STAAR Surgical (STAA) 2 Aug 232023 Q2 Earnings call transcript

Good day ladies and gentlemen. Thank you for standing by. Welcome to the STAAR Surgical Second Quarter Financial Results Conference Call. [Operator Instructions] This call is being recorded today, Wednesday, August 2, 2023. At this time, I would like to turn the conference over to Mr. Investor, and President, STAAR Development Vice Surgical. Moore, Media Corporate Relations for Brian

and Thank afternoon afternoon, us you, XXXX. the good Thank operator, June ended everyone. company’s results STAAR XX, conference second quarter the on Surgical you call discuss this to financial for the joining for

Time On X:XX results Officer. is Chief release The and Officer; the of Tom p.m. was Patrick STAAR’s and our www.staar.com. and today President are quarter issued press after just Williams, Eastern call second on at available Frinzi, Executive Chief now Financial website

statements in results actual in future and or assumes law, as to in well events materially Except about do that SEC. begin, from and those are update to company’s STAAR’s the prospects. that and the forward-looking The we risks let as is so. public conference numerous statements. any Before analysis intend periodic no me to as make a uncertainties plans, obligation described STAAR this quickly is reflect beliefs will remarks of actual are call, forward-looking on We fact the required today’s this the remind a includes of described you and subject could statement and by conference safe does date forward-looking that cause you historical filings as uncertainties that release with expectations, these not the statement during conference statement. judgment statements this outcomes to harbor caution webcast with press and the the forward-looking are based projections, course call to company of forward-looking call not of and statements associated These in risks differ statements. made statement This important the

non-GAAP In currency. earnings supplement we sales the for income GAAP share ICL, addition, provided per net constant corresponding have adjusted the adjusted adjusted income, and net numbers, to in

non-GAAP cataract product, its cost sales, operating refer the accounting of reported to IOL non-GAAP adjustments adjusted to related our table provision. tables adjusted margin, During supplemental assessing the future financial adjusted believe income adjusted performance. other historical the various in profit also information company that included sales, quarter, numbers the meaningful and measures adjusted are business. gross the to non-GAAP Please net and and and GAAP expenses information helpful adjusted in A tax press provide is reconciling information today’s to release. We these

brevity, all refer For stated. to growth to references unless call today’s rates otherwise growth on year-over-year

to We then any advance remarks, thank open process. line limit analysts we themselves initial our this ask publishing Following will two re-queue the questions, with their cooperation analysts. everyone prepared questions with for in to from We follow-ups.

Frinzi, I that, with turn to and CEO over STAAR. to President now And the call would like Tom of

today’s joining on call. second Brian, were XXXX. hassles you Results family everyone, am and record of seeking and STAAR Implantable from of people EVO correct are error contacts eyeglasses. which freedom visual for and ICLs, to to proprietary profitable thank afternoon, you, designed Collamer for Lenses, driven us report Thank I for the refractive achieved quarter by the our and pleased sales good growth

to the and was quarter XX% ICL provided we quarter in In up Globally, growth up Global by of second million units largest we $XX call sales procedures. the in currency. region ICLs start for on and the approximately in constant up And quarter were implant the that ICL China quarter was quarter XX% in and the encouraged sales our million ICL by were earnings refractive in peak with APAC strength of in XX% May. with units season up sales outlook up in are total as of was line second XX% unit XX% For growth for the second second XX% XXXX. XX% XXXX. in in XXXX, APAC, that driven sales second the a up were last of the results $XX.X for for ICL strong reported market. specifically,

For EMEA as the result impacted sales ICLs in our declined country macroeconomic as as environment, X to and region inability geopolitical by change. quarter, an X%, product country-specific into non-European the second well a of ship a ongoing labeling

X% units looking However, only, X% ICL of European for the up markets at XXXX. up were and quarter second sales

of Sequentially, results procedure to were relatively Council recently second ICL our which the to sales the the Europe in grew refractive volumes, quarter, look Refractive declines U.S. conservatism expected attention we well the States. reported other the second U.S. approximately as in industry certain U.S., the United for ahead quarter. sales Turning second the XX% Surgery refractive XXXX. of flat. than additional the markets Lower quarter in half in and macroeconomic impact XX% merits

new sales today range the therefore $XXX growth outlook of sales high have a our $XXX We XX%. of to a to outlook at updated our million. At XXXX fiscal represents approximately ICL million level midpoint, approximately

CEO the around business make and Since of in now world. have complete in U.S. had the the becoming the to I assessment more opportunity January, a

that implemented get EVO have stakeholders for customers helps other priorities We identify and a to adoption. our and accelerating high-performance us closer top management system

and are and priorities achieving the Among accelerate to created results. accountable we have following. cross-functional for the U.S. taken top We the the teams for are each actions have in who globally adoption priority desired

