Cardiovascular Systems (CSII) 8 May 222022 Q3 Earnings call transcript

Good morning, and thank you for attending today's Cardiovascular Systems, Inc. Fiscal 2022 Third-Quarter Earnings. My name is Austin, and I will be your moderator for today. [Operator instructions] I would now like to pass the conference over to our host, Jack Nielsen from Cardiovascular Systems. Jack, you may proceed.

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

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

on and outlook. you find earnings an performance Here, supplement that our may also includes additional details

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

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

call. for you thank and the everyone, morning, Good Jack. you, Thank joining

I team at I started, CSI. want tell to As proud our you here am of we how get

difficult and teams through outstanding our conditions. field to clinical under customers our QX, we provide Omicron and and patients During support persevered support for continued sales

with volumes manufacturing January that largely Today, our we our line supply deliver QX February. were and we reported results performance, and by on continue to unaffected Omicron hospital impact the teams in challenges. supply that into are and outstanding in addition, had chain procedure expectations, global despite In and chain capacity

Our our March strong international exited we QX some U.S. remained and the throughout sales were momentum the encouraging in quarter. as sales with

quarter, the sequential compared a and XX.X% decrease prior QX to million $XX.X the X.X% revenue represented versus For of worldwide year.

noted past duration resulting severity and year impact have the we throughout and the visits the volumes. Omicron the on an Delta had As in previously, of have and outpatient decline procedure outbreaks enduring

we the and patient by but small Although is have inflow we manage a and referral backlog, only believe turnover. been OBLs the COVID-related to negatively has hospitals into of capacity limited there shortages impacted visibility channel, the staffing

We calendar the slowly flow of we are staffing year. during gradually through backlog to accounts expect the seeing our cases the remainder and improve, of

our customers We in strong the to for new are encouraged and the operating continue demand business Performance statistics new like quarter. demonstrate exceeded contracts trained metrics our that in key products. our expectations

support our incremental addition, traction devices continue and In to revenue. drive gain

quarters our expected is as and This Europe. adoption atherectomy of to the We important in device are early Outside and in our we continue to Japan the like geographic as of NC and new we an peripheral coronary for develop line pulmonary announced coronary the lithotripsy and full intravascular and as deliver multinational robust about formidable, areas this we support notable U.S., markets balloon, into open that Scoreflex expect we and the driver disease traction coronary and ahead. the our aspiration devices expand excited third growth for mechanical to treatment in accounts growth momentum quarter, demand achievements and continue to our as gain scoring the balloons, new several emerge vascular more markets. business We peripheral new footprint international embolism. initiatives multiproduct, had well strategy a transform a growth to as enter to company. thrombectomy continues CSI in of peripheral In

also the the PCI experience We developments largely and about optimism us is for a excitement of that clinical enhance that give balloon. the will believe pVAD of growth and portfolio high-risk our peripheral just device new sense the new first potential These in-human are of few products underappreciated. significantly completed this the a patient and care We everolimus future. our drug-coated for

CSI as we our now are Jeff that Dr. To is progressed, design care a clinical new well Officer. the As for patient increased Medical programs. extensive initiate programs. clinical and we practicing product in as research rapidly conduct clinical cardiologist Chambers several pipeline activity, preparing to joined of recently our Jeff this has as has experience prepare research new interventional Chief with announced

with patient Jeff regarding financial safety, results. Rhonda our additional and into addition In research Jeff provide Jeff? now and information will expertise infuse lead of you medical Points commercial But third-quarter our affairs areas regarding he our our organization business. moment, all will additional will details clinical will In to provide progress. a medical

Thank had in in you, significant Omicron a transient February. on procedures but causing performance morning, impact our Good and a QX, large Scott. everyone. January reduction in

in we X% and revenue QX QX. to result to revenues as for million. sequentially U.S., Europe. the X% began revenue worldwide sequentially were Financial of Japan to million sales. XX% to peripheral million. continued In However, increased from a follows: in strength coronary in $X.X decreased XX% $XX.X coronary decreased revenue nearly coronary sequentially Worldwide $XX.X U.S., as sequentially Outside March, the experience an improvement decreased results

the expenses, impacted for to revenue quarter. margin a volumes were XX% by Turning Gross margins primarily lower was mix. to and extent, gross lesser

