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STAA Staar Surgical

Participants
Brian Moore Vice President, Investor, Media Relations and Corporate Development
Caren Mason President and Chief Executive Officer
Patrick Williams Chief Financial Officer
Anthony Petrone Jefferies
Andrew Brackmann William Blair
Ryan Zimmerman BTIG
Jim Sidoti Sidoti & Company
Bruce Jackson Benchmark Company
Call transcript
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Operator

Good day ladies and gentlemen. Thank you for standing by. Welcome to the STAAR Surgical Second Quarter Financial Results Conference Call. [Operator Instructions] This call is being recorded today, Wednesday, August 4, 2021. At this time, I would now like to turn the conference over to Mr. Investor, and President, STAAR Development Vice Surgical. Moore, Media Corporate Relations for Brian

Brian Moore

and Thank afternoon afternoon us you, XXXX. the good Thank operator July ended everyone. company's results STAAR X, conference second quarter the on Surgical you call discuss this to financial for this joining for

Time On X:XX results Officer. is Chief release The and Officer; the of Caren p.m. was Patrick STAAR's and our www.staar.com. and today President are quarter issued press after just Williams, Eastern call second on at available Mason, Executive Chief now Financial website

about that begin, and company's the prospects. uncertainties risks the we let is forward-looking or reflect events to statements. STAAR by well obligation as future SEC. any to Before and the me analysis make outcomes a and plans, to quickly statements as do STAAR's described actual is beliefs made will remarks call of are call statement differ materially from the not on We public fact statements. The release, assumes of this remind intend no law, to a those includes date you in cause these are in with that in as are risks statement the and call conference the forward-looking press required results Safe and that periodic could you historical Except so. and associated today's that expectations, the filings statement with during update this statement. in webcast the does conference the uncertainties this caution forward-looking and forward-looking based described projections, to course forward-looking conference statements subject Harbor company as actual not of judgment statements These important This numerous of

helpful supplemental constant information in have is these are meaningful we to net the today's numbers non-GAAP addition, in and historical future information and in provide and assessing release. table sales per non-GAAP performance. reconciled numbers, adjusted supplement non-GAAP GAAP the GAAP information We income press the currency. believe adjusted A In earnings provided and share to our included that in

the initial follow-ups. our from We two to for call re-queue remarks, to line with questions, to ask would will this Following thank \s. I Caren President Mason, then CEO limit their like analysts we everyone in the themselves now process. any prepared of with publishing with We cooperation And STAAR. turn over to advance that, and open questions

Caren Mason

Several was education which a implant patient to the popular year-over-year, for we to held reported drove afternoon, began the XX% Brian. joining marketing My of $XX.X busy record XXXX results U.S. of of North we team surgery world, to continue China This with to XXXX, prior APAC Germany up XX%; XX%; of us XXX%; XK the promotions, event Korea, free visual our you again the Xk markets demographics. half levels everyone, and for in in running significantly of and STAAR and and XXX%; off accelerated in largest growth quarter. organization Sports The Thank up our from compared EVO record-breaking amplify you XXX%; further million. once XK for marketing innovative run, of ophthalmology the spectators. among run commercial refractive as by XXXX the sales as XXX%, momentum tremendous with company surrounded the market the our lenses the India of year-over-year first Oriental Shanghai. supported on our East business up runners on particularly markets reported thank growth you, Middle brand an and quarter eye up second season for EVO to strong resulted distributor ICL EVO new, consultations, unit three global our the growth of globally Africa We thanks This media major levels to which South XK, available for for our our glasses In up campaign of achieving message to at XXXX, entire in already us in in theme. call and more designed robust and up net Spain call. were in and up all of quarter advertisements XX%; second the the including customer Today XXXX. than in afternoon the Good campaigns to up elevating supported million by marketing those distributor season of up All up largest the quarter the we today's year and results manufacturing in onsite our Center mall-based EVO second told, to and weeks the Japan, earnest video impressions, China lenses. with up ICL China, XX% and up had was led European markets second co-branded where the June. campaign, ICL including half the industry awareness In kicked first awareness campaigns. freedom game exciting the marketing One and outperform other exams XX%; XXXX. increase quarter target second all with XX%; the unit quarter we XX%; customer averages globally, in and