Magda enhanced Foust the focused two, are this to process, and delivering business with. size Medical faster, ordering taking Number measurement leadership even confidence making Chief Clinical, we’ve Warren our are Chief even simplifying our ICL and Officer. to customers in priority and deliver Officer; the surgeon Number Regulatory to longer EVO and actions as April, to lenses to appointing term, The related make eye. selection, company lens projects two we Affairs on do in one, Michna executives, Operating as easier our our easier seasoned top increasing to

economics. better us customers developed we favorable allowing target have analytic tools, volume three, to high Number is with implementing new and are which

questions XXX the we have U.S., in and these patient the Number believe aimed customers call and to of referral For example, a plus at consumer U.S. support better tools. most track effectiveness patient patients patient and pilot representing for We we surgeon education center call program result, in create a thereby the surgeon will leverage activities. XXX better from as and that other programs awareness Doc tailored are have four, gained investment implementing and shepherding practices customers. the mapped monitor us the closed the a center loop in better will allowing we to knowledge our answering over effectively we EVO the appropriate our patient the Finder, our and journey

I outlined, among will we as accelerate projects XXXX and actions in the EVO others, exit adoption the just anticipate We beyond. U.S. and

our priorities markets vital the in few our implications positive Our and have also will globally. learnings U.S. for

previously as and the my and I’ve the practices. time vision the impact confidence that while confident buoyed beyond. correction have their So on in well to I is is that with remain U.S. established, in EVO’s can leaders And stated I laser successful in EVO be is field ability spent discussing opinion key

The investment STAAR rationale for remains compelling.

without We have technology a fantastic peer.

high in are I to STAAR and XX If satisfaction, for do you define is an is economics who medicine lens-based olds good surgeon EVO favorable good player of the and medicine. – myopia. patient globally excellent XX year patient dominant vision indeed facing – refractive increasing as correction outcomes, epidemic

procedures in the APAC, high the on our remain largest to refractive world. expect strength company we based growth in for a region Next,

profitable, sheet. Additional are similar the And second procedures headwinds. growth the for will emerges the and we the have geopolitical world, a U.S., we largest solid and come as refractive balance we finally, Europe cash we deliver in macro from in rock market and results current generate

of will an detail like XX next-generation projects, growth outline York For in more New you Investor initiatives, pipeline and Analyst including to learn those ahead we STAAR. some that next more, we for Meeting will opportunities would and product initiatives, where in the on September significant month host

EVO several to We will also world experience. around the who their expect speak surgeons from to Patrick? have

you, Tom, good Thank everyone. afternoon, and

Before reconciliation earnings the in to want financial this I table I release. go an quarter’s through non-GAAP various additional reference metrics,

cataract we focus non-GAAP primarily business, on ICL our Please our be the both in adjusted smaller as will calls resulted referencing impact in we excess IOL reserve release have to tables I mentioned inventory we our filings, in to return and as earnings As previously reported adjustment. products. and our exiting adjustments, sales on accounting some earnings as other prior are in a product, measures due financial and This my core refer comments. prepared

product up $XX.X $XX.X to million. million QX Total net the The net were for $XXX,XXX is a a QX sales $XX in by XXXX XXXX on a in in sales increase of our net to or sequential This sales, XX% IOL in million decrease year-over-year sales a XX% included up compared million, sales adjustment, basis a sales net up sales. increase QX of ICL in or million year-over-year. other and of business, in $X attributable cataract return sales $XX resulting partially for XX% other XXXX or as offset reduction product net $XX.X XX% million from reserve sales, adjusted

products expect IOL as XXXX move and will of smaller a through taper represent business. other we this continue percentage cataract to of our non-core sales and We smaller fiscal net support

primarily product due cataract reserves the $XX.X million as from decrease also was gross other sequential to XXXX. net net sales, in for of as for point product XXX to inventory QX other of margin compared or or business. million, due gross margin XX.X% XXXX, first is of related basis and or decrease inventory XXX IOL reserve. XXXX sales, million, QX XX.X% gross XXXX the The quarter basis of is point QX $XX.X XX.X% IOL $XX.X for QX profit compared to Gross to cataract to in the net sales profit The

QX now approximately was reserves but primarily IOL quarter. our both total the for XX.X% quarter, booked the for amount additional of approximately will in margin the reserves the expect additional XX% gross margin The outlook and when driven sales million, second for the we year. QX $X.X adjusted, in and was Due full gross XXXX, by XX% to and fiscal be lower inventory

direct continue with United margins to believe beyond company related States, efficiency. When XXXX. manufacturing gross drive favorable we improve like our We we exceed the initiatives move more mix XX% can geographic combined to as to markets

$XXX,XXX to IOL the income QX XXXX to down and in related million Moving QX included our asset cataract other compared $XX.X XXXX. This impairment million for were expenses adjustment statement. business. QX million operating product as $XX.X XXXX in intangible $XX.X Total

