IDEXX Laboratories, Inc. Q2 2008 Earnings Call Transcript

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2008-07-25 11:37:11.0

Tags: Idexx Laboratories Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question will come from Ryan Daniels with William Blair. Please go ahead.

Ryan Daniels - William Blair

Couple of quick questions on Catalyst, John I don’t know if you’ve been able to track this yet, but I’m curious if those people using it. If you could comment on the use of the consumables i.e. for your earlier doctors have you actually seen increase utilization in consumables and then the second derivative of that if have you seen a decline in your outsource lab work with them given the ease pf use at the point out here?

Jonathan Ayers

It’s really, I think too early to draw any kind of conclusions with the parts of utilization. There are just a lot of moving parts there. In general, we do not expect there is supposed to be particularly shift between in-house testing and reference lab testing. What we would like to see here is maybe a growth in overall testing just because of the ease of use, but I think, to answer your question its just too early to be able call on any trends.

Ryan Daniels - William Blair

On Catalyst it sounds like maybe your thoughts now are a 100 or so less than you may previously though. Is that just taking more time to make sure the software is upgraded appropriately before you get it on to the market or anything else in there particular that’s bringing that down just a little bit?

Jonathan Ayers

We are in the controlled launch process and the gaining factor here is the positive customer experience with every new system installation and its important platform for the practice, it needs to operate consistently and flawlessly and as we gained early installed base experience we have some improvements in the software, in fact we are going to be releasing a new version of the software in next week which will take that up notch.

Ryan Daniels - William Blair

Okay and then on the Feline Triple you’ve mentioned successful early launch of that. Can you give us a feel for how many of the feline assays have been replaced or shifted in the triple and then maybe any color on. If that’s leading to market share gains or at this point it’s really just kind of upgrading your existing customers and distributors who use it?

Jonathan Ayers

We have a couple of 100 customers who are using the Feline Triple and I think it’s basically a one for one replacement, our Combo product is used in roughly 20,000 practices in the U.S.. So it’s a pretty widely utilizes, that the way that to test for these feline diseases and so we really see this as a one for one replacement.

 

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