ATRC - Earnings call transcript Q1 2018

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Operator

Good afternoon, and welcome to AtriCure's First Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Lynn Lewis from the Gilmartin Group for a few introductory comments.

Lynn Pieper

Thank you. By now you should have received a copy of the earnings press release.

received to please you. not have XXX-XXX-XXXX have e-mailed one you a call copy, to If

Before you remarks that begin the we today, company's include let forward-looking me remind statements.

of to and projected. risks described AtriCure from to AtriCure's from in obligation and are results control, time uncertainties numerous publicly to undertakes forward-looking SEC statements beyond AtriCure's no subject uncertainties, Forward-looking statements. update those many AtriCure's which time may are including materially risks any filings. differ

measures, financial specifically in basis comparable and over call financial like reported the Additionally, on A available currency Carrel, we non-GAAP Mike is our to refer directly constant revenue and is I'd which Mike? to reconciliation on a to turn Executive included most release, measures Chief President Officer. GAAP of measures our the EBITDA. press that, adjusted website. these non-GAAP with With

Michael Carrel

Thanks, everyone, Lynn. Good afternoon, thank you us. joining for and

solid the over million XXXX. off in Total to are first quarter for the growth a reflecting of last revenue We year. $XX start of was quarter XX%

Our performance was and meaningful strength open and U.S. with demonstrate line management to by driven products, continuing our appendage appendage of our growth. the significant management largely franchise top

of reiterating revenue for are X% expectations We to year-over-year XXXX growth XX%. our

important first this had clinical we're the CONVERGE trial confident In the quarter trial, sales, addition in solid in to near and complete to in strong we enrollment future. enrollment in our very ability

have launch additive portfolio. and pricing driven new year, accounts, highly maintained to its the incremental Since PRO PRO referred bring This continuing to particularly to to we products formerly franchise. expansion V the has last and our and reach device pipeline are Turning our appendage worldwide. platforms, product expand the been importantly, launches build of AtriClip our V they have the management value evident strong products is to our AtriClip Recent AtriClip V portfolio our to and FLEX as clinicians. impact due in into franchise, with they that product

tip-first As AtriClip to is an PRO easier in of and the a navigation the also V mechanism device. closure It you with invasive operating of combined original X/X recall, enable profile offers height procedure. minimally when the may AtriClip a open-ended design placement

easier positive, is to the V and going AtriClip visualize Experience many feedback in quarter. it continues during be So the placement. with to into new accounts overwhelmingly first PRO

easier-to-use in family. delivery first believe customers already of FLEX AtriClip expect the new adoption AtriClip PRO PRO deployment year V February we device the platform, the the AtriClip Further device, weeks, a increasing FLEX FLEX left of in V atrial developed system short AtriClip AtriClip device V The a mechanism, that includes in and AtriClip progresses. its the an management implant, adopt the seen V March. subsequently the next-generation the from trigger open procedures. and technology clearance is have contribution profile leverages kind open-chest few in our building help our many of In for early release the a will AtriClip We grow as We V. we appendage This FLEX received we AtriClip the on AtriClip FDA launched same lower V. which us

management. development our efforts of for is the foundation AtriClip to the less which the pipeline, applications utilize look V-shaped left invasive we As future platform our increasingly and appendage innovation, atrial

the The remains excluding important continue meaningful benefit priority. used to same science, and launching the sub-xiphoid the for through continue LAA our progress. of clinical trial advancements CONVERGE perform device the area PRO and also will The to ablation provide convergent to procedure. incisions of the In make we X AtriClip area X early top applications in in anticipate this the PRO device significant AtriClip We make sub-xiphoid XXXX.

and in line sites, We are patients our enrollment are our the to with currently complete ability in goal. confident we at of XXX midyear enrolled XX XXX across full patients

enrollment FROST to the also in half second the complete trial, expect of in We the year.

with We to and for reenrolling the enrollment to move FDA collaboratively have continue patients we of forward obtain started to final clearance work full in the DEEP, trial.