Taking a XXXX facilities for operating million to million outside compensation-related QX of million QX expenses, The and at increased XXXX. is services and expense for year-over-year expenses. closer in to $XX XXXX G&A was look QX $XX.X compared due components costs. for G&A $XX.X the increase

will continue million quarter. per expect XXXX, fiscal approximately be $XX expense For we G&A to

expense due marketing expenses. Selling for QX shows year XXXX and million promotional shows XXXX. $XX.X million to for from and to meetings increase sequential expenses, was prior and QX marketing promotional XXXX the compared meetings. advertising expense and in trade million expense, $XX.X was for in expenses, The QX $XX.X and and marketing The and increase and to trade compensation-related was increased due compensation-related and advertising selling increased selling

physician As on before, increased along is efforts. a we said our training adoption driving awareness focused and multi-pronged through marketing confidence, have approach EVO brand with

We quarter investments such are digital can and that that patient overall returns expect we from made expected will QX, we previously. and reduce had approximately more patient QX expenses be each now million the to the meets marketing marketing our Thus, $XX million conversion seeing approximately cost be targets. certain in not we the and $XX down type thus of on investments until internal have decision and acquisition million of $XX in our selling

the to as this revisit to ability digital react flex market, to allows investment beyond marketing we us and said, our have XXXX. we the we move will As quickly

to and post-approval year-over-year EVO due million was in compared expense the compensation-related XXXX X-year and associated study. clinical expenses XXXX. expenses million increased XXXX and $XX.X $XX.X sequential in development QX to R&D for trial with and The $X.X increase QX QX Research million for is U.S.

we R&D in have look For clinical fiscal to investments training, our affairs, through QX other we and at and drive XXXX, R&D, approximately made under confidence increased now QX be higher which publications physician clinical we falls will $XX expense and as expect as medical studies. additional for slightly million

gain of in be for down the net X.X% the of are income year, booked due XXXX to approximately income $XXX,XXX of million quarter exchange as We per for expense Operating of net compared anticipate was to QX other sales, will QX primarily that item. line XXXX. balance this income $XX at or XX% slightly $X.X on sales now or foreign million, losses

our medical We the sales in and a be operating and outlook reduction now year our high-growth with the remain proud States being continue multiyear of device does for But of high we operating our for reduce marketing rare reduction expect full which XXXX cash record and year is profitability expect The track gross in partially overall for United company. fiscal in the X%. like offset and we when income. to margin generation, primarily margin markets direct investments, will approximately sales the

income as effected well today’s ICL the $X.XX as in was and information benefit share $X.XX or a related million, compared Net taking account or the in GAAP million, per other in adjustments per After net to diluted included adjustments, XXXX financial diluted our to for share. non-GAAP QX million, into income aforementioned are was of to cataract business, IOL $X.X net per or XXXX. diluted our adjustments release. $XXX,XXX $X.XX Tables IOL tax those $XX QX from $X.X product income adjusted reconciling share, accounting

rate effective profitability, XXXX, no QX For reduction valuation in and slightly the in significant due fiscal our to change now to approximately as always, be in we States United tax QX higher our will at subject expect XX% and allowance.

Turning to balance sheet. now our

equipment Our cash, The some of will as second $XXX.X approximately cash decrease of as the the the at at in $XXX.X in grows of have expect only the historically half XX, available in million full third manufacturing second receivable, CapEx capacity in the and quarter. related fourth million invest projects we be end in million the quarter accounts property year, approximately to of converted to million cash to and we is and including larger equivalents XXXX, overall quarter the in June compared to cash for should for of XXXX. primarily timing continue this Though to expansion, sale $XX booked we QX, of the due investments end $X year. which totaled

our to XXXX. to ICL As updated million range sales of $XXX outlook a for today million we Tom mentioned earlier, $XXX fiscal net

the to our outlook We ICL prior expect our in year referenced IOL to full our change XXXX outlook. I be adjustments will approximate product from fiscal other sales of due $XX lower zero flat This million sales cataract had essentially reconciliation A midpoint business for previously. faced sales United Korea, South and States, markets, approximately the economic includes results million $XX which $X the approximate sales the contribution or primarily $X for reduction year-over-year, in from lower from an has headwinds. some an sales contribution APAC million million approximate EMEA, certain an

sales QX overall and sales $XX we net XXXX, be For global approximately ICL will expect million.

in will Boston Next X. Conference week, in STAAR be Growth participating the Canaccord Genuity August Annual on

