Waters Corporation Q2 2009 Earnings Call Transcript

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2009-07-28 11:26:25.0

Tags: J.P. Morgan Chase & Co., Pharmaceutical Company, Call Transcript, Earnings, Seeking Alpha, Waters Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Tycho Peterson – JP Morgan Securities.

Tycho Peterson – JP Morgan Securities

I’m wondering if you can kind of elaborate on your pharma comments around ACQUITY. You’ve talked in the past about standardization, I’m wondering if this is a process that’s been accelerated at all with these deals closing or just if you could provide additional color around what’s going on with ACQUITY at pharma? Is this mainly in the QC labs or any additional details would be helpful.

Douglas A. Berthiaume

I think where the most positive, most encouraging is related to those broad based applications closer to QC than in the traditional ACQUITY stronghold in R&D. We saw one particular very large domestic pharmaceutical company, I think I’ve talked about it before, I mean last year we saw a European based large pharmaceutical company basically decide to go across the board to UPLC and we saw a similar dynamic domestically this time. So, even in a time of tough instrument placements we’re seeing ACQUITY continue to grow year-over-year.

That’s largely a pharma dynamic. So, I think what you’re seeing is penetration in to those more – the benefits of the UPLC on the research side have been overwhelming. The cracking more deeply in to the regular QC side where companies have got to face the issue of how many do they change out, do they change them out all at one time particularly at a time of reduced capital spending is a tougher sell, we’re seeing progress on that front.

Tycho Peterson – JP Morgan Securities

You talked in your comments as well about some of the deferred orders for the new SYNAPT system, I guess I’m just trying to get a sense as to how big the magnitude is here. Is this something that was significant in this quarter and maybe some color on what you’re expecting for the third quarter ahead of the fourth quarter launch?

Douglas A. Berthiaume

Well, we just showed it at ASMS really the beginning of June so we weren’t even able to demo it until that time. We’re now demoing it very extensively and I’d say the customer response has been as strong as any instrument we’ve introduced in the last five years. So, I would say we’re very, very enthusiastic about the customer response. We have seen a number of orders already in the second quarter, we’ve seen that accelerate in to the third quarter.

 

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