of you Afib in As who a know, remain well go most often a too we address to as concomitant the setting. positioned market the in many leader patients, untreated

clinician well and of education societies tailwinds. care the positioned ultimately expect We downside procedural influence will the medical volumes. data increasingly from of support meaningful the take advantage ablation institutions and recognizing benefits to activities of market and these of we the The and and are growing community training is and surgical leading non-treatment,

we in significantly adoption of surgical improving courses. the hands-on years, educational many up They addition interest Europe. we and strong our throughout in committed and the a by have prompted are the both quickly XXXX, through On - and front, Even encouraged to after setting. concomitant planned more the fill training have remain sessions training U.S. We programs. working towards of in ablation

appendage. trial the Dr. Chairman Atrial drives extensive team the DeLurgio of EP for and management our the Surgical and will David Gillinov, surgeon opportunity save-the-date and Thoracic DeLurgio will left and analysts cover electrophysiologist seen for products an investigator morning and on importance meeting physicians cardiac Clinic. care trends Cleveland open have product the surgery. has He clinical thought approach Dr. detail collaboration at the and Cleveland is Director is will may is of at Surgery as atrial cover treating thoughts in on areas. in Emory the trends focus and Fibrillation trial. the CONVERGE the pipeline, and on of our offer their products he other treatment at why the perspective including an is Afib of better for Clinic concomitant guidelines, Center Gillinov Marc with principal our leader why to important. a appendage notice cardiac the Department in driving procedures discuss well leading specific for to progress the paradigm during with X why his Cardiovascular will XX our share broad Dr. June as a surgery, the recent industry, of experience You treatment Dr. important our upcoming broad more market business.

As provide he studies Fibrillation deeper a been for Atrial care clinical and the term. Francis uniquely St. our finally, Health. the Dr. means our has lead trial ablate. Center to postapproval his can for both Dr. care PI, and to a at Valve over of into in Gerdisch greater and cardiovascular the surgery a and Gerdisch trainer share And co-director He insights CONVERGE and Heart highest his the the study Franciscan long well chief than trial it positioned program key of what X Afib is Marc and and is experience investigator thoracic approach provide more our trainer as will has as on and how for to collaborative been PRO enroller V a access patients. ATLAS also physician years views as AtriClip

forward via We Officer, productive now over join With the closing an we'll can morning, webcast. person that, for to us that return Financial in and I then are looking to will comments. hope our or Wade, insightful either and we Chief you turn Andy call

Andrew Wade

Mike. you, Thank

during XXXX. first by of million the invasive approximately and On XX.X% $X.X both the growth. quarter a ablation-related first $XX.X in XX.X% Revenue We driven U.S. XX.X%, sales of to consistent The get was collaboration GAAP on legacy in million we XX,XXX increase in by as between for sustained of volume, confident $X.X sales XXXX a in the million. in XXXX, of U.S. quarter and management X%. This product for XXXX, were by $XX.X speed more U.S. business rates products. appendage from was first and For products the $XX the MIS from of million the XX%. XX.X%. to compared in sales time. quarter first cryo learn Revenue little the increase increased quarter $XX.X minimally from sold increased revenue the worldwide of products $X.X sales of remain product expected driven open million, million, an first used was first mostly EPi-Sense single million the and up increase strong drive as a MIS surgeons. increased both EPs slower to procedures than constant first for was management open-chest as quarter, revenue clips of quarter currency growth RF growth basis, than an of appendage to quarter. a to representing stabilized new product growth accounts U.S. in and basis up products

in first X.X% currency quarter as GAAP we begun on noticed to International description Before $X.X international million, believe basis as up appendage business, we have our more compared AtriClip management, to XXXX. as our the it referring you and Mike's and products. accurate have is X.X% as basis to grew a commentary, turning constant franchise a down of of may our to on a revenue

While performances the from the distributor countries, we we quarter. in had this strong no Nordic and Italy, U.K., Japan, had sales the China through

have and We relationship this position market. in to China to on the calls on in continue previous distributor touched improve our work

personnel of first expenses compared first that of for robust and the the regulatory sales. the the Gross or our with XX.X% first as development years, XXXX of relatively XXXX. sales the to the or first international will well consulting China spend which as XX% activities U.S. for primarily decreased. XX% related were $X.X the quarter of for trial in outside Operating margin of or disclosed quarter approximately a quarter million investigation as quarter in the normalized confident $X.X business to XXXX increased increased XXXX. for clinical for consistent our are significant remainder and quarter to February. due and a filed the clinical our XX.X% sales, development SG&A $XX.X in XX.X% The from of million expenses, primarily million in domestic $X.X of first to of first We from while from primarily to XXXX, a for return DOJ Both decrease million million organizations due XXXX expenses Research $XXX,XXX was of legal XXXX include in levels the approximately expenses, additions product XX-K of was $XX.X quarter year. quarter sales. late between total was first to of million increase and $XX.X increase

quarter million for Our of first adjusted this EBITDA quarter EBITDA compared adjusted XXXX. $X.X approximately loss the was to loss million a $X.X