materials of on well positioned are We supply and components. the

this we about increases at on will $X.X our focus inflationary and million, material mentioned, be year. offset by and programs. any reduction which $XX.X expenses no than continued in that chain Operating expect labor million was issues we supply currently costs As last cost totaled time, Scott lower have material

research. strategically million clinical invest and to or In development. QX, XX% invested product continue and in we revenue research development We of in $X.X

and million in securities incredibly $XXX with marketable the tremendous and our We strong remains sheet gives execute ended growth to and no balance quarter flexibility strategy. cash long-term borrowings. us Our long-term

staffing in outlook, million, we sales X% of Turning growth to represents are shortages, from COVID projecting be which assuming sequential $XX hospital to gradual headwinds quarter. $XX and the our no and QX between XX% a new million U.S. third to improvement

adjusted fiscal net to X% June a to for result, As is revenues gross XX, loss guidance a range revenues; a margins million in year updated XX% million; of XXXX, and the $XXX XX%; X% $XXX ending our of of in as range of follows: approximately of revenues. of to an EBITDA XX% loss

range provide to staffing the on the for now Rhonda, to the turn hospital shortages account capacity. related impact continuing we While decline, I update. procedure call will we provide uncertainty on commercial from the of who anticipate are our volumes COVID wider impact to guidance will a will over to

Jeff, in COVID and morning, you, shortages QX. and factors Thank related continue our staffing business the good to everyone. be influencing primary

the We have hospitalization procedure COVID and infections in are lower translated reduction that now improving into encouraged rates in March volume.

However, And the of continues workforce to and XXX employees. procedure labor of our OBLs, nursing support trained in technical shortage the QX, accelerate constrain we In healthcare to hospitals training turnover staff. the and volumes. in are support we new and our deploying resources

calendar OBL continuous somewhat offset coronary modest by impact encouraged In has environment environment, expect increased COVID to improvement setting. by of in improving begun competitive year reductions including access competitive in the improvement of seeing and volumes believe this We and XXXX. reimbursement the and see course the been the stabilize. we're dynamics market coronary, a the procedure in have pressures we in to Improving do cath staffing over are we labs to

growth by had staff versatility IBL alone, ATK now are metrics. of our have by setting, the and to physician continued received doesn't diffused and OAS for an our atherectomy. but outcomes reimbursement OAS The recovering the our peripheral, remains We our as with QX. in mode cases value In customers favorable fellows disease. the demand training as OAS lesions impact or physicians, high multi-vessel on In business morphologies, all stenosis, were has calcium it XXX of in teams. dual achieved using and in certified heavy in evidenced hospital appear our orbital trained trained over QX action And long

small were Our hospital we increase and ASPs. volumes with even had in flat QX,

Finally, was ATK, BTK our previous case with in stability confirming consistent mix. quarters, procedures mix of

XXXX to QX fee physician on reduction OBL schedule had the our volumes. a small impact the However,

in market. OBLs the We few with have clinics sporadic several disruptions observed reducing and exiting a some their volumes patient

outpatient business OBL mitigate volumes we near continue procedure In are the our of will do now treating domestic high-volume OBL stabilizing, and In term. forecast to focused. in patients technology our support customers challenges our total, in sites OAS enable to trends, is complex that customized program, QX. expect where CSI Although growth help CSI sequential pressure these resources the reimbursement segment and under the we to launched of remain has developed anticipation market

guidewires, to ISDs, drive in Turning we support with and to progress angioplasty continue incremental growth strategy revenue balloons, catheters. and coronary to make our peripheral

During $X.X also continued to the QX, is were products with which support sales increase representing XX% of in of million sequential QX, products, incremental compared from an generated we $X.X device coronary pleased revenue In sold, of plan. of sale peripheral peripheral growth the $XX total, ahead revenue quarter. million ISDs. OAS per our We're in support in the coronary

for strong continue the Sapphire balloon microcatheter. demand Teleport experience the We to and

product the I'm In QX. $X.X are physician we is Scoreflex to in U.S. launched growth. countries that in scoring Like U.S., our during business markets, poised very the serve XX% strong U.S., QX, demand share million. balloon excited are received. we launch Shifting two to and in and Outside pleased believe the we recent of our certification coronary NC And resume the training about addition, to sequential the the OAS international continue well to we being we to more grew for

and need technician into get cases. additional and the addressing support cath are for rapidly to labs are back and excited staff we We training,

Our expanded training has pipeline significantly.

