ABIOMED Inc (ABMD) 2011 Q3 法說會逐字稿

Good day ladies and gentlemen, and welcome to the Q3 2011 Abiomed earnings conference call. My name is Steve, and I will be your operator for today. At this time all participants are in a listen-only mode. We will be conducting a question and answer session towards the end of today's call. (Operator Instructions). Now I would like to turn the conference over to Ms. Aimee Maillett of Corporate Communications.

Thank you Steve good morning and welcome to Abiomed's third quarter fiscal 2011 earnings conference call. This is Aimee Maillett of Abiomed's Corporate Communications department. I am here with Mike Minogue, Abiomed Chairman, President, and Chief Executive Officer, and Bob Bowen, Vice President and Chief Financial Officer. The format for today's call will be as follows, first, Mike will provide you with strategic highlights for the third quarter, next Bob will provide details on financial results outlined in today's press release, and then we will open up the call for your questions.

Before we discuss the third quarter it is necessary to remind you that during the course of this call we will be making forward-looking statements, including statements regarding future financial performance, product development efforts, Abiomed's strategic operational initiatives, market response to our new products, our progress towards commercial growth and future opportunities.

Abiomed's actual results may differ materially from those anticipated in these forward-looking statements based upon a number of factors, including uncertainties associated with development, testing, and related regulatory approvals. Competition, technological changes, anticipated future losses, complex manufacturing, high quality requirements, dependence on limited sources of supply, government regulation, future capital needs, and other risks detailed in our SEC filings. Investors are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date of today's conference call.

The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this conference call, or to reflect the occurrence of unanticipated events. Lastly, comparative references made financially in this call to revenue, expenses, gross margin, or other increases or decreases will be indicated by references to fiscal third quarter 2011 as compared to the third quarter of fiscal 2010 or third quarter offiscal 2011 as compared to the prior second quarter of fiscal 2011.

I am now pleased to introduce Mike Minogue, Abiomed Chairman, President, and Chief Executive Officer.

Thank you Aimee. Good morning everyone. We are proud to announce an exceptional quarter that represents outstanding Impella patient utilization and positive cash flow. Customers are realizing that Impella is integral in their practice for performing both prophylactic and emergency high care risk procedures. Abiomed's momentum continues to grow with best-ever results for revenue, profitability, gross margins, operating cash flow, and number of patients supported. Specifically we want to highlight total revenue of $27.2 million, up 19%, worldwide Impella revenue up $21.1 million, up 33%, US Impella reorders of $16.9 million, up 106%, US Impella patients of 752, up 77%.

The quality and sustainability of our revenue is the result of the Company adapting and executing its goals. I am thankful to our employees for their dedication to our customers and patients. On today's call, we will highlight year-over-year progress on our four fiscal year goals. So first, on goal number 1, increasing Impella utilization and independent usage. In Q1 we supported 752 Impella patients, all of the patient usage trends increased year-over-year, including high risk PCI by 44%, AMI or heart attacks with shock by 212%, and all other applications by 84%. Independent usage of 33% in Q3 was more than double last year's 14%.

Our second goal is to advance the education of the science and benefits of heart muscle recovery. Abiomed is amassing an extensive body of clinical evidence for percutaneous hemodynamic support and heart muscle recovery. We are currently collecting the data for the additional 125 patients ,and preparing the summary for Protect II. As a result, we are not able to comment today on the study outside of the interim press release information. We are confident that this will be a landmark study that will advance the field for high risk PCI. We believe the Protect II data will be welcomed by the medical community and will provide new insights. This is the first ever such study for the Intra-Aortic Balloon, or IAB, after 40 years of commercial use, and we expect this study to be incorporated into the current guidelines for high risk PTI.

To note, the major adverse event rate for the IAB is two to three times higher than many experts have predicted. Since we already had the 510k clearance on Impella, updating the guidelines for high risk PCI was our ultimate goal for Protect II. The combination of Protect II, USpella, Europella, ongoing studies, and over 100 publications builds a vast library of evidence for Impella on multiple applications. Abiomed has already demonstrated in the registry and peer review publications that Impella provides superior cardiac output and power over the IAB. Overall, we have had ten publications in the last two quarters, and will have an extensive bolus coming over the next three quarters.

