Earnings call transcript Q1 2024

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Operator

Good morning and thank you for standing by. Welcome to the First Quarter 2024 Haemonetics Corporation's Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Guyette, conference & Senior like speaker to Treasury. now Olga today, Director, would hand over the your I Investor Relations Please go ahead.

Olga Guyette

first by Chris Thank us our CEO; call everyone. for D'Arecca, Simon, webcast. quarter our James Haemonetics CFO. and today morning, conference fiscal joined Good I'm and XXXX you for joining

along our fiscal XXXX updated posted we results morning, our fiscal XXXX to with our This first Investor Relations website, guidance.

exclude today the quick reminder of that revenue are Before organic also begin, and discussed and help investors We'll non-GAAP just a fluctuations. business understand we other Haemonetics' these that income certain financial impact measures note to growth currency charges all to items. ongoing rates refer Please exclude performance. measures

GAAP refer the year available results and For our list to in a XXXX full comparisons periods, our prior are of earnings please quarter reconciliations excluded fiscal first release website. with items,

Our may our differ any remarks materially Harbor update statements, filings. anticipated differ to forward-looking the in in today's the results. statement do not our We statements. our SEC obligation may these results Safe in cause release and actual today forward-looking those referenced include and Factors other results that from undertake include to

to like Chris. I'd it to now, turn And over

Christopher Simon

growth Thanks prior we XX%, leading performance commercial margin businesses, organic was XX% It for our expansion, to revenue share morning and and diluted meaningful a the thank growth year. across advancing milestones. innovation particularly market strong revenue adjusted joining. Olga. over with Good adjusted reported while growth year delivering you $X.XX, and operating start all of of and Today, first quarter earnings per

enabling opportunities demands, our improves growth value for Program margins, productivity and management, us fulfill to customer's in Excellence expand creation. Operational further and invest and strengthens Our risk

Intel, than information and Diane that Google, leadership years management. of technology NovaSignal. more counsel and technology with XX are Board solutions We healthcare We in brings expertise organizations, her Bryant top has including global and welcome Directors. experience Haemonetics She of joined pleased

disproportionately strong Turning now first Plasma in by driven U.S. North results. XX% to grew collections price. America in revenue our grew momentum business unit the XX%, quarter. disposables and

quarter the from in first growth historical Plasma quarter was of the the this seventh our Additionally, seasonality. growth order rate volume fiscal consecutive unfavorable XXXX. first U.S., exceeding of timing revenue In quarter benefited

saw We Europe. collections also growth single high strong digit in

collection to Our and NexSys apart connectivity yield, additional a safety, backed collections. Plasma offering superior by of experience donor stands from system evidence for X% impeccable real-world of XX% millions tens plasma

center average FDA Express of We optimize time, are plasma and reduced bringing cost per bowl liter. collection innovation redesigned powerful efficiency a to software clearance with and shorten the Plus

while post bidirectional PCS technology we from This system. procedure, software. to NexLynk average with time enhancements plasma them operations. This approximately no is enabled device minutes, occurring a portion time XX is center the on improvement procedure on door-to-door the has new met to pre and enthusiasm additive NexSys from communication expected a current between the rollout existing in NexSys are to XX-minute interruption The customers, an XX% launch significant by with ensuring of the these the seamless our great reduction enable working reduction of and been timely of with DMS this and times a procedure XX PCS to

quarter that support first encouraged are to collection trends We capitalize rising well-positioned our we on macroeconomic by positive results, and are volumes.

to full XX%. guidance to to from Plasma X% up year revenue our X%, We organic X% are increasing growth

staffing procedure volume first to supported and by XX% Moving levels the particularly Hospital. America hospitals. in increased North was U.S. at improved performance Revenue strong, quarter.

both Vascular cardiology. electrophysiology in grew Closure first new the from account interventional XX% contribution quarter revenue in disproportionate a openings, and with

rates utilization hospitals. procedure clinical and in U.S. volumes continue see by efforts to our higher also We driven increased

billion $X.X remain share of our global increasing efforts focused approximately the on Commercial TAM.

