Merit Medical Systems Inc (MMSI) 2024 Q2 法說會逐字稿

Gentlemen, thank you for standing by. Welcome to the American Merit Systems second-quarter 2024 earnings conference call. (Operator Instructions) Please note that this conference call is being recorded and the recording will be available on the company's website for replay shortly.

先生們，謝謝你們的支持。歡迎參加 American Merit Systems 2024 年第二季財報電話會議。（操作員說明）請注意，本次電話會議正在錄音，錄音很快就會在公司網站上提供重播。

I would now like to turn the call over to Mr. Fred Lampropoulos, Merit Medical Systems' Founder, Chairman, and Chief Executive Officer. Please go ahead, sir.

我現在想將電話轉給 Merit Medical Systems 創辦人、董事長兼執行長 Fred Lampropoulos 先生。請繼續，先生。

Thank you and welcome, everyone. I am joined on today's call by Raul Parra, our Chief Financial Officer and Treasurer; Joe Wright, our President; and Brian Lloyd, our Chief Legal Officer and Corporate Secretary. Brian, would you mind reading us through the Safe Harbor statements, please?

謝謝大家，歡迎大家。我們的財務長兼財務主管 Raul Parra 也參加了今天的電話會議。喬·賴特，我們的總裁；以及我們的首席法務官兼公司秘書 Brian Lloyd。Brian，您介意向我們通讀安全港聲明嗎？

Thanks, Fred.

謝謝，弗雷德。

I would like to remind everyone that this presentation contains forward-looking statements that receive Safe Harbor protection under federal securities laws. Although we believe these forward-looking statements are based upon reasonable assumptions, they are subject to risks and uncertainties. The realization of any of these risks or uncertainties as well as extraordinary events or transactions impacting our company could cause actual results to differ materially from the expectations and projections expressed or implied by our forward-looking statements.

我想提醒大家，本簡報包含前瞻性陳述，這些陳述受到聯邦證券法的安全港保護。儘管我們相信這些前瞻性陳述是基於合理的假設，但它們仍面臨風險和不確定性。任何這些風險或不確定性的實現以及影響我們公司的特殊事件或交易都可能導致實際結果與我們的前瞻性陳述中明示或暗示的預期和預測有重大差異。

In addition, any forward-looking statements represent our views only as of today, August 1, 2024, and should not be relied upon as representing our views as of any other date. We specifically disclaim any obligation to update such statements, except as required by applicable law. Please refer to the sections entitled cautionary statement regarding forward-looking statements in today's press release and presentation for important information regarding such statements.

此外，任何前瞻性陳述僅代表我們截至今天（2024 年 8 月 1 日）的觀點，不應被視為代表我們在任何其他日期的觀點。我們特別聲明不承擔更新此類聲明的義務，除非適用法律要求。請參閱今天的新聞稿和簡報中標題為「有關前瞻性陳述的警告聲明」的部分，以了解有關此類陳述的重要資訊。

For a discussion of factors that could cause actual results to differ from these forward-looking statements, please also refer to our most recent filings with the SEC, which are available on our website. Our financial statements are prepared in accordance with accounting principles, which are generally accepted in the United States. However, we believe certain non-GAAP financial measures provide investors with useful information regarding the underlying business trends and performance of our ongoing operations and can be useful for period-over-period comparisons of such operations.

有關可能導致實際結果與這些前瞻性陳述不同的因素的討論，請另參閱我們最近向 SEC 提交的文件（可在我們的網站上取得）。我們的財務報表是根據美國普遍接受的會計原則編製的。然而，我們相信某些非公認會計原則財務指標為投資者提供了有關我們正在進行的業務的基本業務趨勢和業績的有用信息，並且可用於此類業務的同期比較。

This presentation also contains certain non-GAAP financial measures. A reconciliation of non-GAAP financial measures to the most directly comparable US GAAP measures is included in today's press release and presentation furnished to the SEC under Form 8-K. Please refer to the sections of our press release and presentation entitled non-GAAP financial measures for important information regarding non-GAAP financial measures discussed on this call.

本簡報也包含某些非公認會計準則財務指標。今天根據 8-K 表向 SEC 提供的新聞稿和簡報中包含了非 GAAP 財務指標與最直接可比較的美國 GAAP 指標的調整表。請參閱我們的新聞稿和簡報中標題為非公認會計原則財務指標的部分，以了解有關本次電話會議討論的非公認會計原則財務指標的重要資訊。

Readers should consider non-GAAP financial measures in addition to, not as a substitute for financial reporting measures prepared in accordance with GAAP. Please note that these calculations may not be comparable with similarly titled measures of other companies. Both today's press release and our presentation are available on the Investors page of our website.

讀者應考慮非公認會計原則財務措施，而不是作為根據公認會計原則編制的財務報告措施的替代品。請注意，這些計算可能無法與其他公司的類似名稱的衡量標準進行比較。今天的新聞稿和我們的簡報都可以在我們網站的投資者頁面上找到。

I will now turn the call back to Fred.

我現在將把電話轉回給弗雷德。

Thanks, Brian. Appreciate it very much. Let me start with a brief agenda of what we will cover during our call and prepared remarks today. I will start with an overview of our financial results and key operating progress areas during the second quarter. After my opening remarks, Joe will provide a summary of our revenue results before turning the call over to Raul, who will provide a more in-depth review of our quarterly financial results and our financial guidance for 2024, which we updated in today's press release. Then we will open the call for your questions.

謝謝，布萊恩。非常欣賞。讓我先簡單介紹一下我們今天的電話會議和準備好的發言中將討論的內容。我將首先概述第二季度的財務表現和關鍵營運進度領域。在我的開場白之後，Joe 將提供我們的收入結果摘要，然後將電話轉交給Raul，Raul 將對我們的季度財務業績和2024 年財務指引進行更深入的審查，我們在今天的新聞稿中更新了這些指引。然後我們將打開電話詢問您的問題。

Our second-quarter results exceeded our expectations. We reported the total revenue of $338 million in the second quarter, up 5.6% year over year on a GAAP basis and up 6.6% year over year on a constant currency basis. The constant currency revenue growth we delivered in the second quarter was stronger than the high end of the range of growth expectations that we outlined on our Q1 earnings call. Specifically, we expected constant currency revenue growth for the second quarter in the range of 4.7% to 5.8% year over year.

我們第二季的業績超出了我們的預期。我們報告第二季總營收為 3.38 億美元，以 GAAP 計算年增 5.6%，以固定匯率計算年增 6.6%。我們在第二季度實現的恆定貨幣收入成長強於我們在第一季財報電話會議上概述的成長預期範圍的上限。具體來說，我們預計第二季貨幣收入將年增在 4.7% 至 5.8% 範圍內。

Importantly, the better-than-expected constant currency revenue growth in the second quarter was primarily driven by strong organic growth and to a lesser extent, contributions from acquired products, which modestly exceeded the high end of our growth expectations as well.

重要的是，第二季好於預期的恆定貨幣收入成長主要是由強勁的有機成長所推動的，在較小程度上是由收購產品的貢獻推動的，這也略微超出了我們成長預期的上限。

With respect to our profitability performance in the second quarter, we leveraged the solid revenue results to deliver non-GAAP gross profit and operating profit growth of 6% and 11% respectively, which resulted in year-over-year margin expansion by approximately 15 basis points and 92 basis points, respectively. And we delivered 17% growth in our non-GAAP earnings per share, which exceeded the high end of our expectations as well.

就第二季的獲利表現而言，我們利用穩健的收入業績，實現非公認會計準則毛利潤和營業利潤分別增長 6% 和 11%，導致利潤率同比增長約 15 個基點分別為92 個基點和92 個基點。我們的非公認會計原則每股收益成長了 17%，這也超出了我們預期的上限。

Perhaps most notably, we generated nearly $58 million of free cash flow in the quarter, a record for Merit and have generated more than $82 million of free cash flow over the first half of 2024, representing a more than fivefold increase year over year. We believe our second-quarter results reflect continued strong momentum in the business over the first half of 2024, and we are confident in our team's ability to deliver the updated financial guidance that Raul will review later on the call.