Our equivalents $X.XX with ended share the quarter cash, was net cash to approximately for XXXX. of $X.XX for first of XXXX in $XX quarter quarter investments. the million loss first and per the We compared

burn reminder, and a compensation in meetings. internal first heavy cash trade training our As is variable year-end quarter payouts, the due to higher show seasonally spend

our approximately $XX in with facility additional an closed on call, discussed on in Silicon resulting million last updated February, Bank credit As in we Valley cash.

under borrowings our the cash believe flow facility current continue becoming We with will to the and access bridge credit additional cash that positive. to along our investments, to operations

Lastly, $XXX $XXX XX.X% this anticipate XXXX. on X% to range margin based reiterating or XX% of our We year to of approximately million approximately on margin. growth. to The gross XX.X% gross represents basis. for XXXX a growth million we from a support to anticipate GAAP are guidance We top approximately and line our be the end reported for investments to increase current bottom the trends slight year-over-year

long-term margins still targeting XX%. gross We of are

be We this to science expect area XXXX. pipeline clinical slight R&D to sales, include other XX% to a CONVERGE Significant development. the XX% activities in improvement and of R&D trial, investments compared

our training to worldwide with to and expense SG&A sales overall expect legal We SG&A roughly increase in is in in of expenses, XXXX. XX% along heavier expenses. The education by driven sales and team XX% investment be

XXXX expect EBITDA investigation. to key improvement quarter expense ability watch over item loss the achieve reported marked and related DOJ EBITDA adjusted to which be million to $X influence positive, of that adjusted million accounted EBITDA goal this XXXX. for the from may our for largely $X.X is costs, legal adjusted A our a We of for

decrease substantially in be incurred build quarters, and While commitment confident expense, to programs in business which throughout cannot we practices. our to of the as timing may to coming of XXXX. we We the anticipate remain the ethical our our compliance sure be spend exact rest

call range loss EBITDA comments. to to X approximately $X of to beginning to of year translates expected continue At a $X.XX the heaviest loss of in share per to the with to loss I an We turn $X.XX. closing like would in QX, be this adjusted the the Mike for anticipate the in point, back which million to

Michael Carrel

In Andy. extremely with our pleased we you, XXXX. start and our first performance quarter Thank to closing, are

decreasing of on epidemic intent lives are we those simple: is mission Our global and Afib the affected. the healing

Operator? open clinical we We for will of with benefits successfully a up are our building that, With reach expands portfolio products patients worldwide. data call excellent the questions. and that

Operator

first Our comes from Jaffray. O'Brien Instructions] the question Matthew with [Operator Piper line of

Matthew O'Brien

saw top I - the the start kind remainder maybe the Why about to guess in of kind you the - in of I moving upper here midpoint range comp early likely we stick just starters, year, on you how easy to even just know the or the QX, of the should or for of the are with just business should end year? lower end stick toughest of year. Or we modeling top why throughout that in comps from the line that the year, more that, in with but line it's we are the thinking terms the of given the of for are remainder strength be guidance? and

Michael Carrel

Yes.

the we Obviously, good where thing now. to of it's at is that quarter had kind great think early But I quarter. out. I about appropriate how is, the feel it do, kind very a first year. of it's guidance we'll looking the right I shapes reason And see year. to keep think and the We mean, second the it in

Matthew O'Brien

specifically Okay, you incremental is this point? but that concern causing at nothing

Michael Carrel

No. at all. specifically Nothing

like and wait see and looking and first especially to quarter really of we that franchise that was behind in but trends the that about of felt happens X Just till we're seeing got us. we've kind it the change. obviously clip wanted forward, let's first what Feel quarter overall, good the just feel make like QX before kind in quarter,