trained that and without from access our have have expect COVID. will product that we complications We now new accounts new to customers

to the Scoreflex will like guidewires and we and add New leverage co-launch our to growth our products of balloons, catheters. peripheral continue will

products that forward. We will these adoption support to believe continue strong going experience specialty

to Scott. in in several new countries will plan to international on to the countries, OAS XXXX. strong track up fiscal to XX approximately expect revenue $XX bringing growth now call I our We launch We revenue our and remain we over continue fiscal by international, turn in back us million year-end. to in deliver

Thank you, Rhonda.

of to combination combined 'XX, business, we procedure the sequential growing international expansion believe recovery close to get we fiscal revenue base and allow us with our our ISD will in sales growth. As back

our many same these to contribute growth ahead, drivers 'XX. fiscal of in Looking will expected

revenue higher we of including growth we the and and respect recovery anticipating to we international benefit peripheral With adoption support wires, in new procedure. our products expansion. to are launched, atherectomy core ViperCross ISDs, recently We devices, increased Zilient business, as JADE from drive per from our catheters, continued expect product COVID introductions the balloons,

of In adoption addition, an the balloon driver important the in coronary. growth be will Scoreflex

Finally, market, we the for fiscal late in our launch Max CTO ATK will launch and we X.X portfolio 'XX. to the plaque in mixed catheter expect

to gain Our international traction. franchise continues

We are to on XX accounts pace countries XXX and train physicians open over in fiscal 'XX. new in

physicians in X,XXX fiscal international OAS enter approximately will countries trained 'XX We over to and use XX with sales markets. in

initiatives 'XX, you analyst and event briefing I early like 'XX IVL fiscal and thrombectomy broaden expand and will employees Beyond to are in-person or in our in track launching and for fiscal resilience And and as pVAD as remain the take everolimus interest headquarters the to CSI. We great for launches thank our our if 'XX, new your of you CSI please Propel available customers we progress on next in in here pleased to products Details value the I that to we and the fiscal your In we in hope pipeline. patients. Austin, now and all making our years. support for will continue exceptional five community and we commercial 'XX you. our $XX Thank over well our long-term will will our questions. would 'XX. Clearly, as DCBs we drivers. be appreciates join of announce instructions? closing, both in deliver thank expand ensure would our I'm our of continued at virtually. addressable we near-term to product soon total, host the repeat tenfold for these their that you continued billion products August to markets like Minnesota. play, have a fair us and tremendous fully investor a by to number to would In also will

Securities. you. is Danielle Thank first your from SVB [Operator instructions] question Danielle, line from Our is open. Antalffy

have good an that for Thanks Hey, morning quarter. And to much taking team, question. impact everyone. Scott the so the continue in I COVID and appreciate

a of of from quarter the are trialing I there think headwinds that perspective. comment guess that lot You guys not you in the going helpful? things, competitive I Was side also to specifically an in on a the Anything does be quarter? messaged -- you can last would -- on. coming continue But end competitive coronary that was competitive not coronary the into landscape on

thanks to the business. get our Danielle, annualized. we that are a think competitive back, for now drawn question. dynamics cases our the The And segment beginning We have our coronary we're a seeing do market obviously trialing in we've to has stabilized. close, and coronary rebound in

the So coronary. at we're results this in by point, we are seeing encouraged

expected. was there But how sense of so so of Scott, quarter it coming in anything are Was to exactly granted, it. more the get rebound case more have or quarter, got maybe in just prolonged? Was quarter, -- and I impacted in it results think some of the limited half the makes not different more didn't rebound has Omicron Omicron a better CSI's to And the there? as then feels impact just far diversified that something it reported here? Just that something I'm happen makes quarter? this in the companies the that. Okay, do susceptible quickly, companies, to is there back about lot happened trying business other than the the that curious, like is a with early it and they're

of hospital in and deemed be of peripheral, chief Yeah, officers acuity our administrators think to the medical because these I in many hospitals. by is lower in cases particular, the

January So that the really recovery experienced was in and early we our about probably February perhaps to mid and trough March. deeper began of

momentum that didn't didn't February, and So March of exited we've time an recovery. will I of month that continued. with we amount said, we extended did have we the as that -- we that, say real not for have month has of have

claudication for normal So hospitals back to that, they're more normal procedures and and result, get as environment to to operation a back enable ameliorate see cath get the arterial perform really like in of as we we're staffing lower think, acuity more we to a beginning encouraged we the some these caseloads. And -- I returning think shortages issues peripheral for continued cases market these will company. disease our of by that. these And labs normal, as some seeing are labor

