LIVN - Earnings call transcript Q4 2017

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Operator

Good day, ladies and gentlemen, and welcome to the LivaNova PLC Fourth Quarter and Full Year 2017 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Ms. Karen King, LivaNova's Vice President of Investor Relations and Corporate Communications. Please go ahead.

Karen King

to for call full the welcome LivaNova's webcast year and results financial fourth you, our and conference discussing XXXX. Thank quarter and

Chief statements. Huston, on Officer; slide This presentation me today's call are release, McDonald, Joining include conference forward-looking call morning's press and Chief our our Thad and Financial Officer. Damien Executive

Statements estimate, but to, such may, words. believe, Forward-looking statements the based and by other limited identified are and uncertainties. use of or expect, be risks that presently not us anticipate, plan, Investors information may be forward-looking intend forecast, all terminology, we are cautioned involve available including, assumptions and on will, reasonable. believe similar statements to to that

implied future beyond by guarantees control. other forward-looking are performance not and uncertainties risks in which performance some these actual cases the materially may Our results, or or statements, of known achievements that are and and company's expressed and involve factors unknown differ from those

actual generally the release against for may from financial measurements summarizes measures Included financial website company call quarter-to-quarter in other measures has today's non-GAAP press comparable For This to, detailed necessarily with and GAAP. should and in To this the we operating be points the provided technology GAAP. not uses and be by performance financial basis similarly to filings. communication In and regulatory with as titled discussions accounting release management as medical these regular enhanced our recent benchmarking Company year-to-year may measures information Please measures by companies. be may the measurements accordance other companies. most with, to our accepted financial GAAP. presented financial financial the measures refer call, operating with management in of differ, to but from, other used that comparable ongoing posted enhance or principles, a should alternatives differently monitoring aids press results. company's SEC used filings other the and disclosed presentation the in to be therefore, measures reconciles that that directly Non-GAAP on in performance prescribed cause refer of as our release, the that along please considered not as the These are the results tool. not present non-GAAP calculated selected financial today factors an the materials press to, tables to such non-GAAP have presentation complementary accordance is used call. by a to

the reported the a constant sales & In growth You see you the of quarter. and moments, we impact can can results the in www.livanova.com. find presentation our website our few provide Investor so both In at Presentations growth shows for be discussing just net that net News a sales press will Relations foreign Damien section table Events, release, of currency currency fluctuations. under

to expressed Damien. And on For net I will over with the turn constant growth our now opening that, in be comments remarks will discussion purposes, currency. call during sales

Damien McDonald

the call. in second advancements a to strong and many our quarter was evident I We Thanks, half conference for in business busy Karen. year as Welcome year made areas our performance. exciting XXXX say, our fourth of full significant should is and, progressed, LivaNova. year which XXXX

seriously what team doing pride management For those and commitments in we take to of you world, that very say do. we're going take we our know the

full CRM with up the fourth or financials of highlights And Early Therapy time in programmer. Thad and patient and our by demand of for faster some Scientific will we Q&A. our XXXX. the I'll smaller, you discussing the launched you some involved. closing then announced in sales our of during met device we move and Starting quarter year fourth announced in our full a quarter give with believe high. intent exceeded pleased the a we for you will we on we favorable through that Together, from I'm key to color year, extremely more the I'm fourth guidance. to projections spend personalized before be letter device we business. that financial some smarter drug-resistant events announced of also comments, with been VNS comments after discussion. epilepsy, When quarter, my system, components We the wrap entered sales and MicroPort Corporation. product a binding with FDA XXXX for tell SenTiva the has the the the to -- year. that walk transaction our all going for next-generation interest and Then all the the initial approval XXXX, enhance I'll business We discuss For results more we recovery to sell with to detail into a this quarter, of parties features.

