Patterson Companies, Inc. F1Q09 (Qtr End 07/26/08) Earnings Call Transcript

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2008-08-21 08:33:17.0

Tags: Patterson Companies Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Our first question comes from the line of Glen Santangelo, please go ahead.

Glen Santangelo

Thanks guys. It’s Glen Santangelo. Just a couple of quick questions here on the equipment side. I am kind of curious about the interoper ability between EagleSoft and the digital x-ray, is it -- do you think its pretty much a foregone conclusion that if you can convince a Dental Office to take the EagleSoft product that will ultimately lead to the digital x-ray sale, is that basically the conclusion you are drawn?

James Wiltz

Yes, Glen, that is exactly the right way to put at, if you look at anybody’s software and anybody’s digital they both work better together when they were dealt to be together.

Glen Santangelo

So, I guess, in all processes there is a little bit of lag time that once you kind of get more installs of EagleSoft that will ultimately translate into some digital x-ray sales?

James Wiltz

Digital x-ray sales as well as increased e-business for their service contracts and for the e-claims and the e-statements and so forth, yes.

Glen Santangelo

And there was no mention of seminars in the press release and nothing in the comments, could you kind of give us maybe an update there now that E-4D has been out for a couple of quarters, so you are starting to see maybe some of that log jam that we saw in the market the past couple of years ease a little bit or –

James Wiltz

Well, I do not think we saw it in the quarter, but I think we are starting to see signs of because there is a lot more activity going on with seminars and doctors signing up for seminars. So, it would appear that the confusion has started to go out with the marketplace, but our CEREC sales were down slightly in that first quarter of this year.

Glen Santangelo

And then, Steve, maybe just one question on the guidance, as I look at the full year, of a $1.94 to a $1.98, I am guessing imbedded in that assumption is some sort of reacceleration to your equipment sale, can you give me a rough idea, the magnitude of equipment sales you need to ultimately achieve that guidance, is it 5% for the full year, is it something less, or something little more than that?

 

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