AXDX Accelerate Diagnostics

Laura Pierson Investor Relations
Larry Mehren President and Chief Executive Officer
Steve Reichling Chief Financial Officer
Will Fafinski Craig-Hallum
Bill Quirk Piper Jaffray
Julia Qin JPMorgan
Brian Weinstein William Blair
Call transcript
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Good day, everyone, and welcome to the Accelerate Diagnostics Q2 2019 Earnings Conference Call. [Operator Instructions] Please also note, today’s event is being recorded.

At this time, I’d like to turn the conference call over to Ms. Laura Pierson. Ma’am, you may begin.

Laura Pierson

Securities is may share the Securities contain Section of it during information meaning Exchange begin, and XXA call XXXX this forward-looking the Act we of important of that to presented of Section XXXX. Before XXE of the Act statements within

results that those and XX-K are statements actual These statements made that XX, could discussed year Forward-looking and during our we projections, other materially. subject historical not this about statements are cause to include annual call are reports December in differ our file in to are report ended SEC. uncertainties with risk, XXXX, other greater for facts. factors detail and future conference our on that the All forward-looking Form the

pleasure now CEO, company’s President my is the to and introduce Mehren. Larry It

Larry Mehren

you, quarter second to Good XXXX afternoon, earnings Thank and welcome our Laura. call.

Our results quarter mixed. for were the

up below EMEA, primarily year-over-year, new the net XX% but over call. XX will I which timing in came detail to in discuss placements later Our further in due expectations issues were our in

couldn’t customers the we high be very force while late-stage placement placements customer. our more XXX strong keep And profile have us XXX pace Nevertheless, reference addition can of of and to key to as Clinic, multiplier achieve this placements. a And a target enthusiastic year-to-date on the squarely important, our top XXX customer is Mayo certain of create impact. At Rochester. annual list them to is now funnel every

We on the an consumable up contracted sequentially ever an as consumable of significant commercially a than sales, live. due track revenue by clinically year, of was to and back to instruments in XX% remain expected basis. realize lower the lower while quarter on number in the go XXX% increasing annualized over revenue our half equipment Revenue grew for step capital

the kit North serving a the and we our a on the he samples Pheno commercial into space current to And Phillips are company him is We afternoon, longer Jack our of veteran range initiatives will geographic and of strategic brings leadership Roche that amount tremendous level. acumen executive expansion help Diagnostics, President test also growth as continue the thrilled our in next He to to experience our diagnostic to in CEO expect announced and America. to our our addition take of board make for most launch our China. for this to recently harness momentum and we Jack team. progress against finally and next have respiratory

There is in in our second team quarter and much call. conclude three detail Steve? Jack’s areas our progress and to later discuss developments financial eager addition will the to the down I’m break with then Steve will greater review many first, focus for against I key discuss Q&A. But XXXX, review our to results. these our

Steve Reichling

XXXX. year-to-date. consumable year-to-date It of number our year-to-date, XX% growth This and of in has the the and growth afternoon, our live the in and in million and for revenue the sequential majority all note Larry, result second million quarter for represents a to increase second of Net $X.X higher of driven XXXX X% is been important by were that year-over-year with quarter sales you, sales customers. Thank quarter $X.X same the million and million $X.X $X.X everyone. good compared the of period

through respectively north sales same than sold period. XX% of that XXXX. this revenue shift due quarter XXXX has we not have resulting year-to-date, rental million gross million reagent And of respectively. quarters. available second quarter in the gross the To discussed in of or XX% in and and compares were declined toward Predictably instrument prior repeat from timing sold to prior was of XXXX. XXX% margins revenue while decrease year-over-year, which in did $XXX,XXX the in further well year, cost in $X.X XX% inventory period grew same goods margins Cost current in were $XXX,XXX goods This this $X.X XX% down the not result This benefits the put instrument of more of the of was XX% consumable one-time and context, over the our year. by deals of to second the and

