ATRC - Earnings call transcript Q2 2020

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Operator

Good afternoon, and welcome to AtriCure's Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [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 Lewis

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

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

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

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

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

Mike Carrel

We for Good Lynn. to challenges you, Thank as with we this and face us. afternoon are continue unprecedented pandemic. thank you staying safe healthy joining hope and you

our the begin our safe to front the care taking and to results, Thank the we rise workers we our keep gratitude Before review to of express selfless to continue for you line occasion on quarterly to to our want functioning. communities of us.

the are heroes. true You

April, steady We despite of revenue and easing in throughout down to and in challenges June procedures the the the same to pandemic to back to return XX%, followed impact return, procedures million, in with coming with compared non-emergent rapid we early Europe. see in by and May response the in the shelter-in-place XXXX last quarter significant of the under especially Total online debt the of volumes down COVID-XX quarter. restrictions. due We slowdown We U.S. period began results are April revenue second monthly experienced from as by encouraged which felt, was trough XX% our year. $XX COVID-XX, just

June May a saw improvement nearly May. by in over we saw revenue April and in Specifically, similar we improve XX% over

While our fluid, Europe, half trends through in rebound of with we the growing July does United weeks, down more we indicating last remain in the and are volumes second be pleased by some now to of recent regions case In revenue the the and the parts volatility the can expect situation U.S. the especially June. to encouraging quarter, of States. case of the began volumes somewhat few in compared business see

remain optimistic As same all while with we to look we cautious to we end, safety possible. remain outlook we our and of flexible about in stay we continuing spending the of to To restrictions interruptions working XXXX, continue to our strategic make mitigate time, we the track initiatives. of sure our on ready prioritize At second half any remote promote easing wherever are areas. several health and and and employees that the

to lifted we and a actively are roles. team, and other critical hiring our adding Specifically, commercial freeze

well-positioned are commercial testament XXXX. our of we AtriCure. aMAZE approval team science, education, in the at the the strong CONVERGE all we on on quarter ensure and on The clinical focused performance is second are future and to We XXXX our as strengthening resiliency future as our infrastructure such enter our a catalysts, innovation, progress that and to

healthcare dedication. times of Our our an as clinical this to with to support to commitment and would like amazing put example patients risen group challenging education partners one first. our unwavering has to highlight team I face these

validated team COVID-XX virtually. our to to developed support team our In quickly Over the platform past clinical customers year, and a none. developed peer-to-peer to pandemic, second education a has platform is adapt to education process that our this response

these and changes. protocols, the As changed across adjust policies to their also to institutions country physicians had

helpful Our virtual and prepared out at reached this AtriCure team and was platform proactively. with

Our literally platform initiatives. CONVERGE. no our to transitioning outlet we the we achieving education we from person. seamlessly, virtual We've has care. in-persons Well stronger customers up engagement our work progress made been quarter This rising our been on our with stepping for with several showing for able medical clinicians, longer that customers our significant call in successful thanking as and stop to and even community to the managing building remote became in during could Starting us continue through relationships customers for and occasion. with with on milestones not as strategic pandemic team the were could to partner the

As trial data the has virtual early the many meeting from May. medical been the tremendous. HRS in conference during the are response well of readout CONVERGE from aware, you was presented The

There deeper our and options Heart demonstrates was still is persistent the Association. XXX and As for a is with make Accreditation a British Further, level the interest group an of regulatory from persistent FDA. We've of ever review, physicians, by advanced of Rhythm AtriCure which We Cardiology and work the excited and had from to of of drew that College central symposium which very held submitted we our Convergent endorsed in American recently the over the Radcliffe Cardiology. respect suffering of Journal was number witnessed forms available team therapy the papers patients were Board around of that of collaborative analysis with discussions first long with and a the the for seminar patients largest have in complete to working clearly Afib. Group to was American the productive Heart virtual ahead manuscript published mission. on CONVERGE, were standing arrhythmia electrophysiology submitted believe to best accredited a procedure, and this Afib, the to suffering any to attendees CONVERGE procedure. discussions patient is seminar of a clinical is second example, driving our data the European Society diligently process We this FDA the by treatment to