Matthew O'Brien

reconcile you I'm through was run and mix a largely very you strong model then shouldn't for did the me, this extra additional as haven't margin assume then sticking quarter, then spend do gross calls, got you're there. looking growth not probably how And gotten that if in But that of additions I'm to well? specifically, level, around But follow-up, revenue Andy, for the metric we clip-related the some rest trying yet. couple there of at you product something and that And legal numbers commentary that revenue the it's - sales sorry, Okay. with or assuming got of there, so year? the forgive and plus that EBITDA the performance benefit as in the higher benefit it with business, the the with that the

Andrew Wade

I performance it's differently you as question, this was Yes, the so most so bigger the U.S. the let being by would the me driver really mix say to a bit a of sales go driven margin back quarter mix, high-level there. of little said, was but higher overall sales

Matt, the little the of a OUS question, And That rest as your reason have margin a as of why assume So I initially. not would that's the on is new that's I'm same bit normal the we part sorry? the impact the different bit the little guidance the heavier in was line goes a that what get as year it margin. of then was mix on on. part will what of last

Matthew O'Brien

Yes, with some heads, full legal are additional to reconcile year in extra you sticking spend the with the help positive going cost the revenue EBITDA for the plus how some year. us guidance SG&A for just get for still the

Andrew Wade

Matt, described some it the little question Mike moving how of different revenue here your There a and go is parts, bit X is Matt. more side. quarters on

seen work scenes with to in of stick this the risk going that we've be So the that biggest and comfortable the point, to item spend, trends on even. at Again, we've felt we break is done legal. the behind based areas that other

the quarters. as a little able be we couple as more So forward that update we go to bit in will of next changes, provide

Michael Carrel

looks everything for. We've rest them spend lot what we've a We're submitted critical to the the is, said like Matt, they level year. money DOJ right of the this Depending waiting the the of with dependent the piece, Andy obviously, at everything a what back that point back asked can, timing complied fees. spent done to on for gotten upon they've legal now, that in when and come and think kind I period. to of is we add that's on of

it quarters. it about later legal, on down we to spending and - back that rather we're so If timing. they more then caution spot, comes right now, it. we're more this come But talk third much decent in want spend don't than legal And uptick point, to We going on and the of everybody a early if really at aware will have be to we the forward.

Operator

of Our Mills question Jason from comes line Canaccord. the next with

Jason Mills

okay? me hear you Can

Michael Carrel

Yes.

Andrew Wade

Yes.

Jason Mills

with say - appendage to I start Mike calling to It's difficult with management wanted AtriClip. it. more as a sorry, than Super. you're

to stick need I with AtriClip. So

Michael Carrel

with You can stick it.

Jason Mills

because surprise little me which of business. done. it we've at really sound bit grew surprise the about did whole level level forward. That a you doesn't going the you that model But that me and to and hard lot business the business that bullish But accelerated, work a

insofar So in are procedure invasive. across your assume of terms what But CONVERGE business opportunity would buckets you where us inning, your us of generally and FLEX give left any open, as in minimally help penetration, seems perhaps in in sort each in is frame of of you those the that I and could well. answer FLEX FLEX the to you is of the speaking. sort that what in frame early may your still and of really be can an sort different context end one of really, sub-xiphoid

Michael Carrel

Yes.

points, open board. and so growth think on the around side a the clip across I robust units the business, on saw our volume of of on couple we

described. you So it's across each one of that the areas just

the important of thing appendage business, the realize open continue the is treating business, make of open do. in that an headway numbers people the to kind the as more more of First into side to side on their the the guidelines overall and

overall appendage the of managing that the companies are as about addition to talking endocardially benefit that, In other we get well.