New participating XX, an Tour be on and West Coast We Tour Bus X. also will William Annual XX, Conference August August Blair Needham MedTech Coast Tom the Goldman in XX, Virtual on the on in XX; Diagnostics European Sachs Sandler Meeting August Bus on West as Piper Thursday, York. on MedTech mentioned, And and in the the Services September will Healthcare September STAAR host and Conference and London Analyst Investor

to means disclosure under calls investors complying included disclosing website disclosures website conference a non-public obligations be following intend material, our releases, for use Accordingly, FD. Relations investor to public our with in we Finally, Investor section. the our and press addition will monitor filings of should Such SEC our webcasts. information and and Regulation in as our on website

now prepared we are questions. our remarks. concludes This ready to Operator, take

from Plovanic Canaccord. [Operator from Instructions] Please comes Your first Bill Thank ahead. you. question go

taking everyone. our on questions. tonight. It’s John for Thanks Hi, Bill for

there, you’ve just – there, decline think you with think the made on. adding and surgeons? commercial I Tom. know as do hearing I this U.S., sequential commercial previous just But in Warren investments everyone’s and that just on talk seeing of which you’re what you you what flat to the ramp? from the the the you from to I of detail it about expect appreciate too, revenue, expecting know talked when those beyond productivity can maybe adds I all But is potentially CCO. could start what year, just I you focused there, most incremental detail any about but you’re also half back gave

as Yes. best hear Thanks, you. to from Bill John, and to well. our Give good

laser take we candid practice, given believe I we we street We’ve as a look, on we think inertia investments a from EVO feedback. getting move procedure said refractive United all along of just well about better talked the market. more the in in to more niche it’s putting until think, a But correction the is going time. feet market States And entrenched certainly in very new I tools the today to that analytical some made understand vision mainstream we’ve and and LASIK.

that believe the along that about all I an on create we’ve June, on we said we’re we identified I’ve U.S. process, vital projects late to we’re same XX line. very as just execute was breakthrough going can So remain be as it few still opportunities, to we optimistic and the XX-month fine. as in time and that think working

for traction. just do as not And about too. What a anticipated on good you seeing get bit patients seems the digital surprised there? converted a you the I are had are is think do Thanks. it the Is to out and hiccup like you correctly aware Because patient of of physicians it’s working that other procedure commentary become had it Great. the working marketing isn’t was follow-up, these then what in or think aware procedures that? who o-U.S. not EVO who

Yes.

of see it can and marketing off, exactly turn switch we we’re said that you beauty the what that’s I digital you some can can in happening and you again, on, And think bait along, all do you is doing. it the of turn marketplace. it, redirect

a our back us gives it we’re year we’re of is to spending this project where the loop the that this because center in example of being think really first as the half I just opportunity for I a about money. the think that time Finder. the call initiating closed create we’re Doc of prudent great more And result

to the positively to traffic know You’ve going they’re center exactly very of Doc what appropriate those direct on talk to Finder, we heard now well. amount patients. an to we’re but to what’s to to process, this treated happens a the about we’re through and us happening, understand challenge EVO going we’re interested it’s always seeing where know been patients going be And able be

being prudent So again, more to a little and we’re bit dollars. how those a think we’re spend smarter, I we’re little digital just wiser, going a little about

Tom. Thanks, it. Got

from Anthony comes Your ahead. next Mizuho Group. question go Petrone Please from

Thanks. Tom Good and just afternoon, Patrick. everyone. on Maybe one a follow-up guidance for for on balance then sheet

So just our shift walking to in range, Tom United expectations, $XX maybe the light here you actually ahead million the China total at the was million of prior through the in sort of Japan. look $XX States. It in also was performance. from light XQ revision to

we So of when it And U.S. follow-up. mostly Japan performance we that guidance, splitting little year the reconcile the deceleration the half into have the is China I’ll just between we U.S., for one are as also be taking quarterly of or and or should a well? back of bit

question. Thank Yes. you, Anthony, for No. the

I to as a encouraged really off softer. you’re right. to remarks, continue think a by Korea in see grow, Japan China little out my first will prepared phenomenal We months in lesser start. very South season. of Patrick I called prepared month, degree, think a softness, That’s in high X.X the a We the little remarks little bit his to of mentioned as particular,

show kind year continue XX% believe that of we’re But globally, again, will China company. growth. per to think I So growth a we

beyond few as think organization. on will these We be high-growth And vital execute particularly we a to continue continue begin I projects. to XXXX, that

hopefully growth priorities. always these our a be we think that execute I goal So is and going as beyond to top on line XX%

balance. helpful. the just from Alright. AR guess Q-over-Q seasonality up Patrick, the X Understand years, That’s it for $XX In about XQ then on follow-up maybe here. the I million. to prior up million sequentially, was XQ. it’s And the $XX

the two prior outsized vis-à-vis in receivables increase So cycle the maybe just this cycles? through Thanks. walk

Yes, sure. a It’s little higher.

see with No convert do the primarily We’ll into bit down has we as it Asia number as go just collectability. the Pacific. AR issues a markets, that to of with QX cash. into of quite timing in various into delivered we Some to look or monetize product that

levels in our of we’re very good across all are including good shape Inventory So APAC. there. regions,

feeling all And very so we’re good from those where at standpoints. about we’re

Thanks. I will queue. hop back in

from ahead. comes question next Blair. Kaczor go Your Margaret William from Please

afternoon, the Thanks for good guys. taking question. Hey,

but of ask that. can The U.S., so But assuming as the colleagues. that guess, to about sales flat decrease up terms of down, we you any, here? year-end, like elements not certainly, success, I sequentially the call you get about through And think the maybe math. And about macro assuming I like ROI true into me the first want as seems the is do think are I’m how that do It QX? sort the you’re maybe seeing many of center, of my trying how like one here, if to on mentioned, some you relatively expected, measures Tom especially you second, on element much you’re in we