也許最值得注意的是，我們在本季度產生了近5800 萬美元的自由現金流，創下了Merit 的記錄，並且在2024 年上半年產生了超過8200 萬美元的自由現金流，同比增長了五倍多。我們相信，我們第二季度的業績反映了 2024 年上半年業務持續強勁的勢頭，我們對我們的團隊有能力提供最新的財務指引充滿信心，勞爾將在稍後的電話會議上審查這些指引。

While we are proud of the results achieved over the first half of the year, we are not resting on our laurels. We are focused on delivering continued strong execution, stable constant currency growth, improving profitability, and solid free cash flow in 2024, as well as continued progress in our continued growth initiative program related financial targets for the three-year period ending December 31, 2026.

雖然我們對上半年所取得的成績感到自豪，但我們並沒有滿足於現狀。我們的重點是在2024 年實現持續強勁的執行力、穩定的貨幣持續增長、提高盈利能力和穩定的自由現金流，以及在截至2026 年12 月31 日的三年期間持續推進與持續增長計劃相關的財務目標。

I would now like to share a brief update on several areas of operational progress in recent months. First, with respect to new product introductions, we announced multiple regulatory clearances and commercial introductions in the second quarter, including in May, we announced FDA 510(k) clearance for our Siege vascular plug and the commercial launch of our Bearing nsPVA Express prefilled syringe in the United States and Australia.

我現在想分享一下近幾個月來幾個領域的業務進展的簡要更新。首先，在新產品推出方面，我們在第二季宣布了多項監管許可和商業推出，其中包括5 月份，我們宣布Siege 血管塞獲得FDA 510(k) 許可，以及Bearing nsPVA Express 預充式註射器的商業推出在美國和澳洲。

These addition to Merit's embolics portfolio comprises complement a comprehensive offering of microsphere, particle, and gelatin foam products supported by a range of microcatheters, guidewires, and other enabling devices. We also announced the US commercial release of the basixSKY inflation device in May. basixSKY is the latest addition to Merit's comprehensive inflation device portfolio, which includes both digital and analog devices. The basixSKY is available as a stand-alone solution and in kits with Merit angioplasty packs configured to offer complementary AccessPLUS, Honor, and PhD hemostasis valves.

Merit 栓塞產品組合中的這些產品補充了由一系列微導管、導絲和其他支援設備支援的全面的微球、顆粒和明膠泡棉產品。我們也宣佈在 5 月在美國商業發布 basixSKY 充氣裝置。 basixSKY 是 Merit 綜合充氣設備產品組合的最新成員，其中包括數位和類比設備。basixSKY 可作為獨立解決方案使用，也可與 Merit 血管成形術套件一起使用，配置為提供互補的 AccessPLUS、Honor 和 Ph.D 止血閥。

Second, with respect to our progress in the area of clinical validation in recent months, we are pleased with the progress achieved in recent months for our WRAPSODY Arteriovenous Access Efficacy or WAVE pivotal study. We completed the clinical data report and filed the final module with the FDA for premarket approval or PMA by the end of the second quarter of 2024, as expected.

其次，關於近幾個月我們在臨床驗證領域的進展，我們對近幾個月我們的 WRAPSODY 動靜脈通路功效或 WAVE 關鍵研究取得的進展感到高興。我們完成了臨床數據報告，並按預期在 2024 年第二季末向 FDA 提交了最終模組以獲得上市前批准或 PMA。

We look forward to engaging with the FDA as I review our PMA application for this innovative technology. The WRAPSODY cell-impermeable endoprosthesis is built to combat the challenges dialysis patients can often experience due to stenosis and occlusions in the dialysis outflow circuits. We believe this technology can extend long-term vessel patency rates and reduce the complications associated with existing treatment options on the market today, including the need for repeated interventions, frequent trips to the hospital, and inadequate dialysis treatments.

在我審查這項創新技術的 PMA 申請時，我們期待與 FDA 合作。WRAPSODY 細胞不可滲透的內置假體旨在應對透析患者因透析流出迴路狹窄和閉塞而經常遇到的挑戰。我們相信這項技術可以提高長期血管通暢率，並減少與當今市場上現有治療方案相關的併發症，包括需要重複幹預、頻繁去醫院以及透析治療不足。

Importantly, we are excited to announce the clinical results from our WRAPSODY studies. We'll be featured in scientific sessions at key medical meetings this fall including at the Cardiovascular and Interventional Radiology Society of Europe or CIRSE annual congress on September 14 in Lisbon, Portugal, and at the Controversies in Dialysis Access or CiDA meeting in Washington DC on October 5.

重要的是，我們很高興地宣布 WRAPSODY 研究的臨床結果。我們將在今年秋季的重要醫學會議的科學會議上亮相，包括9 月14 日在葡萄牙里斯本舉行的歐洲心血管和介入放射學會或CIRSE 年度大會，以及9 月14 日在華盛頓特區舉行的透析訪問爭議或CiDA 會議。

Third, we announced important enhancements to both our executive leadership team and our Board of Directors. In May, we announced the appointment of Joe Wright as President. Joe now oversees Merit's global commercial marketing and operations teams with more than 19 years of experience with Merit, serving a variety of leadership roles and in multiple geographic regions. I believe he is the ideal leader for this important position.

第三，我們宣布了對執行領導團隊和董事會的重要改進。五月，我們宣布任命喬·賴特 (Joe Wright) 為總裁。Joe 現在負責管理 Merit 的全球商業行銷和營運團隊，擁有超過 19 年的 Merit 經驗，在多個地理區域擔任過各種領導職務。我相信他是擔任這一重要職位的理想領導者。

Joe has been central to executing our strategic plan and positioning the company for continued success, including spearheading our commercialization efforts and overseeing significant international expansion, engineering the advanced capabilities of our renal therapies group, including the integration of the business and assets we acquired from AngioDynamics in 2023 and directing the development of our commercial excellence initiatives globally. I look forward to continuing to work closely with Joe going forward.

Joe 在執行我們的策略規劃和定位公司以取得持續成功方面發揮了核心作用，包括帶領我們的商業化工作和監督重大的國際擴張，設計我們腎臟治療集團的先進能力，包括整合我們從AngioDynamics 收購的業務和資產2023 年，指導我們全球商業卓越計劃的發展。我期待著繼續與喬密切合作。

We also enhanced our Board of Directors with a selection of Sylvia M. Perez as a new director at Merit's Annual Meeting of Shareholders on May 15, 2024. Sylvia is President of the Commercial Branding and Transportation division at 3M Company. Her expertise and proven track record of leadership success will provide valuable industry and organizational perspective to both the Board and our management team as we pursue our continued growth initiatives program.

我們也在 2024 年 5 月 15 日舉行的 Merit 年度股東大會上選舉 Sylvia M. Perez 為新董事，從而增強了我們的董事會實力。Sylvia 是 3M 公司商業品牌和運輸部門的總裁。在我們追求持續成長計畫的過程中，她的專業知識和成功的領導記錄將為董事會和我們的管理團隊提供寶貴的行業和組織視角。

Now before turning the call over to Joe, I would just like to take a few minutes to discuss the strategic acquisition we announced on July 1. We announced the acquisition of assets for EndoGastric Solutions, Incorporated for a total cash consideration of approximately $105 million and the assumption of certain liabilities. We believe this acquisition represents multiple strategic and financial positives. And importantly, this acquisition is consistent with and will not distract us from our continued growth initiatives program.

現在，在將電話轉給 Joe 之前，我想花幾分鐘時間討論我們 7 月 1 日宣布的策略性收購。我們宣布收購 EndoGastric Solutions, Incorporated 的資產，總現金對價約 1.05 億美元，並承擔某些負債。我們相信此次收購代表了多重策略和財務正面因素。重要的是，這次收購符合併且不會分散我們對持續成長計畫的注意力。

Strategically, this acquisition enhances our endoscopy product portfolio in existing clinical specialties while expanding our global footprint in the gastrointestinal market. This acquisition adds an innovative solution for patients suffering from chronic gastroesophageal reflux disease or GERD, which is a significant annual addressable market opportunity estimated at $2 billion annually.

