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Sirona Dental Systems, Inc. F2Q08 (Qtr End 03/31/08) Earnings Call Transcript

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2008-05-08 07:54:09.0

Tags: Sirona Dental Systems Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Jon Wood of Banc of America. Please proceed.

Jon Wood - Banc of America Securities

Hey. Thank you. Jost, the CEREC growth of 32%, was the US growth rate higher or lower than that figure?

Jost Fischer

Now, first of all we were very happy with our 40% growth rate that we reported 32% in constant currency. We see strong performance throughout our entire region during this quarter. That means we do not have a clear big differentiation between our growth rates in all four regions that we report.

Jon Wood - Banc of America Securities

Okay, great. And then, qualitatively, how is the new CEREC user interest in the US tracking? I know the new users still electing to go with the new milling unit or has the mix changed a little bit towards the compact milling chamber?

Jost Fischer

Jon, let me explain when we brought out the MC XL, our large milling unit, we expected a certain mix going forward that would include both to be sold at a two third, one third ratio. And, while originally because of the trade-in program, it tracks higher towards the MC XL percentage. We now found a way of a more balanced portfolio in our sales. We see traction from new users to the MC XL unit as well to the doctors that are more price-cautious to the more compact milling unit. As you know, the price differentiation is between 80,000 for the compact unit is re-priced to a 110,000 to our MC XL pricing.

Jon Wood - Banc of America Securities

Okay.

Jeffrey Slovin

I will just add Jost that I think that we've seen a lot of success out there in the field with our users with the MC XL, so we are very pleased.

Jost Fischer

Yeah, absolutely..

Jon Wood - Banc of America Securities

So, you commented two-thirds, one-third is that relevant today. I know it started out more weighted towards MC XL but--?

Jost Fischer

Yeah.

Jon Wood - Banc of America Securities

But, has it rebalanced back to the two-third, one-third you mentioned.

Jost Fischer

Not yet, but we are tracking into that direction.

Jon Wood - Banc of America Securities

Okay. And then on the CAD/CAM gross margin, so is the trade-in program in the US done?

Jost Fischer

This is a question Patterson would have to ask. But from our perspective it is done.

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