HRS the engaged dialogue some we've data deeper with for May, in the asking release in agency questions additional Following and analytics. additional at

both strength durability are and before of parts moving are lot and our We regulatory said, these of a of there of That encouraged reminded process are data, in efficacy. the by is discussions terms the safety complete. and

We significant the other Trial, working as the of potential our our passing than and a progress preparing will the anticipated. had We first FDA we milestone the but major module panel study changing have convene made point, submitting that aMAZE our well, be by market out bit a the under clinical in further we originally FDA. of this assumption PMA the to a are it'll timing as meeting, At little still do this not expectation is insight meeting.

As trial by trial December a randomized analysis LARIAT a PMA reminder, catheter superiority. expect show the and trial and for on full system mid-XXXX, our this in in XXX data to is early exclusion control the these LAA versus aMAZE AtriCure’s enrollment ablation in ablation, have patients Superiority is to follow-up alone. XXXX submission. catheter completed Trial patient followed We designed to

its managing block second expect making demonstrates addition operative post which impact its be that trend CONVERGE is aMAZE in quarter, upward pushing our volume, add probe progress probe continue the rapidly investment transformative patients. therapy core are continued ablation This revenues. In cryoSPHERE the To the pain The teams. increasing and business. clinical initiatives is will in nerve to the long-term. forward to business. to sales believe our with we meaningful important to our cryo company, our support and and of unique thoracic In in pain our cryoSPHERE steadily thoracic we that market positive and in our momentum innovative resulting augment probe and the Trials, in cardiothoracic intended case gaining management progress innovation contribution we for for resources We steady both believe

As clamp, the clearance preparing continuing The platform, part ablating a to the of subsequent faster XXX(k) heart procedures. simpler market clamp and is launch. team the in new toward open we of for and work ablation our EnCompass EnCompass provides approach our open to are

coming further our all clinical What to current in revenue We I to actively to our are growth throughout and we to build the – surgeons years. And initiatives, clamp appeal educating to expansive continue this education of second does earlier, expect innovation. Cabot strategically our hiring as this and environment? contribute product team ablation training our strengthen mean the to to in open support high-volume continuing the evidence, year. We half and mentioned the this of

future as we markets. our is We and the by in However, present to results and optimism increased July, saw key volumes mixed the procedure of volatility possible with uncertainty a environment. through entered balanced plateau the

XXXX the result, remainder measured a year As remain the and for at outlook providing time. our and for financial QX in of we this are not we guidance

and we flexible and We respond to monitoring the environment flexible are evolving the trends to prepared remain pandemic. actively and remain effectively

return our our will confident cannot to growth our normalcy, Officer. we future Chief we While focused, be now business our team to remains to turn Financial I'll continues and and we predict the long-term are poised is for over call success. Andy bright, Wade, when extremely that

Andy Wade

Mike. Thanks,

sales resulting XX.X% decreased was decreased of to in million, XXXX currency the on $X.X of ablation in of types. worldwide minimally U.S. all second basis, $XX.X quarter international on declined and second XX.X% of on steep variability U.S. XX.X% significant inherent and for quarter the the slightly of revenue XX.X% management compared ablation a million, compared due to in defer million. sales Second down quarter a second open to second Gross a in a and quarter of revenue the our experienced compared sales with lower decline XXXX. the across XXXX decreased from to Margin to We quarter procedures. revenue to as XXXX. $XX.X was XX.X% XX.X% product products constant for the invasive was $XX.X sales $XX Appendage volume basis XX.X% decline a a invasive on XXXX. XX.X% to and experienced while markets, minimally as basis MIS $X.X a currency ablation of ability GAAP basis decrease sales quarter decline million, management GAAP appendage open International of than million XXXX. million, to second XX.X% a constant XX%

to During recommendations. our order to we reduced production temporarily modified our the quarter, second social capacity operations manufacturing adhere distancing and in

decreased not We production of remain employees or pay our their committed to safety. and furloughed have