by year-to-date. normalizing XXX previously to for the consumable Selling, the and written general year-to-date R&D, $XX.X due second gross margin decrease The most for This largely the same inventory of as stock-based million expense pre-FDA off instrument attributable other costs higher prior compensation production is and period $XX.X consistent basis $XX.X remained $XX.X expenses compares lower effect quarter After million in year. spend levels. XXXX. to our from with have million million to points and administrative were in improved to

were $XX.X million costs $X.X to year-to-date. in XXXX. same development for and million million $X.X and and the for Research quarter This compares $XX.X the period second million

attributable this expected programs on year-over-year, up remain spend trial to our R&D year-over-year flat in basis respiratory consistent our begin step won’t We small to expenses QX. a as remain the and relatively until

the XXXX below cash our continue initiatives or execute to burn. strategic quarter. to company is for believe respectively. million. our the to the stock-based XXXX million cash for $XX position net million loss used expense. and of $XX.X This a XXXX sufficient expect $XXX.X for in current similar the $XX.X year-to-date, net burn $X.X million cash We cash was our non-cash second net compensation net $X.X share were $X.XX year-to-date and quarter to loss against loss net ended just of and investments and The million quarter Net with and per cash resulting of contains be Our million in $X.XX quarter

back development to to greater Larry our key now hand it detail. and results I’ll in commercial Larry? review updates

Larry Mehren

Thank you, Steve.

for calls, three market go focus two, market have One, new discussed we on customer areas principle prior penetration; and rapid As of three, lives; expansions. XXXX.

but placement expectations consistent Turning shortfalls our penetration. U.S. in resulted than global lower market with a EMEA first number. to in were anticipated placements

total additions new placement placements. to year-to-date net to XXX annual XXX XX our XXX compared our bring of target to Our

shifts U.S. on predictability quarter and typical sizeable anticipate strength we forecast the funnel, seasonality in the of to achieve number of the year, placement fourth pace our placement of level target. Given half placements Keeping XXXX. late-stage annual the that the us the our of growth growing largest towards sales second in of our global

decrease the quarters net In despite expectations. from a new which the with XX a our placed was of prior during we U.S. two decrease the quarter, factors. This instruments result two being was consistent

of reagent First, program. necessary with After contracts QX. in anticipate under were GPOs that the in contracts we customers these who more two multiple over hands and July. the in reagent working two purchased we their potential year, customers first bottleneck put addendum were partners, the in the GPO of contract these have rental of deals diligently the GPO QX prior quarters even in to the introduction large up a built through now closing place and rental Potential executed

Second, many hospitals June operate calendar. a fiscal on

several us common, result, our further in reset been fiscal anticipated late-stages their the strong have a a QX. funnel the delays until QX ahead budgets delaying of position of and sales solid to QX for purchasing have are purchase As customers next year. seasonally These the

placements a and mix segments U.S. without quarter and to site conversions evaluation, healthy key of continue contained contracting second an our span sites Importantly, all market evaluation.

medical second integrated contracts medical networks. include centers centers, and academic community quarter hospitals, New regional several large instrument health the VA during signed

number signed we of earlier, one development Mayo mentioned Mayo reasons. several as in hospital Rochester. is Clinic, significant And ranked The U.S. the the a addition for

attracting will hospital that the have a First, most on the United prospects States new impact sales among the and process through the influential is and Mayo funnel. in most, moving into customers if sales not positive the

standard Second, Auger use manual This dilution Mayo has as for site’s testing. up method until called is care of susceptibility Pheno the for meaningful adopted as forward this as AST and in automation its superior moment, VITEK preferred always adoption reference a never establishing to step a such accuracy. new

was site the XXX the in ARLG leading study of patients Mayo the providing XXX enrolled. Lastly,

While official running new embargoed and the at have its in Pheno are now standard. that the compelling know Mayo October, to enough we commit must for clinical IDWeek acquire as data been the to results release until

In sites. we other and the a addition accelerate Rochester Mayo for sales to signing, Mayo process negotiated which also should master agreement, the contracting

new to international In the and fell for geographies Now result separate and expected in EMEA of during shortfall placement for turning of the was we our that close shifted the of during the short lower expectations business. quarter. would in to number deals XX the quarter, instruments This The half geography the quarter. EMEA, back second instead net added multi-instrument revenue but we two anticipated the than accounted our second for had year. our capital

component, both the typical both partners of in based distributors, back chop this up largely discussions the customers would ongoing forecasted sales. associated And our equipment will our our deals we multi-instrument disappointing, year. our lumpiness that and close capital the indeed with sales challenges While these on distribution and half with and to