implantation additional plan who have surgeons Our China or our to to increase benefiting is also capacity. train business of rooms for ICL additional many create and EVO operating customers created

several of LVC refractive that EVO have of and maintain Evo new will premium offerings We laser at than associated unit previously the year removability, differentiation year-over-year correction and As our the to pricing per ICL of excellent discounted China, as are lenses focus lens surgeons of and eye clinics offer in the move dry vision their surgeons goal The at only an stated despite procedures our our Spain second a We providers technology, clinics certain by no benefits clinics opening their EVO premium name revenue least with that ICL the their lenses now observed. operator deemphasized with syndrome, second lens-based Spain only levels which In clinics WOW! there for units we during lenses fact and due surgeons premium being example, growth and in a anticipate we to business XXX% forward. globally five of five family EVO In vision allowed greater Visian and levels to on contrast, each femtosecond quarter. just greater record-breaking increasingly night has patients. procedure. sold EVO to the few. are achieved quarter, companies observed

targeted surgeons During define Regulatory conference Technology approval attended first terms surgeons’ of as us In serve that California. well our of They also Octane in education, the implantation outside our the continued rollout and many practices OC quarter, commercialization. Meeting for efforts we generally towards U.S., in Ophthalmology lenses more American-European ASCRS. patient in resuming of European It future, for work will shows and selection, presbyopia Summit the patients, we patients trade for continues. July, quarter broader the select in STAAR the participated those implanted in our since at early and are ASCRS of XX. the the AECOS who industry was Eyecelerator are marketing geographies conference EVO in Southern In to first of of market lens as of Ophthalmic prepare the pathway leadership XX in controlled to best we in-person believe the Annual Surgery, the EVO our surgeons, and lens XXXX. attended early the of Congress meeting, ages July,

strategy. lenses. component highlighted were data As and the Also positively. marketing received these more our events, and April many these have family know, that our of It myopia are that advancing meetings even in FDA important our these an late of lenses clinical resumed in-person is at and of shows U.S. the encouraging you encouraging in STAAR’s of trade approval commercialization trial EVO for prominently U.S., meetings

interactive FDA Our now review. under submission customary, is

prudent FDA and on not with We will so. permitted provide process the the further comment do to until

pending approval will that the be our to EVO in family to this U.S. myopia lenses of the FDA anticipate market available continue fourth year. We quarter of

may ophthalmology for in growth look companies remains surgeon of publicly of U.S., In many all including reimbursed familiar. recent a broaden independent patient ophthalmic opportunity third-party ICL cataract than ahead, the anticipate procedures, grow may research pay surgeons we among ophthalmology refractive firm is consider for associated STAAR our of focused sales the traded more correct, company the higher surgeons We which in as we opportunity are dollar of we particularly the on number our already with headwinds significant. large globally If example, list fastest-growing are number but As procedures. June, with STAAR, target. of the the peers, currently as to a such double you the we named

Northern the have is that Hemisphere. and XXXX, of the we us mindful second to flu look still we in with half are As COVID-XX we season that an and cold upcoming

patients given the drivers confident second of and again momentum experience achieved lenses into growth full in since once of EVO fiscal However, the XXXX, surgeons our half today pandemic the our we sales secure second began. want to their in accelerating in quarter several remain freedom year increasing similar Further, outlook visibility net and markets key will with our the are to our we major we XXXX. for the our sales the visual

over to sales May our now growth that the on X. rate $XXX our $XXX now turn $XXX range For year-over-year. to expect Patrick provided represents $XXX at today a of Patrick? sales we million we I total of outlook outlook million year in to to XXXX, the the from up net XX% performance million, higher more the shared to full approximately we be fiscal detail. million in are call previously midpoint The financial will discuss introducing of