Our third goal is maximizing the productivity of our commercial organization. The team delivered on the Go Deeper strategy, and Q3 marks the seventh consecutive quarter of triple-digit reorder revenue growth. We are growing Impella revenue and patients both sequentially and year-over-year. We also continue to improve the process of opening new centers, and training for both prophylactic and emergency patients. We are aggressively adding talented proven sales and clinical people to maintain our growth, and have recently launched a 24x7 staffed clinical hotline.

And last, on our fourth goal of driving operational excellence and customer satisfaction we executed in Q3. Abiomed generated $5 million in cash, and drove record revenues with record gross margins. Our strong gross margins reflect our operating capability, as well as the value propositioned offered by our products. Our rapid innovation of the Impella platform will continue in Q4 as we release two new enhancements on the catheter, which reduces time to load the guide wire, and improves the visualization of the pump placement in the cath lab.

We are also excited to announce today our 510k clearance of our new automated Impella console, called the AIC, which was displayed at our Investor Day last June. The AIC further simplifies the setup for new users by automating 60% of the existing steps today. It makes easy automatic,so users can focus more on the patient. The AIC is already in use at some of our highest volume hospitals, and the feedback is very positive. New sites are receiving it now in forward production, and we believe it reduces the learning curve required to customer independence, and improves the patient management experience and transportation.

The AIC console will be the platform capability of incorporating a biventricular Impella solution with the Impella RP on the right side, as well as the future Impella pediatric pump. The Impella RP has been improved from our first in man experience, and we have manufactured the next generation version. We will be supporting more patients outside the US in February, and the market demand is significant from both cardiologists and surgeons. In summary, we believe the Impella platform will be in every major cath lab, EP lab, and surgery suite.

Abiomed is improving the training experience for our customers, and generating clinical data for guidelines on multiple Impella applications. A recent article in health policy outlook stated that heart failure has become common in our rapidly-aging population, partly as a byproduct of increased survival rates from heart attacks. The cardiovascular field has excelled at treating the heart attack patients plumbing and electricity with stents and ICDs. But we believe the pumping function is the next new frontier.

A recent AHA cardiovascular publication stressed prevention as a way to reduce costs, and this report elucidates our opportunity to enable minimally invasive treatment, and to protect, support, and recover existing heart muscle. Our prophylactic and emergency Impella patient cases bring to life the positive outcomes relative to heart recovery, quality of life, and cost savings. These patient stories motivate all of us at Abiomed, and we will continue to strive to improve outcomes for hundreds of thousands of patients that are already in the hospital, and suffering from hemodynamic instability.

The exciting part of our story is that we are just beginning the journey to create shareholder value. Today Abiomed is proud to report to the shareholders that our innovative Company is generating cash flow. This is an exciting time as the benefits of Impella are translating over to success, in both patient outcomes and the Company's financial performance.

I will now turn the call over to our CFO, Bob Bowen.

Thank you Mike. Good morning everyone. Before I get started, I would like to refer you to the Safe Harbor language noted at the outset of the call, as well as the risks and uncertainties noted in our SEC filings. Particularly our most recently filed 10-K and 10-Q. I would also like to bring your attention to the GAAP/non-GAAP reconciliation that we provided in the earnings press release, which is intended to aid investor understanding of our financial results. As noted by Mike, we posted another strong quarter of revenue growth.

Gross margin percent for the quarter was also strong at 80% compared to 75% in the year ago period, representing a 500 basis point improvement due primarily to a higher portion of revenues from Impella disposables, improved manufacturing efficiency, and a smaller number of Impella console placements. The reduced number of console placements was consistent with our stated fiscal year 2011 strategy to open fewer new sites, and go deeper at existing sites. We opened 29 new US Impella 2.5 sites, compared to 66 new sites in the prior year.

As a result, we placed fewer Impella consoles and had less than half of the initial stocking order revenue, which was more than made up for by 106 reorder revenue growth, 106% reorder revenue growth to $16.9 million,from $8.2 million in the prior year. R&D expenses of $6.6 million were 3% higher than the $6.4 million in the prior year.

The increase was due to slightly higher clinical trial expenses that totaled $2.1 million in the most recent quarter, compared to $1.8 million in the year ago period. We expect our clinical trial expenses to run at or possibly somewhat higher than that level for the next two quarters, as we finalize Protect II data for the 125 post-interim patients and complete the site close-out process.