normal we decreasing quarter volumes operating costs the inventory production fixed X.X%. of reduction with in burden gross position. reduction of our below revenue, the our a However, levels temporary Despite to strong the margin cost ended by and production,

excluding by costs, imposed second for $X.X was from quarter primarily cancelled, virtual restrictions and in travel the of million to liability, $X.X of the driven expenses, in-person addition decreased delayed, due transitioned quarter partially training costs or XXXX COVID-XX, marketing second adjustments was $XX.X as Turning operating and shows offset which million to a costs to well quarter million effect trade $XX.X as million to and for decrease Central approximately by our Heart decrease compensation The costs, of of were the not lower This group of that in training operating the present non-cash the were contingent second XXXX. the consideration XXXX. variable travel, events by to of decrease platforms.

consists as of team, field a PMA operating As costs supporting efforts. clinical Central the primarily reminder, aMAZE readiness well Heart as trial and

for operating Our the $X.X quarter million to loss quarter $X.X million, loss second of operating was of for the XXXX. the compared

second we the million which loss is of positive million the a consideration our to operating XXXX. $X.X EBITDA this a compared recorded reduction $X.X $X.X in adjusted for to quarter, noted, second expenses. to XXXX, the adjusted expenses liability quarter EBITDA SG&A the of million of decreased quarter an addition we In had just contingent of In reduction

the a for was share per share $X.XX of $X.XX for per quarter loss loss XXXX. the to second XXXX quarter compared Our second of

per the respectively. was $X.XX share adjusted While loss each $X.XX, and period

the During did navigate quarters, operating as of evaluate XXXX. second the pandemic our to first half and adapt in adjust expect COVID-XX the and continuously and second we plan we

this and foremost, plan First and commitment. are people our we to our committed reflects

variable program implemented talented In our team. addition supplement the sales compensation the very to a measures we have call, the to we field of last on discussed

patient’s to and are the position to Despite and research hiring awareness with clinical to our Through initiatives. support bring strategic ourselves team also activities been and in development remote committed to evidence certain of finding in continue physicians for remain We has adaptive to launching implementing training our on undertreated population virtual Afib travel, vastly key roles we and ways support product to trial clinical resourceful our limitations platform partner patients. the gather first our a long-term.

net be million have We raise shares to stock we of stock structure impact measures ended execute cash near unprecedented inherent on taken in We in proceeds decade. position initiatives X.X navigate the quarter bolster term, May $XXX of in equivalents with capital and the the receiving operations also this allow our On the and during and million next $XXX uncertainty common approximately we and a our to strategic of of results XX, our completed on issuing liquidity. believe offering as a strength will and us million. XXXX, We cash, investments.

noted Mike emergent increase June, in May hospitals a steady we during and do to started as and see more elective where Finally, as used. procedures all are products earlier, started to activity

cautiously However, our mixed. past third results largest COVID-XX early the delays us the The and of the and domestic cases markets number July sales in few markets some territories rebounding are in are weeks, to situation quarter. of tread in across remains unpredictable, causing into rising activity from our international

to trends XXXX want ourselves we hold on continuing guidance. time, financial get of are this do not predict As at ahead and providing procedural cannot to we

to our allow At sufficient to the Mike, on initiatives our continue back and point, focus to I current to this like future to and call believe strategic efforts would promising our Mike. operations to muted. We you're are investments cash for AtriCure. turn fuel us a fund

Mike Carrel

and to Cincinnati to patients, we've you, recognized top like these their help and that say for of times. the everyone. everyone Andy. commitment I'll to for AtriCure a to turn one the Please stay AtriCure again, creating the team challenging Thank top our to would you through national healthy to of I'm and Minnetonka be team, in once thank communities, standard as you partners this our entire as a every as I it Thank of world-class one part passionate culture. proud I'm our workplaces Enquirer, Sorry. work to been at office over With and humbled alongside workplace. was recognized each safe working questions. that, day. and

Operator

JPMorgan. question first from Robbie Our Instructions] comes Marcus [Operator you. Thank with

Your line is open.