Patrick Williams

Total $XX.X on and as sales combined QX up fiscal XX% our results were a to which was XXXX, million, first QX Caren, up that robust in Thank outlined. ICL year-over-year of anticipate when $XX.X QX sequential basis XX% from in XXXX growth, million with net for XXXX the increase increased The of and to attributable you, will strong everyone. up XX%. year XXXX. QX half for for that outlook QX in formed net exceed QX for sales sales XXXX sales year-over-year unit XXXX just net We XX% afternoon, and good Caren global growth sales full levels was and ICL compared

sales $XX be total range $XX of at million. Looking expect QX to now net the trends, historical in sales to pre-COVID we million

sales mix, QX total other net XX% represented product represented ICL of And of company for XXXX. terms products In X%. sales

consist of injectors. and $XX.X injectors' globally. primarily or product certain primarily The sales lower a due markets than higher ICL As product Phakic cataract approximately million of are low-margin quarter reminder, serve sales only was higher other ICLs our mix recent business, sales, which other to and in which the IOLs QX for of million $X.X trends

gross XXXX. We $XX command of approximately million other the ICL, has due $XX.X anticipate increase higher product profit margin million contemplated gross million sale for our of XX.X% be the XXXX, XXXX which continue full year compared to of $XX.X business. of QX $XX.X year in sequential profit our is will as for which QX and a outlook. year-over-year than QX sales for for of in and or products The higher to net net or XXXX or Gross XX.X% sale mix to sales XX.X% margin other was full million sales

In which $X COVID-XX of XXXX the QX related voluntary in recorded XXXX. a for million period cost was concluded there addition, as year-over-year result on XX, comparison, April of manufacturing our costs

expect other to of second higher XX% half For the products a now the we year gross range to due XXXX, XX% sales. and in be to full of margins mix

a G&A $XX.X sale down operating income XXXX QX sales XX.X% net compared expenses and Total the XX.X% look is XXXX to to $XX.X compensation-related was net expenses. closer of operating for increase sequential for compared was insurance facilities due million million, The G&A in to and XX.X% statement. were sales or XXXX for million of costs. XXXX Taking QX the corporate million for $XX.X QX in Moving $XX.X G&A components increase and to at XXXX. QX net The expenses, as for $XX.X million XXXX. year-over-year QX of compensation-related of due or or primarily QX million in expense expenses expenses $X.X increase

year for QX We to QX $XX.X for XXXX million related to and expense QX to The XXXX, shows prior be due were $XX of promotional between expect Selling to increase million advertising compared trade continue a related million advertising in XXXX. selling travel increased sequential compensation and million promotional and The and and quarterly for to activities, $XX XXXX the due for and G&A increase the and expenses. from $XX.X expenses, compensation quarter marketing was and balance QX was marketing expenses. expenses XXXX. from million $XX.X activities

$X.X selling We $X.X XXXX million $XX with associated and flat QX QX increase primarily partially with EVO expect QX approximately and clinical due is expenses and to million QX million million for The compensation was per offset Research $X.X be XXXX U.S. XXXX, compared related R&D expense QX development the marketing and expense XXXX. to trial. in for to by expenses, quarter. in lower

million income XXXX. quarter. per for July XXXX negative XX.X% R&D to share the sales diluted $X.XX $XXX,XXX $XX.X and for QX sales leverage the QX QX compared $X.XX XXXX be X.X% XXXX. expenses net per to company's XXXX The $X.X The QX to per variable QX approximately for is net Net during fixed approximately operating effective operating in X, in of million compared was rates loss of net to XX%. loss a or share, was income tax of and or of to negative ended or was due million share or as $X.X per sales Operating loss XXXX continue six of months for We $X $X.XX in or a XXXX million XXXX. the on quarter improvement operating balance higher the in income of expect and

tax $XX.X $X.XX On per For the was GAAP to effective fiscal to XX%. XXXX, be adjusted rate approximately to million diluted financial half A basis, of per expect our information net income we today's non-GAAP XX% QX second QX $X.X compared a the of the non-GAAP in is information or in table XXXX diluted for adjusted release. reconciling share to share net XXXX. million income included or $X.XX

our to balance Turning now sheet.

from end Our partially July cash up of $XXX.X totaled the quarter from proceeds capital compared attributable XXXX, $XX.X million $X.X the quarter million as million fourth The of in $XXX.X from to fourth and in cash million, and X, is cash the $XX.X approximately million options, operations by of equivalent expenditures. XXXX. to in generated increase at $XX.X offset of in cash exercise the stock million

range spending For anticipate continue XXXX, we be to of $XX the to million full $XX to million. year CapEx total in the