allows For transaction MicroPort, the presence. strengthen their global them to

our financial deal Relations data, Last second show on available and website. allows leadership on as section track It's are we to cardiac seven Investor progressing of discontinued focus surgery the provided and quarter. our of the we close to recapped most is week, strength, areas it operations. in and quarters well, on recent LivaNova, to For it us of CRM our the neuromodulation. The

this the tax have the have previously, a metrics, the of Medical, as of our rate, ImThera result all in we intent improved Later closed to discussed acquire As we announced financial transaction. exception quarter, with earlier year. which

market approximately The unmet a is needs. excited current large market growing about very with We this and billion, huge $X obstructive opportunity. sleep apnea are

is airway aligns the product strategy is benefit nerve while noncompliant patient this is standard And a or Investor pool number could stimulates large nerve, which hypoglossal our of is stimulation. have This are we an the to of a platform the in well September. Our believe opens patients therapy that responded current outlined sleep where treatment. we Day our care not device therapy The from either acquisition last patient sleeping. to

to We ending were are have FDA the focusing patients expansion and to performance. financial top also our year with strong where with pleased rate approval, X%. the We We every enroll of continue in in in quarter Mark overall line Europe, trial. XXXX, U.S. on year improved end in we pivotal growth a CE an growth

our our continuing XXXX While we ended tax for XXXX. We adjusted also operating income to nearly adjusted from full XX% in year adjusted XX%. operations full increased margins year R&D XXXX, with we XX% year investment reduced for rate from XX% the of

with in cash from debt that X% million to over and allow increased per payments funded share operations the core our XX%. a acquisitions net year-over-year. divestiture will initial decreased on Our focus adjusted two earnings continuing and year products. significant we by announced on us our fully We And ended $XX the

started valve I intent update to Before TandemLife. XX-patient on purchase We transcatheter at our want provide were on was which turn mitral last and patients plans enrolled we quarter, PRELUDE, of our in The I Since enrollment that is our in to patients TMV parallel, Day point in to our update had we've trials studying actively which we Mark to and procedures. net September. XXXX. XX results our of At enrollment time, provided the or clinical for in we've an our regarding is discuss discussed last trials, And PRELUDE, can time, our sales in end two right trial; PRELUDE the INTERLUDE enrolled completing by Investor by we we INTERLUDE, and running trial. enrollment What two and been improve. and complete TMVR went with additional replacement, where all XX-patient just anticipated that the our CE midyear. announcement recent that

based clinical treated caisson physician date. from and we As to enrollment our the to result, design paused enhancements on implement a various patients to feedback the system,

population us In large development expand addition, continued of which significantly allow will we of treatable sizes, patients. have to valve the two

submitted of last week, which FDA a X-month to this we was will create our timelines. delay believe All in the

enough used believe Life options and for ECLS, the percent to small of will be TandemLife a solutions can on and be of in systems and as applications, mechanical up hospitals, aligned be Cardiac broad of products TandemLife; is Surgery. is company another reasons. to access expand existing focus care. of the to and our our quality for improve Support, and term, only Extracorporeal TandemLife only our a set products hospital portfolio, care system U.S. or support created from medical complement many and in strategy with This that growing Near turning all of business continuous Now it right this U.S. like with case, set patient this this advanced circulatory complete technology, can ECLS we Currently, offers we acquisition support. deal the to simple the that adding deploy range a in

sales and regions results from franchises now full growth the Turning up quarter of fourth business and XXXX. sales continuing Total were operations with X%, quarter to compared for our quarter all year. our with the the for showing

X%, year, up Neuromodulation For the sales full Cardiac with positive both and contributions were Surgery. from

Cardiac the look quarter is business of franchise. Surgery quarter, were were fourth sales in region. strong XXXX, of growth X% Surgery sales XXXX. strongest $XXX let's the our at business for each growth Cardiac the So up million, since This from million up LivaNova. quarter X% heart-lung every machines, increase due $XXX in the the of primarily which an fourth were in of to Cardiopulmonary versus quarter

SX due to device on of upgrading our our SX SX was of contribution devices, devices. from majority was While existing also to captures the from customers our the it focus and replacement competitive increase

the international INSPIRE performed oxygenator addition, In our well our in regions. particularly quarter, in