OBLs. there. not just on Okay. what the -- And lot presumably thank are those you a impact I Omicron there's of needs the the treated. you Like because getting procedures shift for that. One still Are more peripheral still guys parts the get seeing patient mean, to done? hospital moving but and quick for the to one the to patients and/or are of they

getting So OBL? so treated what's them they're Thanks to not much. happening at if the

I for will think OBLs patient that return to the ultimately the treatment.

of sustainable. environment. potentially continued As some hospital, did the we The that, managed see is will really ultimately results, think size And that's peripheral arterial our be simply disease in look we too by shift to don't epidemic this office-based we hospital great it require labs. adoption but the the at QX to and

we're expect office-based that to we settle beginning these be segment And an Rhonda site seen we that down. that to some But continue think important in see turbulence fact, out, We see of So to turbulence as care. in have changes. reimbursement stabilize. pointed due will that labs to

a over which back So is the that the then get we that couple of course see months. QX, pace. OBLs we next in think will happen I think more will of normal And to our

you. Thank

Thanks.

open. line Needham Our David, of from Company. & is next question is David your Saxon

you and said the you a COVID-related Scott, small said remarks. question think backlog. in a the was had for morning, I I questions. good prepared taking Yeah, something there on thanks

more could size Just or wondering that if of to of the you and help kind it the us about think peripheral coronary? is mix, exposed

Yeah, thank you that for question.

of business generally, of claudicant that, as and the peripheral our turnover. to is affected a That I And is referred considered think segment previous at population that that most look business. our is that that I in patient staffing be by we also really we segment backlog that in what shortages the is in question. to small our

begin labs addressing a we begin that normal to them our that pace, to cath return expect of some rapid don't a probably we remainder the as expect to backlog to expect more calendar over But of this that So do recovery. backlog. we be will through flow Rather centers, year. this

that the steady the by are and shortages there, this So recovery it a and really more these use out temporary see staffing and we're clients we'll operating be real. back and this constrained Hopefully, are will across gradual get labor And very seeing procedures. of said, to to temporary as improve hospitals I the -- standard that some of labor-related like more country. continue somewhat

consensus it of Okay, but that’s a into low just a range, And kind least. the growing range wide at 'XX, midpoint looking teens of of fiscal I mean, helpful. fiscal 'XX, then has the guidance off to it kind

of where of your around. easing, just And to still consensus some kind headwinds I reactions want sounds hear sits? to like initial are but they're So it these

about So, 'XX off to how either 'XX? think should fiscal growing fiscal fiscal we back or of going 'XX

Thanks.

are of excited fiscal we're at think environmental beginning easing. to we you factors COVID Clearly, staffing recovery as indicated, as ease look and some about I 'XX. the

the We a the year. think really us will The launched portfolio ViperCross that be near-term market. product our in continued our means achieve the we catheter we And going used well pipeline launched And be think launch us. to probably the with JADE next as coronary very do that contribute segment growth, Zilient strong growth NC is our which peripheral will our should Scoreflex products consistent atherectomy believe low that and we international combined as at. with with CTO can to double-digit our help our system, Our where orbital peripheral product ISD and that for consensus we've is us. That above-the-knee and I X.X to drive achievable will growth. rebound in be for expect and Max important of and growth pipeline range

then super as in just that quarters, And as products the helpful. of last key Okay, that’s me, from question are partnerships. you've development well announced over last couple

that. see but to the I'm year, this wanted get most love guys just on And your excited I hear front-running So maybe you product later thoughts there to would about? I what

for thanks Yeah, that.

kind peripheral of favorite. Obviously, bit think it's as probably excited would look your vascular indications. as that. intend at longer future, hard significant year and drive I that little for -- pipeline pick now, we we're hard the retrievers, potential I the most And to say But the speaking our device, we well really clot maybe it's We 'XX. aspiration to particular has to your like our a about as growth our it's start a children. launch devices in from thrombectomy thrombectomy FY looking use of about about at our near as than

we with through that And Malibu to the have sales peripheral think focused chance our that have there sale So Laguna peripheral launch and device pipeline retriever. where the aspiration reps our a to excited to XXX products we're of about on we have product customers. our we a great channel,

in and time. potential of mechanical the for to of think, probably growth great out devices, really support already our rest we have the to and look we two segment. IVL, over drug-coated circulatory So strengths And quality We're really our pipeline, near competitive exciting us have I term. care The also as I a potential our to balloons, tremendous in commercial our improve that products. drive has our of bring think at going and very lot that

will success I pipeline, is CSI future. our that among competition, forward impressive really and for unrivaled position great So going the think that's in a pretty

so Great, much. thanks

Our next Blackman from line Mathew, Stifel. from question your is Mathew is open.