Margaret, Thank you this the for question. is Tom.

your of think half flat year part first assume the take relatively and answer move we’re bore priorities as these to full not U.S. for we it’s to into phase. unreasonable the the question, yes, execution back an shape First, of I

business, just But as think, will time. enhanced that’s again, focus looking in on, as bear the additional they training, you I’ve think I I along, medical have I education we beyond. higher unreasonable that But clinical is U.S. fruit at going at all in all to for efforts So we take surgeon some XXXX of said not expect. think things level, on and a and going confidence driving to

that. just off piggyback of I’ll Yes.

initiatives new talked we wanted all comments, XXXX, when in bridge, prepared my think did markets as at the in traction about the So material not the to we get least on guidance. stuff getting that that into very confident put feel the it that’s And I year. the to that that having of we’ll upside some is, updated achievable And guidance and about. contemplate between guidance questions The just always, traction little of full for lot we a those programs a earlier, very, talked in the and half some the to we these because very this. But general, that our out that. do I And number. $XXX from minds, to potentially a about, you’re can outlined all the things then number we’ve see second very, of million we there account in We that get the to this million as think $XXX and a number we get said. a old takes

Okay. really mid-XXXX, That’s we’re here I’ll to anyway. helpful. And but not know then of me fair I this sitting ask in ask so question, it’s it

geographies. look And let’s number, a watermark. assume XXXX XXXX, if million, XXXX we of that line that gap see you at As going can being around to you us to XX% some with between think in get margin what’s that different gets $X we kind then second, I U.S. to of low the about what revenue exit XX%? we’re top that guess, growth the walk we through say, the as to expansion, I will Especially

So thinking how expense guys you that structure? you. about Thank are

number. Yes, The a is fair I’ll in. question. clearly It’s jump XX% XXXX a

and We’re not Day clearly coming an going beyond. to get We up. into XXXX Investor have

continue fair that say internally, to ourselves to view high-growth a as it’s think we company. I

these number that programs come I could that end putting define high And you together is fruition. we’re right. higher. that XX% that, could range the be to about However some on said, of as go of to We range that XX% as probably

we things, new people that is for more about Analyst the think Day going to we probably which provided makes our to off XX% more sense. think get the XXXX, as But provide visibility set more XX% these feel have outlook the very based at really stage September on we as achievable, said, that, we’ll as beyond opportunity to And that details I so and of I XX. so we

you, guys. thank Okay,

from Your Jefferies. go Young comes Li next ahead. from Please question

do related of share Okay. for think should can of hear, Day, maybe for you us on we Day? information Analyst I initiatives have Great. to you lot the so Analyst the wondering, by sort U.S. U.S. taking with us guess launch. you launch? a to out I can Thanks trajectory much the the you focused question. preview And longer-term of what of a was give ongoing what more expect the the

Tom. Yes, question. Thanks for Young. This the is

KOLs regions. to more believe from us join York their global these able granularity we said, at will to in KOLs we will impacting well And degree continue Pacific I year that a talk Asia their be as XX% EVO to September, leading us that only execute higher. from individual think practices. range. we XX% as some the you’ll but continue as XXXX beyond New we how We to it to as XX%. hear is think initiatives, think guidance the be high-growth this give could and both In on about we go be believe to represent will we in for company I own these that expectations not that And U.S. Europe and

come. more So I think to

in I of going already September. think are asking you discussion. it’s many will exciting to all the be answered And an questions be that fully

exciting going time So be join an I hope you York. time. New us in It’s to to make the

Great. Alright.

forward we second China. macro Pretty on the Looking just follow-up on coming strong of strong start heard to headlines the quarter, that. see out Maybe peak negative the performance in of China. to comments to a season, the lot but

of on in half? wanted on to confidence the the just point put China performance finer So, level second a

to our in-market high, support is be saw. you through there enthusiasm quality market. quality sales of and at strong that a in there having June the is of at high. surgeon high, within we’re Yes, all I and firsthand, continue is the Young. I’ve can half activity very, as clinicians. just our spent is met Again, different of activity with a street China seeing And that there July, surgeon economists the I country, I XX bullishness And the I really and team confidence felt, three across in markets that that confident extremely are level tell level as very days well of of really in level.

Tom. Thanks, Alright.

Sure.

