LIVN - Earnings call transcript Q4 2021

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Operator

Good day, ladies and gentlemen, and welcome to the LivaNova PLC, Fourth Quarter and Full Year 2021 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, Mr. Matthew Dodds, LivaNova's Senior Vice President of Corporate Development. sir. ahead, go Please

Matthew Dodds

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

me Lindsey Little, our Senior Director Damien Shvartsburg, Joining Relations. Chief our call Investor Officer, our and Executive Alex McDonald, Officer, Financial of today's on Chief are

but all discussed would Reconciliations most to to update a results you release, include that our discussions financial filings financial cause actual that which undertake is include any basis. statements. with non-GAAP we be not constant statement. furnished SEC, on be sales forward-looking currency discussions website. during Before directly most press certain to will measures Factors Also, in results, to company's like We which website. release including limited begin, can the differ stated not in materially found and to documents our today's performance, are to on do I will respect on GAAP comparable recent forward-looking that including will remind the the this call measures to the available available is our can press today's

to today's We and complementary a that posted tool. presentation points communication used as of be website should have the the other call. also summarizes is presentation materials This our to call an enhanced

With Presentations over investor.livanova.com. release Investors call of section at under I turn the Events in in can find the and press Damien. presentation You our website will to News, the that, now

Damien McDonald

range. of XXXX results. or results reported for us. we full-year fourth Thank exceeding our our quarter meeting everyone Matt. and full-year you guidance joining you, the high-end Thank With Today,

litigation. a on This satisfy we XX, payment decision of appeal provide I reached to update brief has suspension XX which a On days. Appeal notified the to Court been the that surety of of us €XXX Court. discussing million to of suspended condition Supreme want the results, within the you is providing million is can €XXX until first it's Milan of Before Cassation, judgment the on the demand February that of a the subject the calendar Italian believe surety. the bank We Court SNIA

start results. to guidance. by with closing and XXXX remarks of we turning wrap and my our where comments, quarter wanted fourth-quarter proud We're fourth additional portfolio regions. sales all our will to with revenue Heart sequential across we followed results I initiatives, by strategic a results discussing off excluding I'll up to Alex details review on provide you on Now, growth move about before experienced belts, Then Q&A. results year-over-year after

For or CP, execution we XXXX, we profiles. Circulatory I'd two growth our performance, Cardiac This or three to the internally year, and resources. changed and that we provides targets. like all financial to Pulmonary ACS. highlight accountability change new managed, evaluate and Support and drags further The Advanced structure transparency are way reportable margin reflects These Neuromodulation, segments. reportable greater and have the allocate segments reporting effective full to to our key achieved fourth segment pleased are from quarter

earnings comparisons our results, the for Additionally, helpful due trajectory certain year XXXX. pandemic the our today's to underlying of to the of includes presentation. provide context believe the Slide on business. comparisons impact this reflected We of prior These on XX commentary are

approximately Global to regions. sales XXXX Epilepsy all quarter Turning the verses growth across drivers, and X% core growth ICS. XX% sequentially increased for our fourth three with Epilepsy and

digits sales related line XX% sales patient which ongoing quarter the versus sales quarter and reflect to pandemic. year which midpoint was deferred and trends, was single XXXX above by on to fourth increased levels. with and above levels. X% Epilepsy while X% our to in continue line were and XX% growth was the challenges. from XXXX with implants in XXXX navigating procedures serving commitment Epilepsy driven implant XXXX benefit levels, prior a growth due XXXX were in the above COVID prior full-year mid-to-high results Additionally, versus total levels. delivering catch-up Total the guidance replacements, in basis Similar These grew U.S. to the

new sales Additionally, with increases in sequentially improved implants and service and implant. those end of patients

and the Our Europe grew We Italy. XX% go-to-market led teams. versus XX%. continue deliver for to progress nearly quarter. currently growth by led sales and of by region rest to implants dedicated unchanged be world implant our XX% U.S. accounted world to by of that of quarter and which XX trended CEC the fourth in sales our U.S. grew Epilepsy approximately the rest XXXX compared business China, the teams of XX% supported in to sales Epilepsy Europe the achieved continues These growth of and initiative, on year, Taiwan, sales recovery encompasses Compared in prior XXXX, Brazil. were while sales XXXX. above baseline in They U.K. in

full-year the X% global sales For to expect we X%. XXXX, to epilepsy grow

includes improves. caregivers Our to and as physician U.S. forecast return growth in-person the visits new in patients and their implants in hospital capacity

