI, would our would that for we a CSI innovator to to questions. cardiovascular team, to confident restore at of thank we interest customers for is CSI now our take great become care we the to patients as in made

you. would please that So would be Candice, the if Thank you instructions, great. repeat

[Operator first Blackman Our Mathew question is from Stifel. Instructions] from

line Your is go Please now ahead. open.

think about a of you've guidance quarter about competitive range got that a have I've few here. start, Maybe headwinds talk you thought then Can in couple the how mentioned just environment for times just maybe second versus and fiscal little new the the regained quarter. you share you quarter couple competitive of a a you in and follow-ups? in the I the first

Yes, thank Matt. you

most the we sequentially our that quarter-over-quarter. I noted important in you made grew improvement where we probably business, coronary think where is

trialing our the to and IVL that at those early and of beginning of procedures accounts accounts least of are in a trialed close think those launch. say really let's We in seeing about that drawing now is recovery in coming also our to that many to are We I our pace. IVL accounts back in the see normal really balloons is now a

closely continuing regular news device educating to adopting about with also which on we're so excited atherectomy that, there. we're as are proper orbital great them lesions the in our that seeing our physicians of to a on basis, work job doing the and organization good a and to is returning our results So customers, use

we in second we the this of in improvement year. I think that as see fiscal forward, segment to do expect half coronary continued as look we,

to before, launch knee peripheral. as IVL potential some the the have talked for competitive of as relates headwind continue are, we We about we it segment anticipate to above in the

a it Although second IVL segment. If the follow-up we course change large That haven't the haven't ask addressed if we the and think amount half. a that may over will from I a please fairly a as but of Matt, addresses don't will of think your it on muted impact we've that. fully be now progress days just ATK I competitive but it early think in seen we that impact, got question. is a be the it's does, dynamic it, time short large in

Yes, P&L mid-XXs first the you'll full year think guidance Rhonda. And guide our hit no you back I on in margin Jeff appreciate you in the it now in margin, it. to gross Jeff covered for I'll one Scott, the mean don't the, squeeze then for what's think, maybe fact called quarter. that at get I XX%. I the one

is margin maybe on kind any sounds upward for we a next think sneak about or as headwinds And one that. Rhonda this then year. supply pressure you're like costs, on chain, gross that into volume half like all fiscal the large, it So maybe in timing bit back things seeing slip the of

later I think saying previously this fiscal year. were you

as hear we plug-and-play appreciated? be to commercialization large so think going get retrained right. I that of did So the And about any to commercialization's re-certified, just would that have is that Thanks. accounts help or front on crown the

gross for question thanks margin. Math, Yes on the

at of half range the in just lower back As to provided will of the it that really, get kind in a to here the original of volumes, kind half bit guidance back we because and be and normal if really that little be year, the that's of that we to we we this mid-XX lower would we volumes. is difference look point. compare all the volumes If is back

And question. for the Matt thanks

timing the calling vessel on large the MACE. for we're So, at X.X now

that's and FDA going the with closely very working really we're expect, We well.

approval later quarter. to the We have in expect actually

of timeframe. FY for kind So, kind 'XX of that be early launch timing realistically, will

think to degree with I a you we to But that's and launch do a And status will a procedures, we of I with as us plug-and-play. will I going which say, will are really it's there. give So it out handles, straightforward into about that mean, atherectomy train device. market that of procedures XX% when access yes to educate our existing there. be the update think always work course huge ATK

Matson is your Can Michael. comes now question re-register Co. Please Needham line question. to your there ahead. your and you Unfortunately, Our -- in is question ask go Michael, from next no I audio Michael open. please from

from Securities. is Chris from Guggenheim question next Our Pasquale

Please open. now is line Your ahead. go

Rhonda, talked economics your U.S. customers have setting impact in OBLs reduced the do the there help underway What with majority about the accounting that of you with expect initiatives some to incremental to advantage OBL cope take own your guys expect help efficient. more now PAD them for you you to become they to on as have assume be time mix. the of business. Should stable and or pressure even volume trends discounts able like pricing you as we over do maintain

Thanks Chris.