Zimmerman Ryan from BTIG. from comes question next go Your ahead. Please

you is the you. XXXX you this update for that taking geographic questions. give with Ryan is Thank our thank Sam Could guidance? on and us unit an your new growth on Hello, for implied

many I we that, see, be that into we standpoint think above mixture don’t might the on do because slightly on unit specifics but right get of geographies, depending on a be pretty from Yes, it a ASP. little close. bit will It

or to close X% should maybe have but pretty it’s all might the higher we and than done, growth unit the XX%. it on So when said X% be

And have and China helpful. in That’s of you. how to second you How in ASPs Thanks, again. it expect trended Thank year? do well. throughout like those sounds performing the half very the China the is trend year,

sorry, trending? Sam. is I’m How what

trended How ASPs year? China have this in

price asking. No degradation. were heavy. having myself, real tell No street I if you you price pressure that’s just on holding the we’re spent price, can Again, time Strong. there what on

positioned favorably. reacting to market’s the continue We be premium as a choice, and

Yes.

a a fact Spheric Just as of we well. everyone, as that Toric one we for which as byproduct sell for well as pricing, different don’t single multiple lenses, we the different pricing have have It’s reminder China. there price and that that have customers have

into customer see for is So year. mix change we know our you throughout basically within entire product selling really that pricing, that the due to and the year. mix it’s and/or the set Any

Sandler. next Please question from Piper from comes Matt ahead. O’Brien Your go

this to any guess a the quarter Sam curve signs diopter second down moving first, bit Thanks stocking during of China about on there is also, quarter? could in are I for in a little ago? questions. our year much you compared And talk the so Hi, for the Matt. taking

I are Like inventory in China. said, the Yes. good levels

we can a levels, those much in, other make look we sure service as the and further inventory’s high season high But time frame in really we so patients procedures that we our market starts with unusual of July to physician always, – August China; meaning EVO as that is maybe implants continues through September. rapidly in terms where and season and sure QX. markets little share and to continues and It as a possible. grow – like then happens in want in nothing that increase sell not closer might our As the as to we to China user make say, to end just and

globe. an as at So we’re with we’re I comfortable inventory level the on said, very across where

And anecdotally, a seen internally, there examples now. coming anyone His I to I A United marketing to to starting that. would I is to here at surgeons offering he gained from be that, we been be has individual think down make aggregate curve. diopter relative than X minus indicated movement good diopter X.X diopters, But the down and say, going to effort or say X very a globally are and has a KOL aggregate, degree moves more, and look the we has have our in certainly about heard comfortable it of of of in would EVO more around as EVO, certainly to who in docs whole again, he above. States high is a example confidence a bigger the going that numbers.

very you And when have confident That’s give all all so you color. And updated exactly that mentioned guidance, Thank could what confidence and you that like I your in your I that to being know begin? much guidance. for does great. one question in us guess gives guess ask. updated I more

Yes.

time to talking the their I to tried And a As it a and the understand the by lot mean encouraged mainstream. these on as mindset spent opinion of technology, deserves and move I in remain south, them just be my we more practices EVO remarks, have I indicate ways are particularly in people niche better the that commitment trying to we United that into find north in continued the leaders, out key in west, positive fit we the to the to their nuances And it basis practice, world, have with confident of rhetoric, east, the but able I kind achieve here the to also and of into make help in more that I how have routine going field of position a can be States. happen. around practices to to prepared

One who that’s visions, we visual and is prescriptive company our are patients of our the in become first on choice doctors freedom. are to our And mantra aspirational. of seeking the way,

happen. that’s and our doing that. choice. not to are we on that focused first today, is We achieving aspirational the right the know the make But But things all organization goal, are highly we

comes Inc. question next from Stephens from your ahead. And George Sellers Please go

the taking refractive on need or aware year-over-year. we questions. had XX% first going any the for is else there to Good there. the Thanks drivers I idea in My be is you for something if George. is that issue, U.S. on market Is the offices of? afternoon. This all wondering a Harrison down was of macroeconomic on that

and think just Yes. there the their assessment, with happened. is in that we unusual I anything here again again, Refractive that’s And Council But noting pleased were I that XX%. in out a up States and Surgery tracks down it’s worth routinely, down United growth XX% U.S. where pretty it’s they that’s market QX not came the XX%. think are don’t is, but the we with

to it’s level know you certainly It’s wanted plans at to It’s we that we have know got not impact. level all to to in we having see. So, at going see. maybe not want are the place improve. the And we

So, I of market the it in put general, beating in laser certainly happening the what’s in correction market. our vision the is QX think when you context in performance

there, know pay medicine you the to that’s elevated willing just switching to the clinical moving curious. just better are you over are Yes, down about diopter patients spoken given you benefits it. wondering seen? for responding, then I they am were Got I curve Is China, the something that have the really And compared how that have but I and LASIK. that? that was have helpful. price to And they just and all recognizing

I premium centers is XX firsthand, at a they mean China do surgery there price. EVO-only are across where Again, EVO Yes. all

high the as at patient XX.X% So to reported, outcome. we have again, people patient see XX% to satisfaction, The previously be continues satisfaction.