SG&A costs were $15.6 million, up 3% compared to $15.2 million in the prior year, largely due to the continued buildout of the US sales and marketing organization,our core commercial focus. Partially offset by lower SG&A expenses in Europe, where we are focusing on specific sites for clinical studies and first in man experience.

At present, our plans are to continue to add at least two to four US field personnel per quarter to support growth. The GAAP net loss for Q3 fiscal 2011 was $0.8 million, a $3.8 million improvement compared to last year's GAAP net loss of $4.6 million. On a per-share basis, the Q3 fiscal 2011 GAAP net loss per share was $0.02, compared to a loss of $0.12 per share in the prior year,a significant improvement.

Of the $4.4 million increase in year-over-year quarterly revenues $3.8 million,or 86% found their way to the bottom line. On a year-to-date basis of the $9.9 million increase in revenues, $10 million found their way to the bottom line. This is a reflection of the strong operating leverage and financial strength of our business model.

We reached two major Abiomed financial milestones this quarter. First, on a non-GAAP basis as described in our press release, net income for Q3 fiscal 2011 was $0.8 million, or $0.02 per share, compared to a non-GAAP net loss in the prior year of $1.3 million,or $0.03 per share.

Second, the strong P&L leverage combined with effective working capital management produced an increase of cash and marketable securities of $5.1 million to $59.2 million. We believe we will be sustainably cash flow positive going forward.

Looking at the balance sheet, Accounts Receivable and inventory performance both improved. With Days Sales Outstanding of 43 days, compared to 58 days in the prior year, and inventory turnover of 2.6 turns, compared to 1.5 turns in the prior year.

Turning to full-year revenue guidance, we are delighted with the performance of the business during the third fiscal quarter, and we are particularly pleased to have achieved another quarter of record revenue growth with positive cash generation. Since the Impella 2.5 510k clearance in June 2008, we have had ten straight quarters of sequential growth of commercial Impella revenues in the US, despite the lower initial site stocking revenues beginning in Q4 fiscal 2010, from opening fewer sites and going deeper at existing sites.

On the last earnings call, we indicated that we expected total year worldwide Impella revenues to grow at the upper end of the 25% to 30% range, and that our non-Impella total revenues would decline approximately 25%. We now believe Impella revenues will grow faster, between 32% and 35% for the year. Although we expect to see strong year-over-year patient growth in Q4, we are not expecting to see as much strength sequentially as we did in Q3 versus Q2, which was up 26% due in part to a favorable response to data presented at TCT. As for non-Impella revenues, we expect continued cannibalization from Impella 5.0 and LD, and expect non-Impella revenues to decline between 18% and 20% for the year.

Taken together, we are increasing our total year revenue guidance, and we now believe that total year revenues will be in the range of $99 million to $101 million, representing an annual growth rate of 16% to 18%, compared to the $93 million to $97 million range provided previously. Clearly, this was a very strong quarter for Abiomed. Our disciplined management style is reflected in the P&L operating leverage and working capital improvements. We are now in a position of generating cash from operations, having no debt, and with an NOL of approximately $165 million. Lastly, I would like to remind investors that our fiscal year ends March 31st, and we will be providing fiscal year 2012 guidance during our fourth quarter earnings call in May of 2011.

We will now open the call to questions. Operator?

Certainly sir. (Operator Instructions). Your first question comes from the line of Greg Simpson with Wunderlich Securities.

Thanks and good morning everyone. Guys, congratulations. That is a fantastic quarter. I know there's a lot of hard work going into getting to this point. A couple of questions for you. First of all, Mike, on AMI usage, you gave the percentage increase, a huge increase on a year-over-year basis. Can you maybe give us an idea of the overall Impella procedures in the quarter, what the percentage was for AMI?

Sure.

I can back into it, but--

So for the total apps mix on the reported for the whole thing, the mix was comprised, 52% was high-risk PCI, 27% was AMI, and 21% was all of the other patients.

Is it, the sense I get in talking to doctors, there seems to be a real growing awareness of, I guess the abilities of Impella as it relates to AMI. That seems to be showing up in the numbers. Does your sales force sense the same thing at this point?

We do. And it is partly based on our strategy to really get the product as easy it use as possible, to partially train on prophylactic use, and then to again go into the biggest market for hemodynamic support, which is the emergency patient. In order to capture emergency patients, you have to have the ability to have independent usage, which continues to grow every quarter.