that to that's looking thing CABG of an no going to of we that that, knowing Two, on side we haven't But just already you've to care almost have they dramatic FLEX you're the sold the where So related business. penetration. more much a impact of open is Vs open at that and manage the yet it, area, got there that's do believe the a standard do, important many it. to becoming on it's chest need

surgery. for So to like open and XX,XXX of about into sold there every asking and year you're go less than U.S. patients total, the clips over to cardiac probably XX,XXX for, XX,XXX context XXX,XXX clips clips, - give open last OR you in in in those year, the are treatment that we so clips And of were those XX,XXX were

to So cardiac about you're talking overall surgery. low penetration very

If the XX,XXX in patients. those or between at you XX,XXX or anywhere Afib patients U.S., of it's look just the XXX,XXX so

again, for the of scenario. that room to appendage So growth lots manage in

to So that's help we complicated under than the there's are well. like PROX is to PRO long is were able invasive Vs, V which the feel the it's also in we obviously growth side, ones least growth minimally go kind well, like as the to strong you're is the and X cases the CABG is of see trocar the the business. to CONVERGE in the only really those get more through in us before, like go and because to When in the us but PRO into penetrated, at not mentioning going attachment but look which a of portion you continuing we're MIS, of seeing way as V to FLEX enabling area the the

Jason Mills

looking I'm to color. meeting, forward you at that great will in detail the analyst more that. so It's over go assuming

they pull As success clearly thinking I've now in an you developing the is feels aortic appendage have almost like really as interest for it the to opportunity AtriClip It through maybe CABG, CABG I now more especially could these lower consider in in go the the maybe the you're and demand given through to management pulling you as the to are what AtriClip. have ablation side? of business for products of past, sales an penetration? uptick that mentioned follow-up do you of like to of be they that, training be opposite guess that physicians a good a that been in procedures Are seeing on to a open high, about and you to product clip some sessions

Michael Carrel

people really thought. a of about I'd the that say that into reasons business. excited that's yes, get it's do coming And your - insightful the that one

per the I because clip se. I they the combined side, what of come with guidelines it's don't on clip they think just think see the

the I higher X- lots treat a because that you need has their survivability data chance that realize surgery. And year used think easiest treat during that's better, them The - kind out these XX% they're for an to ablation of of time to showing But or the if the of surgery, because clip probably X-year last a studies out concomitant is with much patients. more your these and so that first of that's so. patients move they in of is come greater, coming that period. show there's you treat it's do. do have living they significantly patient if The time there the at it the that thing is say over driving Afib I'd always the

they the lines put next clip level and after on of the So to sense the kind then in that first that. graduate you're more of ablation right you doing

Operator

with of from David next the line Needham & Our Company. question comes Saxon

David Saxon

And wanted was into Just regions? China? there have business look for to countries a you sec. international then happened additional at to that anything or Do the enter any specific plans in

Michael Carrel

Yes.

performer to are over long now way Korea, procedures we from invasive are us, been where and markets South there minimally market a standpoint, get cryo we country the Japanese those being Australia time, advantage #X new trying months. and of in we're to world, there. the a actually for those that for really continues XX last we've clip products products So take beginning the into Japan, into done. and very did country and get to strong the it actually is the a be our strategies

had a and kind so there. And we're growth there years market, XX over kind China volatile for had with ability - for our really a feel the distributor we seeing the the on of to year. on everything Unfortunately, of an was good this get had obviously, order we deliver we very rates else. quarter-to-quarter in remainder confident them not good quarter, this from numbers we've but quarter we've of So did strong good revenue and our

So in I really spot of good the our the we're good without you standpoint. for that, it too not getting think many gives but context a to rest from specifics, a quarter it into year to and get it was

into, terms focused most In that really our sell in the other going in those really and products today, of it's in. Asia, and countries XX markets taking new much are we're We of about most existing getting just world, Europe and in countries we it's into areas we're in about major the so countries pretty of products.

process CE in those get example, get have as and mark yet, because the the products on to we products for V those trying we're in don't Europe, as to working on regulatory fast possible. So we're focused very through market

David Saxon

perspective, Excellent. in in we XXXX? and that the still And expense. should from just you with And think interest XXXX guided then from the Bank, Silicon I modeling loan then last Thanks to expense X.X hold? interest for term a color. Do of think quarter how Valley

Andrew Wade

same. the remain still would comments the Yes,

and - a be will quite So for while. interest-only in we

you as with thinking XXXX So rata interest will then come that. of sort in consistently pro XXXX down and XXXX, payback start that get you're into start to about expense will obviously, then okay and we

Operator

next with question the Our Leerink of Antalffy Partners. from comes line Danielle