anticipate addition, in the related replacement backlog we continued implants to continued that this XXXX created tailwind year. In into has in a

go-to-market million XX%. in with teams staff over $XX the patients Results We hospital XXXX. a an treated the a - ECMO, ACS guidance. as by line increase and dedicated million Notably, XX% with representing the impacted with of quarter, XXXX of capacity quarter from pleased reduction given were grew for four as in well the limitations. the ACS in are shortages, and year decline with $XX during adding sequential full in progress and X% the of the initiative new on U.S. fourth were sales of plan

grow XX% at least XXXX. We expect to ACS in

fourth million $X million. now Turning sales quarter for to for the full-year DTD, the were and $X was

patient, milestone achieved. at XXXX, we'll anticipate to the study been to sales unipolar and and primarily For when close approximately ten study. XXX DTD progress this RECOVER continues million we very RECOVER from $XX of communicate to we're implanting has

bipolar on to focused continues and population. prevalent enrolling primarily, unipolar cohorts, While because the more cohorts unipolar is at the we it enroll faster pace a patients’ both remain

separately submit XXXX. data longitudinal the occur in from to continues to for registry. can still unipolar cohorts two perspective As In U.S. a anticipate for late We to XXXX or the registry Failure, Heart the early the we trial to pivotal study or ANTHEM cohort, reminder, transition a transition the HFrEF advance.

recently pleased are we report We that to milestones. two achieved key

the the And First, late follow-up December, the in we visit. second patient. in completed months patients enrolled XXX mid-January, nine XXX

analysis the success functional in independent endpoints, trend we a three met, achievements, endpoint will to If by milestone functional another these the could may we the data specified which not including have the the primary the early the submit first meet as the and the conditions FDA, after safety, data occur being XXXth Given independent at the is statisticians been is interim as pre criteria, Once all conducted statisticians. do towards patient enrolled. look take mid-XXXX. all

continues currently Moving approximately screening the OSPREY half patients. with OSA, to to XX study throughout advance sites of the

have came forward for when and and first test to to sleep-testing are we it's delays surgery. patient look is fleet excited this we communicating -- achieved. after surgery, and scheduled We announce While scheduling, experienced that our

to Importantly, mid-XXXX. approval FDA we assumed in submission still

offset million fourth of For in the XX% Cardiopulmonary the quarter, Oxygenator quarter the XXXX. mid-single-digit the in increased increased of in Europe XX% and strong declines U.S., world. regions. of with were sales $XXX approximately over globally sales versus of Heart-lung rest the sales a and world growth growth an increase XX% by segment, the Europe the with in by rest in machines

of a the on But full-year basis, sales levels related XXXX we're HLM below the COVID were generally XXXX the procedure cycle. for cardiopulmonary cadence Additionally, quarter. in pressures conversion on line and with given volumes

expect sales to X% We a XXXX. full-year to the cardiopulmonary X% grow for

Lastly, divested million. Heart the fourth With for call that, of I'll on to X, Valves June were quarter sales $XX Valves XXXX and over was Alex. the Heart XXXX turn

Alex Shvartsburg

Damien. Thanks,

XXXX fourth call, During and a my guidance. brief results of recap portion of share the quarter provide I'll

to XX, that Before cost we XXXX I the quarter the a quarter financial point sales. sales September for press ended today's error XXXX. related prior the exchange of the release. for discussing nine and GAAP currency in wanted XXXX results, inventory in an rates, supplemental a at out inventory by calculated cost XXXX and and resulted in results period increase the revised revised decrease on corrected information an months information and and through See to to This basis. and utilized foreign years have identified been XXXX, Accordingly, of during non-GAAP

quarter valuation quarter a million adjusted primarily the after XXXX. the of higher fourth the earnings quarter in OSPREY million to as XXXX. to changes my prior income to was the and XXXX. SG&A. mix. will operations gross to in continuing fourth the geographic comments impacted quarter of effective R&D period $XX percent businesses. year million, quarter quarter operations versus up quarter which operations valves. XX%, of net $X.XX, Additionally, by Adjusted continuing as XXXX. versus which a was gross fourth tax income the for the was by million in the in gross is Improvements quart XX% $XXX above were of and Adjusted points in net The the ACS in Adjusted XXX the expense excluding operating sales in X% for higher continuing fourth revised compared of basis reference sales Epilepsy $X.XX results. of million in geographic negative mix. were up an of The was XXXX favorably operations rate by and an guidance. quarter $XX of increase offset $XXX from is quarter $X.XX XXXX. a Adjusted the profit margin was the the in quarter RECOVER in to quarter versus operating the trials. was in product fourth XX.X% of quarter well XX% compared Sales compared $XX was margin The Heart-lung Adjusted R&D compared full compared tax midpoint the X% from XXXX, fourth XXXX. XX% was the XXXX. fourth increasing a quarter from allowance of of driven rate percent fourth attributable year. ANTHEM as expense of XX.X% the $XX in XXXX. to and investments primarily quarter net in was of to was the the Adjusted margin investments for our diluted compared U.S. quarter EPS machines, the study as income sales next-generation percent from and in of million pivotal due in last from Adjusted XX.X% a the SG&A share XX% diluted fourth and fourth HFrEF continuing progress XX.X% R&D was for $XX increase was million the to on SG&A commercial Adjusted fourth was continued per in in increase as was