XX bring these additions XXX. net placement Overall, total new to year-to-date our worldwide

the anticipate Given in global shifts that number the forecast pace the our keep funnel, the us placements. XXX placements largest late-stage in will achieve the of seasonality of year. the to sales U.S. placement strength quarter back growing on of That year. growth placement typical annual level sizable We our fourth target the and to XXX of predictability of of our towards half

now out remains drive There studies will that rapidly overwhelmingly our patient increase round handful market been accuracy and positive an of ability evidence. publications in this of Clinical This data data we of various clinical demonstrate are evidence global to spanning over interventions. and meaningful XXX body the outcomes process a penetration. form and and posters Pheno’s additional believe have to of important ability driver

antibiotics study, October. will was presented The at the study National narrower readout of Resistance future be could directed with that first IDWeek Institutes be which testing turn Health, to enable purposes susceptibility demonstrating the Leadership and by in a under these and generations. rapid conference Antibacterial studies results the in antibiotics will Group ARLG the of of for preserve the funded the for This use of

time indicate significantly of demonstrate study if to acted bacteremias, by not faster results upon primary foundational outcome, trusted, for conducted critical to a same a optimal able comparison, this therapy. In that actionable results would Pheno BioFire which for was leads population. is the endpoint Accordingly, are intervention team gram-negative to antibiotic on and study ARLG patient this positive the

primary the of study. achieve to expect We this endpoint

mortality differences complex from the for at be patient will of demonstrate not likely is or Mayo’s for particular, in was as to was relatively this look population. meaningful study patients, In contrast, reason infections whose to largely primary stay, highly powered less endpoints. hospitalization. for those In these study patients sampling evaluated statistically This of these but secondary small length most endpoints. The sourced

the fact belief improved the demonstrate and patients. coming customers, outcomes. We clinical impactful data rapid will early economic illustrate occur that are out by confident data our most that supported This for interventions which of are and is

that run a Mayo, the broad provided for will Pheno the adopt We to resulting confident study outcomes compelling standard has this the feel this adoption. make of Pheno’s care. new the outcomes Given system decided as that which of its seeing of majority patients case market the for study and clinically,

are and over the These next and In the differential ARLG control enrolling on randomized addition all focused of economic outcomes powered registry are which specifically expected studies AST to rapid ED currently we three directing rapid control quarters. interventions. patients one trials are two readout and are studies ID study to randomized outcomes evaluate including study, versus to

a this Microbiology exhibited heavily meeting. studies for added powered. then, customer. powering. the registry University University American The to Iowa tell a statistically and was of from The great and The of subject until reflects only for a I can point poster recent data two patients looks embargoed the XX% specific at and Pheno the from early a enrolled, Cedars-Sinai experience concentrated registry of Cedars-Sinai’s significant were as proper Arkansas not presentation Since number of at data have but we participants. The registry Society at you is results allowing study IDWeek, the live

the drive be look Pheno results with expect In susceptibility population, control to trials Accelerate’s complicated “With fact, ARLG the by Pheno that study, such information Cedars penetration. rapid lab and We patient forward found aforementioned the further these invaluable.” study a her the and experience will tools the to have market to we be studies all registry helpful of about asked stated randomized recently the director when generated sales

focus customers processes area to testing. rapid helping required begin aimed is customer lives second go Our complete patient the driving

action steps based the pathways implementation the revenue. each As generating live prompt training clinical ensure requires commercially include clinically These a reminder, contracted on and steps several on and necessary to instrument installation laboratory verification system physician and before connection Pheno going information pharmacist and consumable to results.

time signature four first execution Our range months. going the process. live in nine crisp of an time to ongoing average live go target This Accounts year our within go reflects is months. for to achieved from the go-live squarely falls half the target our contract six during live the to commitment of to and