difficult to to rate, digits, OBLs will mid-single our and past. there erosion more pressures And growth typically. now our expect OBL return seen in had that I see the seen strong been continue. consistent note fairly most that anticipate that pricing segment we would has forward. that going stay always to We've good pricing that think you've continue that the I we'll and likely I would the actually to in

the should update timing we or market. How just to path WIRION you getting can that what's there? the after think product about then to recent And the back recall, on Okay. builds the

still that Yes, is to the on so determined. a bit timing be

about we're recall back -- or have just the of complete completed with in now terms We it just the devices. bringing

And do and in timing better be retrieval be that, we sense be that to used to of then our catheter as assess give in procedures. we'll making that a of some the improvements quarter. We'll device. you better next will will probably able place improving be a We

from question SVB Danielle next Leerink. Our Antalffy comes from

open. is line go Your ahead. Please now

I this Rhonda, more it for you bit rationale would a more I opportunity, just more a competitive market large for strength MACE a little ATK is Is Scott, question there you portfolio, on I also higher been product. assuming, about growth the color you competitive, think a the just breadth had guess the into a then Do this and color in the little so love product. but appreciate question investing more have it's a positioning. on and I of would behind maybe than great? be your market

OAS constitutes question, a the mentioned in ATK atherectomy today. typically better comments currently today for to about plaque. Danielle this mean we have soft much that's do of in mix I is XX% large access with my don't I we But procedures plaque procedures, a we'll it as market with that appreciated, perform Thanks and morphology new device earlier that and and treat

to to efficient launch it going it's with to forward looking it, and does it it for actually this existing handle. market, be with pretty we're our get a So develop leverages existing us really work new platforms our because

that really standpoint, a a access so market. us for from way really cost big And it's to effective

market in is perspective thanks you're anything more -- and we've for just prep prior patients What to even I for has to general to market things. note to here that hearing the that, things Great of expansion vessel then IVL's market what curious of seeing? that. the for trialing on complicate the you And just prep COVID and be our IVL guess that there into least. the then question close you regaining you're hear your things, Rhonda seeing getting diligence a to undergo the is now but are you accounts share. in or from expanding Okay, to know I Scott, at been this of on been due side a maybe that seems from coronary vessel coming one anecdotally,

Danielle. thanks Yes,

definitely seeing expand IVLs the We are market. most

past. broadening not are they calcium maybe in a think that completely to customer different has historically, treated group the I

the beneficial that even having severely making and the efforts be placed are calcified also before lesions calcium and always as are those that of the calcified actually evident market is stents case. awareness raising and that a impact should been think on moderately I hasn't treated it

recognize procedures as more of care an lesions practice, Having to them clinical the in treating beneficial. physicians and very also the other things severe coronary less that kind their where of we expanding calcium, we expansion said trialing I improved and we centers community stenosis practice. So and which will a market what daily adopted that, more think understand of now hospitals close into expected. they we're expect of drawing for own been of This of think areas. we say they intimate are severely definitely come happening a seeing interventional to which seeing have to individual to all need beyond has standard use lesions lesions these out, and awareness, calcium come or which particular and that -- as across the let's their see And they continue one and really cases really physicians that tertiary calcified in kind in lot strong their IVL's and come nodular practice will there's is treatment do a also indication of is market a cath to is high atherectomy degree where labs where be back continue to that standard I that but to returning well. in are is lesions use more the that expansion done of And do

of to the continue news head us, we good expect now year that half here. second So see we fiscal for into and as our trend

Our question from Matson comes Needham and Mike Co. next from

Your ahead. line Please is now open. go

detail around could customers of some was the I more one the some move it concern on reimbursement So OBL lower changes. maybe to have to lead I incentive that wanted guess I increase on for comment follow-up cost that, the in Rhonda's can that that's the to just but provide did out which setting, mentioned on pressure some putting Is think with pricing, past value-based something you? this products you You talked there? you the I more OBL some price about have additional there.

price I putting on Mike. No, business, additional don't it's our pressure think

where we management to X select that wide to I with expect do do including support And ago, years of noted you about partnerships this based deep pricing provide developing and based our labs procedure recall, to we programs. see and volume and continue. changed support office we just that approach a inventory labs, began think range we and would

built So expect think you place, they that those base I see initiatives kind that continue going in forward. have and of been can into our to

the So fundamentally been the our that one probably month, I fairly would changes I are of of the in salary, customers model labs that business we side not reimbursement based encouraging course don't change that deployed to say that over us not that the office of have really a envision will past that is has to hospital the OBL things on salary. they're on service.