$XXX million cash million, at was flow year. reflects the earnings year-end million for Adjusted was from was the third the prior debt was property, XXXX XXXX during $XX high-end and cash and invested changes Free the XXXX, at million $XX year-end by at of generation driven $XX and Our XX, XX%. in down $XXX term plant, retirement $XXX XXXX. which during free and balance XXXX. million the cash free quarter Total than cash of equipment improved guidance. cash flow million lower impact December capital million at was which flow for higher full-year, XXXX. $XX conversion of ratio We was end quarter of the the with primarily exceeded the equity of offering million $XXX versus completed the loan These conversion,

Now, X% approximate turning and exchange business. basis XXXX rates. constant X% Heart We growth currency to sales Valve headwind excluding a between We an the when X% from XXXX on guidance. assume forecast

$XX be over million. of to to the operations $XX to $X.XX are in free capital diluted million to range $XXX cash to the in projecting operations call weighted adjusted range that, assume With shares $XX million adjusted million. forecast the We from from for is full spending expected diluted Damien. $X.XX. back of year. $XX earnings to the in million flow be of average the continuing per We outstanding approximately We Adjusted share turn range I'll

Damien McDonald

Alex. Thanks,

year throughout generation. flow improvement discussed and of cash was against execution in XXXX call, today's our As a guidance

that, XXXX the improving to related sales well delivering COVID business open and value ended to a triangle diverse underpinned we generation. milestones, and With focus remain While us and with to market cash headwinds, the We full strategic earnings ongoing by growth, of believe we're we achieving questions. LivaNova's system the profitability committed pipeline on realize positioned the portfolio. our Lydia,

Operator

you [Operator Instructions] have to and additional As any one yourself Thank if session, question the we follow-up. please enter you one and follow-up to Q&A queue then the limit return question,

Adam from of comes Piper Maeder question first Sandler. Our today

Your line is open. Please go ahead.

Adam Maeder

you're are the year. Hi standpoint, on Alex. a progress here wanted just Hope what the Thanks real-time. congrats start from taking and Matt, well. with you to I this Damien, guys environment for questions procedure seeing

bit January Just MedTech. assuming, want January, month, little across I'm seen challenging more. to out we've flesh a is like a

So there do could color models you illuminate we'd how we be remainder those Thanks. quarterly improved love great. have have cadence I Then are February? -- lines, far year? in and the you thus and follow-up. things if about seeing the Then would of some you QX along that, think then just that versus seen a So

Damien McDonald

us question I the Great, on us. why would like say, well. a year has and and joining Adam. the don't for I'll bit do in. thanks then of Thanks pretty been [Indiscernible] a a for that people Alex, much jump as Look, for you lot

and ICS slower. still than In In have U.S. shortages Epilepsy in hospital. procedures the at canceled the they bottleneck the the their a and at and look in The or little the referrals. January, surgical impacted that's largely been turn-up you a Omicron. got EMU more they Epilepsy there's new patient have workups the it businesses scheduling was If Cardiopulmonary. did then being scheduled staff delayed, people the Also to related and we

the patients All the your had in look us. intensive. shortages qualified more stops through with But refer on part some they're like seen an the impacting that again, advance to Do in definitely labor in one-to-one more like into coming picks as improving. it's ACS, the and Up of it, improve of question, talk rigidity about ECMO effect have the to late, one-to-four. improvement seen though new staffing The net, improved we sizing? versus was pronounced that much to much patients, We've pockets we've I the February. February, replacements. as would next you have starting ops say probably shortages the want It's than there.