從策略上講，此次收購增強了我們在現有臨床專業領域的內視鏡產品組合，同時擴大了我們在胃腸道市場的全球足跡。此次收購為患有慢性胃食道逆流或 GERD 的患者提供了一個創新的解決方案，這是一個重要的年度可尋址市場機會，估計每年可達 20 億美元。

GERD is a digestive disorder that occurs when the lower esophageal sphincter doesn't tighten correctly, allow an acid from the stomach to into the esophagus. When this occurs chronically, it can result in serious health conditions such as esophageal damage and cancer. The EsophyX Z+ treat GERD by restoring the body's reflux barrier. By restoring the body's reflux period, the EsophyX Z+ device is designed to provide relief of GERD symptoms and reduce acid reflux that can cause long-term complications and risks.

胃食道逆流症是一種消化系統疾病，當食道下端括約肌無法正確收緊，導致胃酸進入食道時就會發生。當這種情況長期發生時，可能會導致嚴重的健康問題，例如食道損傷和癌症。EsophyX Z+ 透過恢復身體的逆流屏障來治療胃食道逆流症。透過恢復身體的逆流期，EsophyX Z+ 裝置旨在緩解 GERD 症狀並減少可能導致長期併發症和風險的胃酸倒流。

Now this is accomplished under endoscopic visualization during a minimally invasive procedure called transoral incisionless fundoplication or TIF 2.0. Recently, the American Gastroenterology Association released a clinical practice update on the evaluation and management of GERD and listed TIF 2.0 as an effective endoscopic option in carefully selected patients.

現在，這是透過稱為經口無切口胃底折疊術或 TIF 2.0 的微創手術在內視鏡可視化下完成的。最近，美國胃腸病學協會發布了有關 GERD 評估和管理的臨床實踐更新，並將 TIF 2.0 列為精心挑選的患者的有效內視鏡選擇。

We estimate that there are more than 5 million patients in the US alone, currently using in pharma treatment options for refractory GERD that represent potential candidates for TIF 2.0 with EsophyX Z+ procedure each year. The EsophyX Z+ device is supported by economically favorable reimbursement, level one clinical evidence, and strong advocacy for medical societies. We also believe this device is highly complementary with our existing portfolio and customer base while expanding access into interventional gastroenterologists and surgeons in the endoscopy unit and in the operating room.

我們估計，光在美國就有超過 500 萬名患者目前正在使用難治性 GERD 的藥物治療方案，這些方案代表了每年採用 EsophyX Z+ 手術進行 TIF 2.0 的潛在候選人。EsophyX Z+ 設備得到經濟實惠的報銷、一級臨床證據和醫學會的大力倡導的支持。我們也相信，該設備與我們現有的產品組合和客戶群高度互補，同時擴大了內視鏡科和手術室的介入性胃腸病學家和外科醫生的使用範圍。

In addition to the strong strategic rationale, we believe the financial profile of this acquisition is extremely compelling and Raul will give you some additional color on the favorable financial profile of this acquisition later on the call. In the interim, I will share with you that we expect sales contribution in the range of $13 million to $15 million over the second half of 2024, and we expect this acquisition to be accretive to our multi-year total program -- total company growth profile on an annualized basis going forward.

除了強有力的策略理由外，我們相信此次收購的財務狀況非常引人注目，勞爾將在稍後的電話會議上為您提供有關此次收購的有利財務狀況的更多資訊。在此期間，我將與您分享，我們預計 2024 年下半年的銷售貢獻將在 1300 萬美元至 1500 萬美元之間，我們預計此次收購將促進我們的多年總體計劃——公司總體增長未來的年化概況。

Now with that, let me turn the call over to Joe, who will review second quarter revenue performance. Joe?

現在，讓我把電話轉給喬，他將回顧第二季的營收表現。喬？

Thank you, Fred.

謝謝你，弗雷德。

I'll provide a detailed review of our revenue results in the second quarter, beginning with the sales performance in each of our primary reportable product categories. Note, unless otherwise stated, all growth rates are approximated and presented on both a year-over-year and constant currency basis. We have included reconciliations from our GAAP reported results to the related non-GAAP item in our earnings release and presentation available on our website.

我將對第二季的收入結果進行詳細審查，首先是我們每個主要可報告產品類別的銷售業績。請注意，除非另有說明，所有成長率均為近似值，並以同比和固定貨幣計算。我們已將 GAAP 報告結果與相關非 GAAP 項目的調整表納入我們網站上的收益發布和簡報中。

Second-quarter total revenue growth was driven by 6% growth in our cardiovascular segment and 16% growth in our endoscopy segment. Our cardiovascular segment was the primary driver of the better-than-expected total revenue results versus the high end of constant currency growth expectations again this quarter. However, our endoscopy segment sales did exceed the high end of our expectations as well in Q2.

第二季總收入成長得益於心血管業務部門 6% 的成長和內視鏡業務部門 16% 的成長。我們的心血管部門是本季總收入結果優於預期的主要推動力，而貨幣恆定成長預期再次達到了上限。然而，我們的內視鏡部門銷售額在第二季也確實超出了我們預期的上限。

Sales of our peripheral intervention or PI products increased 11% representing nearly 74% of total cardiovascular segment growth in the period. Excluding sales of acquired products, PI sales increased 7.6% on an organic constant currency basis. Organic growth in the PI product category was driven by sales of our Access products and our delivery systems increased 22% and sales of our radar localization products increased 9% and together represented nearly three-quarters of our total PI organic sales growth in Q2.

我們的周邊介入或 PI 產品的銷售額成長了 11%，占同期心血管細分市場總成長的近 74%。不計入收購產品的銷售額，以固定匯率有機計算，PI 銷售額成長了 7.6%。PI 產品類別的有機成長是由我們的 Access 產品和交付系統的銷售成長 22% 以及雷達定位產品的銷售成長 9% 推動的，合計佔第二季度 PI 有機銷售成長總額的近四分之三。

Sales of our custom procedural solutions or CPS products increased 3%, which was notably better than the low-single-digit decline we expected in Q2. This performance was fueled by strong growth in sales of kit products, which more than offset the expected year-over-year declines in sales of trays resulting from our ongoing SKU rationalization efforts discussed on prior call.

我們的定製程序解決方案或 CPS 產品的銷售額增長了 3%，這明顯好於我們在第二季度預期的低個位數下降。這一業績得益於套件產品銷售的強勁增長，這遠遠抵消了我們在之前的電話會議上討論的持續 SKU 合理化工作導致的托盤銷售預期同比下降。

Cardiac intervention product sales increased to 1.5%, slightly above the high end of our growth expectations driven primarily by strong sales of EP, CRM products, and to a lesser extent, growth in sales of fluid management and intervention products.

心臟介入產品銷售額成長至 1.5%，略高於我們成長預期的上限，這主要是由於 EP、CRM 產品的強勁銷售以及液體管理和介入產品銷售的成長（較小程度上）所推動的。

Sales of our OEM products increased 5% year over year in Q2, while sales to OEM customers increased in the mid-teens on a sequential basis. Sales of our OEM products were the only area of our cardio business that came in softer than our growth expectations heading into the quarter. We continue to believe the softer-than-expected sales trends of our OEM products are a result of order timing and fluctuations in demand as our customers work through efforts to optimize inventory levels.

第二季我們的 OEM 產品銷售額較去年同期成長 5%，而 OEM 客戶的銷售額則是較上季成長了 15%。OEM 產品的銷售是我們有氧運動業務中唯一一個在本季成長低於預期的領域。我們仍然認為，我們的 OEM 產品的銷售趨勢低於預期，是由於訂單時間和客戶努力優化庫存水準而導致需求波動的結果。

Demand trends from customers in both the US and OUS regions improved from Q1 as expected. We saw solid growth in product sales to OEM customers outside the US, while demand from US customers drove product sales growth of just 3% year over year in Q2. Importantly, we continue to expect low-double-digit growth in OEM sales for the full year 2024.

美國和海外地區客戶的需求趨勢較第一季有所改善，符合預期。我們看到美國以外 OEM 客戶的產品銷售穩定成長，而美國客戶的需求推動第二季產品銷售年增 3%。重要的是，我們繼續預期 2024 年全年 OEM 銷售額將出現低兩位數成長。

Lastly, sales in our endoscopy segment increased 16%, which exceeded the high end of our growth expectations. We continued to see a normalization of growth trends in this business as expected, and our updated 2024 guidance now assume low-double-digit organic growth in our endoscopy business this year.