Okay. And then if I could kind of tie this in with the reorder rate, which has been very strong but was almost shockingly strong this quarter. That seems to be a commentary on the utilization at the existing centers. Can you maybe comment on that, and give us a little more color on why that was so strong this quarter?

Well, we have adapted and we have learned. So we have adapted our strategy to go deeper. We have improved our products for ease of use in emergency applications, we have enhanced our training programs for users to become independent, and they have all led to positive results and feedback with triple-digit reorder growth.

Okay. Great. And then Bob, one for you. You addressed R&D expense. With the end of Protect II, and obviously you have got the data gathering and the analysis. But if you look out a couple of quarters, I know you have got mini-AMI coming on, but what is kind of the outlook for R&D expense if we look out maybe two or three quarters, should we see R&D expense maybe fall back a little bit, and then we can draw some conclusions with respect to how that might contribute to ultimate profitability?

Yes. We are currently going through our planning process for fiscal year 2012. And I really don't want at this time to sort of prejudge where we are going to end up. I would like to wait until next quarter to give that kind of specificity of the guidance. Clearly, the Protect II spending levels are going to come down after the next couple of quarters, but I think at this point, that is as much as I want to say.

Okay. Fair enough. Alright. Thanks again guys, and congratulations.

And your next question comes from the line of Tim Lee with Piper Jaffray.

Hi. Good morning, and thanks for taking the question. Congratulations on a very strong quarter here. A couple of questions. This seems kind of self-evident, but I need to ask you anyway. Did the early termination of Protect II have any impact on new customer adoption?

So Tim, overall we believe that Protect II will be positive for the company and the data will speak for itself. This will be also the last quarter before the presentation is released in detail with additional patients. And we do expect it to have a steady flow of information released starting in April to Sky in May, and TCT and AHA in November. The end of the year, so the December month, tends to be a bit, a little slower as compared to October. But we really continue to see strong demand, and we also saw strong demand on new boxes, and we actually, we didn't essentially be able to meet our demand for the older consoles as we transitioned.

So I believe that what is most important is when the data comes out, the final data comes out, then we are going to have the information. I think that right now people are most concerned that they just don't have all of the information. And then last on that question is, we can't comment on our revenue for patients in our existing quarter, but we have increased our guidance on higher revenue for the year. So we feel confident again, that the data will speak for itself, and look forward to getting it out in detail with the additional patients.

Got it. Thank you. And then just in terms of the stocking, the new console adds were a little stronger than we were looking for. Is the average stocking for a new center two to three pumps? Is that kind of the right ballpark?

Yes.

And then just one last one for Bob, I want to make sure I heard you correctly, did I hear you say Abiomed is not in a position for sustained profitability?

Sustainable cash flow generation.

Cash flow generation. Okay. Well then, just in terms of the profitability side, give me your non-GAAP profits here this quarter, was this anomaly in terms of the strong revenue and good expense control, or should we think of this as kind of the expectations going forward?

I do not believe it is an anomaly.

Okay. Thank you.

And your next question comes from the line of Sean Lavin with Lazard.

Congratulations on a very nice quarter.

Thanks, Sean.

I wanted to follow up a little bit more on the Protect II data that you put out December 6. First, did you see any pickup in ordering patterns after that date, and then as a follow-up how many of the 29 centers you opened in the quarter happened after that, or maybe you can tell us how many centers you have opened since December 6?

We don't give out that relative detail. But it was a steady stream of demand for new boxes throughout the quarter.

Okay. And any pick-up in just, I guess reorders or utilization after that press release?

Nothing one way or the other. December tends to be slower than October, as already commented

Alright. And on the P&L, just on gross margins, the 80% was pretty well ahead of where we were thinking. Should we think of that as a new baseline going forward, or was there anything special in the quarter that made that a lot better than maybe future quarters?

Yes. Sean, there was nothing unique in the quarter. It is driven by the, as I mentioned, the high level of, higher level of unit volume. So we are spreading our fixed manufacturing costs over more volume, improved efficiencies in manufacturing, which I think should continue. It is the case that we, as Mike mentioned, we have introduced the new AIC console. And depending upon how many of those we place on a go-forward basis, that is about the only headwind that we could potentially face in my view on the gross margin rate.

Great. Perfect. That is all I have. Thank you very much.

Thanks, Sean.