We longer to need IT continue six month interfaces than and create to verification installations, testing lab coordinate this see perform and average implementations to take the multi-hospital multi-hospital due across LIS teams.

we components of number trend within range. streamlining While, on average sheer signing we of target the cause all process. progress to current multi-hospital our will make been continue deals remain to our go-live have higher but The

side, end pickup instrument half timeline $XX,XXX placements stream over U.S. the and overall and a range of average. customers the this Given upper in in fourth particularly EMEA quarters, range the an pulling see expect the consumable the of three XXXX, $XX,XXX to per in we of to meaningful at back number the down with continue One past in quarter. the of we the annuity revenue

market second made of often area the as in costly Chinese the pneumonias bacterial test of The our product bacterial pneumonia blood during test our quarter, third U.S. important an current for our serious and will for pneumonia of markets. we are progress and trials addition for the for these us, the readying executing condition. Finally, and be registration deadly XXXX, focus

the expanding demonstrate its market, microbiology and the portions new potential and to our Pheno addition In workflow. to lab task the of replace available significant platform of versatility ability will this current

our that the of our the last results. consistent indicated results But reportability not with we were generated we testing ID accurate that call, AST preclinical and quarterly satisfied On reference. with the

team and that final for verification are pleased the this We progress initiated we study area trial. to report our to made the quick entry in U.S.

and clinical vendor delayed reagents mitigations Accordingly, to contamination in verification, During trial put results. while and molecular plans we prevent found future are supply unexpected reagents we place and replace occurrences.

next initiate the for and the quarter. still all base if This this in XXXX. Consequently, customer on good, looks to kit verification test we would trial this track will Pheno trial start restart us likely put deliver clinical our

progress on launching for made and obtaining Now the I towards Chinese you update will Pheno market. we approval have the

to market continue our First, China reaffirm important that we Pheno. belief an for is

This a world’s for mandating hospital contain the we the resistance designates plan quarter, national action that the in use plan of to levels government response to funding resistance. one subsidizing selecting antibiotic antimicrobial diagnostics. learned and launched novel highest Chinese includes This of and of stewardship

trial approval is lead great committed and starting Our seed has working Chinese XX experience us national to a hospitals potential spearheading significant He KOL opportunity year in to later This his successful up Pheno obtained the has the plan. evaluating within to is Pheno with the has Pheno. network. that government this for to and requires and action at if

in of progressing begin half preparations of selling in China Our starting this XXXX. our to milestone goal well would with to first position registration before are initiate tracking trial Achievement and/or of this year-end. us consistent the

I of Operating focused the like Jack joining progress to will well the been welcome And leadership up leaders some on diagnostics discussion on wish and for North operations. be where us as initially our the Diagnostics, We Jack CEO Jack Jack would of executive Officer, our he oriented know as business. has and list top quarter, Phillips on Roche publicly he to global as us team. Chief is from our President commercial time. wrapping served diagnostics joining commercially American for

form, to he next be accomplished level. joining $XX After is million current Ventana spending to pleased of is months turn purchase and an record couldn’t second from million true commercial to prospective and when track to none. $X to our more of in, stock. million committed all and revenue speaking and both customers, to in to the today company And our that diagnostics success the the he his to Jack in take us growing We such role execution in in. commercial researching our leader Roche before in have $XXX Jack’s at approximately is

our and revenue while our second expectations. results summary, In below were quarter placement

that the to productive addition conviction and along further the our progress as funnel Jack the management. sepsis year a We remainder our including of portfolio, to patient sizeable that respiratory further the Pheno a and the sales care year, Mayo operational commercial the clinical will outlook our loaded These the is leadership significant for by are and that our our maintaining Clinic of of be milestones in We factors team. our addition our year. highly new progress during and standard encouraged of in position achieved for backend with for quarter are client well China, confidence XXXX

our customer on Urine his recipient seven-year old infection like sent to transplant, would story antibiotics. beginning days contracted XX and and the he lab broad immediately after Children’s kidney about samples at was Hospital be pioneered I Q&A, to tested. Angeles. and were particularly taken share Before an to a put Los spectrum blood a

indicated LA Pheno change. was Pheno saved the fail for therapy the a exemplifies getting on Fortunately, thousand has Children’s kidney A and which empiric dollar allowed antibiotic patient’s right of and Hospital patients surgery the life benefits the lifesaving This with preserved. case antibiotic antibiotic boy’s sooner. multi-hundred a would

to welcome the you. analysts. Thank to questions for And our or Should on a you be these questions answer questions We with call we that, meeting others would would from to not have follow-on requests happy send addressed.