So clearly, of not obstacle type price marketplace. price been has is in certain that an But our to particularly growth, an for always a overall, issue patients.

line question the of go Tom comes with Please next Stifel. ahead. Stephan Your from

the Thanks Great. guys. for questions. Hey

the guess has big given thinking maybe high levels picture, obviously But those been This if growth, I at whether you in asked. from of aspect and the these has notably penetration bit the about towards can many calls. of last focus? and really the some But financial were just profile early if back ICL And philosophically years STAAR’s year, Jumping now. a profitability, of more the more of year. sorry the step globally about expected is between very financial And Profitable all for I stages will differentiating to margin thinking on operating I talk U.S. a guess start changed is high growth side. just shifting with

Tom, Yes. hear Good to the thanks for question. from you.

we said sheet. line look, we leverage have have to want think to we masters, past, to we But and sheet, in line. to both strong right. continue grow and I to balance we have bottom a serve We want as want the that grow top balance

fiscally year would we generating some part we be preferable, first prudent and bottom balance focus is the continuing continue knew we this have profitable bottom. year. we sheet. line, our company and be will beyond. We going spend to to But about on in We be how high-growth made disciplined that high and but to of are a the to continue investments this We it on compromise growth believe

to add our a line drive but we I both, emphasis let So, more growth. little will bit on to color, but continue Patrick will top on continuing focus will be

Yes. Thanks Tom.

I continue bring ASPs. help in direct Europe, good us gross and very markets by I gross we going margins that’s see to a gross give like our little talked a bit like margins. on the the U.S., tailwind so And think to only raising direct on about some we margin our these markets overall And as of as

a investment you to sales do are at force you especially beginning, As the did our at that a bit whenever direct are we the market, little and a have know, of that new year. in market, you the you launching i.e., going beginning more infrastructure

And groundwork for laying the so are that. we

product more sure realize out will the look We and But really leading any good September at lens-based being it, make to this we a taking at really internally no continue talk opportunity have But performance. there we to Day. bottom the market issues Analyst are about here, that we to we market see line can, able to with doubt, being as some we our that we especially with in and wherever we want share share globe. drive good across have don’t

lower will U.S. and hurdles. answer may importantly let to the you ask Thanks. no confidence importantly, past, whether that pushed it. company out little market bit. years that’s of want pivot That’s States, like are, share matter I And as what can talked more crux many those of speak STAAR to longer kind in and the in achieving solve can you maybe of to term. to more But as the the problems that helpful. the level big I a it’s a kind to And ultimately what guess however picture to number But challenges my infrastructure, that. you those or main Tom, of question, you take? believe longer United doing I about Got actually then XXXX In XX% Maybe just is maybe talk term, timeframe. soon the your the foundational

the a hearts mentioned of Yes. and need Look, we I to look, is in Thanks have minds beyond as niche practice. mindset the again mainstream for their challenge question. call, the move earlier ophthalmologists. EVO into EVO clearly, the of And in follow-up many think, moving we the I

ways at. the and more enhanced as real trials independent that well education One out we procedure taking going we as putting medical do of are that investigator of is art are the on do focus of the initial that into procedure. the through And additional will looking some we a and predictability training, to science

address we some other intermediate some doctors. We to concerns of have sizes exploring heard from about the are

XX,XXX. think little that people a hands laser And surgeon, seven done first today months, has And or XX art confident like delicate. I procedure to that it’s we we that make am more am the some in learned but smarter I done than predictable have correction issues that through I become. all-in-all, more think focus have not a is drives. to I whether January. you difficult, any bit this rote need we we nomogram vision science outcomes of procedure that a whether are these have compared equates portion you on in were than little to because the The So, confident procedure And delicate to the

day keep moving that think growth moving company XXXX said, for these beyond. focus phase that U.S. keeping we execution have vital the we and few wake consistent projects and I areas, us we the forward improve States have up high-growth year, the that get I cross-functional engines teams for those forward, And every United of on now sets to through As outside this how carry will areas. to lot working beginning up a business these on our us are a

from Saxon comes Needham. Your next from question Please ahead. go David

that for the starting my Thanks working sure taking Thanks. out we up times obviously I you the be questions. as But six delivery Yes. on can I picked called on. varies. At maybe guess that are weeks, something around am ASCRS you U.S. conference,

do you done be that get So, you I front? wanted to the what how on specifically delivery needs to order can ask, to quick And think time?

No, I Yes. that appreciate Dave. question,

the said, with to have one ability product manufacture and quicker is initiatives operations customer. deliver dealing we to really of As our

are that we time. are and now, levels period doing of right inventory well beating that our extremely think six-week such I

in I think be move patient can treated, for we walks the within matter ultimate closer a let say, that’s me and our goal. a to, of can certainly more like a delivery and more as days door outcome LASIK-like where

all region? related down Thanks much. guide one that the assume this maybe that And the as that. it. Got color anymore, growth How EMEA in broader can’t so region, more is of kind or ship little million does much that us country that the $X And across then to was the relates you country, EMEA give EMEA Okay. it impact to a that to quarter? on slower

David. Sure,

would Middle think had almost have the think flat. region to went countries I the East, say, probably I suffice the would order have through, in we that if

can I out. the Not markets, So, sales said, X% respectively, but relative figure our QX. specific Europe and do X%, as and units. was and in you significantly, direct Europe, that have math up and to Certainly, in

Europe to any and numbers. across clearly, they growth will their holding add for So, Patrick color But own. EMEA let in those he the other more we like are opportunities would have I But board.

