Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Your first question is from the Matt Miksic with Piper Jaffray. Please proceed.
Matt Miksic - Piper Jaffray
Hey Joe, hey Rob, couple of questions. Thanks for taking our questions this morning. First on the hospital trends that you're seeing, you mentioned I think in the past that you're seeing sort of increased evaluations and I think your comments this quarter are more focused on what some of your customers are saying to you regarding the back half.
Could you sort of give us a sense of what exactly you're hearing or may be how that compares to previous years? What kind of leave time you might normally get from purchasing managers that they think about the back half?
Joseph Corasanti
Sure. There's one large institution in particular that we think is finally releasing the order for capital, so that's one indication, and maybe even more importantly this two hospital systems IBNs if you will large ones that have indicated that they are willing to release some budget money for capital for the second half of the year.
So I think we are relying on those three sources and maybe several others that we hear from our sales force regarding individual hospital accounts and a lot of these are hospitals accounts for the evaluation that we were completed or are in process and they are getting indications that deal's on the way.
Matt Miksic - Piper Jaffray
Okay, that's helpful. And then on spending also wondering whether you are seeing any change in either the kinds of evaluations you are getting pulled into or the way hospitals are behaving around sort of value pricing preferences for the second or third tier product offered at better pricing versus sort of the premium priced [to real end of] the market. And if you are seeing any of that first of all and if any of that does happen. Do you see any of your businesses benefiting from that kind of more selective behavior?
Joseph Corasanti
Well in Electrosurgery, our generators are priced a little bit under the competition. Though we could see a benefit there if that were the case, but I haven't seen any indications that the customers are seeking out more value propositions with capital. In terms of the video systems, pricing has consistently been pretty equal with the three or four competitors that have high definition video.
- To read the full transcript on Seeking Alpha, click here »