the in we top MVP are nearly We leadership approval track, Japan and received making The this of EP the initiated in standards on role International in our for XXX in establishing hospitals is and responsible feedback clinical of positive XX% quarter, expansion for U.S. care. use progress VASCADE Italy. procedures. significant early of Germany Vascular play confirms important and very our our is products in Closure improving key products accounts the and

our Hemostasis International XX%, from in benefits capital key Management XX% increased in delivered growth strong double-digit Europe in all the America, growth grew was strong the by of quarter. our market, mixed, grew and sales. TEG, quarter. largest North pricing but driven utilization of markets

the we with America Strong their performance of hospital North in customers. to Transfusion Cell network agreement U.S. as Europe capitalized Salvage in global U.S. than on our SafeTrace benefits offset were share with unfavorable a among the help America in order hospitals. North quarter increased distributors timing gains to utilization of offer strong These and Epic was Management by recent market driven in by Tx outside also more had

performance. We are hospitals pleased with

our trends on schedule milestones improving drive of and hospitals to ahead on capitalizing in worldwide growth. additional and commercial are regulatory We

With our products new growth Vascular Europe coming revenue guidance the range XX%. in for in are affirm Japan, XX% we growth XXXX foundations the years. establishing to in of organic launch the We of Closure and our fiscal

order by as favorable coupled X% to in devices. year down was Blood Center the revenue Apheresis among strong with quarter. gains network the expand with prior NexSys to customer Capital collections, global plasma we Egypt revenue grew collection Plasma, PCS grew first with particularly centers timing driven share of due distributors. in slightly partnered X%, in a

the revenue Blood benefited competitors' as serve the X% need. Whole grew quarter opportunity in to we in from customers

of results with business. the pleased We Center are quarter our Blood first

near-term, in minus We the decline voluntary that longer take X% and to guidance our some X%. of recall may of our external timing However, now product to X% a commercial minus compared previous business difficult Blood organic an minus realize. opportunities X% environment, revenue face to with Whole anticipate we a of

products. summary, margin In continues increase higher to contribution we momentum build of growth, as scale higher and

company guidance from up advancing transformational leadership. X%, raising fiscal to and sustained growth organic delivering XXXX are growth our we to X% Accordingly, We revenue market X% to XX%. are total our

quarter our the and James? I'll now FY results James XXXX call first rest to discuss turn over guidance. the to fiscal of

James D'Arecca

Thank you, Chris first continued our the business fiscal XXXX, everyone. In good and strength. quarter demonstrated morning, of

First was than of points XXX in XX.X%, prior same lower year. basis gross period quarter the margin the adjusted

price, timing the gross strong volume favorable margins we Plasma benefited product adjusted and Center. favorable from experience order and in Our and in geographic from momentum in benefited to and mix, Hospital, as particularly Blood continue U.S.

operations a expense. by These demand million more our a higher offset product to Blood for in inventory our were meet the recall depreciation Whole benefits than voluntary unprecedented investments and due reserve to products upfront business, in $X.X

first logistics million, from compared year. investments flat first additional growth the $XX.X that quarter funded additional in Excellence expenses quarter. the of the the quarter from with Program operating in prior the fully improving costs savings were Operational and Adjusted We benefited

the As a compared percentage in with fiscal XX.X% of revenue, of XXXX adjusted the quarter were period the XX.X% operating prior first in year. of same expenses

Our first million income an $XX or operating adjusted quarter was increase XX%. $XX.X million, of

a trends. was in fiscal operating As was the XX.X% basis the the up improving adjusted higher of XXXX. macroeconomic same expansion period from margin XXX margin our quarter, adjusted in business operating driven leverage first by in The points revenue, operating percentage and compared with

improved stronger-than-anticipated expectations, operating particularly to we our logistics quarter The order leverage favorable ahead in experienced timing in costs. of Plasma, momentum center due our in was and blood

acknowledge in and impact of we remainder at the a changes we from look product and challenging macro environment anticipated year, As geographic the mix.