Tom No, it. think hit I

there are So, we out transparency bridging did prepared good, on and with. as is felt new that a where said the we the a QX. have underperformance before, old as And number and very we we related year of off coming comments, to record do doing what of are comfortable guidance. I part we to can big the where a up we I U.S. have we everyone my and lot guidance. and globally And breaking to lowering end But little on down the I a are as forward. take said, And to we see, bit are But put the in to feel we try give a we about think going good wanted and guidance the move

Jim from question Sidoti from Sidoti ahead. comes Please Your & next Company. go

Good questions. afternoon and for the Hi. taking thanks

want to follow-up. Just

going going of continue But You more back your you until strategy. scale marketing for up efficient still are to on you some capital you said also a figure XXXX. to you are ramp spending digital the out said to

you can XX% that XX% years? win XX% a that you that you imply that capacity does You that still think need over U.S.? couple the become XX% in – – still will to should think next So, to share market the

Yes.

that But our return spend want the are make are we said. type reallocating right. to getting making we absolutely and as be sure sales on these are want. we you clear, So, as And of are to we some clearly Tom investments, marketing, the we of

higher vital of that’s come revisit related as CapEx, think through. Jim. I mean some continue your these very observation what few we for to a now be part, and I of on will what all market The initiatives our programs this We good in to have and capacity our start we planning to about be prospects bullish globally geographies. are, these will share

are So the spending our to out yes, build money etcetera. capacity, we

choice customers and it seeking their for believe in visual EVO, freedom. strongly we and So, should the patients first be very

U.S.? this. you least analysts at have XX% But And in again, can share asked you be the think I other may a still market think long-term,

said come couple we a think I think times come some to more the growth, think now it ourselves between to I pathway get high internally Day. have and we and we we as Analyst as of that’s during there. of that and to XX% view more XX% show But the

Your next Oppenheimer. from go Steve question ahead. comes from Please Lichtman

Thank evening you. the Good guys. Tom. few, on wondering I was vital

we When of How terms the do things and of the like you of time up them about think of anticipate you about talked being implementation In sort ordering have should those? process, some running? you underway, simplifying that. projects

and running Well, now. some up are

Some year, for we of priorities of one through year QX set throughout But back which saying to for very of will us are in forms QX. solid the in tailwind half our this is in, execution, certainly, and kick every a will why and the of balance a us create this be up XXXX. going it’s various

talk of be? address? bit that help you And how Okay. And do then you pressure a the just Can field that the What do as will to a initiative point big more to little think center? follow-up. detail you on sort that in call expect

tell. will Time

regions We and it we nationally grow country are opposed to to doing a expand while together. to then going as of are we test the pilot,

a through earlier, come to has But who try center, know and certainly doc to lot area. the with more than a particular into as continuing able procedure. a with our switch of back And them ready of visibility I We now Doc record bait patients, party direct after their indicated area. lose procedures. these really call be surgical this are And be then a you taking we third consistent and that control we I a visits. Finder, they we a we visits, them happens are to go, they have is turned to to won’t successful motivation, in communicate in will their through to know track working are And to that. they and get this This find what will those think practices likely appropriate understand

then effect closed we to center. relative a spend on brand generating turning as a and driving create we can have are appropriately. so That website not this awareness, said, dollars creating Doc patients we So and Finder cause happening little people I to the again, a funneling it’s those call was loop, until

ahead. last for today from Please from Bruce Company. go Our Jackson question comes Benchmark The

I I taking if to Hi. Korea. on Japan wanted much the could my for in see Thank you due that discontinuation question. of color was get the and decline some how to conditions? of Thank to can much think the general other products, due Japan market do that Korea still you just was be and in and the you. for And up year total? How

understands that, within that that XX-Q significant and Ks, disclosures a Thanks include our we of pretty Bruce, that of it. does on it’s think breakout and important other our products Yes. do because amount our for everyone our Japan asking I

IOL. itself not As nothing you QX related actually doing Japan ICL on are are – know, we business. the year-over-year we the basically to was in up

but Japan, that that pressure, equates in And related in South have million so bit did overall, a to what to Korea, as we takedown little said, $X is maybe are that seeing a I bit little of we APAC.

it. Got you. Thank

turn to remarks. I will over Frinzi Tom back for closing the now call

weeks, you Thank many you. and look We Analyst today. for including coming our York next our month Investor at and New the Meeting. in of joining days you call speaking to with forward Thank

concludes this Ladies disconnect thank and and joining today. gentlemen, call Thank your you you. for may you your now for conference We lines.