And your next question comes from the line of Josh Jennings with Jefferies & Company.

Hi. Good morning, guys. Thanks for taking the questions, and congratulations on the strong results. I know it has been harped on looking at post press release after the Protect II futility determination, but is there any data you can give us just in terms of high risk PCI specific procedures after that press release, and going forward, is there anything that varied from your internal expectations, our checks with physicians suggest that that data was not going to lead to a slowdown whatsoever, but I just wanted to hear what you guys were seeing?

Josh, a very good question. There is cycles to our business. October is the busy month of Q3, and it is back loaded in Q4. But at this point, we don't have any comment one way or the other. We are confident in the product, the applications, and again, we look forward to getting all of the clinical data out as soon as we can.

And maybe you can just sort of following up on that, just what you guys are hearing from your clinician customer base post-Protect II, in terms of their confidence in the device?Has anything been altered, or is it sort of all engines going forward full steam ahead?And again, our checks indicate that there isn't much change in physicians planned utilization of the device.

So our approach has been to be straightforward on it. The study was stopped for futility. So that part of it is disappointing. That doesn't mean that there isn't clinical data, and value and insight on what has been offered at the high level. We wanted to ensure that the [atherectomy] information got out as soon as possible, which is one of the reasons we broke that out at the interim press release. But otherwise, what you will hear from physicians in many cases is they are not surprised, because they know they have more stability, and that the study actually proves that they do do more. They try more. They are more aggressive. They use more contrast. They do lots of things because they have the Impella, and you can't blind them to the fact that they have the Impella or the balloon pump. And on the overall feedback, what I would say is what they really want to do is they want to see the rest of the data they want to see the real data. That is primarily the feedback and that is what we want to give them as soon as possible.

Great. And just in terms of your strategy of going out and securing new accounts, what level of independent usage does your strategy to increase utilization in your customer base change, or does it not change in 2012 or beyond?

So that is something we monitor, Josh, quarterly. And what we have said for this year is the go deeper strategy is in place. Now that we are going to be transitioning to a new console, and that independent use is increasing, and we are getting more tenure from our sales force, we expect to get more productive. And we really have just hit the halfway mark. We are right about 500 of the 1,000 open heart hospitals, and there are probably another 300 cath lab hospitals that don't have surgery suites.

So we have a long way to go from the installed base, but we also have a long way to go with our existing customers, and we are going to kind of monitor that region by region, zone by zone, as we get better penetration, better traction. But as of now, more than half of all of our sites have done more than five patients, which we believe makes them independent capable. And as we start to go into the AIC, we believe it is even easier and quicker, and it also will help a lot of these sites that plan to transport patients. This system is designed for easier transport, as well.

Great. And then just last one for Bob. I know you just commented briefly on the new console. Can you just let us know your plans on the roll-out for the new console, and how you are going to place it? Are you going to charge your customers, or are you going to swap those out, or place them without any charge? Thanks a lot.

Maybe I will take that one. The current plan is to go out to our new users first, with an option of outright purchase or service contract, and for our experienced users in the installed base, we will have for them an offer that can be upgrade purchase price, a service contract, or something tied to an incentive based on how, their past usage. And so it is going to be a combination, and we plan to treat the installed base different than we are with new users.

And your next question comes from the line of Duane Nash with Wedbush Securities.

Good morning, and thanks for taking the questions. Mike, can you comment on when the Impella RP make reach the US market?

Sothe Impella RP, as you all are aware, the regulatory path is sometimes quicker outside of the US. So it will be in Europe, and it will in Canada first, and likely will have CE Mark at the end of our next fiscal year, or even earlier than that. As far as the United States, we will be aggressive in pursuing the most effective path, and it may include an IDE for some pilot study as well. So we will give more details on that as we move forward.

Great. Thanks. And any comments on the mini-AMI trial? Have any patients been enrolled, and if not, can you comment on when that might start?

Sure. So we have a lot of good news, a lot of new product, a lot of new paper flow, and a lot of new things to discuss with our investors. Our strategy has been to be somewhat conservative, and focus on how much you already have in front of you. But as we get closer, we will give a lot more detail on several things.

But on the mini, we have not enrolled a patient yet. We are aligning with the centers that will start. There is great interest and excitement at the customer base to do this. And again, we will continue to give these enhancements, and these updates as we go. And we are planning to have another Investor Day in June, to catch up with some more of this detailed information and new products.