our We XX% XX%. guidance in margin to the adjusted of affirm operating range

our approximately through also Our adjusted at are business. Program Excellence margin target to generating in drop across from guidance operating expected million savings adjusted gross income our includes XX% that $XX operating Operational efficiency the additional to

first XX%, the quarter adjusted first quarter down XX% the fiscal In income of rate tax in of XXXX, from the XXXX. fiscal was

exercises and exercises corresponding XXXX from benefits first that were and share income our approximately expectation Our prior rate usually tax are loaded, for year. fiscal front-end in quarter vestings Share adjusted of first remains recognized option XXXX rate unchanged XX%. the larger tax quarter and the fiscal vestings adjusted the the at benefited income than option

$XX.X compared which range an of the was from up offset earnings FX. first partially count adjusted updated share approximately fiscal $X.XX. with adjusted adjusted by be negative to adjusted foreign up approximately fiscal interest in or $XX additional Changes to expense related $X.XX our share, rate, of impact our quarter $X.XX exchange. tax the midpoint diluted diluted $X.XX, from benefit resulted and in XXXX guidance guidance in $X.XX headwind We XX%, of includes per quarter million, adjusted was per updated earnings XX% net fluctuations First income The was when to diluted earnings share the to and per income XXXX. million share our $X.XX

year. $X net income, million, XXXX. in compared since by Free production ramp-up Moving growth higher of first flow. restructuring-related at up requirements. hand quarter quarter The partially costs the million of now devices drivers a the the flow last support significantly PCS end in due $XX offset of fiscal the $XXX.X million $X.X restructuring million the in cash increased to and on with first NexSys to before balance was to U.S. Cash end and the cash of sheet plasma inventory customer fiscal are main was

and for fiscal these $XX to of our cash the million restructuring-related million million million guidance to of restructuring range expect $XX costs previously. the free in compared year for XXXX to be trends flow remainder update continue $XXX before We for and the to with $XXX

you like take would I from few key to a hope away summary, today's call. that I messages In highlight

Our expansion. strong to our start growth first contributing quarter and were of businesses to our fiscal margin all with results a XXXX

yield, the we reduction benefits largely plasma Plus door-to-door and and from momentum average, new stands bowl Plasma, are Express apart cost and for our unmatched technology cost on and to industry. optimizing In center improvements time XX-minute further efficiency reducing collections strong the additive collect. to benefit liter technology per the The in plasma continue in of to that efficiency

the leverage we of in commercial trends on and are business in Hospital, improving our with driving hospitals our across additional In ahead world. milestones, capitalizing schedule

we of launch establishing growth are products Closure in Japan, new our years. and in coming for a foundation the Vascular the With Europe

margins quarter with in product efficiencies in from expansion portfolio, continue hospital glimpse the and macroeconomic our what provides the increased transformation we ongoing additional business a pressures. first of The the adjusted of in relief could to deliver operating

is more work margins there the confident While expand feel to our we years. further in in coming our to do, ability

committed remain our creation we stakeholders. for lastly, And value all to

our throughout range to use we top through opportunistic our plan buybacks. As and line accelerate capacity grow, capital it share growth to to bottom investments plan organic M&A, long additional put to and good growth continues

And like Q&A. line now open the would to you. Thank for I

Operator

Instructions] [Operator you. Thank

first with Our comes question Americas. Mizuho Anthony from Petrone

Your line is open.