for and in Thanks taking chime Maybe my everybody. just morning, to Scott, start, certainly bigger picture question, as question. Good well. a Jeff

great balance M&A or revenue but just whether contributing sheet increased. Obviously, thinking position in today? a how curious for buybacks your Just you're appetite the about has larger

end? follow-ups. your with curious I'll balance just sheet have And couple from Just a your are of thoughts quick what on the strategically

for thanks that question, Yeah, Matt.

good think healthy sheet, think company borrowings. debt, have our feel balance no I our We long-term about position. we no position, cash very a very strong we with about a

of thus access We commitments do We an have this also far, we want have need pipeline the that you needing to line to to launch two and at basically or have year We cash of the think have we've add extend toward looking do the the the don't anticipate made, extensive drive that the it. products. of and that? to execute company this that credit. new on based you course to these investments plan Jeff, we anything as an product through we the next we made

add. to nothing No,

Scott think I covered that well.

And first that. of ISD, the appreciate couple then, ISD peripheral Rhonda, on, the for I portfolio. a maybe questions you

think and like updated if quarters, of rolled been I I but you in your quarter, you I had that prior something think -- this had XX% it apologize accounts. said to out

Is that on more is skewed Just about or it now color any out is any to we other? if the follow how we're way that the Is where expanding versus there balanced? growth the at ramp the the upon way account so specifically, access, Thanks. then higher? be it what And helpful? and peripheral ISD just any that existing Just tease think is portfolio are accounts? customers gating much is, update metric there one utilization it increasing on to of seeing factors would

really exceptionally Thanks, most Matt, kind and the has They've of our well. JADE for the been PAD, balloons. question. out roll continued ISDs focus Yes, the received to recent we've big, been

accounts new what? we existing where may big OAS today. access of really in in not has and accounts we've The terms considerable access, the is that just been which a accounts up an both contracts new number know exist to focus opened You United States, can placing that OAS of

results pleased really that's rollout is, of and our been customer the focus really the the so And we're where with and reception.

had. I you That’s very much. all Thank

your line question is from of Steed Securities. open. Travis, Travis Bank is next of America Our

the on was staffing mentioned lot A hospital morning. good Hi, shortage.

business impact the that's think your probably on now. I right biggest

sense the for because hospital if a a know quarter, it give -- $X just done shortages, million. if don't wasn't these general for $X you've staffing million more you this I If have you the of quarter would trialing staffing some as to the quantify in business those numbers? And to impacted any impact hear how much to well. degree. way I sense IVL the love

Thank you, Travis.

sure shortages the some greatest think said our put indicated did staffing we number as competition, business impact QX. have it to we for on on really this from did and had see we Rhonda prepared COVID but for the impact and remarks, in us, Difficult a also at the and think some COVID, I I reimbursement. in see some impact from OBL from point,

and our not annualizing back come OBL COVID you, continuous while said, now, see in And strongly. away I As competitive OBLs volume. improvement schedule, The in customers, that But fairly exit driving in would physician we was some a OBL coronary, time, stabilizing overall, the course this probably a has that some largest period they're some would We turbulence cause indicated expected impact We coronary year. it see and the that continuing in their impact, coming we're amount short may may of Competitive we reduction did tell over we'll they're occurred. that's far said, see that reimbursement, think as think market we some as and although our the the as we that business again, them increasing market. have fee shake fact, see impact the for efficiencies, impactor. rebound they're of lower market. in Once that when we I QX, And I'll that even think we'll in happy, of will out. see utilization. that the we

beginning disease. to would seeing would categories, probably to to cases more would of a and our the returning we environment and identify look think orbital think These I we that improve. those labs now, the as do say of atherectomy coronary but there's competitive particular, coronary believe improve, that cath this their this there's calendar regain I be the back there's to our we year, three will we're where And are seeing we catheter is degree also that of we for where position where also to that heavy for are going macro -- So continue in where where those I the intimal in multi-vessel circumstances are it patient. calcium, remainder high utilization normal coming stenosis, that QX