Unidentified Analyst

taking Hi, actually the question. this for Lily is on Thanks Robbie. for

how resembling quarter You in of normal, cases back change, previously with still had And but this mentioned in does your on guys view is across July outlook below given recovery the we've the to year now potentially the fourth spike the something country? the seen true? close half June hold

Mike Carrel

the to the than I you of, mean, little of has timeframe. being much than did as bounce and kind I was expected. mentioned, I we overall kind case think obviously at to basically July if you back came better very back May the look June close flat in very expected better numbers, the well, was normal timeframe, in June mean down of been the And to terms a bit volume. in strong,

it's and and kind states of shutdowns the in and downs little pop-up like uncertain. of a hospitals, lock on it's big think as Texas, unpredictable cases bit there's Florida I some

guidance. point, back earlier to quarter, we saw giving We’re not not going go we're second levels to specific at in so this that the why that’s

not quarter. fast growing as it – it's I think in kind second it's that degree, to necessarily it's back the like it’s was stabilized to not but of going some as

Unidentified Analyst

a And of and to are the quick What doing now then panel prepare follow up on just ahead Got you CONVERGE. approval? eventually you. guys Thanks.

Mike Carrel

superiority. the mean, that of again, there, safety numbers for I excited. of that this advocacy, that at really across previously metric thanks and terms year, the showed obviously, Most were where beating out Yeah, you on and out we in was heard data every on won established, question. both HRS came we're that

done all about site doing country. So, analysis, pretty the for the deep country we've is that, much EPs. the set FDA. sites in we're What all excited every over the got around for we're up dive that with prepare that to working collaboratively We've

we've EP addition we XX we've been team on headcount to trained, the from that's that we're understand team have well, DEEP that, over the the merged with background. EP with the ready of are our people our a business to marketing of have of got of well. as procedure the very And LARIAT this team where go. side And All kind adding in materials that

and so sure this for We've front. now once that make The to a company are and on we're to to got we just much running good the we've after sites we've coverage. we preparing be get proactive can And kind to label we're this got good and for do based a training really that we training up come bought news ready that position, in So were really education in go position. we and waiting for more been broad that and market in since through big way. of able the

Operator

Thank you. question with from And next our a line Oppenheimer. Kalia Suraj comes of

is open, Your line

Suraj Kalia

right? my you all for Good me taking afternoon, you everyone. question. Mike, Thank hear can

Mike Carrel

Yep.

Suraj Kalia

healthy. and Okay, perfect. everyone is safe Hope

you So, cannot know the delayed? buckets? backlog pull-through? in converted can being numbers new a stratify the seeing of lot trying Just seeing are of versus patient two those level you’ll information are or, backlog What What Mike, the you is to provided, stratify the market? be we versus

Mike Carrel

realize hesitant hospital. and get a need see so that to the patients big Yeah, of like to I hospitals is, try of the safe of was coming fair don't treated versus it’s It's that would push a of one good to place essentially the backlog example, know not backlog to an this be time, into they're but That What there's and issue to through patients. you that Suraj. get very that are we're to some what’s a who new go. net think – one backlog much during it's the because the question go – are backlog, seeing a stratify issues as to to as into

into coming So, more a patients of all net really frankly. seeing is coming what versus the kind lot hospital, new and you're of quite in backlog

backlog, it’s to patients and a come to really forward, look I going back realize mean, we get should get road. they treated, and bigger safe down place incredibly got get think to as but have they're issues little we so, of or to there's I treated bit And the else those

Suraj Kalia

thinking open and of least more way presumably Mike, in being if the U.S., cases guess, the It's the open. for expect by are it. the look the influenced delayed? immediacy got hit forward, MIS procedure, that terms we so Should of Got not at in and we it than the impacted being year? I And of or the numbers, at MIS right is more, the remainder of about moving