最後，我們的內視鏡細分市場的銷售額成長了 16%，超出了我們成長預期的上限。我們繼續看到該業務的成長趨勢正常化，正如預期的那樣，我們更新的 2024 年指引現在假設今年內視鏡業務將實現低兩位數的有機成長。

Turning to a brief summary of our sales performance on a geographic basis, our second-quarter sales in the US increased 8.5% on a constant currency basis and 6% on an organic constant currency base. Similar to what we experienced in Q1, sales to US customers came in roughly a point softer than what our guidance had assumed driven, by the softer-than-expected OEM sales, as previously mentioned. We continue to expect to deliver approximately 6% organic growth in the US at the midpoint of our 2024 guidance range.

簡要總結我們按地理劃分的銷售業績，我們第二季度在美國的銷售額按固定匯率計算增長了 8.5%，按有機固定貨幣計算增長了 6%。與我們在第一季的經驗類似，如前所述，由於 OEM 銷售低於預期，對美國客戶的銷售比我們預期的預期要軟一些。我們繼續預計美國將在 2024 年指導範圍的中點實現約 6% 的有機成長。

International sales increased 4% year over year and 3.8% on an organic constant currency basis, exceeding the high end of our growth expectations by more than 470 basis points in the quarter. The stronger-than-expected organic constant currency growth to customers outside the US was driven primarily by 1% growth in APAC compared to our guidance range, which had assumed a decline in the range of 10% to 11% in Q2.

國際銷售額年增 4%，以有機固定匯率計算成長 3.8%，超出我們本季成長預期的上限 470 個基點以上。美國以外客戶的有機固定貨幣成長強於預期，主要是由於亞太地區與我們的指導範圍相比增加了 1%，我們的指導範圍假設第二季下降 10% 至 11%。

With respect to China specifically, sales decreased 5% year over year, better than the low 20% decline our guidance had assumed. We continue to see quarter to quarter variability in growth trends related to volume-based purchasing tenders as expected.

具體就中國而言，銷售額年減 5%，優於我們指導假設的 20% 的低降幅。正如預期的那樣，我們繼續看到與基於數量的採購招標相關的成長趨勢出現季度變化。

By way of reminder, while we are not providing country-specific growth assumptions in our guidance messaging, the midpoint of our 2024 constant currency growth guidance range now assumes our total international sales will increase 4.3% year over year, driven by 7% to 8% growth in EMEA and 11% to 12% growth in the rest of world region, partially offset by a 0% growth in the APAC region versus the 4% decline assumed in our prior guidance range. The lower headwind from APAC assumed in our updated guidance is driven by better-than-expected results in China over the first half of 2024.

提醒一下，雖然我們沒有在指導資訊中提供特定國家/地區的成長假設，但我們的2024 年固定匯率成長指導範圍的中點現在假設我們的國際總銷售額將同比增長4.3%，增幅為7%至8%歐洲、中東和非洲地區的成長率為11% 至12%，世界其他地區的成長率為11% 至12%，但部分被亞太地區的0% 成長率所抵消，而我們先前的指導範圍假設為4% 的下降。我們在更新的指引中假設來自亞太地區的阻力較小，這是由於 2024 年上半年中國的表現優於預期。

Now regarding our China business in 2024, our guidance continues to assume that we will be able to increase sales of units on a year-over-year basis but we expect total revenue to decline due to continued pricing headwinds related to volume-based purchasing.

現在，關於 2024 年我們的中國業務，我們的指導仍然假設我們將能夠同比增加銷量，但由於與基於數量的採購相關的持續定價阻力，我們預計總收入將下降。

With that let me turn the call over to Raul, who will take you through a detailed review of our second quarter financial results, balance sheet, and financial condition at June 30.

接下來，我將把電話轉給勞爾，他將帶您詳細回顧我們 6 月 30 日的第二季財務表現、資產負債表和財務狀況。

Thank you, Joe. Beginning with a review of our P&L performance. For the avoidance of doubt, unless otherwise noted, my commentary will focus on the company's non-GAAP results during the second quarter of fiscal year 2024. We have included reconciliations from our GAAP-reported results to the related non-GAAP items in our press release and presentation available on our website.

謝謝你，喬。首先回顧我們的損益表現。為避免疑義，除非另有說明，我的評論將重點放在該公司 2024 財年第二季的非 GAAP 業績。我們已在我們網站上提供的新聞稿和簡報中納入了 GAAP 報告結果與相關非 GAAP 項目的調整表。

Gross profit increased approximately 6% year over year in the second quarter. Our gross margin was 51.5%, up 15 basis points year over year. The increase in gross margin year over year was driven by pricing uplift, favorable product and geography revenue mix and improvements in freight and distribution costs, offset partially by manufacturing variances compared to the prior year period.

第二季毛利年增約6%。我們的毛利率為51.5%，較去年成長15個基點。毛利率年增是由於定價上漲、有利的產品和地理收入組合以及貨運和分銷成本的改善所推動的，但與去年同期相比，製造差異部分抵消了毛利率的成長。

Operating expenses increased 3% from the second quarter of 2023. The year-over-year increase in operating expenses was driven by a 2% increase in SG&A expense and a 7% increase in R&D expense compared to the prior year period.

營運費用較 2023 年第二季成長 3%。與去年同期相比，營業費用年增的原因是銷售、管理及行政費用 (SG&A) 費用增加 2%，研發費用增加 7%。

Total operating income in the second quarter increased $6.5 million or 11% from the second quarter of 2023 to $67.8 million. Our operating margin was 20.1% compared to 19.1% in the prior year period. The 92 basis point increase in operating margin was driven by a 15 basis point increase in our non-GAAP gross margin and by a 76 basis point decrease in our non-GAAP OpEx margin compared to the prior year period.

第二季總營業收入較 2023 年第二季增加 650 萬美元，成長 11%，達到 6,780 萬美元。我們的營業利益率為 20.1%，而去年同期為 19.1%。與去年同期相比，我們的非 GAAP 毛利率成長了 15 個基點，而我們的非 GAAP 營運支出利潤率下降了 76 個基點，推動了營業利潤率成長 92 個基點。

Second-quarter other expense net was a benefit of $1.4 million compared to expense of $3.4 million last year. The change in other expense net was driven by an increase in interest income associated with our higher cash balances, partially offset by an increase in net interest expense associated with increased borrowings.

第二季其他費用淨額為 140 萬美元，而去年的費用為 340 萬美元。其他費用淨額的變動是由於現金餘額增加導致的利息收入增加所致，但部分被借款增加相關的淨利息費用增加所抵銷。

Second-quarter net income was $53.8 million or $0.92 per share compared to $45.9 million or $0.78 per share in the prior-year period. We are pleased with our profitability performance in the second quarter, where we leveraged stronger-than-expected revenue results to drive both expansion in operating margins and non-GAAP diluted earnings per share that exceeded the high end of our expectations.

第二季淨利為 5,380 萬美元，即每股 0.92 美元，而去年同期淨利為 4,590 萬美元，即每股 0.78 美元。我們對第二季的獲利表現感到滿意，我們利用強於預期的收入結果來推動營業利潤率和非公認會計準則稀釋每股收益的擴張，超出了我們預期的上限。

Turning to a review of our balance sheet and financial condition, as of June 30, 2024, we had cash and cash equivalents of $636.7 million, total debt obligations of $822.5 million and available borrowing capacity of approximately $680 million compared to cash and cash equivalents of $587 million, total debt obligations of $846.6 million, and available borrowing capacity of approximately $626 million as of December 31, 2023.

回顧我們的資產負債表和財務狀況，截至2024 年6 月30 日，我們的現金和現金等價物為6.367 億美元，債務總額為8.225 億美元，可用借款能力約為6.8 億美元，而現金和現金等價物為截至 2023 年 12 月 31 日，債務總額為 5.87 億美元，債務總額為 8.466 億美元，可用借款能力約為 6.26 億美元。

Our net leverage ratio as of June 30, was 2.4 times on an adjusted basis. We generated $57.9 million of free cash flow in the second quarter compared to $11.5 million in the prior year period. The year-over-year improvement in free cash flow generation was primarily a result of significant improvements in cash used in working capital compared to the prior year period.