X.X% versus steady and to growth our For Cardiopulmonary due the year HLM was oxygenator. was year, XXXX. sales primarily This full up of full INSPIRE

heart valves; two slightly where to overall fourth This million up quarter in the the $XX have the things growth Turning seen is at quarter There the XXXX. second in of were heart valves play franchise. we are here. for versus quarter, sales

double-digit First, total. are decline, piece continues to growth. valves in and impactful strong smaller second, tissue the more much two sales these continue And a for Perceval experience to growth, of becoming becoming overall while mechanical traditional areas

slightly year heart down year, versus XXXX. full full was the For valves

quarter, turn million the of in XXXX. fourth the reached Neuromodulation; sales to quarter $X X% Now versus $XXX in million let's -- the up

continue be to in patient consistent of have range. New the what year, to growing most with we seen mid single high digit growth the

of growth. the that accelerated events in have quarter couple fourth We the a

IP First, we from of strong new system. and launch growth saw VNS SenTiva the and

our expansions, pleased illness. clinician. intervene introduction the we're of to is of Therapy and age of it's course to trend, label earlier receiving with to to patient decrease, a coupled pediatric see in our a still MRI both are able claim early care during easier this median and starting chronic means VNS providing we patients too the implants making and which patient and propelled XXXX better by use smaller devices SenTiva, which device, smarter for The that is the While to

third sales in discussed of patient delayed due that procedures Second, quarter XXXX, the impacted the were we to by hurricanes. were

we planned, the As reschedule during procedures quarter. of were majority fourth able these to the

year, full overview of SenTiva. financial due as X%, patient more call far the Thad growth Thad? Neuromodulation for adoption continued the turn as primarily an the to and recently, For were now to of our over strong up and our results. I'll

Thad Huston

Thank a will full comment both financials going Since direct greater you, and CRM, the I'm including to with operations, discontinued guidance. the to numbers included numbers XXXX our our so fourth XXXX on XXXX financial the there's in financial quarter I discuss provide year guidance CRM Damien. comparison as and detail guidance. CRM,

sales very strong, continuing growth. X% operations in the fourth quarter As was growth showing Damien from mentioned,

was was favorable net continuing offset growth X%. percent For by mix basis margin range of more sales reaching sales XX%, quarter quarter of Adjusted points Including XX product the X.X%, to CRM, from of impact gross fourth high the was X%. the foreign full in operations X% Increases down of sales year, XXXX. a currency. as than were basis XXX from resulting projected end from our points the from growth

million valve gross year, margin XXXX. million of of net in CRM, quarter mid-XX%. R&D compared a sales net of of fourth a would line sales quarter was in in was For spend -- sales an middle projected the both percent our $XX is quarter expense TMVR that as that is the our heart XX%. as as our you in R&D clinical percent was in of in XX%, fourth adjusted expectations up quarter, a we quarter, which to adjusted fourth net was you quarter Including for highlighted gross X% margin falling the the of see $XX Adjusted in uptick fourth with the This last range of the in the to percent full XX%, and XXXX. program.

the full as net $XX CRM, the for with the fourth XX% in net to XX% the sales G&A a were down advancing our to sales points a quarter adjusted full Increases year, Adjusted percent activities related to of on basis quarter a of of sales by and SG&A quarter percentage million as R&D R&D $XX was projection aligned percentage continued For versus the was for XXXX. X%. of XX.X%, adjusted focus of our XX%, efficiency. Including offset SG&A in fourth marketing sales year. drivers compared million as our growth of fourth net was XXXX. improving was XXX

a in from XX% continuing For year, up a the fourth projected X% line quarter income was was was versus of to of CRM, Including Adjusted of year. net range the adjusted SG&A the compared margin XX%. sales Adjusted of XXXX. fourth XX% SG&A sales last operating as from $XX to XX% operating operations percent operations XX%, full quarter of was as continuing million, net percentage with XX%. in adjusted our

For CRM, to operations was our aligned operating adjusted margin margin year, projection was Including full with teens. XX%, XX%. the continuing from operating of adjusted high close

adjusted was pack a primarily XXXX, structure. XX%, efforts result improvement ongoing of tax in quarter to XX% quarter our the in fourth Our optimize the from of global an effective our rate

the Including from the diluted meeting year our was XXXX, And XX%. full range tax end XX%. XX%, adjusted EPS the bottom projected adjusted our to of finally, effective for rate operations tax our $X.XX. of effective Including adjusted For rate continuing XX% the $X.XX, EPS of was diluted XXXX. adjusted our X% the fourth upper range continuing CRM, projected $X.XX, was was an $X.XX. fourth of and beating EPS diluted was operations compared quarter end of of adjusted $X.XX Year-to-date, increase quarter CRM, to

for from remediation XXXX. million. the December full and $XXX integration, for XX, the cash operations, year for the payments $XX Cash Capital million, to was operations was turning months $XX Now XX full flow; products was ended million. year flow onetime slightly cash XXXX, from our excluding flow XXXX cost, from spending restructuring down