Alex Shvartsburg

our kind phasing. terms of Sure. phasing. I'd a Adam, say that's just in of normalized

and is For in launch, machine issue year us. low in scheduled expectation higher heart-lung half. the Damien is for which skew a is for QX, clearly related next-generation the This primarily definitely Omicron And an this QX in. second half, factor as going second watermark always just to is our said also we're so to of the still that

Adam Maeder

Damien, or I'll a one the the just you're color. well two this helpful I'll rest-of-world. more appreciate How but little X% that. Okay. prepared X%. the specifically O-U.S. U.S., about flesh Got front. the guidance replacements? bit As remarks, different I it, just I out in mix talked Then guys. That's about versus maybe Epilepsy think about on those can you ask geographic just pieces? thinking guidance illuminate NPI you asked as to

think confirm XXXX I expect heard NPIs you in I to to say grow wanted that. but you

So be any would so Thanks more color there much. great.

Matthew Dodds

Matt. it's Sure. Adam,

mostly faster. So NPI do for XXXX, NPI faster slightly markets That's our grow driven. overall. We grow, and that expectation is replacements assume the international both NPI

Adam Maeder

guys. again, Thanks helpful. Okay,

Alex Shvartsburg

Adam. Cheers,

Operator

from Next question Rick comes Wise of Stifel.

go Please open. is line Your ahead.

Rick Wise

it But Damien, like about everybody. judgment. level, hesitant the surety, with for positive But now news start are Any plead. your -- forward that there. a you a mind? what incremental step in you, are it, steps as timelines? general with is you off -- are high this to good -- that you morning, maybe just the next seems let's pleased color a demand call is reflect suspended and As Good on in

as finance generating about understand it? or cash You Your us or you you going obviously to Maybe surety, comment help it are going internally debt? equity the with you're well. are finance to that have

Damien McDonald

good First things. to you. A of Rick, hear all, hi, few

in financing. case the then about you talk the me about jump and Let

from discussing thing is a to yes, demand the this first It sense logical court. great we're step make case. we think while payment us the didn't still is for The

really I suspend the that good So think it it's case decision until has from court to heard. been

in have might that fact case been heard that We'll and I how hear expect about XXXX. think talk the sometime much who to the you have us joined. case

important was a it So, It's I great for think decision. really us.

financing, we in had planning we since case received of along for the scenario. all terms initial the In judgment November, Rick, worst been

facility and we've short-term satisfy looking a so the have bridge financing up lined [Indiscernible]. been And we at to

Rick Wise

Good. just what's you baking gradual many it a second but operational year, where cadence in improvement you're is there, And been $X.XX of guide throughout Obviously, questions. the what -- terms sounds half's just talking like And patients? companies ACS, it? you're general, of of Maybe COVID? couple embedded maybe that the thinking in COVID And recovery about are in for on what disposables relates better, to percentage think COVID when generally? as about have in of it there

Damien McDonald

to the is expectation the see the then year. the and and be to half also half Again, a more year. we're QX HLM which Again, is back phasing, business, in going QX capital is of the of our of impacted by going the towards in equipment skewed improvements terms slower phasing second the

quarter as a fourth the lift the ECMO non-COVID. to staffing ACS, us starting severe new For on about I it COVID and patient cautious impacted makes more mentioned, was shortages by or

before talked XX. XX quarter, to we it about XX patients COVID the think in I is was the percentage

also and as half. XX quarter-on-quarter. fighting the last a talked most been about, added improvement think, headcount be with in second We've gradual them that of we We year, the about will we also adding overall

add that'll become for first So second half. in the now, in of half and planning in effectiveness effective starting sort coming another XXXX online more again to there's this XX we're so

as last as and thinking year footprint, year. COVID, think the from we're about improves how the at XX%. guidance I this both That's increases least

Alex Shvartsburg

COPD, ARDS. the decline last by COVID largely made of and will be will that think other usage, to according question, expect, percent we in we XXXX And up respiratory your

Rick Wise

to see guide, for it. Thanks performance. the [Indiscernible]. great quarter solid to Thanks. excellent Relative your fourth

Damien McDonald

Rick. Thanks

Alex Shvartsburg

Thanks Rick.

Operator

you. Thank

from and comes today of Company. question Matson Mike next Needham Our

line Your is open.