Mike Carrel

good reasons; think, is a our numbers, the happens of open what cryoSPHERE, to actually because it's the cases way think two cryo think I the come primarily and – it’s that that I about a because piece, growing way is which the of back naturally, one, right know business. some but it, is our part which open amount, small to is but nerve basically block first

back The other an that patients treated earlier. natural, they've part the compromised, It's really frankly. but are to that are cabbage of obviously, to it's to get and open got need need is quite and be elective procedure not

bypass cardiac push long. valve You can a so only for off surgery or only a

as along saw coming the sites that were was you're revenue MIS June there enough, came So, you if looked April actually that up comeback back the May, side on We surprised, that. by speed. of in thinking at no almost increase and the quarter the correct it some actually to month, get interestingly was beginning timeframe kind I in happened business. that was a of to our MIS and of steady MIS were

the because it think So, strength enough, of interestingly started as together. cases that to also I’d the you're MIS have came to while see said, the some caution way overall quarter right, you

Operator

Piper Matthew from our line question Thank next with comes you. of Sandler. And O’Brien the

line open. Your is

Matthew O’Brien

Afternoon for questions. taking my guys. Thanks

favorable. bit and you think CONVERGE up in the through a of, can of Mike heck of to didn't you be to up the panel? during what be the should lot Because far help up the as know, may a tend FDA of know, they that end are the want lot day, What to be front on you looking say with for things, Andy, really investors Just I of but themselves what set to outcome, data, queue those a know, a you to goes of the follow panel terms typically in little at really as kind things you for know, examining? question panel, us really

monitor to things do how think the the key we respect about really panel? to with So,

Mike Carrel

Really fair question.

in you've so, then I over seen, the I think efficacy, components, three board great. look that, of the across the mean, that efficacy. we panel, data main looks I hit the and the safety, advocacy really we'll think At net at trial. as safety on benefit superiority the the

just cuts efficacy the of look probably data. to side we'll On of the at the things, want

the look the the in on we more looked all peel it, more and at ask. efficacy mentioned data durability that comments, that the they angles, better, I we my data like the onion the from back and of more As different the the questions even

of feel good about efficacy we So really the things. side

effects issues they'll cases, actually On and And that more the the how all good okay, well had up look it’s that etcetera? want the just some that patient probably really term a think of and some to I these I there. across pericardial wind they'll long the up we'll out deaths, And mean but did And just, want the of no patients well for – maybe about, recover, safety news, items into small specifics like? then what there doing of, does sure it. talking with wound side, fusion, are were on were no that mean, get get did what just number details that make possibly any to

overall. of when with were are the those would be good we dive think the good we within feel is that they'll I So, what FDA The rates about we the prescribed. into had the it news trial kinds started things and probably. really safety They

Matthew O’Brien

us following had the HRS commentary XXX kind What want And you year, helpful. of for that can know, view, you in little or be of feedback with next we side the a on bit, from really expectations seminar a data? are CONVERGE data guys contribution it. out what get, you you what hearing our or get talk did was coming coming feedback but clinicians? to know, again, my you you from excellent from was of Got know, think of kind doc clinicians what MIS enthusiasm the of kind I out then up the That's you just you to. I momentum know reasonable but excitement

Mike Carrel

because because incredibly about when just in kind kind the and world don't data that cautious that on think I is you're date I others actual know about and back seeing and you'll of the COVID top-notch mostly exact that data of really what's path, with the the feeds but approval, up this of down the really and I'm get is Twitter that compelling, ramp about just ablation that and that wall the get being hospitals talking facilities and something happening positive. from back procedure I'm EPs really talking excited are

seen it procedure. forward only ways. data talking Convergent lot or about data fact from Dr. the having people really are almost in that are control day, there, online the Wazni whether Dr. talking Natale not leading it's of is new Clinic. a pushing and These there's that – In Cleveland about fact about they're just in every world, it's the that one a and it. the were And Tweet the EPs randomized really debates the I've the they're going CONVERGE. out out of doing

conversations the to think that watch really I kind and of we've say happen. response had. typical that's that's fascinating I'd a

really you been people. I'm, it's got so from positive we know, feedback And

Matthew O’Brien

helpful. Thank Very you. it. Got

Operator

Matson Needham from question And & with Mike you. our next Thank comes Co.

is line Your open.