Danielle Antalffy

open I Mike, comment I could business. hoping on the bit you wondered was a if little

tough You had strong this was a pretty a and quarter comp. pretty off

line had quarter, QX saw like had some XXXX. is if you do - wanted last last it In the talk I too volatility of back in prior track basically we last dramatic you in was be see don't bit sustainably of to looks feel guess, about, you but and quarter. and that months, XX QX little business I a on So year could it, I with want what to just now growth you about

you growth to on us So it wondering trying kind to just like trajectory. this it give not back that trajectory business call Anything if the feels double-digit business. is growth single-digit high there for say or XX% specifically guidance of can

Michael Carrel

So going feel more are strong. like people the business giving and the - se, kind mean, are the treating that number guidelines and you tag to per guidance, I We specific to not is a very said, ourselves and now. without More we of patients and to the term. but front and going the done treating well doing kind on we've They're training educational these have it work sticking together. and are and More off training people ablations, worked completing really of better. dovetailed really more long doing

year we'll So I and year-over-year, see that a in basis, I an things this you and have over you'll that well. do annualized really if look business anticipate think as at I think consistency good year strong open the

Danielle Antalffy

users are coming bit that deeper in it... itself. least largely to is CABG programs or open Are of procedure folks? like programs? training for existing I point, - less the a a the penetrated open are the and aortic? and seemingly training Or leading of education good and the seeing What's that make-up around new you you've on the these new see What seems those ablation at to is Or tracking there? past mean, of about talked some this about back interest are be procedures you little you when at good ablation attendees the the And indicator, it altogether?

Michael Carrel

terms about experiences. other question. again certain to people part courses. hear other they the more who both for refreshed talk or surgeons way excellent there, ago it, it it's kind year in are some with track It's of get And we a come a are bit, be There kind an but do little want relationships more mean, hear both. who back X, want of They to build to of and I the learn X they what doing heard on and courses.

So the center it's about we cardiac usually pretty people. into They existing XX-XX sites, much and versus existing from country. in every are surgery of sell new

necessarily maybe really Not heavily are new And and sites. a So do it's surgery. you site people mentioning, are at like those that usually a of focused lot them, they're new per se. people CABG

focus So ours. big a therefore, that's really of

is move they One to now to that right they like incredibly to behind these kind we've CABG - and been extra of of staying heart we comfortable as get much training of been that's with day an into have the attractions they're all of not up this. do, pretty that courses not do doing arena, as kind wind or cadavers we at as that hands-on to people going used training. ablations people And need are successful, big every especially have the to the the do one

so that's draw it's that and scale - been And as on also a pull seen the everybody. and well. the both for international And really U.S. in we've and big

Operator

comes next of line Our from question Stifel. Rick with Wise the

Andrew Ranieri

that how out what treating appendage? this thoughts the anything general the for potentially similar potential have Just going to it's AtriCure Cabana? It's the sensitive AF? Drew else wanted technology, I And impact for start, and long-awaited I clinicians we to done readouts to any like apples-to-apple be there is an the mean on impact it's be coming on granted, not is soon should at might presented may Rick. study, for what trial from HRS? have there your HRS are for but just AF WATCHMAN and And the positive could different population to just CABANA of not are same do

Michael Carrel

think Yes, that's of going be talk to I HRS. the

you're correct. think I absolutely

May it's but that And it that different get to to of se, Utah just that. concomitant will further they're be dovetails. from data longer. when time that I effects authors out already have the think in patients I one they kind surgery on a if validation University with just validation be I further it's side. think for actually of treat these in that sure. think per like treatment surgery, Dr. with Marrouche the don't think recently this some setting, I concomitant adds there to on who but And spent people fact, because of talk. and one know technologies said different is you I trial - piece positive it, on think that's live another is going the that's doing the that's the all In I I on do

assumption conversations, - think will that at thinking the patients to kind HRS going that the because your correct it's fun it. I to management, of of of to are be it like going a But hear about appendage are have lot of be hear I where overall how think do and the effect So just treated better to in you're a kind cardiologists get this. you're lot of EPs going

Andrew Ranieri

trends business stabilization comps? mentioned a talk underlying positive it you slowed Alright. just was with real in any then but the easier MIS Can EPi-Sense, business? the legacy driving driven bit And the think your little legacy about by stabilized. were I that quarter, that MIS growth Was there just you just the stabilization? Or

Michael Carrel

back accounts west in year, that just It's and se. to and to most legacy fires the on between both had if come a And and in mean existing we time. on of of I to the last to relative we fourth a lot third really that. rates anticipated It back per come coming quarter that about hurricane as earlier of the year just a recall seeing that's do impact you going overnight, new out MIS. quarter some what in you're had of talked the that growth to call, of kind the accounts the net not lot - wasn't back. We're negative with fourth of the getting back over begin

Operator

Our question the comes of line with from Securities. Northland Kalia next Suraj

Suraj Kalia

hear guys you all can right? Mike, me So

Michael Carrel

Yes.

