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ResMed, Inc. F2Q08 (Qtr. End 12/31/07) Earnings Call Transcript

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2008-02-07 18:23:07.0

Tags: ResMed Inc.

Question-and-Answer Session

Thank you. [Operator Instructions]. Your first question comes from the line of Joshua Zable of Natixis. Please proceed.

Joshua Zable - Natixis Bleichroeder

Hi, guys. Thanks for taking my call here. Peter, I take this opportunity to thank you for all your help over the years and Kieran I guess you obviously been around for a while, but a formal welcome to the party here. Just obviously kind of the main... probably the big question that sticks out is the flow generators in the Americas. Can you just comment, I mean everything else looks great. Maybe that's a function in the motor business. Just if you can give us a little commentary on that.

Kieran T. Gallahue - President and Chief Executive Officer

I mean, I'll let Keith to handle part of it, let me just open it up. We're basically a gap period here. We've had some very difficult base year comparables that we are dealing with and it sort of peaks out in Q2, we have got the new product introductions that will be in the flow generator side, that will be coming forth, not only the VPAP Auto here in Q3, but also we are going to see in Q4 and quite frankly there is also a bit of pricing impact that was in those numbers as well. So little bit lower than we are used to, that's for sure. But again, we've got confidence as we move forward that will be flowing out of that. Keith, you got anything to add to that?

Keith Serzen - Chief Operating Officer, Americas

Kieran I think that that is a pretty adequate job of going through the explanation, the only... but the only thing that I would add is that we’ve also had some growth in our sales force over the course of the last year or so and as a result of that growth, we've had some promotions within the sales force, we've expanded some territories and added some new territories. Well, one of the things that we found is that it takes our reps about six months to really begin to ramp up to a level of productivity once they come on board, and fortunately we are at the point where those reps, those new reps that we've added are now clearing that six month productivity and moving towards nine months.

So with the refreshing of the product line which gives us an opportunity to really get the sales force excited about what they are selling and the combination of the reps becoming more mature in what they are doing, I think that that's something we look forward to.

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