Our cash was the up balance million, $XX at at million $XX year-end XXXX. from end of XXXX

from of year-end debt $XX down million year-end at net Our XXXX million, $XX was XXXX. as

does Now operations, our therefore, turning strong on business. continuing also coupled assumes from The to acquisition growth expect increased growth in excludes assumes treatment-resistant our investment second our in as and clinical again, registries drivers, TMVR, heart we It from our ImThera any impact to TandemLife, we strategic which in not XXXX FDA portfolio failure. CRM clinical from contribution depression initiatives, year guidance, with enrollment It and our include current based dilution of of the which any full guidance near-term the is continue and organic trials. to close pertaining coming quarter.

currency adjusted expect to sales, benefits adjusted is to of expect and SG&A between projected the a gross we to XX% grow of be to of year In rates to XX% range basis. on exchange be remain in sales the X%. in If XX% XXXX, the unchanged, we approximately and by XXXX in company's guidance range. sales. of the range R&D revenue X% XX% So in constant XX% XX% us to to X% XXXX in full current margin Adjusted be

from As operating a XXXX these to result to in operations factors, projecting of range. adjusted continuing the are we XX% be XX% margin

from our $X.XX approximately are currency which impact to enacted corporate X% U.S. share operations $X.XX. We adjusted a diluted effective impact per to the legislation, count be $X.XX, approximately tax understanding rate XX%. from to to range includes XXXX the for earnings an foreign rate be XX% positive XX%, projecting of of XX% our XX of to which assume be expected to in the Our of of on negative And tax current we million. decreases adjusted share based recently is in is continuing to range $X.XX reform U.S. a from

half In year primarily terms of in international be in EPS, our the will half momentum we greater expect than regions. first earnings second the the due year, in to of

In addition, quarter first earnings quarter. as a reminder, historically softest our the is

is restructuring product and assumptions three between range million of to and of the be few $XX Neuromodulation, are of XXXX, excluding in $XX be and The for amortization operations major depreciation $XXX the our $XX to expected $XX spending to be critical to assumed and million. are remediation, range from a remediation to in million million, $XX expected million. that range in achievement In of There is is are by the expected $XX million and flow guidance. driven projected payments the integration to million. components. to key we range $XXX million is in the cash have growth Capital adjusted integration, the Our XXXX be product to restructuring that

the continues year single the to patient that adoption the is gain growth SenTiva digits. we and in throughout high assume First, new

will outreach campaign. in is This be very we patient or XXXX to program our going our be active with DTC, our Neuromodulation component Second, growing in and business. direct-to-consumer, expanding key a advertising

our the various reimbursement of see In Third, international also we significant three sequential in growth distributor we is that implementation assumed partnerships. as Surgery, strategy, Cardiac have and discipline progression to by focused driven pricing programs, components. regions such our major due

that First, the and traditional in growth double-digit valves. partially strong will in declines we Perceval U.S. both continue by mechanical Europe. This offset and will tissue continued deliver to assume be

growth in declines. Perceval contract as valve half in the we'll these in result year Additionally, than of half in for the strength more the second the impacted which to able by first the a manufacturing a will decline agreement, business, is be of of change followed our year by offset

continues we SX devices. This the And customers growth show to the continue drive over we cardiopulmonary of heart-lung our the our SX globally. upgrading oxygenator year that expect majority growth. third, will machine course our to global to of Second, our INSPIRE anticipate steady from

second franchise. into Cardiac integrate We As that be will deal assume press our closes modestly and quarter, release deal year. the the disclosed I our we earlier, TandemLife this Surgery that in will the we accretive in mentioned the business

some XXXX While $XX that in underlying are XX% from our believe globally. infrastructure margins, penetration the performance statement. approved prior many already can has year. the And customer not in time to to They Sales up guidance, past the margins. XXXX of in included improve million, in the TandemLife TandemLife base of strong and and current asked about our year. market, have to were strong over assumptions is with we increase margins accretive our global over that we to expand on you leverage are gross products multiple and U.S. which

believe In and out market marketing increase clearances with branching that penetration emerging addition, grow can by we we other In will applications we assume sales into additional of XXXX, XX%. excess in approvals.