截至 6 月 30 日，我們的淨槓桿率為調整後的 2.4 倍。第二季我們產生了 5,790 萬美元的自由現金流，而去年同期為 1,150 萬美元。自由現金流產生的同比改善主要是由於與去年同期相比，營運資本所使用的現金顯著改善。

We have generated more than $82 million of free cash flow over the first half of 2024. We expect for strong free cash flow generation in 2024 and continue to believe our CGI program will generate more than $400 million free of free cash flow in the three-year period ending December 31, 2026. For reference, we have included a table in our earnings press release, which details each of our updated formal financial guidance items and how those ranges compared to prior ranges as of July 1, 2024, when we updated our guidance to reflect the projected impact of our acquisition of the assets of EndoGastric Solutions.

2024 年上半年，我們產生了超過 8,200 萬美元的自由現金流。我們預計 2024 年將產生強勁的自由現金流，並繼續相信我們的 CGI 計劃將在截至 2026 年 12 月 31 日的三年期間產生超過 4 億美元的自由現金流。作為參考，我們在收益新聞稿中包含了一個表格，其中詳細介紹了我們更新的每項正式財務指導項目，以及這些範圍與截至2024 年7 月1 日之前的範圍相比如何，當時我們更新了我們的指導，以反映我們收購了 EndoGastric Solutions 的資產。

Our updated guidance ranges now assumes the following: GAAP net revenue growth of 6% to 7% year over year, net revenue growth of approximately 5% to 6% in our cardiovascular segment, and net revenue growth of approximately 45% to 52% in our endoscopy segment, and a headwind from changes in foreign currency exchange rates of approximately $9.1 million or approximately 70 basis points to growth year over year. Excluding the impact of changes in foreign currency exchange rates, we expect total net revenue growth on a constant currency basis in the range of 6.9% to 7.7% in 2024.

我們更新後的指導範圍現在假設如下： GAAP 淨收入年增 6% 至 7%，心血管業務淨收入增長約 5% 至 6%，心血管業務淨收入增長約 45% 至 52%我們的內窺鏡業務，以及約910 萬美元或約70 個基點的外匯匯率變化帶來的逆風導致同比增長。剔除外幣匯率變動的影響，我們預期2024年以固定匯率計算的總淨收入成長在6.9%至7.7%之間。

Finally, our total net revenue guidance for fiscal year 2024 now assumes inorganic revenue contributions from the acquisitions announced on June 8, 2023, and July 1, 2024, in the range of $24.6 million to $26.6 million in the aggregate. For avoidance of doubt, this aggregate range consists of approximately $11.6 million of inorganic revenue related to our acquisitions of assets from AngioDynamics in Q1 and Q2 plus the contributions from our acquisition of assets from EndoGastric Solutions in Q3 and Q4. Excluding inorganic revenue, our updated guidance reflects total net revenue growth on a constant currency organic basis in the range of approximately 4.9% to 5.6% year over year.

最後，我們對 2024 財年的總淨收入指引目前假設 2023 年 6 月 8 日和 2024 年 7 月 1 日宣布的收購帶來的無機收入貢獻總計在 2,460 萬美元至 2,660 萬美元之間。為避免疑義，這一總範圍包括與我們在第一季和第二季從AngioDynamics 收購資產相關的約1,160 萬美元的無機收入，加上我們在第三季和第四季從EndoGastric Solutions 收購資產的貢獻。不包括無機收入，我們更新的指導反映了以固定匯率有機計算的總淨收入年增約 4.9% 至 5.6%。

With respect to our updated profitability guidance for 2024, we now expect non-GAAP diluted earnings per share in the range $3.27 to $3.35, representing an increase of 15% to 17% year over year. Note this range includes the expected dilution related to our acquisition of assets from EndoGastric Solutions, which as disclosed on July 1, is expected to be in the range of $0.04 to $0.06.

關於我們更新的 2024 年獲利指引，我們目前預計非 GAAP 攤薄每股收益在 3.27 美元至 3.35 美元之間，年增 15% 至 17%。請注意，此範圍包括與我們從 EndoGastric Solutions 收購資產相關的預期稀釋，正如 7 月 1 日所揭露的那樣，預計稀釋範圍為 0.04 美元至 0.06 美元。

As Fred discussed earlier, we believe this acquisition offers a very attractive financial profile. While we believe this acquisition will be modestly dilutive to our full-year 2024 non-GAAP profitability, given the partial year contribution and the impact of approximately $2.7 million of lower interest income on cash balances used for the total purchase consideration, we expect the acquisition to be accretive to our non-GAAP gross and operating margins, non-GAAP net income, and non-GAAP EPS in the first full year post-closing.

正如弗雷德之前所討論的，我們相信這項收購提供了非常有吸引力的財務狀況。雖然我們認為此次收購將適度稀釋我們 2024 年全年非 GAAP 盈利能力，但考慮到部分年度貢獻以及用於總收購對價的現金餘額約 270 萬美元利息收入減少的影響，我們預計此次收購在在交割後的第一個完整年度中，我們的非GAAP 毛利率和營業利潤率、非GAAP 淨利潤和非GAAP 每股盈餘將增加。

For modeling purposes, our updated fiscal year 2024 financial guidance now assumes non-GAAP operating margins in the range of approximately 18.4% to 18.7%, up 120 to 150 basis points year over year; non-GAAP interest and other expense net of approximately $1.5 million compared to $10.6 million last year; Non-GAAP tax rate of approximately 21.5%; diluted shares outstanding of approximately $58.8 million; and we now expect CapEx in the range of $55 million to $60 million; and free cash flow of at least $130 million compared to at least $115 million previously.

出於建模目的，我們更新的 2024 財年財務指引現在假設非 GAAP 營業利潤率約為 18.4% 至 18.7%，年增 120 至 150 個基點；非 GAAP 利息和其他費用淨額約為 150 萬美元，而去年為 1,060 萬美元；非公認會計原則稅率約為21.5%；稀釋後的已發行股票約為 5,880 萬美元；我們現在預計資本支出在 5500 萬美元至 6000 萬美元之間；自由現金流至少 1.3 億美元，而之前至少為 1.15 億美元。

We will also like to provide additional transparency related to our growth and profitability expectations for the third quarter of 2024. Specifically, we expect our total revenue to increase in the range of approximately 5.7% to 7.1% year over year on a GAAP basis and approximately 6.4% to 7.8% year over year on a constant currency basis. The midpoint of our third-quarter constant currency sales growth expectations assumes approximately 9% growth year over year in the US and 5% growth year over year in international markets.

我們還希望提供與 2024 年第三季成長和獲利預期相關的額外透明度。具體來說，我們預期我們的總收入以公認會計原則（GAAP）計算將年增約5.7%至7.1%，以固定匯率計算年增約6.4%至7.8%。我們第三季以固定匯率計算的銷售成長預期的中位數假設美國年增約 9%，國際市場年增 5%。

Note, the midpoint of our third-quarter constant currency sales growth expectations also includes approximately $6.4 million of inorganic revenue. Excluding these inorganic contributions, our third-quarter total revenue is expected to increase approximately 5% year over year on an organic constant currency basis.

請注意，我們第三季以固定匯率計算的銷售成長預期的中點還包括約 640 萬美元的無機收入。排除這些無機貢獻，我們第三季的總營收預計在有機固定貨幣基礎上年增約 5%。

With respect to our profitability expectations for the third quarter of 2024, we expect non-GAAP operating margins in a range of approximately 18% to 18.7% and we expect non-GAAP EPS in the range of $0.77 to $0.82.

關於我們對 2024 年第三季的獲利預期，我們預計非 GAAP 營運利潤率約為 18% 至 18.7%，非 GAAP 每股收益預計為 0.77 美元至 0.82 美元。

Finally, I wanted to call out one item for consideration. When comparing our updated non-GAAP operating margin assumptions versus our original guidance for 2024, we introduced on our Q4 call and subsequently reaffirmed on our Q1 earnings call on April 30, and again, in our EndoGastric Solutions press release of July 1. As detailed in our earnings press release this afternoon, beginning in the second quarter of 2024, consulting expenses associated with initiatives conducted under our Foundations for Growth program are no longer adjusted as part of our non-GAAP measures. Non-GAAP financial measures detailed in the reconciliation tables in our earnings press release reflect the removal of these FFG consulting fees for the three- and six-month periods ended June 30, 2023, and 2024, specifically $4.2 million in the first half of 2023 and $1 million in the first half of 2024.