Anthony Petrone

up the All just experience Chris then right. everyone. I'll on of in and on year. to a fiscal Chris, plasma, Jim the morning, a on follow kind Maybe Thanks start here. the strong margins. Congratulations and with couple good for Maybe, quarter

where just are maybe still mentioned, obviously, are the replenishment the inventory amongst historical running the collection but you cycle volumes think fractionators. of do we You ahead trend, in

follow-ups a then And maybe couple of Plus tech. on Express

it component maybe bit the is is Or upgrade? software a a follow-up on as I'll that little Just to well? path? what And a have Jim. upgrade Is then for there pure capital the

Christopher Simon

our the thanks is Anthony. actual plasma first on where Thanks to outpaced record. for our for course of how morning, over out question. factors collections seventh for historical due year Good just for seasonal This quarter some our that's year. for consecutive Usually, Yeah. the we'll that see plays plasma has quarter the softest best the and growth. the quarter joining, and demand Clearly, the

which way think it. that in criticality think think we there strongly. our we levels, safe. we're our continue, And robustness would the will with good the do back-of-the-envelope estimates customers, the to we're stages we When from recovery. go conversations is customer will the about be early trend in customers the still to needs needs, meeting meaningful quite we confidence plasma inventory of raise that around after We our experienced meeting one to we given of a get and for feel that quarter. gave challenges this the pre-pandemic having which that this those year levels, is only think think us seeing what guidance to continue But we're We

then get enhancements, It FDA. a from around really get some new the the itself, It's engineering this release to It centers. will able complicated the in moving, the excited SOP. In the for given approval, change device regards by that. terms And the software of of together meaningful about and to and disposables some not we this. in combination want in outlay. be require a with or which are to speed particularly the upgrade the with It thoughtful change now we capital is is

without making, real-world group collect jointly do we're later fiscal then data and we always, going further some We're claims market our So, so with to going prepared limited release go this as market will And to so working year. customers, validate talking the fast we're as they're with as go customers. a release, we're this. hand-in-hand a But do full move disruption. about on to small of to

Anthony Petrone

helpful. maybe just in much How little runoff sequentially. That's jump prepared price release, on here remarks. inventories was a And the Jim, a a margin of mentioned higher gross then press cost times of bit the and few that was

Just of a recap price congratulations quarter. in And maybe these coming where the is again, on days.

James D'Arecca

Yeah. Thanks Anthony.

for And the But of year volumes. I continues. lingering away yes, and for us there price us, margin saw gross to the And That those was excellent We'll up well, that right it mix a in this we the up for inefficiencies we still start the it saw drops was goes, that overall, the go that as on We run-up the to the print you bump way, an those So, margin filter margin. nice really line. direction for recall. peel comparing see helped margin But seemed about the taking last and us had more XXXX. have sold as as us that's us Everything year us did quarter. operating quite spoke wise. U.S. other I'm well gross down our you to good in gross back quarter help now from such start and bumped those fiscal mix to some often a wise. us why of first as the margin in as

Anthony Petrone

again. Thanks

Operator

Thank question. you. moment for One our next

Matson Our from Mike come next question Company. & will with Needham

line Your is open.

Mike Matson

not massive last why the guidance, versus obviously. mean, guidance raising more? Great guidance only the you're about beat year, $X.XX. Yeah. growth by by consensus Thanks. know quarterly quarter, give but But I I guess, don't wondering you I just I'm $X.XX. range EPS freezing you're you

there for You expect the don't you had year? that tremendous continue operating leverage. Is of there rest to something the

Christopher Simon

Yeah. me -- Mike, Chris. it's start let

expansion. Let me James to start comment on ask revenue, margin the I'll and then on

the think things which actualize high we Those quarter. of TEG, the make it's first to benefited was was and then preview our LRP. customers the I with outpaced grew U.S. from from really first the date. strong quarter, volume effort, We in I'd complete really the triple to do So, the rest NexSys in probably we of come a outstanding significantly best think in disproportionately hit quarter point a quarter our is, our of growth And the was VASCADE, Persona. and had right XXs field well. which which there as as