Over of the grow several leveraging course expenses. to expect per in sales next XX% years, of year excess while we the operating

IRR this an All for acquisition profile the is into a which with enter agreement. to aligned our of translates into mid-teens deal,

So back final with I'll to comments. that turn the for Damien some call

Damien McDonald

with XXXX out Thanks, were momentum significant We laid pleased exit Thad. progressed. year sales the to very you for the and financial We strong commitments as made to from we that earnings. make advancements to

we growth solid, an business. Our to and foundation of is the drivers have advance abundance

from to year strong heart key Perceval; of system, products: contributions heart-lung We see oxygenator. our valve, expect SenTiva; VNS our INSPIRE this machine; our our our newest and Therapy SX

our close for sale on-track second the are to We CRM of of MicroPort. quarter business

the Neuromodulation on the our complete near in FDA ImThera clinical while we growing trials integrating the European are U.S. in market, business, We term focusing

future, highly devices and acquisition, valve trials portfolio TandemLife complementary to working are and for mitral depression investing in pulmonary treatment-resistant failure. our And strategic funding Cardiac transcatheter advanced the business. whose chronic replacement, are heart initiatives, clinical registries our close our we're Surgery to We

top and increasing and flow guidance, have margins which line XXXX both bottom improvement. We growth, cash line highlights provided

our for creation that, a with to are positioned shareholder value to value. have deliver Casey, and for on We drive ready commitments questions. well we're road And clear map

Operator

from Instructions] with Raj Jefferies. your [Operator question And first Denhoy comes

Rajbir Denhoy

for I'm in about on you guidance Wonder there, if that side. gives I curious maybe rate leeway but start trajectory. were the bit The of a XXXX, down bit Tax can it's margin a operating where margin little you from XXXX.

of think near you've expansion this margin talked operating basis in I XXX over kind points in previously, term. Europe about the

there? the what's in thinking change so And

Thad Huston

you, from hear for thanks to and the question. great Raj,

were very XXX much projecting improving I margin, are before. We gross see clearly focus a we mean, we to aligned what points. on basis roughly

the a lot which which you carry quarter, talked will saw increase also We R&D about into investment, in fourth our XXXX. in

maintaining net level So well. overall improvement of But see of our the income, as operating on we margin. an our tax kind in did rate

Damien McDonald

into was off We're which talked I Investor about not did get to than the teens, from what high at think which quicker and XXs. anticipated the anyone backing Day, mid we we to that

as what Day, on really we're we so also on to guidance said, way the we're but not off, is long-term continuing that executing backing which And so Investor from we're guide R&D investment. a

Thad Huston

which on It's quarter, back we impact focus the points caused of foreign In we But and gross margin continued as to currency, our come very little basis forward. go clearly, pricing XXX bit. positive we seeing saw a a mix.

Rajbir Denhoy

I'd you helpful. was the my just procedure if much That's Maybe question, at large. company, look got the history ask about traction. The TandemLife. difficult, second products the I quite really never was guess of that

and a it forward. that for product going You guys fair like paid you high have expectations sounds price

perhaps just of the the about get so so traction. a products, a us little company more where the lot product about really commercial the new for give maybe didn't gets bit previous from prospects could what And excited you you

Damien McDonald

Yes, question. great that's

of a from think, going. underinvestment. good company example some And have classic pivoting a of is realigning job this the strategy done I portfolio getting company the was that current think and I a team, the

a XX%, it's is our exciting. not take that's pipeline. low is an really exciting, the visible as what but pretty it way, think And in get revenue growing for with low focus years. revenue, constrained. in by the their pipeline, portfolio, So also have in can at I company yet, what think of but have It's very several we and growth of classic opportunity I system their And cash a into the some our think which and put example they their being last R&D I which behind is near-term we

system, that's excited. why into those two between And we things our and putting get so

Thad Huston

pipeline, the future. in our strategy Surgery also described M&A our with with for accretive, what growth much very into and fitting near-term Cardiac line before driving we foreseeable revenue but It's

we like we U.S. much think and really to globally. expand opportunity there's great so a that a it So asset, for it us very is

Operator

Your next with O'Brien Matt question comes Piper from Jaffray.