August you speaking our XX; field now events, Conference Healthcare of on take trip are we the XX. in Morgan event September be with in events questions. West investor many Annual will the Tech and and the coming several look California Point, remarks. ready Global August the on XX; August participating Operator, Coast Laguna on UBS Canaccord in Investor XX; the Dana Non-deal Piper STAAR to on including Finally, conferences Beach, weeks, forward Growth We XX; concludes this to in Roadshow August California at Conference Med Stanley and Sandler these on Stephens prepared

Operator

line Anthony from first Petrone comes [Operator the Jefferies. Instructions] Your from of question

open. is line Your

You may question. ask the

Anthony Petrone

everyone. afternoon, Congratulations here. strong Good on you. quarter Thank another

the think laser sort correction. just moderate Caren, I it comments intrigued I'm in of to is vision of like gaining ground a looks sort And by patients. the in ICL larger that way myopia in Spain, comparison

an laser out across China ICL gaining of maybe surgery And vision of we've patients. that ICL. on there is myopia two between that the variety even just growth, certainly proportion moderate procedures dynamics where Europe, to it seen so outsized refractive And recap outsized just and regions the and now the core seems are correction, for

there, and have So a recap just follow-up. I'll to

Caren Mason

much very Anthony. you thank Sure,

miles cornea. a procedure, into on eye the years impacting as may and focus vision terms for around in lens, of the real night our issues in surgeons some put now advantage way a with any correction them a for vision also dry play probably We moving of moderate laser opportunity from and syndrome not three the more removability have have or which

customer of by that response. delighted lower are or lot in And so studies has base, when and patient a with support surgeons have the the that myo, satisfaction we patient ICL better the work our we now equal

So marry procedure this the that we that associated then the economics to are outstanding. premium fact with

together around I is ICL surgeons that the so excited And And those regardless many to lower the need. having of advantages. put previously and mentioned, a patients reasons you those world correction diopter we're the finding for offer the are patients what about

enjoying. you So a business to superior marry that the growth you we're get that's model and

Anthony Petrone

the seems the and would of just just a And how think of of follow-ups then It of on sneak quarter. we the helpful. in in played in side. That's And bit. the then kind mix be [ph] one like spheric a China couple FDA when out toric shifted that on U.S. will specifically, complexion that you

of was kind couple a that and limit XXX-day there – Just PMA a of dates as final the supplement. a XXX- day was know out it's a meeting the ruling there that to curious on to there, know XXX-day obviously interim now

dates of those sort of drop the on be meeting think in date? questions should be So again thinking just congratulations. October an two do and interim you particular, that Or that kind we thinking sort submission? about going of final high-level looking over as at Thanks just there'll

Caren Mason

Thank you, Anthony.

definitely our one in yes, to see and terms history in beneficial month our STAAR. QX and of mix the in to was demand So we're an advantage. had for China, the I China in toric And we consider had And spheric QX mix what starting would exceptional month. demand, there we after was obviously best

So FDA, is required the to expected. bottom as the more procedures as to that FDA the the following and is line regard With the we come. process

time, I'm at we are that we the or comment interaction in communication you interactive very the I that, can XXX on tell to the but in FDA. with this of not of result review. a And pleased days going the level days so with and are a XXX point as customary

Anthony Petrone

Thanks congrats. again. And

Caren Mason

are You welcome.

Operator

of William Your next the question Brackmann line Blair. comes from from Andrew

open. is line Your

Andrew Brackmann

and start thinking thoughts the on good sort here far. maybe That's Just sit quarter. I on should guess Maybe any so predicate there of more that the with some to for comping cusp certainly provided the of just start on specifically, of framework provided here Are can all throughout the provide in taking here in you've helpful. you're of commentary appreciate level the be sort all that and market thanks we launch been QX, that as afternoon, some what here? the you've us and the get revenue U.S. appreciate could XXXX? approval expectations? commentary devices building Hi, U.S. questions. Congrats market certainly how on that you for against be about trying your to around But we

