Question-and-Answer Session
Operator
Thank you very much. (Operator Instructions). Our first question today comes for Bob Hopkins with Lehman Brothers.
Bob Hopkins - Lehman Brothers
Hi, thank you and good morning.
David Dvorak
Good morning, Bob.
Jim Crines
Good morning, Bob.
Bob Hopkins - Lehman Brothers
Couple of questions. First, of the two point decrease in constant currency growth guidance that you're giving, is that entirely OSP-related? Or is there also reduction in your outlook for hip and knee constant currency growth for the course of the year?
David Dvorak
That is the direct effect of the OSP impact.
Bob Hopkins - Lehman Brothers
So there is no change in your constant currency growth assumptions for the full year for hips and knees versus the guidance that you gave on your Q4 call?
David Dvorak
No, that's correct. We are seeing the same market that we saw when we put our plan together for 2008, where we believe again the procedure rate is mid-single digits and then there is still an opportunity for one to three points on mix.
Bob Hopkins - Lehman Brothers
But, if you look at your first quarter constant currency hip and knee results, especially in hips, it's still off about 3 to 4 points sequentially from the Q4 kinds of levels. Could you talk to why we saw that sort of decrease in the first quarter and what sort of headwinds you faced in the first quarter?
David Dvorak
Well, I think that the procedure growth that we reported out on the fourth quarter of last year was stronger than what was averaged in 2007 and our 2008 full year guidance assumes again a mid-single digit procedure rate with that mix opportunity. So, that was a fall off from procedure growth, but some of that could be reflected by virtue of the fact that we had an impact on billing days as well as the timing of Easter and some of the other companies reported on that.
Bob Hopkins - Lehman Brothers
What kind of impact do you think, like was the selling days one day and what kind of impact do you think you saw from Easter?
David Dvorak
If we put all of that together, Bob, the Easter holiday, the timing of the academy as well as the billing day, it's probably a point in our estimate.
Bob Hopkins - Lehman Brothers
Okay. Couple of other things, quickly. Do you expect the OSP products to be back on the market by year-end 2008?
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