So practices. is to OBLs towards to expect customers And they how what do at higher their and determines challenges. month-to-month, volumes, we do stronger thus how far, volumes the their procedure driving in return see pricing our And as responding a that least performance achieving Omicron recedes. is are they're to these

are in to in there of happy early And that and to about are any efficiencies their make them really with it, we're striving the same on really we well alongside deal them them positive right think and January, Omicron at work don't in working happen at they improve will that the but indications help with labs challenges. here to as the I said, Rhonda But increase customers As their volumes as back they working time. this practices. with relatively the challenge office-based least overcome pricing these that are coming as

on IVL couple I that And there. just you're a the had developing product news then a --

understanding commercialized. guess, first in X the product human their my getting took it from So sharply to years I about is

talk one, that of us peripheral, or XXXX you a any way and go fiscal versus maybe are So imply can other? does then, coronary the both sort about after you before on, can to to there is launch like comment And you to going just accelerate going that. after

Mike. Thanks

'XX. pursuing and 'XX would probably coronary late both anticipate balloons. to or occur be early launch will our FY IVL peripheral peripheral We We FY

XXX(k) out, you peripheral from being market. human approval. XX have a made And that second this into the months a of is first coming And note we to let's now now. the timing recall approval say of from that So the benefit XX is in of course,

as to be working but coronary with approval get on the trial requirements, we that be we'll we launch. coronary be that what the FDA. 'XX approval you United important is FY earlier than they for for The approval clarity requirements segment. are greater 'XX, see a PMA States FY the We anticipate about coronary what And We as FDA see then that clinical the more specific able we will now from in before likely being timing will that and would may that, launch know U.S. outside as the that's

from Suraj from is Kalia Oppenheimer. question next Our

open. is line ahead. go now Please Your

one So questions, than your Jeff is XX% for the guide the lower updated first Scott, approximately original guide. either or for couple of so, you

can of as IVL we the this COVID pieces So versus calendar the we different and impact of give remaining a quarters put year outlook structure can you over that us X the the relative breakdown together? so

are you thank Suraj, the question. vast and that staffing shortages and is market impact Yes the labor for that the related impacting The Omicron shortages of majority broadly.

we as and February. think I into January performance look early at now our in

we than a are see past, March slower will January what's if slow staffing market last their we of April, and recovery there commercial fairly seen we actually in timeframe. a be largely that from that dealing when was patients that shortages recall we anticipating hospitals were in that are not the different gradual procedure do will mid-March our cases rapidly volumes, and are the high patients these the due first are some doing expect in acute then year and impact that. reduced beginning most severe backlog see the we've in many the claudication, list. seeing are treatment restoration you've with And end of the that will of recovered after that triaging treated. As of to It reporting, frankly coming They're probably priority find normal And We this and arriving you activities had and many there. back of cases heard we is what we year Omicron. outbreak, on fast, that with hospitals intermittent companies markets and in cases

patients the would segment intermittent in that will that expecting are have a be recovery peripheral that we hospital and in So gradual result our and claudication. slow largely

our that staffing the that quickly take staffing quickly. is of anticipate naturally for think addressed not have we some that we shortage conclusion point at more the We to may particular, more going if Omicron going that this to to impacting wave the, say So is and improve. that of evidence recover. in resolve rapidly, guide our though, this some if is Suraj or labor the this time shorting to the is there shortage strong think guidance are that's is would -- that don't recedes hospitals shortages basically I these rationale

hope I in your question. to that helps So regards

Got for then Rhonda I'll it second X or question. is you question my just it. this Scott, position and part

i.e. to Scott First, done your site, catheter, because And per imagers the deliverability ability can issues us extent questions. I'd give of targeting color about you'll limitations again of current an IVL is you any catheter, are the approach, second are talk it attribute you could that being thing what get to disappears? Omicron you share? once independently is leverage you to or specific on taking for that love this in cases just Thank in can percent pulses platform. my number on the -- are per idea of these terms Rhonda size your or competitive the what

so Yes, cases, conducted X/X thanks our Suraj. about are our of independent. cover about cases About X/X we of X/X

number the pretty That been has have the to reduced our we past Omicron reps as and have really access not significantly. by of easy Now course months. couple our accounts had impacted over of

covering not of X/X we're So this cases point. at our

sales during and help best back. been where to working exist, the to customers we when them understand this our customers backlogs identify these with have getting how volume really can issues teams There our prepared and closely this very many comes interacting with if However, our collaborating hospitals. time in are