Unidentified Analyst

is questions. the David Yeah, on good for hi, Thanks This for Mike. afternoon. taking

Just that you'll thinking. – a a delayed panel, what you're were couple mean, on understand I I sounds from previously probably it's might but see on you assumption it more running that like CONVERGE, the be

is data [mid-XXXX] of that approval been hiring for just there a any fair to And has on the freeze, pace change sales then, the in also So, force? assumption? then and hiring

Mike Carrel

half is the still but the one, kind feel you into – June, I'll June, wasn't the we in know, even you well, beginning of with really as looking good even relative as our were and we felt start we the we a year, Yeah, of the to also was month of good May, not that, need which though only – we feel back July where last on what to strong long-term. at saw pandemic, invest in it about

lifted And we're actually going really on so able aggressively board. right to to find and and that people feel talented roles hiring out now, and we're be good that we great those we've all

of phone great terms both FDA, FDA. give over not We're and can't going really questions the on and to having on with etcetera, the don't In specifics timing just It's on forth good collaboratively with timing. I back I email, it. them working dialogue and I'm and – on the really

really and this we had, feel that obviously, process say said with through the insights given we to that me tough. work forth is we've the just we're going going I and from beginning and eventually that standpoint, I'm reason that to that I that once get collaborative have the in panel back approval my way I sitting date a get that, so, good positive says, good, guys we and at given an and we'll get this why, we're just know, again knowing predict we through I us you the trying specific The you them is is be back And which process, the actually actually a really the it, that dates not there. giving positive, fall there's exact timeframe believe my in to forth of just really And process. the just feedback FDA. exact likelihood done any about data, likely. we're know fact probably here am that getting hesitant you getting that the just is to through the know with of August, the you going so, have seen data, and don't

Unidentified Analyst

And then helpful. Andy, down year-on-year. maybe that's OpEx was Okay, for

how wondering in durable second margins quarter? the thinking initiatives are and the we just relative third So to how fourth be quarter these should savings about cost and then

Andy Wade

Yes, sure David.

you're spend, the on right. So,

a is mix of travel. Some of – like it is temporary a it mix things

is Some headcount, reinvest know, talked year, some of look pushing into where closely going this keep been as about. know, on you eye an you sure of part the has the we we've you the where mentioned, reduction you – we're the know, we're But, as to on Mike watch that areas and trying we we’ll with what's of the to of, get that, flexibility. out in got it's things as in know, making business some terms latter

due of, second know, in lot terms margin, was inventory you to of producing. really quarter, were that the in a being we know, the that productive you On the just less

know, you So, margin our with we've still, flex know, longer-term again, you got demand. capability like gross but to production our profile, we

I think we'll look of here. to look know, grow managing very, a team's the know, doing that. to, So, you from we'll good you And, job very

Operator

Thank you.

question next Canaccord. Cecilia with comes Our Furlong from

Your line is open.

Cecilia Furlong

population? taking I viewing Andy, and you're start around off, longer-term creating to thanks Hi, nuances care and Mike patient how for and for persistent long wanted with to really just patients standard questions. any of persistent the the that ask just standing standing specifically, reaching patients, continue potential, long just those versus CONVERGE, I but guess and persistent adoption new

Mike Carrel

persistent happening believe in back the We be that market. market. a long persistent going applicable it's we're to good mean, of really question the both to a what's I to kind persistent piece and standing

of with. hands raised ones say, the and For that patients EPs already sure are I persistent great up the the to that the there. a the They're that's patient They're their out more in long population these. benefits and standing can't do market. XX% It's are even greater immediately durable start

the way I of treat of those you then treating well move in it's see persistent to how So, lot the I time, over into they’ll persistence success, see the of their think to that's on ways, today. depending going and probably start patients, What kind some great a with difficult they're more progress. mean, – how

side, in some catheter first of persistence they today. think after as Convergent for therapy standing patients, long a feel persistent and persistence then a move maybe because I people aspects probably have that. first, ones the some comfortable to sickest they're line on option doing only, the upfront that with those they'll – no And do have and they the primarily the just are

over some we'll time. that, think probably see but of be that'll I

millions the will kind both patients were results fit buckets the is news and and millions of strong within the So there's here across good that of and board.