most overall, about are we think future, headwinds and I this we're these beginning of think, abate. at the So, optimistic to point,

little some next that comes more much reimbursement On pricing the the happening turbulence changed? as to back that color is OBL year? confidence mentioned it a you later Just of that. ago after on the word think it's Like into I exactly of you exiting reimbursement, get a you just is mean, what's expected three guess you I and some ground, that on sure months market. the impact don't like I used the are bit just on impact? making that the kind quite we curious have to any

some this QX in we our that Well, in seen, we from that business. to it don't I to really is patients indicate hasn't did experience want really think don't not see it. impact -- are where this. that the overemphasize to to It's impact did certainly, we is anticipated going But change headwind change and Travis, degree. that OBL It business a a in to I fundamental this we've treated. of our lead impacted

the quarter, growth. to the particular, OBLs continue stabilize as we of segment. now, course in work get out think will coming we'll this in growth and the I more think our through during to And I normal continue OBL see back to

for the thanks taking That’s questions. great. Okay, fair,

Travis. Thanks,

Jayson open. is is James. of from question next your Our Bedford line Raymond Jayson,

questions. a just morning, few Good

exited to with you just that business the mentioned fourth Is guidance, momentum You see I'm still which down is growth? quarter implied wondering, tough, trying but fourth-quarter the growing the with reconcile year-over-year? just year-over-year. I'm did Because in March is momentum. you the comp comment

So maybe strength if comment detail the in you could March? just bit in a more little on

had Yeah, in daily seen in February. in what the to Jayson. you, our the we is there average sales March really improvement Thank and reference January versus

would we not as we're and comparing fairly March. said I January we that the say recovery we that strong as from February, quick. did rather momentum into trough business I a said, So in in like experienced, I exited was that earlier, there. pronounced saw but our year-over-year And we fairly have, really

quarter. mentioned in didn't the or And it 'XX? fourth impact greater have just side, this expecting the you quarter the on you an into and either a peripheral reimbursement IVL Okay. impact Are

before little about that just next a We said bit quarter. market data as -- we've quarter won't by, datas just over until lags on have a share always

able So we'll is more there shaking About but revenue impact our mix the market right the to of I mean, -- XX% from to half give how of segment. a large really OBL. is from that roughly share above-the-knee comes case. the now that visibility XX%, to any see expect be don't our we in recall comes out, that

when been risk really XX%. say, look IVL products launched it's to you related XXXX. of These to, than the the since less have at exposed So business segment, is our that amount let's ATK

trialed. because while. out things been there really seen don't they've or we for have like that products that had a the been trialing We So elsewhere anticipate might

are complex are we in the will stage, that may the utilization It increased care traditional market. patients at but be be We that hospitals it continue monitor So it. think the less of cases. in hospitals this see we'll in that some to outside atherectomy may

real when see a we market data share and we'll actually in the wait Let's quarter. see what about happens

Okay. bit the The net P&L. we expected. And me was than better loss for on a last one

on you'd initiatives, you're the levels R&D You've got at point specifically When the a pipeline you globalizing look spending 'XX, line? in lot fiscal anything business. of out

be to and just continue true XX% move kind as kind we of comment will would 'XX. forward. for to FY That expect I be XX% of of to revenues Jayson, R&D I would that FY 'XX

Okay, you. thank

Thanks.

from Our is next Brandon line question from Brandon, Vazquez William open. is Blair. your

get kind could new within Hi, a factor there? a you everyone. does of those And back it's you a to keep deal What environment. a taking for to these like wanted the extent guys of growing accounts help help little talked -- bit question. little program volume reimbursement with of these rolling differentiated Thanks of with you a I help little I about for about do maybe kind remain support you some circle bit curious talk know and what was then I seems if that these to OBL guys headwinds. of to on kind accounts those can through headwinds? that bit. guys. maybe It a

that Yeah, CSI given I'll core our program the that increasingly value of focus procedure really laser you, market is sales terms team in about can finding called OBL. really volume-based Yeah, do something our take question. becoming have is that in and they can and Thank that's the differentiated and what on bring it particular, our in and clinical uniquely increasing expertise We contracting And peripheral that before, important. our we're talked in it's the Brandon. obviously efficiency.