Suraj Kalia

Okay. some has bunch Mike, answered. AtriClip, questions of on in already A earnings calls. hollering this between if of Mike. My been just apologies

about just provide and in run can went QX looked be Question And quarterly #X, numbers, be for stick terminology. just given the different? just respect XXXX, in you same or there QX now, you there growing I'm you any be at your reason accounts? any haven't Would that rate why looking wider at utilization? deeper I XXXX would color shift per greatly is, Any some back to jump it's I'll rate. I roughly AtriClip. From the you the Mike. AtriClip guidance What se. looked I for rate at XX% quarterly should appreciated. with saw curious run in the So a are see fact do U.S. you in XXXX, run

Michael Carrel

say continues the reasons. there have different strong really is that the courses. only mean, training Again, brought I the AtriClip that for franchise comment be to I to guidelines think can several I people

without You I got specific has the being adopted appendage had franchise. giving worldwide. a management think that are discussions positive that broadly for guidance that more impact And just

we to what of that in top on that, mentioned, also to area. just continued addition innovate we've In

bring into years development so new years market. had market, many, out to to to the been V years, under clip the of have kind PRO that finally now pipeline FLEX X and over for first the V. starting products and in came and come to we've many are market V they X been The had for So the

able driving So the to market that I spaces new that, us different general what's introductions really in helping have, combination the macro think overall is appendage plus in attack the product different the to of relative the being and areas growth environment there. we from

that In not I'm growth going do in I to comfortable consistently getting we've necessarily quarters. X the can commit continued areas that. say to overall last it, to AtriClip going the to not But been terms it's feel we I'm in that going the be that strong we're say be over going to of franchise.

Suraj Kalia

'XX, in angle. to from sold in I'm on XX,XXX implanted is of guess the what XX,XXX a 'XX. clips it. say, 'XX again If different some give FY us in FY at these sold? QX use clips clips versus there ratio I to it Got were trying normalized are just Mike, of, I And color can let's trying ballpark because XX,XXX any... to look just a Mike, understand sold. you XX,XXX

Michael Carrel

one. to a giving the mean, we're one the not almost I number for obviously, overall It's number - year. for

number typically it's make get them they a units packages sure of order people base. in on we are quarter. about cover It's clip. But to the the stocking right sold, total You're don't first buy we that then utilization the of on sizes, but

just up not new So most but are every of you pretty inventory, in hospitals. with see and we it, use what bunch the if I and up have used. devices. the today, that with kind it's much that used is we much in to wouldn't they say hospital our in ordering continue we XXs do a we clip ablation But of they of what's utilize they pretty their sold are - lot they hospitals to hospitals of a open them, are will as we that a XXs, bunch ones replace use wind

Suraj Kalia

know Got talked this, Mike, you point down And all mentioned settles do what from perspective? don't Any Russia with business a the the But when issues be and or about it. expect finally, maybe and the China you do already issue. great. I have at you if distributor, color all you think Chinese normalizes would

Michael Carrel

like now As the about to I earlier very in I good I of here. like is have going position. Or little a half bit going a China a year we're back strong mentioned issue that feel the we're feel forward, from good

out. year we'll be as closes the think And normalized kind more of I so

Operator

call time. showing Mr. I remarks. turn would further queue for Carrel no I'm at to questions the back to in this like closing

Michael Carrel

Investor look participating and forward a for the everyone, the York. many and you, at to Day today, June you, in wonderful in thank Have call on New we Analyst hopefully of seeing evening. again, Well, Great. XX

Operator

you and disconnect. a now gentlemen, Everyone, day. have may conference. participation for your in This and Ladies thank you today's program, concludes the great

AtriCure (ATRC) 29 Apr 182018 Q1 Earnings call transcript