Unidentified Analyst

I but some for first [ph] that actions months, the from product? This of initial what have three a on JP learning's so get you're delay with on you to I your is little want was to learning's what program. a to Matt. improve looking TMVR your detail It's patients start more there and initial minor trying

Damien McDonald

and sure the enough was how of make the at place, first a we've this three look advancing we product. do the Great learned question to and pick so we up. a step the some got the the And they feedback help took our done imaging We've positioning always of what talked wanted system, it. in also, unique and about And required of those and the in which the aspect and the aspect mostly, said last that this for there of from really months. to as of to is we And anchor training anchoring operators the imaging being of the And a when which device, sort we aspect things, is we a for the back little would a opportunity. delivery handling that is really about a said pretty lot feasibility some study, study, had and right rapidly, bit key advance. clinicians are learning the with getting

working sizes. we valve we're additional addition, -- these two a on also lot In

been well. getting focus those mix a new products And has on the of into as lot so the

safety so thing here and than all big said, And all into wrap we thought important. put taking delay And this as did while patient that be you we've it that first, we'd we up, early us, for this we rather if that the pausing right on X-month refilling. and so is was learning

Unidentified Analyst

cardiopulmonary That's then in much to And there. it contributor be quarter. very of stronger I we had looks to like, expected on was And the one terms had than it's the in going guidance, business. That ask helpful.

with us can how you SX the out the are to install of last? SX this maybe you tailwind the frame long on can upgrades, terms where or your help introduce of base upgrading Specifically current in your, SX industries

Damien McDonald

board got we've have wasn't who something I because visible. XX funnel Look, to geographies. to on by our really on all that been for has And of of what change d we driving conversion applaud this. opened referred opportunity to put think of good putting funnel XX months the really great come not to management. what's of as that some And across leaders here visibility who really in we has all It's effort earlier regional great processes place it And behavior process previously previously, I in them really visible been a we us quarter focused teams, those really place activity and a the their for us. and in sales three not it up see whole

the think do. visibility, So excited team can about I'm I great and runway, what good

Operator

comes [Operator from Canaccord question Genuity. Mills next Your Jason with Instructions]

Jason Mills

okay? hear me Can you

Damien McDonald

the Yes, note. Jason, for and you Valentines thank

Jason Mills

wondering and One, look be with right you're might But second on our interested recent closing, looking the I shouldn't is I'm Couple rough guess, of in talk It the earnings acquisitions including given of devices what start from something term, are year? looks a least sort from for Decent, you investors compete as guidance perhaps longer it the on title, like some this outside there. our line if I possible. in, of pipeline. business, the successful medical this guess. on obviously, one you to is to I There And just Tandem. Damien, of why potential think have the at And we them. not I the they failure time. half like growth of with opportunities at initially heart which want the I least any have problems some progress. you're that? the could about more can to focused, well give us Could framework the know is see really questions numbers in

Damien McDonald

one. I'll take Lo, that

of but glib be On expansion stay opportunity, going not tuned. to intentionally, the I'm

working through still with right once other look get is have that. the really get and going development this underexploited. our our be we great And we think think that, first on look, been we on to board. really into into land near-term ship the got We're think, then and first I And it's And it at again, I opportunities. asset. system that I indications secondly, we ECLS. But processes, on I thing is think that's can opportunity that and heart accelerated then taking our focus product

jump guidance, that again, of terms in to if in. you want Secondly,

Thad Huston

Look, to me, we haven't enclosed it yet.

Obviously, going this acquired quarter. on TandemLife prudent closed so CRM, will we've in thought we a treatment this kind deal. And XXXX. two have ops with of the about talk of both be it once lot guidance we to We businesses

As gross up were million have higher versus sales XXXX, I the prior company higher are as a year. mentioned, than It's it margins, and we XX% which has profitable margin the today on average. in what modestly $XX side

depending again, and when the and So on give back you on impact. will more come close we about financial

Damien McDonald

and is team. things or And state our as we tucks the cardiac surround a in perfectly to diseased to find this that core point said, intention the

Jason Mills

us Maybe your any quarter, given you of updates way That out my on to. a like, of you've I pipeline. an year second minute could Iraq sort lot for your assessment which a of spend guess, and you'd make give sense. question, just added pipeline, of

Day, Analyst the mitral treatment-resistant and valves talked about depression, transcatheter heart at failure. So you also

about. you which your pipeline for maybe to love your failure sort with and in heart your quarter? your they get buckets just years in your next an five relative couple Perhaps now and to component fit of the just three, therapy you our thinking, as other now, well as initiatives spending plan pipeline. on initiatives give in like over us on and how to of in update not thoughts of a your talk added You've XXXX the have Looks rank things Tandem,

