Palomar Medical Technologies, Inc. Q4 2008 Earnings Call Transcript

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2009-02-17 09:57:15.0

Tags: Distribution, Call Transcript, Needham & Co., Earnings, Operational Accounting, Finance, Seeking Alpha, Palomar Medical Technologies

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Dalton Chandler - Needham & Company.

Dalton Chandler - Needham & Company

Could you give us the split between the US and international revenues?

Paul Weiner

Yes that was about 70/30, 70 domestic, 30 international.

Joe Caruso

It is 68/32.

Paul Weiner

Right.

Dalton Chandler - Needham & Company

Okay, and that is just the product piece, right, the product revenue piece?

Paul Weiner

That is correct.

Dalton Chandler - Needham & Company

And now that you have wined down the Q-Med deal, what do you expect internationally going forward? Are you looking to build a direct distribution network or are you going to try to continue to rely on distributors?

Joe Caruso

As you know, the Q-Med distribution agreement, we did it in such a way that we had test countries. So during that period, during this last 12 month period that we were trying this Q-Med distribution model out, we had only really one test country that we were going through. So we really did not disrupt our distribution model that we had previous to that. We still have the majority of our distributions in countries outside North America that are with full scale distribution separately owned or privately owned groups. We will continue to do that in the majority of the countries that we plan. We do however have some presence overseas. We opened up an office in Australia. We are trying that out as a test operation that is going along well. We have our operation in Netherlands that is also working out very well.

So on a country-by-country basis, we will take a look and analyze what might be best for particular venue with the majority of the efforts going towards independent distribution.

Dalton Chandler - Needham & Company

Okay. You mentioned you shipped the few Aspires. Were those for revenue or were those more demo units?

Joe Caruso

We actually shipped more than a few but we are shipping them initially to some of the key opinion leaders or trainers that we intend to use and we are still going through that. We are also shipping them to some of the more advance sites that are and have already been doing liposuction for awhile. The feedback has been excellent. A lot of the foreign pictures, a lot of the feedback we get not only from the physician but from the patients as well is actually beyond our expectation when we pressed out of this program.

 

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