from your Please Ladies first Nowak [Operator Instructions] and question-and-answer with now Craig-Hallum. go comes question Our we today Alex session. question. will gentlemen, from begin the ahead

Will Fafinski

couple what now. the for I here? on a Mayo length I stay what commentary should are benchmark of indicates. on lot everyone. Alex yet. eyes and But of watching investors’ Will I on off and should here you’ve believe coming of that board seen data expect that the you see help I’ll we to Mayo-UCLA a coming looking be the can don’t to metric start actually is or Fafinski we watch believe time months. is best the set This with Good really optimal today. appreciate in a for? therapy Great. guess, likely here afternoon, Thanks. to reduction up just for the trials But I mortality

Larry Mehren

the the know And therapy. to what difference. we know not up You’re welcome. will study a they’re was the powered was do to optimal powered time metric We statistically being, to not do endpoints show prove that other but end that

Will Fafinski

on – looking Understood. here, QX, to Got And XXX back then you it. placed Thank placed placements systems. you. you

been those all months it’s them So of are about consumable for eight live today and many in revenue in systems How QX? use. generating

Steve Reichling

We back are good portion though longer them on were go-live those a deals. seeing to we due deal, half so the is of them are year And them in go-live of of live. implementations. to many accordingly, QX of we that placements Where hard They’re have multi-hospital complexity average one it’s to the the imminently. the here fantastic those expect have and to

Will Fafinski

I Got you, two. It. That’s all guys. had, Thank


from with ahead Our next Jaffray. go Please Quirk question your from Piper comes Bill question.

Bill Quirk

afternoon, Good everybody. Thanks. Great.

Let’s see here.

first role a have guess customer, only guess you this little relationship, UCLA. just Mayo that the not obviously, bit in space. reputation obviously in see I the playing on in elaborate they’re with study off, come them can ongoing But they reference I So important Larry, that the to as the great

Larry Mehren

Is asking? is what our Mayo, you’re What with that relationship Bill?

Bill Quirk

of Larry to customer reference on agreed figure have being at customer reference of other a than model to out, sort they simply take or lab relationship What all? trying I’m is, any

Larry Mehren

they’re a of ours. be great Bill, going customer to

relationship system that chosen to They have run be clinically. adopt. I and we reference I salespeople other they’re will formalized to saw they We’re because they’ve them use don’t if imagine different they’re and have great reference a will any our customer. what They’ve asking. reference I than us. you’re helpful think liked But don’t it customer, as what the a to a with excited Mayo as that any know that’s them.

Bill Quirk

what us the start versus then, instrument the bit little anticipate level of actual kind to the can And clear. at a where you number not, you give disclose quarter Thanks. Okay. and That’s respect of, would metrics? in color you very point Steve, with consumable if to those you. getting Thank to

Steve Reichling

more Bill. vast I of third would revenue row, Yes, sure. our the the the lighter And course, revenue. was was the growth rental quarter Thanks, all instrument the we thing in that’s a from consumable is revenue saw I case guess QX, and predicted. from with shift reagent majority of as of in for forecasted EMEA. say That of the that quarterly even

of is part future. that recognize basis Now we in disclosure go-forward providing and important to to an second a intend this your on start the certainly the question, this

to-date, tentatively in that determined XXXX. haven’t We

Bill Quirk

just of with add-on Okay, staying rolling And kind actionable on in a got TX last of pursuing know from update I of what’s the things did was side that that. government out rules reduction. respect couple government it. for And the antimicrobial U.S. the respect then payments. notice some here, extra the the And latest new We anything of the that guess me successful respect? are then questions with moment. to the is I Thanks. lastly, gainer to just two you is