very large be to needs OBLs We’re going patients. is of the treat tailor that offering this And in management they our particular, customers, it's a that complex to and educational again with. of that help dealing just and the we so focused with we're and We're of services a segment specific to staffing are, our resources, that treat on turnover. really inventory offering collection patients OBL programs

so evolving. and and continue it expand going grow how we program And to more We're is. as to further about this market learn what really that defined that's is

what's thrombectomy peripheral, in coming pipeline little bit some maybe talk the early, value meaningful months. guys and into do you Got given it's positioning it, within in where about next drive add the those the too already opportunity, to have then what offer you can to strong a that competitive And some So product you but if XX presence of be you. the these a kind adoption? devices out Can you of from in to market, can already? products, -- would can side we’re a When thank think you do are a -- you you there XX there? on come maybe what not, where out the you

sense some other provides delivery enhanced in It force. really developing product out it We're that in with The novel cell-size a clot question. you thank product Medical. very radial our for products retriever more that is comparison partnership a that there has a of developing in to system. the and the uses design. laser-cut we're uses really the thrombectomy large low-profile The Yeah, Innova

So the and it. grab really enables retain it, this retriever clot, to remove really

advantage present some will competitive think we market. features, those in the So

strong many We the segment in our already in sales hospitals also, that's of are in commercial care patients reps And where peripheral of these being treated. strength cases, course, certainly also have some very the in in present. already these and are these settings are cases

rapidly developing take that into well the of very we're to positioned bringing market to move products this really we're advantage to market. and and So

we're excited thrombectomy. the about in So opportunity

if question the us Thanks you taking coronary peripheral for in, one diving just I Great. could sneak And any color can [seasoned] back question. give quarter? last a then modeling and in

is quarter. hospital. That yes, Thank and ASP what some regarding was just very pretty in and stable coronary question OBL actually peripheral consistent ASPs Oh, saw very historically. would we're both both in we in with I steady, the Again, say you. ASP erosion coronary. space. the we'd The peripheral in seen that ASP

Kalia your from is Our final Suraj it's Oppenheimer. from question, Suraj, open. line

Good Hey, Scott. morning, everyone.

in softness the matter, more coronary, it for concentrated was concentrated? even geographically that or So account that for U.S. matter, peripheral,

I'm muted. but you're sorry quite Suraj,

you that business concentrated the the impact asked question on think geographically? the had was coronary, for I

Was related was more to certain I -- more you account-specific all Yes. or hope hear softness geographic-related right. more Was can it me softness? it it

was January completely think in and business the I No, our early was it by February actually really in coronary was impact Omicron. and that impacted really

the did that Our I've rebounded, coronary well strength actually quite indicated, segment. the along with but as in coronary And in continuing see rest March. to of business we're business

characteristics terms it there centers our had that any think -- were geographic unique of or any don't in I areas. So our

impact generally our from in the think I was Omicron performance the that QX. influenced of more business it

my yours times environment what whereas reconcile terms taking Any stabilizing a Any How additional Scott, a is, it. a to comments you competitive for related on concentrated of appreciated? example, implied Got competitive the maybe I trying understand it environment -- Scott, multiple guess little usage, would final on is could ask side. Scott, outlook, in push mentioned one I differently, you the in this. your do you if trialing, And, from of terms and call stabilizing the for concentrated orbital IVL use? I'm additional relatively be is breadth greatly a of color about for questions. atherectomy? just the more for my color? IVL Thank of function you to with

thank Yeah, you, Suraj.

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we're now, get reps there for staffing they train to can shortages, these say, these sales back more really are back patients. we standard with are turnover our what caring to get the able is sites in staff. and enable to a presence business we COVID, the It's just normal some the to what's I the our with work and well, Deal about normal get really labs feel Those into reduction lab. cath to track, that's let's And procedures where of educate of of that As return let's things address to, of was coronary that more and procedures on at. really in good it's combination the say, the us as cath think the back seeing. impact combined two enabling

doing Our to forward. and is supporting team customers, great coronary continued in going our expect we a job progress see now in

you. Thank

Thank you, everyone.

next you and thanks our joining call again quarter. Okay, Bank We America Conference the look forward Thank at updating of do Austin. you, on many also upcoming today's call. thanks for to you and everyone updating of

So thanks everyone. very much,

your Systems Cardiovascular Inc. the participation. third concludes XXXX quarter earnings That Thank Fiscal you call. for

may now disconnect. You