Great, and one last one for Bob. Gross margins of 80%, is that sustainable for the near future?

Duane, I think it is at or near that number. As I mentioned earlier, depending upon how aggressively we roll out the new console, that could have somewhat of a softening effect. But I think the 80% is not an anomaly in the quarter, and so I think we certainly have moved up from what we have been running at previously.

Great. Well, thanks very much.

Thanks.

Next comes from the line of David Lewis with Morgan Stanley.

Thanks. Hi, good morning, it is Steve Beuchaw here for David.

Hi Steve.

I had one question on utilization. There was a notable step here. I wonder if you could comment on what you perceive to be the balance of the drivers, and perhaps it is the data at TCT, perhaps it is the commercial strategy. Is one more notably important in that step change?

Sure, Steve. So I think at a high level is what we have been harping on, which is training and data. The training is getting easier it use. I have already commented on that extensively. And on the data, it is really everything from USpella, to the publications, to just the hands-on experience that sites are having, and the patients' success stories. The one thing I would add to this that we have never brought up on top of the training and data, is the thing called time.

It takes time to get the training and the data in the area that we want it, and we are going to constantly improve it. And in today's regulatory world and in today's economy, trying to replace a technology that has been around for 40 years, is not as easy as just walking in the door. And that is what we have been doing. We have been taking our plan, being effective and focusing on the patient experience, the customer training, and getting new data for the guidelines. And we are going to stay on that strategy, and continue to execute.

So I will ask the question in a different way. You would agree that the presentation of the data at TCT might have been a point of inflection in that data piece of the utilization story. Is that a fair statement?

I agree. It definitely was a continuation. If you remember, we did first TCT, we had USpella, PCR in May, we had USpella, and then we had a third update of it at this last TCT. And from a perspective of moving forward, we expect to have information at ACC in April, Sky in May, and then expect to have TCT again, followed by AHA in November. And to your point that the increase over the last six quarters, the average here, what we do is we divide the number of patients divided by the number of sites at the start of the quarter. This has been our biggest jump now we are averaging 1.62 per patient per account.

Thanks. That is very helpful. One quick one on the legacy business. As the rate of decline year-over-year gets closer and closer to zero, should we be thinking more about $6 million being the right sort of baseline, or are we still thinking we can get to $5 million over the next year?

Steve, I said on the last call that I think of this as a $5 million per quarter business.

Thanks, guys.

Thanks Steve.

You have a follow-up question from the line of Greg Simpson with Wunderlich.

Yes. Thanks again. Mike, kidding with you a little bit but not really, this is obviously a big step up for the Company. Clean balance sheet, generating cash, and obviously very likely an increasing stock price now. If you look long term, I won't try to pin you to any timeframe, but if you look long term, I know you have a lot on your plate with the Impella platform, but if you look long term, are there other things you want to do with the Company, and then maybe some other things you might want to do, or bring in for the sales force?

Sure. So first, the long-term and short term, is we are focused on creating shareholder value, and building a world-class medical device company. The second component is what we have here is a platform technology, so that we can grow now a platform in applications and revenue in the cath lab, in the EP lab, in the hybrid lab, and in the surgery suites. So we have got such tremendous opportunity in treating a large number, hundreds of thousands of patients in the US alone that need hemodynamic support. So we really want to focus on that. But again, it is the platform, it is the 2.5, the 5.0, the right side, the pediatric.

There is great demand for this product in Japan, and that is also another untapped market. And officially, the cardiovascular societies in Japan have reached out directly to Abiomed, to request that we bring Impella to their country, because they have really a need for heart recovery. They don't have dedicated transplant programs, and they have a high mortality rate from heart attacks and a smoking population. So that is another tremendous opportunity for us.

As far as new product designs and different concepts, we do have a lot of intellectual property, we do have a lot of capability. Everything from valves to [RTET], to implantables, and we will make the best decisions for the investment and the growth of the Company. But we have lots to come, and that will come as we execute on our current plan.

Alright. Thanks very much.

And that concludes the Q&A portion of today's conference. I would like to turn the presentation back over to Mr. Mike Minogue, President, Chairman, and CEO of Abiomed.

Thank you everyone for your time today. If you have any follow-up questions, please let us know, and we will be in touch. Have a great day.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Have a good day.