Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Jon Wood from Bank of America. Please proceed.
Brendan – Bank of America Securities
Hi, good morning. This is actually Brendan [ph] in for Jon this morning. On CEREC, can you give us a sense of whether growth was stronger in the US or internationally? And then secondly, what percent of the US installed base do you view as upgradable to the CEREC AC in 2009? And is it reasonable in your view to assume the new CEREC AC experiences an upgrade cycle similar to that of the MC XL?
Jost Fischer
Brendan, good morning. This is Jost. As evidenced by our results, you’ve seen that we had a relative better performance in the US in the second quarter that has certainly something to do with the good feedback of our AC unit in the market. Secondly, the IDS has more impact in the European markets than it has in the US market. So the US market was a little bit ahead when we talk about our CEREC launches.
Secondly, the AC upgrade, do we think there is a significant opportunity going forward? Yes, we think there is a significant opportunity selling our AC units into the current CEREC user base. At this point in time, we cannot quantify how much it is going to be. There are some estimates out there from analysts that may help you in understanding what the opportunity is. But from a general point of view, of course we think every CEREC owner would do himself a favor if he would upgrade.
Jeffrey Slovin
I would just add, it was just recently launched in May and will run through August and we are pleased with the excitement we see in the field. So, we look forward to a strong trade up program.
Brendan – Bank of America Securities
Thanks. And should we continue to anticipate operating cash flow to remain flattish year over year? It seems like as if you would suggest notable improvement in the working capital metrics in the second half.
Simone Blank
Yes, we should still assume that as we said in our earlier calls, cash flow for us, also to certain seasonality, tends to be stronger in the second half.
Brendan – Bank of America Securities
Thanks. And the Treatment Center revenue experience was pretty solid in light of the tougher comparison. How was the initial uptake of TENEO, I guess, tracking relative to your expectations? And can you give us a sense of what that product may have contributed to sales or revenue growth there in the period?
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