最後，我想提出一項供考慮的事項。在將我們更新的非GAAP 營業利潤率假設與2024 年的原始指引進行比較時，我們在第四季度電話會議上介紹了這一假設，隨後在4 月30 日的第一季財報電話會議上重申了這一假設，並在7 月1 日的EndoGastric Solutions 新聞稿中再次重申。正如我們今天下午的收益新聞稿中所詳述的，從2024 年第二季度開始，與我們的增長基礎計劃下開展的舉措相關的諮詢費用不再作為我們的非公認會計原則措施的一部分進行調整。我們的收益新聞稿調節表中詳細列出的非公認會計準則財務指標反映了截至2023 年6 月30 日和2024 年的三個月和六個月期間的FFG 諮詢費用的取消，具體而言， 2023 年上半年為420 萬美元2024 年上半年投資 100 萬美元。

FFG consulting fees totaled approximately $12.3 million pretax for the 12 months ended December 31, 2023, representing approximately 100 basis point impact to the previously non-GAAP operating margin for that period. Accordingly, our updated non-GAAP operating margin assumptions for fiscal year 2024, excluding FFG consulting fees, now reflect expected year-over-year expansion in the range of 120 basis points to 150 basis points compared to expected year-over-year expansion in the range of 45 basis points to 70 basis points previously.

截至 2023 年 12 月 31 日的 12 個月，FFG 諮詢費總計約為 1,230 萬美元，對該期間之前的非 GAAP 營業利潤率產生約 100 個基點的影響。因此，我們更新後的 2024 財年非 GAAP 營業利潤率假設（不包括 FFG 諮詢費）現在反映了預期的同比擴張，預計同比擴張範圍為 120 個基點至 150 個基點，而之前的區間為45個基點至70個基點。

Importantly, when applying this new treatment for FFG consulting fees throughout the three-year FFG program, our non-GAAP operating margin expansion performance is still extremely strong. Our efforts to improve profitability over this period resulted in a non-GAAP operating margin of 17.2% in fiscal year 2023 compared to 13.2% in fiscal year 2020, an increase of approximately 400 basis points.

重要的是，在整個三年 FFG 計劃中對 FFG 諮詢費採用這種新處理方法時，我們的非 GAAP 營業利潤率擴張表現仍然非常強勁。我們在此期間為提高獲利能力所做的努力使得 2023 財年的非 GAAP 營業利潤率為 17.2%，而 2020 財年為 13.2%，成長了約 400 個基點。

Further, this new treatment does not impact the cumulative free cash flow we generate over the three years ending December 31, 2023, which totaled nearly $300 million. And by the way, a reminder, we generated nearly $490 million of free cash flow since the beginning of 2020. Finally, this new treatment does not impact our 2024 guidance, nor our CGI financial targets for the three year period ending December 31, 2020.

此外，這項新處理方法不會影響我們在截至 2023 年 12 月 31 日的三年內產生的累計自由現金流（總計近 3 億美元）。順便提醒一下，自 2020 年初以來，我們產生了近 4.9 億美元的自由現金流。最後，這項新處理方法不會影響我們 2024 年的指導，也不會影響我們截至 2020 年 12 月 31 日的三年期間的 CGI 財務目標。

That wraps up our prepared remarks. Operator, we would now like to open the line for questions.

我們準備好的發言就到此結束。接線員，我們現在要開通提問線路。

(Operator Instructions) Jason Bednar, Piper Sandler.

（操作說明）Jason Bednar、Piper Sandler。

Hey, good afternoon, guys. Congrats on another solid quarter here. I wanted to start first with guidance. Looks like you're flowing through mostly that 2Q overage here. Not much change in here with the implied outlook for the second half of the year. I think this is within how you typically manage your guide or your outlook, but I wanted to check to see if there's any incremental caution you have with respect to pieces of your business that just as you think of the momentum from the first half of the year doesn't continue in the back half. It doesn't sound like that, but really wanted to check in on that.

嘿，下午好，夥計們。恭喜又一個穩定的季度。我想先從指導開始。看來您正在經歷第二季的大部分超額。下半年的隱含前景沒有太大變化。我認為這是您通常管理指南或前景的方式，但我想檢查一下您對業務的各個部分是否有任何漸進的謹慎態度，就像您認為上半年的勢頭一樣下半年不會繼續。聽起來不像，但確實想檢查一下。

And then within that conversation, maybe discuss a little more specifically your China assumptions within your overall guidance range. It doesn't look as onerous, but I don't think I heard exactly what you're assuming now for China this year.

然後在那次對話中，也許可以更具體地討論一下您在整體指導範圍內對中國的假設。它看起來並不繁重，但我想我沒有聽到你對今年中國的具體假設。

Yeah. So yeah, you're right, Jason, this is how we typically do it, right? So we're flowing through that first half increase. As you know, we beat by about $7 million on the high end of our guidance. And so we're flowing that through. Obviously, you have the dynamics of EGS that we're also -- that we've also included in that, which we did that earlier this month when we did the acquisition.

是的。是的，你是對的，傑森，這就是我們通常這樣做的方式，對吧？所以我們正在經歷上半年的成長。如您所知，我們比指導上限高出約 700 萬美元。所以我們正在將其貫穿始終。顯然，我們也擁有 EGS 的動態，我們也將其納入其中，本月早些時候我們進行收購時就這樣做了。

So I think, generally speaking, we're super optimistic about how the business is doing. The US growth was outstanding again. International growth was great. So we're feeling pretty optimistic. And I think I'm sure we'll get some questions on China. China did better than anticipated, and we continue to see that. So generally speaking, I think we're pretty excited about how the first half went and the back half is looking. And I think, ultimately, we're putting in a pretty strong year together.

所以我認為，總的來說，我們對業務的表現非常樂觀。美國的成長再次表現出色。國際成長勢頭強勁。所以我們感覺非常樂觀。我想我確信我們會收到一些有關中國的問題。中國的表現優於預期，我們將繼續看到這一點。所以總的來說，我認為我們對上半場的表現和後半場的表現感到非常興奮。我認為，最終我們將共同度過一個非常強大的一年。

Thanks. And one follow-up there and then a separate question, just if you can specify just what China is within your updated guide versus where it was previously. Again, it seems like it's not as onerous. But -- and then I did want to ask as a follow-up. I bring it up often here, the gross margin line was pretty solid again this quarter and considering this was the toughest year-over-year comp on the margin -- gross margin line. So those margin comps get easier over the balance of the year. I'm just wondering how you're thinking about the gross margin trend line from here. Maybe if we be thinking about a seasonal step down in the third quarter, but just going forward, is this 51% or so range more or less defendable, as we look ahead?

謝謝。然後是一個後續問題，然後是一個單獨的問題，只是您是否可以在更新的指南中具體說明中國與之前的情況相比。再說一遍，這似乎不那麼繁重。但是——然後我確實想問作為後續行動。我經常在這裡提到這一點，本季的毛利率線再次相當穩定，考慮到這是毛利率方面最艱難的同比比較——毛利率線。因此，在今年餘下的時間裡，這些利潤率會變得更加容易。我只是想知道您如何看待這裡的毛利率趨勢線。也許如果我們考慮在第三季進行季節性下降，但展望未來，當我們展望未來時，這個 51% 左右的範圍或多或少是可以防禦的？

Yeah. I'll let Joe kind of hit on the international piece here first in China, and then I'll answer the gross margin.

是的。我會讓喬先在中國談國際部分，然後我會回答毛利率。

Yeah, hi, Jason. This is Joe. Our international sales were up 4% year on year and 3.8% on an organic constant currency basis. So this exceeded the high end of our growth expectations by approximately 470 basis points in the quarter. So those better than expected OUS results were driven primarily by only a 1% constant currency growth in or decline in APAC in Q2. Our previous guidance range had assumed a decline in the range of 10% to 11% in Q2.