helps a that So trifecta lot. us

expect forward. going growth international do We

tailwinds some James cost, better mindful there a Some the macro the speak to that margin. reduced to from and will demand. forecast I'll of that of that. And benefited had expediting meet we at below-the-line to. lower need about as better on from are gross talk the We be We lower also trends. come ability some a but We handle let

timing the as in expect of past, we half the of customer exact extent that that to There thoughtful quarter. is be mindful in therefore, prepared mindful, to that timing, anticipate difficult sanctions out we we've in blood the that first forward. year things of be some blood year. updated forecast just the there's the the for be transition second to are our need about to filter need the We Russian and we newly be with and cautious And want in as or ominous to very our recall called isn't for talked that. uncertainty of. we center around remarks, It some that example, going plasma then It just do pending we're our remainder the whole order anything the we

James?

James D'Arecca

Yeah.

through So, it's yes drop I -- on before quarter. first on down all -- overperformance drop cautious Mike, And we the somewhat comment so it's the have would Chris' quarter. terms the in kind of let of being early, echo that down

some have additional FX. in also coming from We headwinds

to current year. the that the the that's are, assuming rates rest where -- expect another $X.XX stay of We for they

bit rate in on was normal part to for for that the around recurring noticed quarter then the back earlier. up if And will a us tax first the I of reasons flip mentioned year, we'll get our you And also, our back lower rate. the

why what all you is when guide factor things you So, those earnings this together, the quarter. that's see

Mike Matson

that Okay. I I then that And was for would a understand. Express you're assume to make Plus, I sure premium but charging want just that, correct.

of price as or? another could kind customers adopted So, wave of drive this uplift potentially

James D'Arecca

Express enhancement, Plus to the We're that that X% donor, which procedure, showed the the platform We XX% cares plan a a in the donors we've NexSys what Persona which at speed ones about, ultimately advance right? one and left another. market, of Nomogram, at holistic time, Mike, is part I care donor have have so, door-to-door up this up and are time on already yield speed is is only unrivaled. leadership and about to really we a as the about, did further enhancements I for battle right? the talked And

to we if that's minutes the the so, can for And XX donor. XX off door-to-door shave meaningful time,

portion additive. Express is that up procedure to Plus of speeds and

Express that ability but to components we command part is Plus to going our talk a a for about pandemic So, that an those in really reasons, feel connectivity, proposition have increases We well suite forward. of it started accelerated in for and guidance you about premium have the what received. into donor that going the pricing continue that. holistically value not apps you superior see been think and bidirectional as does and our we does to individual as that. see We're We of results, have out absolutely a offering, during competitive and only the clearly is rolling our

Mike Matson

it. Got Thank Okay. you.

Operator

you. Thank

from James. moment comes -- question next -- Cooper with one Andrew Our Raymond

Your open. line is

Andrew Cooper

Hi, of But to detail give for proportionally well. prior. And know want the same it. we question. was everybody. back necessarily wondering you get it could I more of then of commentary just sort follow-up was as whether to Maybe when the have of think into contribution plasma I ex- sort just ton don't mid-teens one to the Thanks if the their first, update guide, prior I on was as I CSL, sort a for still as there and an is impact the

James D'Arecca

Yeah.

NexSys demand, Andrew, are adopted NexSys base We particularly now in remainder the are and the in here, the the opportunity. bit of the slow up of at we're macroeconomic a charge they're customers, leading some with mid-teens. and see through so who customers would capitalizing opportunity that numbers, this who've the think on anytime guided I straight those large those those they looking a accelerated Persona doubly on soon. don't say we expect that We for to clearly Donors into benefit from are volumes year. They showing as of down trends, to high-teens

Andrew Cooper

angle then with And of sticking Great. Okay. kind a here. similar

as of is sort if it the patterns bit historical center on little as we've there that sort mentioned building had they well centers of the of I it of You NexSys competitive inventory. Is magnitude for that for from using where that of is maybe reason new new offerings? context versus case guess, been devices before? wins existing customers? us with just seen Can you a traditional a coming demand the nature give the as other openings,

