Spectranetics Q3 2009 Earnings Call Transcript

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2009-10-29 00:19:08.0

Tags: Loss, Call Transcript, Earnings, Spectranetics Corp., Sales Strategy, Sales Force Management, Sales, Seeking Alpha, The Spectranetics Corp.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from Amit Bhalla with Citi. Please go ahead with your question.

Amit Bhalla - Citigroup

Hi, Good morning I wanted to start with couple of questions on the VI business. Guy was wondering if you can go in to little more detail on Quick-Cross. I know you said there is some new product launches that impacted the products performance, we were looking at units down probably about 11% quarter-over- quarter. So can you describe the impact that the share loss that had and those for little more detail there. Thanks.

Emile Geisenheimer

Good morning Amit, this is Emile. I think I will take that question. First of all as I said in prepared remarks we see two effects on our sales of the process solution product line which is you point out as led by Quick-Cross. The two effects are some from the product introductions from competitors and two, an overall decline in procedural volume. We call that Quick-Cross, the place that have a guide wire across services or conclusion so that they fairly can be delivered.

And it's used in the majority of peripheral cases. So, we see decline across the peripheral space in the quarter largely we view that as a seasonal effect of the summer brunch. So, that's a big part of it.

The second piece is there were new product introduction by EV3 and for see this reserve areas large sales organization and a number of those accounts have traditionally used in a quick loss than we expect that there was some stocking of their products during so they could be tried.

And we see the trailing of the -- products to quick losses to something that will take place and thus we can estimate loss probably when loss share view although we anticipate that and will be considerable comparing pressure. I am will point out that in this category, it's a very low cost product and relatively expensive case. But, at the total procedure cost is slight higher relative to the cost across of our back half there for crossing wire. That reasonably called the product Quick-Cross, is it gets the low cost very quickly.

In a delay in the case as the material adverse effect on the cost of the case, so we think over time, managers and purchasing people who recognize that taking the risk of a delay in the case to say what about a few dollars per guiding capital is not exactly the economic figure you may see it as at the beginning.

 

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