是的，嗨，傑森。這是喬。我們的國際銷售額年增 4%，以有機固定匯率計算成長 3.8%。因此，這超出了我們本季成長預期的上限約 470 個基點。因此，OUS 業績優於預期的主要原因是第二季亞太地區僅 1% 的貨幣持續成長或下降。我們先前的指導範圍假設第二季下降 10% 至 11%。

So regarding the APAC sales, so China sales decreased 5% year over year, so that was better than the low 20% decline our guidance had assumed. We continue to see quarter-to-quarter variability in the growth trends related to volume-based purchasing tenders, which is as we expected.

就亞太地區的銷售額而言，中國的銷售額比去年同期下降了 5%，這比我們的指導假設的 20% 的低下降要好。我們繼續看到與基於數量的採購招標相關的成長趨勢出現季度變化，這正如我們預期的那樣。

So yeah, just on the gross margin, Jason, as you know, we don't comment on the gross margin. Generally speaking, we did say at the beginning of the year and I think this still holds true that as far as the operating margin improvement, it would mostly come from gross margin. and to the extent that we would -- in the high end, we would also leverage OpEx. So I would say, generally speaking, we're really happy with the way gross margin is performing. We've been happy the last three years the way it's -- what it's done and again, continue to be excited about what it's doing this year. And I'd say it's where we want it to be.

所以，是的，就毛利率而言，傑森，正如你所知，我們不會對毛利率發表評論。總的來說，我們在年初確實說過，我認為這仍然是正確的，就營業利潤率的改善而言，主要來自於毛利率。在某種程度上，我們也會在高端領域利用營運支出。所以我想說，總的來說，我們對毛利率的表現非常滿意。我們對過去三年的表現感到滿意——它所做的事情，並且繼續對今年所做的事情感到興奮。我想說這就是我們想要的地方。

Mike Matson, Needham.

麥克馬森，李約瑟。

Yeah, thanks for taking my questions. I guess, just one on the EndoGastric deal, so I imagine this is going into the endoscopy business. So are you going to be combining the sales teams and having both groups of people selling all the endoscopy products? Or will you maintain a specialist sales force to sell the EsophyX Z+ product?

是的，謝謝你回答我的問題。我想，這只是 EndoGastric 交易中的一項，所以我想這將進入內視鏡業務。那麼您是否打算合併銷售團隊並讓兩組人員銷售所有內視鏡產品？或者您會維持一支專業銷售團隊來銷售 EsophyX Z+ 產品嗎？

Yeah, Mike. Hey, thanks. This is Fred. Thanks for the question. Listen, we've been looking for assets in this GI business for a long time. It's been very difficult. What we did with this product as we found something that we thought would be able to cross over that we can have the combined sales forces, so for the balance of this year, there's training and there will be the -- we did keep that sales team. And some of the technical and clinical people will combine those together with the existing products we have in Endotek.

是的，麥克。嘿，謝謝。這是弗雷德。謝謝你的提問。聽著，我們長期以來一直在地理標誌業務中尋找資產。這非常困難。我們對這個產品做了什麼，因為我們發現了一些我們認為能夠跨越的東西，我們可以擁有合併的銷售隊伍，所以在今年的剩餘時間裡，我們會進行培訓，並且我們確實保持了銷售團隊。一些技術和臨床人員會將這些與我們 Endotek 現有的產品結合。

And as other products come out because we have a very nice pipeline. We won't discuss it specifically, but we think that that's going to serve well, and we'll be more efficient. We've had a good sales force, but -- I mean, they're still doing a good job, but the utilization wasn't what we needed it to be this way. There was a single-product company that fit into our business very nicely, and we're going to combine those two.

隨著其他產品的出現，因為我們有一個非常好的管道。我們不會具體討論它，但我們認為這會很有用，而且我們會更有效率。我們擁有一支優秀的銷售隊伍，但是——我的意思是，他們仍然做得很好，但利用率並不是我們所需要的。有一家單一產品公司非常適合我們的業務，我們將把這兩家公司結合起來。

We've had them here, by the way, I should mention. They -- all of those sales forces have been here to Salt Lake, all getting together. We've all spent time together. And I'm actually very pleased with how that's coming along as well as the integration.

順便說一句，我應該要提一下，我們這裡已經有它們了。他們——所有這些銷售人員都來到鹽湖城，聚集在一起。我們都一起度過了時光。事實上，我對它的進展以及整合感到非常滿意。

Joe, you want to add something to that?

喬，你想補充一些東西嗎？

Yeah, as you mentioned, Fred, we've been looking for something in this space for a long time. The great thing about this opportunity was just the financial profile. It's very rare that you find something that's going to be accretive to not just our growth profile, but also our gross margin and overall profitability in the first full year. So that was very attractive. And it's our existing call point. So we are basically able to increase our footprint in a very attractive market here.

是的，正如你所提到的，弗雷德，我們長期以來一直在這個領域尋找東西。這個機會的最大好處就是財務狀況。很少有東西不僅能促進我們的成長，還能促進我們第一年全年的毛利率和整體獲利能力。所以這非常有吸引力。這是我們現有的呼叫點。因此，我們基本上能夠在這裡一個非常有吸引力的市場中擴大我們的足跡。

So yeah, we're excited about the combination and that we expect to train -- cross train all of EGS salespeople that we hired and also our current Endotek sales force, so both will be able to sell both product lines. So we do expect some cross-selling opportunities as we move forward.

所以，是的，我們對這次合併感到很興奮，並且希望對我們僱用的所有 EGS 銷售人員以及我們目前的 Endotek 銷售人員進行交叉培訓，以便兩者都能夠銷售這兩條產品線。因此，隨著我們的前進，我們確實預計會出現一些交叉銷售機會。

And Joe, if I could just add one more thing. Mike, the other thing is the territories and the smaller -- our ability to focus more instead of having people traveling so far with these additional folks, we think we can get deeper into the account. And incidentally, just as a point of interest, every single account that Merit has happens to be exactly the same footprint as they have.

喬，如果我能再補充一件事的話。麥克，另一件事是領土和較小的地區——我們有能力更加專注，而不是讓人們和這些額外的人一起旅行這麼遠，我們認為我們可以更深入地了解這個帳戶。順便說一句，正如一個興趣點一樣，Merit 擁有的每個帳戶都恰好與他們的足跡完全相同。

So it's not like these are new customers. They're our existing customers and they're all their existing customers. So they know who we are. We're not having new people show up in the lab. This is something that has a lot of features that Joe mentioned and that I've alluded to, that we think helps to make it a pretty dynamic team. And I guess the other part that goes with that is when you get -- I don't know, I had probably 10 notes from the sales force after we were here and spent a couple of days together, just how excited they were to have this opportunity and every person that we made that offer to in that sales force accepted.

所以這些都不是新客戶。他們是我們現有的客戶，也是他們所有的現有客戶。所以他們知道我們是誰。我們不會讓新人出現在實驗室裡。這是喬提到的和我提到的許多功能的東西，我們認為這有助於使其成為一個非常有活力的團隊。我想隨之而來的另一部分是當你得到——我不知道，我們來到這裡並在一起呆了幾天后，我可能收到了銷售人員發來的 10 張便條，他們是多麼興奮這個機會以及我們向該銷售團隊中提出的每個人都接受了。

I think those are really interesting facts that they all came together and that group will come together under the leadership of Niki Kennedy, who's the leader of that Endotek division. So we're quite excited about this opportunity. A lot of work to be done. But nevertheless, we're very excited about it.

我認為這些都是非常有趣的事實，他們都聚集在一起，而團隊將在 Endotek 部門的領導者 Niki Kennedy 的領導下聚集在一起。所以我們對這個機會感到非常興奮。還有很多工作要做。但儘管如此，我們對此感到非常興奮。

Yeah. Sounds great. And then just on the cardiac business, have you seen any kind of impact there, positive or negative, from the rapid uptake we're seeing of PFA ablation?

是的。聽起來很棒。那麼就心臟業務而言，我們看到 PFA 消融術的快速普及，您是否看到了任何類型的影響，無論是積極的還是消極的？

No, we have not seen that at all. We haven't seen anything that's taken away. Joe, anything that you've seen?

不，我們根本沒有看到這一點。我們沒有看到任何被拿走的東西。喬，你看到了什麼？

No, we have devices that enable ablation procedures. So regardless, if it's RF ablation or PFA, our tools are generally applicable to both procedures. So it hasn't been an impact for us.