Mike Matson

about the to trial. wanted I ask ANTHEM thanks. Yeah,

to said able submit mid you might FDA the you to be think this year. I

that, that, we with imply that does So hit it endpoint? the if that see all

Matthew Dodds

you? Mike, why Hi are don't Sure. how jump in? Matt, you

ANTHEM two we less. the milestones Damien underway. that allow the We start think for So months reviewing two hit the that to done statisticians said, or will in be as data, which HFrEF, independent is

primary hit to the safety, about mortality have which there's it’s endpoints. three all five We Damien or of endpoints. Then talked highlighted the trend ultimate and is morbidity, We before. functional this endpoint.

adaptive all we don't five XXX and the to we If to which assuming get at come do going the it's So five, hit, an get FDA, statisticians plan then hit we midyear. so on think independent could keep look all we around submitting patients. we study every

the XXX, at would again, of So kind in next XXXX. be look the later part occur we which to expect of

Mike Matson

Okay. see comment that expected the high XX%, just as was I north that and business sustainable Got right. from on ACS it. as is the improve further to and All Maybe margin Surprised can it that operating to you in of think. here?

Alex Shvartsburg

behind sure to where well. as XXXX We've to we're in on margin of business not the invest the I'm heavily don't been that We see out XX% business. coming and profitability seeing you're much investing going continue ACS. to expect

Mike Matson

at ARDS. it per and income looking XX, that Oh, segment margin was XX.X I was misreading year. operating I'm Okay. adjusted Slide maybe and was last

Sorry. I --. I apologize, thought

Alex Shvartsburg

Yes.

year, Yes. obviously, Sorry. investments. Last on back held we

Damien McDonald

where we lot the straight the it, there's of resources where And XXXX. that's in support and a changes started you XX. press-all was in [Indiscernible] putting say really

Mike Matson

that makes what what Yeah, that. expect with mind consistent you're that I business. sense doing would more Never with given

sort guidance What and what do overall from to wanted that? -- inflation have you impact expect around to just in headwinds of your the just guidance. the assumed I finally, then And Okay. on you [Indiscernible] margins your

Alex Shvartsburg

and Yeah, continued manufacturing a also labor costs. particularly freight inflationary higher both we perspective, at on have the expectations levels incorporated from impacts, the

see we're productivity to in we guidance. XXXX, our offset and assumed costs throughout help we ongoing those As that course have that that our absorb saw incorporated year we It's to to efforts of already that's continue this that. into going

Mike Matson

it. Thanks. Got

Alex Shvartsburg

Thanks, Mike.

Operator

of Our Hazan Goldman next question is from Amit Sachs.

Your open. is line

Amit Hazan

you much. Thank so

items Just I have just for a the I could. if fill in thought areas few me. so lot A maybe touched follow-up of been

challenges bipolar update that and around involvement an bit hoping about much the portion and as for to a waiting, depression sizing the for of I of opportunity. and not trial. better understand arm First, try of the one on expectations hearing that there depression was the little

Damien McDonald

a us the and Omicron, of overall, their consent in first beginning of patients moving thanks of Hi, two the December surgery hitting seen to a for we've joining patients week way. to the combination delaying too the the from 'XX, by slowdown staff the last study. clinical Omicron And shortages. or really and implant. hit recover months And

implanting it's affected And So There, unipolar but patient. on viewing the both how enrollment. a but pain to been arms, the the it we're we're changed XXXth hasn't close align modest XXXX but XX-XX. of unipolar, like transition early originally or mean, more XX-XX that's modeled trending to the And for almost terms it's like XXXX, in registry. behind. late recruitment, I the we very

so a through pushing the my And Day, unipolar. indication, Investor staying a bit I think unipolar a very indication really efforts the is skewing And we're -- we're on them. drug, I cranking arm, expansion to our more lot the of more as both for like one unipolar important said, than hitting on hard

the in So a bipolar year. delay seen to what the back-end of we the have

Amit Hazan

Thanks. Damien. great, That's

on Just be unipolar to the the one, to separately can just basically right? clear, arms treated an a assessment completely from endpoint, submission bipolar and be from and that

Damien McDonald

That's correct. Yes.

Amit Hazan

limit a prevalent not side. bipolar on unipolar There's

roughly initial giving year. hit much, XXX be of been expectations. review what patient in I'm enrollment Thanks just sounds very so you will rate expectations wondering, think or Anthem unipolar a Okay flux Damien. before to a hearing about rate the a to achieve you like have on be the success? event roughly, gracious or patients level to Do great. for guys embedded able first Is able potentially do success? you'll early this internally, similar be it later internal XXX have Then progress you

Damien McDonald

a good that's Yeah, question.