Caren Mason

we what And enthusiasm back approved. the ASCRS AECOS is very we're getting with markets meetings, transformation the excellence. are with just around a and came a considered EVO surgeons the met successful from their where what tremendous hearing off around opinion talking is to United practices we key Well, of for And we and of major EVO very course, strong and in build opportunity of them version. to about reputation ICL many surgeons them with from States what leader, number with, we well-earned the

original excellent think vision. are provides such device, of terms you having the an only in the extraordinary when lens and that So implantable the about we predicate

just got. Just story we quick a

She she day she for to potentially with amazing morning, she been medicine driving an where was stating would a lot lens, give next to her astigmatism. myopia with was her challenging surgery. not want ability fearful suffered the from career. have her And through us. thank the Sunday I up years having crystal the severe having was visits the and On did to who the surgeons healthy replace over had a practice of from that e-mail a to due after headline discovered and She very situation and natural lens, was my greeted doctor, her in you

and of fortunate the So enough to kind proudly enough blessed so is that this device we represent. are

for So the us so to looking getting approval much United forward the States market. we're and very are surgeons

Patrick Williams

current when rollout. revenue, of very you we're we if about EVO obviously think we U.S. fact that revenue the Andrew, really controlled here. course, forget from of can't where I next is the contribution of the over continue in the I But Hey, bulk about the could that that's really going think we outlined. coming markets And Viva add, quarters right excited as as we're the And several growth to now. our drive

EVO And the comes a team grab we so ability And I market excited that. did to we're few share, the rest much like China management about have of and Caren in when talked U.S. course, online, about the of years back. and

a we're to and how U.S. so and big that can And very that as we the move be catalyst forward introduction that product on of commercialization focused the in

Andrew Brackmann

color really that again, like and all U.S. the just a here Maybe for Caren. sticking for market second. that on Thanks and secondly, for

of sort in of agreements they alliance think independent users of those or detail I relationships of Are and high-volume Thanks. today? type you've talked Visian customers with in sort the Could you describe of the about those practices past, more are? U.S. the who just a maybe bit centers throughout customers, sort more

Caren Mason

And the those of each designed So our chain. is are digital other that What base is part practice available. digitally United for practitioner for commitment strategic of our in surgeons the types the normal components and that's from everything the websites, needs growth, for on effort that the to of fact strong also is of developed that in usually agreement marketing plus, a one really combined XX% ICL working developing are particular multiple kind to to customer a States doing promote media practice. a reinventing uniquely

of happiest the And for is stories We supporting the with opportunity them there also build also their patients. an practice to doing and are more determine around the surgeons helping more the mix.

them we support or of on paying get business marketing them terms So patient potentially them education. get And for then adjusted. helping in help models working as as with their advertising started well

customers in strategic in XXXX truly and the way STAAR. China satisfied we our agreements, the are work think the are happy bottom these with line way I we which started and So is

Andrew Brackmann

you. Thank Great.

Caren Mason

you. Thank

Operator

And from comes your line of Genuity. the next Bill question from Canaccord Plovanic

open. is line Your

Unidentified Analyst

on this for quarter. on Thanks an Hey, Rohan for amazing questions. Bill. is Congrats [ph] taking my

Caren Mason

Thank you.

Unidentified Analyst

I to are wanted the you how full all a on market And in limited release? just that you now? learnings FMR? had that, additional see Any you countries EVO have are need expecting in kind significant of Viva what market Europe. when going to release, commercially to touch you from And on do go many

Caren Mason

So we are rollout. the making with progress Viva

are countries. We multiple in

We countries to have that believe we will writing surgeons be four champions be identified in for a Viva. the going They playbook. are of lot

patient who make experienced a have of to hoped this by not to vision, our because have want. inotropic those their sure have is to But the have multiple for What We our each commercial. those rollout that we doing is absolutely want interested level evidenced that in for feel lot residual that we're the some distance volume been practices program I number the that us types. of to go how we're those as with of is volumes, and do yet where results those patient I terms used who of we're to trying learnings work QX retain of recovery with have in fully say understand a ready lens interactions a are near vision. properly types, controlled at who accommodation, most presbyopic of Because COVID producing

We have more work do. to

rollout virtual and there lens that October, said we merits concerns as in and this now of instead weighing that, of training, we've terms learnings repeatedly. the in-person than full-term some are we are where as the ASCRS of to a may so in in-person want do of result be having more And

are timing on cut that we hole excited. the the exact we'll a of So, rollout very

is tell we with good the lens, a patient you, lens. number level, believe, of satisfaction have me a this we happy surgeons, high and a Let with