Cecilia Furlong

could up you your you. just franchise, And just you. if quarter thank nerve the then drivers and ask guess you're adoption. cryo up as I opening market role follow really about and block of the dynamics data longer-term, Thank then the the ramping drove and thinking this Great, just opportunity further. that I during And saw

Mike Carrel

the nerve mean, What's mean a block, lot being falls amazing we was buckets into what you patients. block that, saw I – nerve for think if about used cryo cryo the major thoracic it that about is have of you in I three really It today.

cryo quite it get got bucket patients patients cancer out used a first based, and to really going still down path. got cancer, nerve lung area. they're want is The And is They don't to they've deferred. nodule metastasize. don't cancer that's within If for take bit they've block to a that and that lung continue

So, be are the into I’d that and benefits it. used. that's you're seeing one, where cases in to kind Two, people continuing continue is grow. to that's And those is coming ER, trauma of say of the cases

there Now beginning people the driving general trauma United in less fewer at the States were because across were of the cases pandemic.

the actually procedures. data there's that is is adolescent area other one like in used end. being in finally, that, that's well. And we'll that's we're And of back they're near come being label And out types the [indiscernible] that’s seeking published as You that lots used see that of an then of procedure one kind getting saw there. and

Operator

you. with And Rick comes of Wise next from Stifel. line the our Thank question

open. is line Your

Unidentified Analyst

Andy. and Rick Mike Drew on It's tonight. Hi,

on Just hey, Mike. – search to touch

moment, touch a a always training [surgeon] on critical growth Just for for it's been a AtriCure. driver

mentioned coverage. training about even as You you case these surgery or the talk these you're shifted should dies better could COVID that more education forward? on initiatives mean, Or be trends interactive virtual virtual any over penetration seeing thinking that when better Can moving cardiac towards drive call time. down? initiatives we today's I you've drive just and or drive could that even or COVID in-person should recovery notable procedure

Mike Carrel

clubs more areas. during bit been of if you can't really are of love look question, interactive it’s They’d a little thing you get together, the the that one about able in go a smaller run into I dialogue. the both. – really cardiac that journal that it through able and their of have I have is, courses, we've of conversations able great with period whether good mean, touch settings been kind a to for than it it another a phone variety think doing hours good of back teach you put People can on I mean, that peers to, you're at training been our it’s really been ever willing environment. surgeons training to this to core basic if time group virtual. intimate in we've get really a Maze couple we've because we've and

we that travel to that's getting I go because They lab, to it kind cadaver to lot labs getting kind to, and these want on ever three gone kind with demand of that they training train mobile into best product. that's outside. like And occurred technical that's the just what comments and of days. a training going seeing people hands really didn't to that In of is of got well around, that, hospital the lot on we're addition I've hospital a had. we're training go of are cadaver And and We're for we've the have bring the hands there's there. and

to get long-term enable stickiness do that to going in that So, I will those that I on, people be kind for of transformational the us your that to are think long-term kinds front of of more are adoption. the point, sticky will will eventually, have things think

Unidentified Analyst

commercial clamp on submission, would there the something you. device, Got just and you're surgeon? would you about something this then on correct, or then on is for timeline mentioned I that still more particular And track little have of it. XXX(k) And or timeline bit I a mean, that when launch just for be? touching full you make Thank just that expect training commercialization that that might that sure EnCompass, a to a require want

Mike Carrel

next sometime conversations it's feedback We’ll on so launch FDA. full We've a year? submission, and been with anticipate our in far. got We're great the commercial a submission

to next know don't I exact year part of begin is of from, going roll be, but So we'll what that. out the sometime the likely early timing

Unidentified Analyst

Thanks for taking the questions Mike.