embedded at a And to endpoint, nine first have all level XXX But they which months designed pretty at it's an physical of a of were it we functional as We so then trend this that's Again, all larger a also designed follow-up. given for to in saw this of the safety, confident patients. the to there's was hit VNS. have the look hit more sort we're of you hit with history endpoints some for designed PMA, don't So mortality. significance with like the opposed five, others. mortality in the

we about going right, look. time. to look at at have the But was still the So patients the XXX, first you're first ability design XXX this

Amit Hazan

Thanks helpful. much. that's so Okay,

Operator

Zach comes Jefferies. of question next The [Indiscernible] from

line is open. Your

Zach Tuckwell

thanks Hi taking question. everyone, the for

Just one on talk that we're this Heart-lung you the cycle the of last? the about machines upgrade from see of How end year. do expect that some margin tail impacts expecting to long you Can to that upgrade?

Damien McDonald

Yeah. joining Hey, the to us. anticipating model margins XX, HLMs, the getting plant as I operations also of and absorption late way what by ramp particularly in years that terms way in a think and there's for Zach. XX tailwind The for we'll there, happened we'll we're XX, a how better terms ticked analog Thanks SX cycle. to of years in volumes, estimate and and of the that in -- We starting that through. improvement XX-year-old our look varying to expecting end SX approx. XX margin that And premium. for cycle like we the old start of We in good level, the were math people we having with group to to conversion up there few at three gross the funnel a X,XXX two a HLMs then Obviously, months execution out that old. between start process. SX at somewhere there to upgrade Munich. the And

have impact gross well. margin positive as should that a So

Zach Tuckwell

you. Thank it. Got

Damien McDonald

[Indiscernible]

Operator

go today final from Matt of Matt comes question Taylor ahead. please, UBS. Our

MatthewTaylor

Hi, another morning. for Thank you good question. taking

maybe with some out operating of I was question puts hoping was to first takes ask was bit just flesh and chain margin. and just could of a I years where pressure. you for you not the how supply So gross just could talk and about about impact could and that going little the on year, where you impact, leverage but get the get could to for consider and some COVID we future this

Damien McDonald

We I some QX product operating color we driven think mix. to the because relative That's going spending the was by our robust QX, in and of geographic this QX. be there pretty that was gross of into the was the pushed out talked QX about XXXX. lower QX to fact slightly and on In margin margin

as far we expect XXXX. is points XXXX to margins basis gross about increase As XXX in concerned,

increase the the expect exclusion mix also from We of Valves the Heart product the and obviously divestiture.

costs. the efficiencies that As some of chain as offsetting are supply well the

way our as percent expect as working SG&A our we investments. well P&L, slightly, marketing to down R&D sales as sales we a of increase to the and as continue Just increase

a [Indiscernible]. Assuming COVID out of across that continued commercial as as ATFs expansion travel force investments we're coming sales efforts our investments well so higher the in to and couple

MatthewTaylor

any relatively costs? it Okay, thank you. you chain we Then this seems as seeing managing I risk some you're disruption is just or well, It you're view critical supply guess should area in where increased are a as for there the or follow-up, there through like any shortages? places where are at

Damien McDonald

Look, at headwinds. say, looking I we've every been company would this like

the done chain think has team supply I spectacular job. a

the to stories that QX, procurement manage team, or in logistics through both the and of solid. Some distribution really were

points we're certain we're on We've and inventory. Increased in suppliers the of of part where things sort Part areas that and And review visibility uptick so single-source particularly an critical them a In guidance talked or touch the doing, inventory. the of of pressures, we're Some building COGS. long also SG&A of increased forecast. we're on the split range cost more visibility between with components. includes inventory. focused and about we some is giving

out. all balance rates microelectronics that things. pressure. near the bit we're key We're -- also areas but of can And watching we inflationary transport And the and I [Indiscernible] think other we're the doing is costs. also of the as as much

to working the long-range way the And visibility. pricing. in times lead with So your on that is suppliers balance again,

lot So I like everyone I we're got good there. steps. again, really think But putting, think we've of like headwinds a

MatthewTaylor

the taking Thank question. you for

Damien McDonald

Matt. Thanks,

Operator

you. Thank

call further questions the I'll in for closing have so back remarks. to turn Damien McDonald We no queue, the

Damien McDonald

XXXX -- and we're XXXX Well you entire joining Thanks and your Thank appreciate Lydia. we the behalf in you. for interest Thank your thank On LivaNova. you, today. you and to looking support. of all for forward for team, of

Operator

Thank This joining. concludes call. today's for you

You may line. disconnect now your

LivaNova (LIVN) 23 Feb 222021 Q4 Earnings call transcript