For others been just got get support atherectomy say they patients We've in train the or treated part example, and the we intermittent coronary treated educate labs, CLI so claudication to techs, manage network that and turnover have fair there, frankly lesions. know have cases with the or care that that to in, orbital workforce. cath how in we've for seen those in that being educate or of to amount a let's and that are of cath back train technicians particular labs support got

support fact the they organization a and sales training customers we our organization to us in that new outstanding as and turnover dealing they're cases conducting educating So well to are staff our that provide the substantial very field have positions but these actually also their with experiencing.

place comes So in through be a before, this. will to if good to and done this manage back with deal it it. I think, we're and prepared well wave We've when

currently the of the attributes yes some product IVL address the will the IVL, terms competitive of the limitations are that in In market. of our of

launch, talking We addressed the Operator, closer be that for ready in addressing I commercial key as that but you -- areas to quite be product. will the get about next need that well, we areas question. will we're some think articulated of I in that to that the think more our be we

our -- William from next comes from Blair's. Vazquez Brandon Our final question comes question

go ahead. Your line Please is now open.

I on I just color ability kind be would maybe First the market's could position treat the I that in. OBLs that it. the about of to staffing it talking follow-up wanted a from shortages the to you that be coming around statement? backlog. impact we're like that to seems here. a know backlog source a can that this think is appreciate guys And so, alleviating in of if benefit kind fair good might backlog, of maybe backlog

that could benefit kind or as move a the that of we be or is guidance then, not upside little is in and curious, statement that of fair baked kind the through potentially year? So a

barriers to lower. because the the there to their back ability barriers I the largely more their are usually care patient volumes quickly, -- quickly do and much Yes, are think that increase bounce OBLs that

happen the see office-based So Omicron March our then in see recovery guidance that And we timeframe. current may are some sites We that that through all that XX anticipating we after really labs. in service will of begin. nearly impact the will impact

I across the will United be think States. asymmetric this geographically

other more rebound labs South country Florida, of the than the we country. see Texas where office-based prevalent, more the are may in those So quickly office-based the say, parts labs parts of that let's in,

Brandon. an follow-up Did there another we're most on you that prepared So question that have is definitely address to and that? opportunity

momentum that. one may international where where into of delayed seeing and It investments to the bit growth to separate making follow-up starting the color little have some talk markets you're in you next No, the obviously was will guys you're for a that did kind on your for the the market there. you quarter good there that drive I COVID to like you're that toe the a about international, dip but Can seems be was that this markets? looks just It international XX months? where early big and first international in appreciate back XX like a while.

for that Yes, thank you question.

Our the course international even over nicely been X past growing have COVID quarters. actually the, despite markets the of really

pleased really we're outside United share atherectomy with launch taking other coronary we're of from IVLs, as the So in business the taking from segment. our where we well States are share our devices mainly

focus the outside we United coronary in So principally States.

Europe. launch Japan in our We share and have in really gained strong

also progressed Europe very coronary launch has Our in well.

countries countries. and this year, So we XX we we expect are launched of about will the now get in by to end fiscal XX

for to So that and daily Train it have this circumstance we where them it adopt and in their and orbital the this marketplace before had now of to benefits with into a use educate has incorporate of they technology customers the their practice. never engage able there. atherectomy the access technology, a we're here on They care patients. is our see

about excited there we XX% And year-over-year with we're very strong did quarter million. about So and this growth about that. X.X

fiscal about and be which growth would to $XX not expecting to having strong that segment our there. would million $XX continue and year probably done revenue of that very we're obviously international our to are million on us run lead We rate of in this business

to forward going to business our expect and continue continue We new as there. these we grow launch into that markets

Thank you. at questions waiting time. this are There no additional

So to closing for management the team I'll pass the conference remarks. over

Excellent, to in another everybody look our your you. thank you forward conclude CSI. for update very much, that, you we'll We call. quarter. Thank next And interest continued with thanks and giving

That conference today's concludes call.

lines. your disconnect now may You