Damien McDonald

Well, clearly I a near-term exciting is think, revenue, for is TandemLife which us.

that accelerating us, bringing really the and to going so on key U.S. in an that both domestically And a for opportunity internationally. is be

the haven't there. failure, timelines We're that changed. with opportunity to continuing the then, think heart excited really about case progress on I our In on guidance. and that, in funded we existing I'm ImThera

the act think encouraging. recent TRD. report to get you was then, I look, So And

progressive and, continuing what are I shows CMS And is encouraged think opportunity on both that treatable. TRD to there. have definable that. would by -- and that the with We're we I very is discussions say,

We a great remission, is continue and in therapy. to patient terms that the of a this response really believe patient

is Germany results early we're Our good seeing pilot there. progressing, in and

we But real. is a otherwise showing have hope that's we're talked patient is TRD have available, to we've opportunity with what signal, invest the investing that and that as why something set. trying that's opaque. So are option CMS But patient about, life the the are registry takes again, prepared We're we in processes this restore things this it to like population behind important. we're not therapy that's to

at little Day, you our again, we then were those very TandemLife what Investor look opportunities, And then. guiding changed we add think in back So ImThera. if to has in and

think hope have it says, I what pipeline. I great understands, this really everyone we so

Thad Huston

told in fact with everyone investing we line for quarter delivering exciting that. and what we're fourth going investment, increase we're is Investor at did and R&D is we exactly the The future And which think we said the to present, really Day. the I

exciting and we're in five now what get guidance into And ranges the pointed exactly XXXX, -- that within we our we're about opportunities pipeline behind. that going the you we out, before. really to Going talked have

Operator

[Operator comes Matson Instructions] Your & Mike question Needham next with from Company.

Michael Matson

point with call this to are how is do detail product, But more little ImThera. start competition, you to think sell do your then I a that different to be question, is And now how this right clearly, I give guess, particular that the start, the a compares FDA a I it's the and part that's what I'm think I Just other to to which is you around you approved? to INSPIRE opportunity. going of know call market Neuromodulation. in wondering when going are huge already product, it? wanted probably commercialize are technology guys you reps the the selling product, point guess,

Damien McDonald

Yes. Two great questions.

device. look, lot a on this So on overlap the call there's of here point,

had But epilepsy. VNS devices this the implanting Neuromodulation and be aggressively our the of an are a a place a with ENTs ENT lot device now will of working with we with we that's surgeons, of electronic lead, to with lot platform. and drug-resistant technologically, already combine Firstly, this why

believe up call on. in we line learn invest more there's centers, but we're prepared to build something the that's So of we the point sight have around that to and sleep and

for build have visibility think. I working we the commercial the and set here's the we I side on point overlap on out think centers. So of competition, how an call implanting, we're sleep to the on in what Look, terms

business INSPIRE as reimbursement we and successful here's what every think. of aspects wish all success of I Firstly, and are that side the well. their hope sorts they But and

a simpler We have procedure.

the in It's lead spot to patient versus acquisition. product pain, we're on that's patient there why the with We we less our And have were that. very versus quicker recovery. two, think bullish obvious there's competition. And we are one which implications a good

Michael Matson

Okay, just one on thanks. M&A. And

So the near guess you've of commercial you've to now the or the way that done launch commercial we doing, expecting two, look if of them is more. And deals classify here few sort products. types of kind should I one, MO a at would [indiscernible]? that been expect early you're I either you deals Is or

Thad Huston

out continue No. Look, I that three We to that's a in found divestitures want transformational our would build we're assets bolt-on be within to and in pretty our Company. mean, to a year. is remarkable. and bring CRM, easily integrate and trend platforms down and or really But of it XXXX I to one, other smaller can going. then we good Surgery, near-term you, we that with acquisitions be going Neuromodulation agree Cardiac keep likely

Operator

no today. conference disconnect. This are may questions in for very And call, you and much there coming now today's Ladies [Operator concludes and joining thank final Instructions] queue. gentlemen, you

Karen King

you. Thank

Damien McDonald

everyone. Thanks,

Thad Huston

you. Thank

LivaNova (LIVN) 28 Feb 182017 Q4 Earnings call transcript