Cynosure, Inc. Q1 2009 Earnings Call Transcript

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2009-05-05 09:49:16.0

Tags: Call Transcript, Sales People, Earnings, North America, Cynosure Inc., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question is coming from Anthony Vendetti of the Maxim Group.

Anthony Vendetti – Maxim Group

Thanks. Good morning guys.

Michael R. Davin

Good morning, Anthony.

Timothy W. Baker

Good morning, Anthony.

Anthony Vendetti – Maxim Group

You had mentioned the sales force you had in addition to total reduction of 25 that included 10 sales people. Can you remind us where you at in terms of the number of North American sales people?

Michael R. Davin

Yeah. Our total distribution in North America sits at 44 now, Anthony. Of that 44, 5 are management and we've 39 Territory Managers.

Anthony Vendetti – Maxim Group

Okay. And you talked about increasing the cost savings at an annual run rate of $14 million to $18 million that was up, I missed where that was up from?

Timothy W. Baker

That was up from 2008 actually.

Anthony Vendetti – Maxim Group

Okay, okay. And in terms of what you see for the rest of the year. I know Mike you had said, you see a glimmer of hope, I was wondering if you can quantify that in any way, what gives you that glimmer of hope is it March and April kind of activity or anything in specific?

Michael R. Davin

As I mentioned in March, we did see an increase in the uptake of orders, the credit seemed a little more available although, I will tell you the credit is still a major issue, it is the most significant issue we're having especially in North America, where we have doctors that had good to excellent credit scores not able to get leases for technology. We had a number of orders that came in that we could not book because the doctors could not get credit. April, I can tell you was better than January, but as we mentioned January and February were very concerning months and therefore we are happy to see March show signs of improvement and so we are hopeful that as we even saw yesterday with the stock market behaving a little bit better and maybe some confidence being restored. From the consumer that were going to start to see some momentum, but right now we are still very concerned about the lack of credit availability to our customers.

Anthony Vendetti – Maxim Group

Okay. And can you talk a little bit more about the Smartlipo MPX, now that you have these new additions the ThermaView and ThermaGuide, how much are they sold for as the package with the Smartlipo MPX or separately?

 

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