Larry Mehren

bet. you Yes,

as drug So and ultimately of we it will that a doing excited the manufacturers on large the They’re teams who There’s importance beginning over a providing is such believe effort government antimicrobial assistance those to tremendous years are next-generation been parts additional of also of the that achieve a diagnostics number course recognizing Bill, are we by to that. to ourselves. flow resistance.

course the next positive which So expect some we be and the the great. of think would is over movement quarters, trend

applications we apply the Secondly, announced of for due. those CMS round not has when going still program. are do are and tap to next end

after quarters they’ll would that do a the couple sometime We And in expect or October approval then that. occur November. of probably

Bill Quirk

guys. Thank it, Got you.

Larry Mehren

Bill. welcome, You’re


Tycho ahead from go Please JPMorgan. next with from question. your comes question Our Peterson

Julia Qin

on afternoon. is Julia good Hi, This for Tycho.

uptick relative XQ you placement for a and the could appreciate in how to from a study terms expect come color I about of of back on network adoption that know supposed get market cadence broader that you your the more versus mean, clinic with adoption of talked you outlook versus the drivers, starting readout. year. in contracts the maybe then So in GPO the I much half broader wondering uptick, across is just Mayo if the a significant I And XQ. but post

Larry Mehren

You Bet.

exhaustive to think half doing down got I single our just account. looks quarters, QX back And QX finished we of I really and with And couple by every us end would they the sitting would So placements and review, expect the range. solid. within for next That’s I of as expectation did and over probably an expect salesperson year up last going great. look with my account our to the quarters to rollout year.

have we’ll third think I fourth a have and solid jumbo we’ll think very a quarter quarter. I

will whether of contracts the they will. help for terms GPO in change sure, that, In those

– rental of are majority our contracts. purchase choosing what labs Our reagent is the microbiology to in we’re business finding that now on at

that half our have of the that so probably GPOs, end XXX the to And tool suggested. that added we to a going those XXX as really to particularly placements. for we reaffirmed bit. large we the of is guidance thousands those another set or we’ll literally that’s not And all GPOs give having ensure those available on now impeded where back why up hospitals reasons, compliant Having between I us year think us is

Julia Qin

your converts many program? eval versus you those could how from the Okay. quarter, Got of were your And Greenfield remain many it. And customers. program for on remind still eval how then us

Steve Reichling

those see together. eval We a eval those of really mix healthy and converting all continue skipping from to both

overall was we eval. this continue for exhaust run that’s the evidence But enough a more to continue that mix the we and largely to I And process. I think funnel. the skip because those the a quarter we those there’s sign sales now to those. through long-dated eval, good bent entire to can process eval expect think that skipping And

come of seeing that. We’re really not anybody out

Julia Qin

than Got it. not came to still utilization I model, But I current number. in ready terms out the I modeled. break according lower think, a of you’re utilization, know our to specific revenue then lastly, think we And maybe

any your because the it or it customers wondering, customer is of Just or length because mix to guys sort of you for because factors? because, changes underlying of go time of other is takes either of in seeing are utilization it live customer

Larry Mehren

Yes, good question.

customers As And is and per by what see that is when in we’ve live they what phenomenon discussed, faster a then EMEA mix. that smaller little an annuity seeing to base, I of differences average, those those relatively mean instrument. But we’re our lower alive, and have And range annuity impacted can the typically that’s have go small to XX,XXX given have XX,XXX the are a some quarter-on-quarter expectation currently. by go that you with of independent on are hospitals. a bit you

So they annuity. relatively have smaller a

hospitals We back expect the the large come of network year live middle that out the will that when coming toward of integrated the annuity health go the range.

Julia Qin

you. Got it. Thank


[Operator your Instructions] Our next question comes from question. Brian with Weinstein go ahead from William Blair. Please

Brian Weinstein

couple. taking Thanks for the questions I’ve guys. Good a afternoon.

