Cutera Inc. Q3 2009 Earnings Call Transcript

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2009-11-02 18:29:12.0

Tags: U.S. Bancorp Piper Jaffray Inc., Cutera Inc., Call Transcript, Earnings, Laser, Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. (Operator Information) Our first question comes from Tom Gunderson - Piper Jaffray.

Amy in for Tom Gunderson - Piper Jaffray

It’s actually Amy in for Tom. With regards to your refocus efforts on the core market and wondering if you could characterize for us your results on that subject, there are certain things that are going well and on the other side things that you think may need some more work.

Kevin Connors

I think a lot of the focus is regarding the nuances of successful successfully selling products to the dermatologists and plastic surgeons. They tend to be more technical in nature and they tend to have tremendous expertise as it relates to lasers and dermatology.

When we’re selling to the non-core physicians, typically our sales rep is the laser expert and we have to educate them on both the technology as well as the business opportunity that our products represent.

So it really is a pretty significant change in the way we approach the derms and plastics relative to the non-core, which at one point accounted for 80% of our business. So it’s ongoing training, something that we’re committed to with our sales team and so we think we’ve got a start here, but we don’t think we’re done with the mission.

Amy in for Tom Gunderson - Piper Jaffray

On that note, Ron, do you have the split of revenues for this quarter?

Ronald Santilli

Yes, for the bookings in N.A. for the third quarter, about 25% of them were core and 75% non-core.

Amy in for Tom Gunderson - Piper Jaffray

Hoping you could give us an update on where you’re at as far as the sales force.

Ronald Santilli

I think we’re at around 30 territories at this point in N.A.

Amy in for Tom Gunderson - Piper Jaffray

And those are all filled?

Ronald Santilli

There may be one or two open. There’s always some level of openings, but right now we’re set to about 30.

Amy in for Tom Gunderson - Piper Jaffray

As far as the body contouring product, can you give us when we might be looking for an actual launch?

Kevin Connors

Sure. We’ve been working with five physicians as well as UCSF with the clinical research we’ve been doing and we’re now looking to expand our clinical understanding by placing an additional 10-15 units out in the field this quarter. So this is something that will be happening in the coming weeks we’re hopeful. In the process of the clinical investigation, we’ve uncovered some design iterations that were required in order to improve the patient experience, mainly addressing some discomfort that we uncovered as a part of it as well, some ergonomic changes. So this has resulted in the clinical evaluation taking longer than we expected, but we’re hopeful by getting 10-15 more out, it could really accelerate our ability to close the loop on the changes we’ve made.

 

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