Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from Bret Jones - Leerink Swann.
Bret Jones - Leerink Swann
On the credit market and what kind of impact, I know you said that it is in flux and it is hard to predict, but when we think about the two deals that slipped out in Q3 is it safe to assume those were more large deals and I was just curious now you have said they resolved their credit issues have those deals closed?
Mike Valentine
I didn’t actually say two. I said there were a couple of deals that moved out but there is also several that moved in. On their decision they were able to work through their financials to come up with a scenario that worked for them in each one of those cases so far. As to whether they signed yet or not we don’t comment on that so I will hold off on that until we get together in 90 days.
Bret Jones - Leerink Swann
When we do think about the credit market really I guess my biggest concern is the weaker hospital and operating metrics within the hospitals. Which segments of your business concern you the most in terms of deals pushed out or canceling? I’m talking add-on sales, poor clinicals or some of your other product lines.
Mike Valentine
We are worried about all of them. Obviously we want all the new business we can get. Specifically what we are developing a stronger radar around is the new business. We have strong relationships on the installed business side but we want to make sure we have extra sensitivity to net footprints coming in the door and we have had a series of meetings coming in the last few weeks that develop what we believe is a tighter radar around some of their actions and activities to keep them on the radar and keep us moving the ball downfield. So those are the ones I think I would describe we are most sensitive to.
Marc Naughton
I think that when we really look at our installed base probably more than 80% of that funding comes out of current operations and is not tied to a significant finance, it is part of the capital plan but normally part of the annual capital plan. New deals are the ones that are primarily part of not only an IT project in the hospital but they are doing some other activities. Between those for that purpose those are the ones to point out. As we talked in the past, a lot of our clients that are in the middle of doing a procurement and looking at some of these options already put their financing in place and once they have worked their way through the ARS issues we were confronted with at the start of the year we really I’d say getting down to where there is only a couple of deals that are impacted in the quarter that are basically the type the bond market completely dried up bodes well for us relative to being able to have our clients financed.
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