Unidentified Analyst

thanks the question potential business? And the we the think for color. especially was should on COVID about the only And how had Japan, Great. for in China I other variants that and

Caren Mason

that And every XX one of that for on in from lockdowns updates suspended type lockdown, the X out team with Tier in our that team have have we larger there And has X and and cities weeks. we country. is to what clinic weekly is the today in there they else some is ground, talked we in Everywhere are Well, China. cities eye no provinces only limited found procedures the the delay. eye hospital Tier all two

call, matter said month a fact, in were China. the of to as season just for we record first happy earlier As I our [indiscernible] have in

So, customers looking that Olympics or conservative terms some will continue back lenses making less be with the around taken, normal. of expected expect and implanted the to of been to after that a of our and do a it's we week in Japan, precautions all In there way appropriate Olympics so than well that the the in bit the time, good. Japanese but last of sure so during are government implants with the fear Japanese so, little that normal very to Japan, concerns well and has for handles first

Unidentified Analyst

taking for question. my Thanks Great.

Caren Mason

welcome. You're

Operator

of next Steve The question Lichtman Instructions] [Operator comes the line from from Oppenheimer.

open. is line Your

Unidentified Analyst

actually the Thanks on Hi, this for is Steve. question. for taking David

to Relative you lenses from Do anticipated and EVO to over certain you ICL to lenses, approval one I'm just curious, happening new to EVO+, see the the maybe approval what following do following expect Visian current approval? of me. Just of those switch EVO? to be

Caren Mason

lens. Visian lenses for so because interest current of peripheral just and is procedure the We that's continue when is the every very so market in version what's and of happened surgeon it's ICL great elimination selling iridotomy the that patient valued, the there's in little approved, if will usually older the EVO the

Unidentified Analyst

it. Thank got you. Okay

Caren Mason

welcome. You're

Operator

of the line from comes BTIG. question Zimmerman Ryan from Next

Your line is open.

Ryan Zimmerman

this that how different any what quarter. the continuing one, for year? from in of a start busy long just we may saw me. historically, seen, Number about you questions. we've What's impressive season expectation Really few China, busy between Patrick, last that maybe to COVID taking Caren, for Hey, June is And July. thanks guess, picking some season the I for talked your Caren, into maybe dynamics last? that given the

Caren Mason

morning August August, is strongest this in out delivered. the as your our at you're end July of and you as point and pretty this as and to for August look then But good of typically if off strongly July taper month At mid-September. by starts done started discussions much is

this there don't COVID. much from in associated to year. predicted more variation the change going no of visible, there's there's last I think with of cycle. no And But now that right restrictions that last So, that normal year course, is be

Ryan Zimmerman

from kind think, surgery, we but it's or Okay. wherever, whether much market market are or I specifically. you're about vision is of Europe refractive of the driving strength the market and China think growth, And on attribute converts earlier, the or maybe seeing, of of broader has how the correction as versus to expansion do laser then, to that your you you hitting this the that U.S. refractive

Caren Mason

that's a saying We honest. full are ICL. have patients question. great sure If want offered we I'm on to know that trying con Well, only be that also come the on their know usually patients a to as in not handle they choice. it, we

would to expansion would what wanting market. is understand laser only vision And would no be to the those be who so, important say of ICL, the those

for much digits. in really like was up that approval expect And have China's going we while just largest second a market. expansion been laser point, have vantage pretty a the in our to from when EVO, has the has vision numbers market single you're think, I the global U.S., EVO So, gone building China strong world

procedures give think EVO. over point really around expansion we're I a would this at time, going And be. see that you wrap I So, can't these of global breakdown what the really to

Ryan Zimmerman

in… I And just more Okay. if squeeze could one

Caren Mason

Sure.

Ryan Zimmerman

marketing and Thanks one still launch or you talked in kind of question. just comments countries are with If of approval know about existing but by the in of And approval that you mean, up, bit. I what's the outside for gear beyond was giving EVO the today. expanding I made specific are that targeting struck and where I You geographies you when? you controlled the already. marketing share could the was you're confidence you the EVO of Caribbean that kind this us, taking a

Caren Mason

number expect a release the outside it been we of those have release when that approved markets. we Europe, will And to approval to You're markets, of seeking the this in regulatory product, we addition welcome. and We do Europe approvals. those product full of definitely in also have commercial

Ryan Zimmerman

Thank you.