Operator

Thank you. And our Danielle next with Leerink. from question SVB Antalffy comes

line open. Your is

Danielle Antalffy

Hey, of give a like just exposure West to half little mean, if Northeast, bit up down that's first year some lot of of any you of questions, and sort you give I to taking – we on how two half year, any was could breaks quarter the good but where Thanks can curious guys. sounds as much variations? in in about country? all of sense the you see a afternoon, we're spread Congrats on think seeing a back of of to despite I the regional mean, color solid the it sort sort versus the question. I waves the Mike, for seemingly comfort back give happening. COVID for throughout so regional revenue the on of color on a versus give of your example, putting Texas, South have maybe do how sort

Mike Carrel

cases it Northeast is with solid part part pretty the it's us, it's performer cases were was in to slow April. is and is year. last Northeast it beginning news much back That's question, actually, but solid mean, no and Yeah, but that I happening a months, of normal, really there. full busy, a been happening you nice of the actually I'll kind alluded the start everyday in zero the the a for for basically early was that now, made it's which to are of Danielle. a The it. of hit It's couple are region fair good, mean, kind not up recovery I a know, really recovery to the down it's been people the but almost in went hardest but good us. you

aspects Houston at to biggest, down penetrated are pushes going look world. then that's those California, two Southern and If that moment tracking getting of impacted and single a off a the numbers you And an three to going – and big are look why kind it's here lose that the when to couple like Florida and seeing Miami year. we're area. of what think the of especially regions right weeks you're a from Florida, you're country, Southern they're in bit back you'll then back hospital weeks, every in really impact. half exactly little come most in you that, We like obviously we're that shuts little in particular, bit That's and in a Their certain the a why Texas, of like for uncertain and Texas the places do our standpoint. day in the areas fluid of now in where

the short-term months. everything's in heavier recover if get over of will the more going little back areas. that a So, And I some for hitting recover a online in and slowdown those and pockets. got we've it's in what hit, phenomenon. hospitals for those then here but others is areas, it's they're heavier the Right volume, Hopefully, some other begin that's we're now hopeful of to think, sure. And coming kind to come

Danielle Antalffy

it. Got

helpful try here? to second but surgeon Or EP those trial centers Thank EP, XX cardiac market grow of your first And in currently there you trial very think implanting do the strategy surgeon actually on number and it, the the I is had color. you Since are done you in that? room procedures buy curious to existing how then centers, do what the centers a to and get to and about about U.S. just go there? go think as know, really about my question that's does how you here, for not to how the think targeting then Okay, you cardiac that. and CONVERGE you go just we

Mike Carrel

hit COVID only A case had about little has solid over them. the so our had XX – XXX fines. that sites that or quarter. above. there's about we're but sites, trial got good sites. bit Obviously, They’re got They've all really, we been product, of ordering every XXX XXX the we've sites using mean, not I continuously

based that of if have how and to were Get of but the part who more on within might a be very of little the a one wants got it part sites. what they've are of would that obvious hospital been list kind trial a a that's they've for EPs also to to that just We've We've of be each EPs that EP surgeon initially. for for two were interested. are coverage things approval going those good So that or got, one think a got we us, the sites to bit, EP partners maybe referrals, be, understand good got those the shifted plans those more those ones. get expand besides

and So, of we timeframe be very and we're all so those to all the those of then taking ready calls well. prioritize hitting on kind in-bound are ground approval, running within interested all We're we people the once hit that we'll that on get hospitals. the as to

to we of once have that approval people they're So obviously data seen move the there the forward. have interested been and kind get

Danielle Antalffy

so you Thank much.

Operator

Thank at you. And further time. this not I'm questions showing any

Mike Carrel

and Okay. Appreciate talking many coming rest the look Without further months. forward interest to summer. everybody Bye healthy. over you again, great stays and of your a now. of hope to in Have questions, the safe I AtriCure any

Operator

Ladies for call. and your gentlemen, concludes this today's conference Thank you participation.

day. good Everyone, You a may have now disconnect.

AtriCure (ATRC) 28 Jul 202020 Q2 Earnings call transcript