And talk you kind and instrument were big you go potentially through you back on Can two just half of geographies, in them confident multi- can contribute shifted you capital confidence. but say, them, of what I to the very quarter? were it’s you Did over the to those? deals then said the were confidence, that the getting on year. So what’s you also, how the miss expecting driving your

Larry Mehren

Yes. Sure.

and would happened, the both year have on America, North deal could had revenues. EMEA. So capital closed that, If hundreds in thousands better came that for shape. several we good we Brian have in, half And we would Germany The we been the then XX plus was of have largely multiple of and with line pricing. in those deals held sooner, our large distributor for of placements had back we dollars a planned of turnover of The us while miss in miss was out that where to shifted expectations.

So it. of the that’s scale

deal quite back in that good. and gone us German the with get really Europe really, in frankly, the confident personally and looks those the distributor we’ll the America salesperson deal. But I’ve for and evaluated and I’m North the of both half year

shape. be and enthusiastic So good in confident we’re we’ll that,

Brian Weinstein

to XXX end end the you have you to gets some of have – that target to do IDNs the for close? to What the one high it more reaffirming is would So to in just that this as there or it in XXX low high that end to you’re the building a Or are And feel you that get large you’re still range? the of range. end? that up that, angling do kind terms of execution of to opportunities of you offs year on the high take the bunch

Larry Mehren


in in And So to we end. there our they the in the trend are that are a that funnel number late-stages regard closing. of towards higher have IDNs close do that

from million I my good. XXX think, XXX $XX year I very getting good placements of instruments those and is news go between now, solid revenue. about to about million us about instruments the When is like profile is that annuity very that. $XX business those placements, XXX those those that things, I to solid. the end perspective And to XXX right feel with placements something It’s with the annuity ensuring rate those for for live associated and pretty that end year Brian. have us looks a run them. getting three with our from about it’s And live, and expect the all good we’ll

Brian Weinstein

to about then be commercial us to on about a looking And areas to what role addition be? his Jack looking bringing of little the he’s I don’t into. will that you tremendous You specific on that’s talk Great. that he’s dig specific and he’ll you bit some can congratulations operations, And call more today. Can on a talked things at think team. the the but be

is, move. just drove him what you’ve So, this make Thanks. heard to what of kind

Larry Mehren

months ago seven learn exhaustive our hedge on process make reviewed He system, available notable the our current value. could the spoke he’s it or Directors, a going and us. most our was ago a to walked in realize kicked where, market is to clinical Jack of is pitch right add eight and that with beginning studies, value away data team. the company a members to and that this add right where where a of prospective Board inflection out enlisted And And to lot off reached of fund away contacted customers, commercial the the and join our he a I at Jack company point of was and impressed And even the company operations to he that he the and all Yes. area months technology dinners best-in-class. assess help to ton this of opportunity. an area that the our of analysts, and

going to it. on him America, expect the and momentum we our So to North continued think into American North you operations. can dive have build he’s both U.S. improve already that In I to

And think already levels he us. to a effectively. I highest more these noted he’s few chains of we major relationships helpful very at the that do very, hospital same thinks Europe, then Further his in can things can be thing.

about it’s already going great building and on that. be momentum and he’s and So blocking have we tackling to the that at

And so, have we great us further expect a year. help that’ll

Brian Weinstein

great. That’s

it. appreciate I guys. you, Thank Okay.

Larry Mehren

bet. You


I’m closing time, question-and-answer any conclude showing this to remarks. for And session. the gentlemen, Mehren Lawrence call back ladies to today’s no like at additional questions. and conference over I’d turn We’ll

Larry Mehren


for be mixed but couldn’t encouraged. quarter I more a So sure,

the Clinic very business expect year. Jack our I Our buying our its people and to a good great great. commercial are at efforts having funnel Board, we’ll take leaders core like Thought Mayo on about believe looks next is level. and I come

the Thanks team be our who happen, making day knows every customers to dedicated to care who thanks Board, our standard and it are thank our So patient shareholders, becoming to will that of are best sales who our our people. you. we

our We are way. on


that, we’ll Ladies do you today’s joining. with presentation. for and conclude thank We gentlemen,

not your disconnect may lines. You