Christopher Simon

as but predominantly our but openings into well, Andrew, meet demand. it's we new new share this have built center in there's Yeah. plans, predominantly center It's gains to openings. uptick --

Andrew Cooper

in been before. they behave centers of continued we've Okay. I that's of about topic have pre-pandemic know to And as terms a new have ramp? kind talked

Christopher Simon

Yes.

ago new in embedded uptake opened open that historical were those are three the between. today those in is what's very years and our think that everything centers, and I guidance across

the this also in first full, our again seeing hard working improvements bit that that centers. some have are the meaningful centers mature quarter last here on the in and year. first through quarter. includes are mature all some meaningful the centers that fourth That's predict, continued of We We quarter been saw to harder That's in improvement customers of but their again, to off of a year. made the inroads get

Andrew Cooper

there. you. I'll Great. Thank stop

Christopher Simon

Thank you.

Operator

Thank you.

question Our Citi. with Joanne next comes from Wuensch

is line Your open.

Joanne Wuensch

Good of to couple SG&A that? questions. morning, that new run a metric, down and this year-over-year. or curious came go-forward percentage that a in lot how there helped nice about revenue of rate, a if if And there was just as is think I'm quarter. something A

Christopher Simon

offer Joanne, James I'll to it. Yeah. and then add to want start more

We continue make to investments.

really are at VASCADE multiple separate take invest and capabilities an freight, about a from bit breaking look We of sales out building categories. quarter, But continue separate we G&A, our marketing, we from which in and global. disciplined artifact. quite is our out saw meaningfully R&D OpEx particularly into to as We what and from we sales separate -- our the --

So, But the you're with for going do that. we leverage. operating that to demand see

flat, and We've largely inherent LRP the held cost of part the margin which is part G&A of our expansion.

kind You of see the then paying through. meaningful quarter. the in accrued and drop bonus That's annual that our an it for just washes first artifact and off that, were of monies

change. that the last pay-for-performance have the end at experienced of paid going different year, we so Given upper just very the And the That's our a the really year, forecast a accrual at the programs. bulk into outperformance is good level. of we we

Joanne Wuensch

And then... you. Thank

James D'Arecca

as The will that a freight first think quarter, beneficial I it down. were come have wouldn't those the as normal. costs well new But be say I

think I as will we go year. throughout here rise it the from

Joanne Wuensch

States. and you My of Cardiva Can on where United are just an the Japan? you second will, state do the update outside of in you. Thanks. Europe Thank launches question the us has or if to give with you sort meeting,

Christopher Simon

Joanne. Thanks Yeah.

us enabled now, we launch really Europe, bit in approval a plans. of good had gotten year schedule. ahead almost our So, accelerate to the ago That a

supported a And right? least, the support of family thing and products, through those that economics by about be the model. elsewhere. VASCADE at that. where nice to We're We we'll It's building going third-party initially, distributors, direct And clearly it out. demand can markets go distribution hybrid of think are I the go the

them and on. us. heavily training in development the saw. market to That's has a direct in and with terms early the more signed is in begun uptake their a which staff will in clinician places feedback we work directly get outstanding. clinicians which be already Customer hybrid. of been Germany, various of Italy, like and That's lean We'll for

into we're So and the plan to progresses. as accelerate going that's -- we're that excited there,

in The is We into positive good this a now in that reimbursement. approval a we'll work market. partner Japan move we already model a luck. secure We've development. Japanese think here to with with someone quarter entered happen who with a will any for hybrid to Japan. And think need We distributor arrangement long-term the with is

the think again, of frequently. the And also products, And we by of same but they they're quite know lower efficacious, and VASCADE the getting home highly patients care safe. day family we they right, are cost

good and through The that require a efforts, and globalize TAM for there although it's very our chance to what think fit It's us Japanese European but flowing it's for market. does good we a see our investment, is the that's So, less, opportunity. P&L. the good you a

Joanne Wuensch

I sneak called the quantify can order, unfavorable the Did OUS you've that you out? If order timing the of one more in.