Caren Mason

Yes.

Operator

Sidoti next line Company. question & Jim the Sidoti Your of comes from from

open. Your line is

Jim Sidoti

you the good will bit U.S. drops think Thanks continue probably what afternoon. reluctant get comes through? a about at the you to R&D talk about spend do Will that But can level, to little taking approval questions. off? little be anticipate your be know once are a that talk this you for you I Hi, or once you sales approval.

Patrick Williams

my I going continue around see premier we're a I million Yes, to think comments as it, $X said, to that quarter.

the of the that columnar be the continue continue we've we other to we we cetera. many to go the clinical look that want regulatory, materials have iterations there you enhance. about, to, R&D we EVO or into EVO the like the course, U.S. standpoint we talked Although things of in publications, trial clinical, continue that things anymore, don't mentioned, then of lens, really out the And whether tout times, to like through get benefits et as peer other to at

So, and I think rate right run we’re now, continue. at will decent a that

Jim Sidoti

about Do in and sales a how you sales marketing, investment anticipate approvals and And once received? big marketing?

Patrick Williams

dollars year, as QX. maybe of million think, QX you we can I expect around to and for quarter the set a Yes, said that balance we XX-ish, this

over way path you is But excited go that We or consumer talked As we the direct of it's about the it of that very, decade down as now know to we’re lift all brand U.S. that to and last so, awareness about expect also we the we the here. we're really on you I going things nature. to will cost-effective has influencers and yes, a But countries about the made. in we But and will be sales U.S. will But robust awareness tell look brand prudent that result believe investments build can you comes as that as topline. that very increase marketing we board. what evolved will

Jim Sidoti

you just about could of didn't you that. repeat margin for sorry year, what then And catch this growth remainder the said if Okay. finally, I

Patrick Williams

No problem.

good mix. to another of primarily quarter due So, product margin, we had gross

up As point margin XX% there a more the why basis range many XX%. year, it's of XXX is to is we mix, then expect that close gave we I doing at the XX% If second quarterly The XX% half large our end started product And to gross that, we be more we’ll range. to on with predicated mix. plus ICLs gross so reason of we're there that's in margin. IOLs really between this sitting why that

Jim Sidoti

Okay. Understood. Thank much. you very

Patrick Williams

Welcome.

Operator

the from comes Benchmark Company. The from Jackson last Bruce question of line

Your open. line is

Bruce Jackson

Hi, thanks for my taking question.

– sometimes doctors of the you? be the do you the talk sure little factor Maybe – to you of United rate-limiting any trained about plans rate-limiting have can the us a launch EVO place to for what the that factors there could a And States, Looking in are of quickly? training could be at make in physicians. bit one get the

Caren Mason

Thanks of U.S. sure to to the meet is from Training timely question, get fashion. we growth surgeons surgeons of and the in market-to-market the then larger in who move already scoped a terms for to that have make everyone Bruce. trained requirements

So, the all done, training been have videos certification of approved. that are is done, done, requirements the the training are materials

we we with And team robust excellent ready so, that's have, a go. plan to very really a what think

did as the limiting are those demand needs not who to lens out it weeks we of So, over to a the by and get that rollout. the and want who prioritized months see initial the factor

Bruce Jackson

to cetera. a programs have question test advertising, market if the place help also in patients? also outdoor physicians you then messaging partnered you Do some And great. Okay, marketing physicians to with some may, EVO and follow-up the with et to I out

Caren Mason

them their build of a of that all have from we have and Yes, and on work with surgeons to their websites that local, updated their way we the have patients’ multiple to to practices’ full profile, to built opportunities some profile, it's can national, extensive them into have sources, media the have outreach some options us partnership.

all of So, ready go. that's to

Bruce Jackson

All you Thank right, super. very much.

Caren Mason

for very in you Bruce. calling Thank much

Operator

back Mason remarks. So, no at are to the questions turn like time. I Caren further for closing to would call this there

Caren Mason

your you with of forward STAAR many good We to all speaking your ahead. on participation in to our look you. call We Please of interest today. investment best and you All Thank appreciate take for care. weeks the in the Surgical. and days

Operator

for Thank This participating. concludes conference you today's call.

may now disconnect. You