Cardionet, Inc. Q4 2008 Earnings Call Transcript

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2009-02-17 18:35:21.0

Tags: Acquisition, Physician, Call Transcript, Earnings, Citigroup Inc., Term, Mergers & Acquisitions, Corporate Law, Sales Strategy, Sales Force Management, Investment, Finance, Business Operations, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Amit Bhalla - Citigroup.

Amit Bhalla - Citigroup

My questions are going to be around the guidance both the longer term and the near term. Starting with the long term guidance, I appreciate that market share is going to be the key driver for you to reach the 2010 and 2011 goals, but I was wondering what kind of assumptions do you have built-in in terms of acquisitions that may help get to those goals if there are any assumptions for acquisition as well as your assumptions on competitive new entrants and sales force for the long term. I will start there.

Randy Thurman

With respect to acquisitions, there are no assumptions in that outlook with respect to acquisition. So any acquisition that we did would have to stand on their own merits in terms of contribution to earnings. With respect to competition, our assumptions there are that the field in which we compete will have currently the existing players that are in the market, some of which are moving in the wireless and that in the timeframe between now and 2011, there is certainly could be a new competitor but of course we are very well, we are very knowledgeable within CardioNet in terms of the infrastructure required to really satisfy the needs of our physician customers and the patients that we serve.

The important point with respect to competition though refers back to the investment priorities that we have set this year. It is my view that in the future, our competitive position as the leader is going to be most secured by being viewed as our, by our physician customers and the patients we serve as the unquestioned quality leader in the industry. So that is why we are investing and as I commented in my remark, and IT infrastructure to support the growth of our business, the highest quality customer service and monitoring operation and in developing our professional sales organization to be sure that they are the most capable in our field of endeavor.

So the real question is not whether there will be competition or increase competition but it really comes back to an additional rationale for why we are investing substantive ways behind our Company in 2009.

Amit Bhalla - Citigroup

And also in terms of your sales force in the out years, your thoughts there?

 

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