Christopher Simon

OUS order... unfavorable The

Joanne Wuensch

was one-time timing order have benefit you unfavorable note, timing. -- had You I I quantify the guess, I it also but maybe. an some --

James D'Arecca

are factors, There Yeah. two Joanne.

our confusion end. Sorry for on

fourth quarter of comp particularly large a did XXXX. felt U.S. because like plasma fiscal in year-over-year the we So, relatively was comp the customers one the in our easier the a of large onetime plasma, U.S. buy

why rate. such was see growth ordering quarter-on-quarter XXXX, which you a robust in there less So, fiscal is

particularly so, our we first Center, of right? continue, particularly very had kind in Blood don't quarter. in apheresis, a opposite expect Center, good U.S. we the had to while in that Blood Outside second quarter in And the occur, we

tends won't the markets, But with got year were business get to We to at we're of particularly able that important working, but to we margin just in going and too some Center, preorders, to of to order get Russia. being that's out, apheresis licenses. for that And margin another probably products repeat some good part our the It's sorted. lumpy. working That to is just in the we business for our within normal good a platelet is it that to the it's we're it's throughout business to sanctions important play rolled meet. early be Blood quite timing. least that hard forward. that business take think And sanctions obviously, plasma, how tell those our it's And

Joanne Wuensch

Thank you.

Operator

Research. next Thank question. Barrington Petusky It with for Michael from you. our comes One moment

Your line open. is

Michael Petusky

good just loaded? I morning. wanted the plasma but it was don't orders aspect the in me this of sort Hey, ask, of front-end was. was -- sort cadence and any I augmented addressed, maybe forgive being think to CSL of QX But by of if number

Christopher Simon

demand. No, just literally, this that the quarter lowered was fiscal XXXX only fiscal timing, was There that a XXXX and effect we had was no that order mentioned, order Mike, first the which order timing for year.

they say. The last comps, easy as I So just first of on a comparative guess, quarter. the this basis

Michael Petusky

All $XX.X -- is you Cardiva. of switch completely immaterial guess, real million to just want quick to that there the Is to any figure? over of I then, much guys was quantify how Or for I right. And Okay. sort Europe? it just way

James D'Arecca

at It's this really immaterial, stage. Mike,

this crest and the at this if TEG plans, of it Both The high annualized lower immaterial. think XXs. the a we the right, important mid-XXs sneak will in VASCADE to was you bold is -- and one peak, and reality is the stage, have on I highlight think first that's things really but We the quarter it's first the strength of why in million year. in will, $XXX XXs, the and come. to them In to in VASCADE TEG grew both of the this quarter, of LRP revenue

disproportionately margin most it is business. as is our but out, see which driven that gross how U.S., for -- by that so, And device we'll was the for companies plays medical highest

excited So, one-two was total really that. revenue about the hospital margin growth us. and for And drove both in we're the and business powerful combination

families that our those the that think year do can and really fair international of benefited I first And effect on product demanding its quarter. that's as we may margins it have share, a dilutive evidence two are in We deliver this company. what by business workhorse for the progresses, but

Michael Petusky

And in understand. direct using you about just When in using then clarification. both markets? and Italy you in talk the about sure tiny make Or I distributors distributors talking in just I to and Japan, are hybrid those then sales? want about talking one just you future are

Christopher Simon

Mike, For We're those grow. exactly in really right. nascent markets some yes, And today. we'll products, that's

And scale into can business. of permanent margin this is at basis, our biggest time, the look is look on so, help basis a use getting to that's in and either the I to on distributors and what's transitional operating opportunities to plan. at drivers of those leverage over think scale our we the a or one built If expansion we'll markets. It

Michael Petusky

Yeah.

Sorry, the uptake. Chris, let be me just slow

So, using or direct any no? sales are Italy in you

Christopher Simon

have Yes, small relationships. team privileged where we account

Michael Petusky

Okay. Thank Great Perfect. quarter. Thanks. you.

Christopher Simon

Mike. you, Thank

Operator

you. Thank

Our Solow will from Larry Securities. come question from CJS next

is open. line Your

Larry Solow

Good Thanks. congrats guys, good on the and year. start Great. to echo the I morning,

the July guess, near-term, just some we is any I'm but overall, Just as this that obviously, if on, and mid Chris, over the growth on the plasma how and data on space But thoughts just you receptor the it. on call, or I Any on thoughts, thoughts that CBP. impact long-term. I beginning look out probably not and of sure missed touched in touched to could not haven't FcRn early obviously you your commentary

Christopher Simon

Yeah. Larry, question. the thanks for

about it. talked not have We

customers insight, have end talk So, about who opinion the key more autoimmune to anti-FcRn I to it, are that closely. proprietary entree talk our don't insight. of we're these We is everything leaders. space broadly all we but should caveat that -- in proprietary We written markets. read the We into watching have we right? is into don't something

It to growth which you're for in trial it and inherent successful -- given think good was with would That's patients, was primary, argenx. autoimmune secondary a customers, ADHERE for I congratulations particularly I trial. hearing across the thing echo our the a what is diseases. IG readout, demand from

So, we'll growth underway any watch trials forecast right, IG, X,XXX given to carefully. reason indications. this time don't believe that underlying this We at in are for there for change demand IG-based the for there's those

It's there. as we this data play to get learn we'll point, will it trajectory. it's role, have unlikely demand in we'll it the But think effect and don't ultimate we the cannibalize think thing intermediate but patients, on compress term. But it's ADHERE certainly we meaningfully So, more. for think for update to near a from we watch Congratulations a accomplishment. disruptive the or good clearly out going useful was a to but our that to

Larry Solow

Got Great. And for then just a question just James. it.

of the Or like Should So, certainly out guide benefit good any certainly it -- pretty sounds know improvement. from it color that the I this nice we don't timing. lower maybe margin Thanks know I starting on great. but the a was point SG&A you look specifically, gross Did as some sequential as year-over-year. down be year? rest view number again. would on we for a you

James D'Arecca

point. say, was It a of the by well. and we we I would a had affected also I mean, fair recall starting that lot it's about. Yeah. as outs ins spoke

have in I about. very we lingering inefficiencies, We some some the that, improvement which offsetting been But mix price. temporary had had talking previously favorable and

it's the think I year. and of lot ins but we So, outs, fair for a representation a pretty had

Larry Solow

Thanks Great. Appreciate it. guys.

Operator

you. Thank

comes Turkaly Our with from JMP next Securities. question Dave

Your open. line is

David Turkaly

Hey, good congrats. morning, and

hemostasis. to wanted follow-up Just on

that the you. be I around anything really Is great. anything I common recall you I should guess, is And think know color pricing be I But we comment mentioned past. success had the but that pricing in there there looking you there? for? would don't device, new there. Thank

Christopher Simon

into Management, regards market. cartridges robust here the U.S., in we of portfolio With addressable have Dave. Hemostasis Thanks. broader to particularly a that additional to really indications, additional total Hey, tap

through. benefit see you coming so, that And some of

disproportionately and was more but are on both Clearly, favorable. margins disposables, quarter first disposables. The disposables equipment our

So the pricing that's benefit. of part

will an enjoy year that to that area. broaden say progresses, it also too. area clear we new help leadership to expand to build help share as will intend It and but new indications leadership That's price, our upon have introduce, overall more the in it. will cartridges and market And we and volume, then, we we'll to continue and

David Turkaly

you. Thank

Operator

Thank This questions you for conclude you. there Thank are other And the participating. no conference queue. call. does in today's

You may now disconnect.

Haemonetics (HAE) 8 Aug 232024 Q1 Earnings call transcript