不，我們有可以進行消融手術的設備。因此，無論是射頻消融術還是 PFA，我們的工具通常都適用於這兩種手術。所以這對我們來說並沒有造成影響。

And in fact, it's access to get them there, so they can deliver those products. That would be our HeartSpan, our steerable sheath, our splitable. It's those products that complement that they don't take away.

事實上，它可以讓他們到達那裡，這樣他們就可以交付這些產品。這就是我們的 HeartSpan、我們的可操縱護套、我們的可分割護套。這些產品是補充性的，而不是剝奪性的。

Larry Biegelsen, Wells Fargo.

拉里·比格爾森，富國銀行。

Hi, guys. It's Larry. Thanks for taking the question. Fred, I wanted to ask you, too, on WRAPSODY. First, a big picture one and then a little bit more detailed one. And by the way, congrats on the nice quarter here, especially on the margins.

嗨，大家好。是拉里。感謝您提出問題。Fred，我也想在 WRAPSODY 上問你。首先是大圖，然後是更詳細的圖。順便說一句，恭喜這個季度的美好表現，尤其是在邊緣。

Fred, how do you expect to compete with Gore and BD in the stent graft space? We've heard that price is a key component when physicians choose a stent graft. What's your view? And I had one follow-up.

Fred，您預計如何在覆膜支架領域與 Gore 和 BD 競爭？我們聽說，當醫生選擇覆膜支架時，價格是一個關鍵因素。你的看法是什麼？我有一個後續行動。

Yeah, I think that first of all, as you know, Larry, we made a press release early to talk about the data being presented at the CIRSE meeting on, I think, it's August 14, or September -- whenever. It's coming up in the next couple of weeks. So we just -- my general take is that we have superior technology, period. That has always been why we developed it. We think it's a great product. I think we've been out there selling it for a while and the uptake on the product has been positive.

是的，我認為首先，正如你所知，拉里，我們很早就發布了一份新聞稿，討論在CIRSE 會議上提供的數據，我認為是8 月14 日或9 月——無論什麼時候。它將在接下來的幾週內出現。所以我們——我的整體看法是我們擁有先進的技術，就這樣。這一直是我們開發它的原因。我們認為這是一個很棒的產品。我想我們已經銷售它一段時間了，並且對該產品的接受度是積極的。

So we're very excited about the long term. We continue to track well in those markets. The conditions continue to be positive. And we're really looking forward in the future to discuss more of the addressable market opportunities. And at the right time and in the very near future, we'll be talking about all of these things so that we can lay it out.

因此，我們對長期發展感到非常興奮。我們繼續在這些市場上取得良好的進展。形勢依然樂觀。我們非常期待未來能討論更多潛在的市場機會。在適當的時間和不久的將來，我們將討論所有這些事情，以便我們可以將其展開。

And on this call, we're not intending to do that today, but we don't have -- I can just tell you that I don't have and I don't think the people in this room have any doubt about the viability of this technology and its performance capabilities. We'll talk more specifically in the very near future.

在這次電話會議上，我們今天不打算這樣做，但我們沒有——我可以告訴你，我沒有，而且我認為在座的人對此沒有任何疑問。我們將在不久的將來更具體地討論。

I wanted to push my luck and ask you one follow-up. How are you thinking about the likelihood you can obtain a transitional pass-through payment or TPT payment? And if you believe you can get a TPT because you have breakthrough status, does this mean you're going to have to price it at a significant premium when you come out of the gate so you can meet the TPT criteria?

我想碰碰運氣，問你一個後續問題。您如何看待獲得過渡性轉手付款或 TPT 付款的可能性？如果您相信自己可以獲得 TPT，因為您具有突破性地位，這是否意味著您在走出大門時必須付出相當大的溢價才能滿足 TPT 標準？

Larry, we do have breakthrough status on this product that speaks to that. And at the appropriate time, as we talked about, all of this will be revealed. So we're -- in the very near future, we'll lay all of this out. Our primary focus today is the PMA has been filed. It's been accepted. Let's get that done. And then we'll start hitting all these other things, once we know and when we get closer and understand that better. So it'll be there. You just have to be a little bit more patient. And I sure appreciate you pressing your luck.

拉里，我們在這款產品上確實取得了突破性進展，這足以證明這一點。正如我們所說，在適當的時候，所有這些都將被揭露。所以我們——在不久的將來，我們將把這一切都列出來。我們今天的主要關注點是 PMA 已提交。已經被接受了。讓我們完成這件事。然後，一旦我們知道並且當我們更接近並更好地理解這一點時，我們將開始解決所有其他問題。所以它會在那裡。你只需要多一點耐心。我非常感謝你碰碰運氣。

I'm not -- we're not going to be impatient here, Fred, but thank you.

我不會——弗雷德，我們不會不耐煩，但謝謝你。

I know that. You're just -- I'm going to teach a lot of things like you've taught me. You have. I mean (inaudible) Larry, you have.

我知道。你只是——我會像你教我的那樣教很多東西。你有。我的意思是（聽不清楚）拉里，你有。

I don't.

我不。

Over the years, you have, and I appreciate it. Thank you, sir.

多年來，你們一直如此，我很感激。謝謝你，先生。

Steve Lichtman, Oppenheimer.

史蒂夫·利奇曼，奧本海默。

Thank you. Good evening, gentlemen, and congrats on the quarter. Wanted to ask, again, about EndoGastric Solutions. Can you talk a little bit more about what the revenue growth profile is of the products? I appreciate the base of revenue that's being built in here. And do you see opportunities in the near term to accelerate that with some potential cross sell from your current business?

謝謝。先生們晚上好，恭喜本季。想再次詢問有關 EndoGastric 解決方案的資訊。能多談談這些產品的收入成長嗎？我很欣賞這裡正在建立的收入基礎。您是否認為近期有機會透過當前業務的潛在交叉銷售來加速這一進程？

Yeah, great question, Steve. As you're aware, we disclosed that for this year we're going to be in the $13 million to $15 million range for the back half of the year. And we also announced that it would be accretive to revenue, gross margin, and operating margin in the first full year of integration.

是的，很好的問題，史蒂夫。如您所知，我們透露今年下半年的收入將在 1300 萬美元至 1500 萬美元之間。我們也宣布，整合的第一個將在全年增加收入、毛利率和營業利潤率。

So other than that, I don't think we're going to get into the details of it. We'll give you obviously our guidance for 2025 in February. But I can tell you that the endoscopy team and -- both teams are excited about the products that we have and the scale that we think we can get there with the cross-selling. So we will leave it at that but continue to be excited about that asset.

除此之外，我認為我們不會討論它的細節。我們將在 2 月向您提供 2025 年的指導。但我可以告訴你，內視鏡團隊和兩個團隊都對我們擁有的產品以及我們認為透過交叉銷售可以達到的規模感到興奮。因此，我們將就此保留，但繼續對該資產感到興奮。

Okay. And then, obviously, you were acquisitive this quarter. Free cash flow coming in stronger though. How should we be thinking about sort of where you're headed at in terms of use of free cash looking forward here in the near term?

好的。然後，顯然，本季您的收購熱情很高。不過，自由現金流將會強勁。我們該如何考慮您近期在使用自由現金方面的發展方向？

Yeah. Look, first of all, I just wanted to -- I'll give a little shout out to our operations group on managing the inventory growth. I mean, it's been a huge benefit to our free cash flow this year, and we're growing ahead of plan. So they've been able to manage keeping up with our customer demands while also you essentially keeping inventory flat to down. So we continue to expect strong free cash flow generation for the back half of the year, and we continue to believe that we're in a good position to hit our CGI program of a minimum of $400 million in free cash flow. And lastly, and more importantly, we took our $115 million -- a minimum of $115 million in free cash flow target for 2024 and we bumped that up to $130 million. So super strong generation for the quarter. Couldn't be more excited about that.

是的。聽著，首先，我只是想——我要向我們的營運團隊在管理庫存成長方面大聲疾呼。我的意思是，這對我們今年的自由現金流來說是一個巨大的好處，而且我們的成長超出了計劃。因此，他們能夠滿足我們客戶的需求，同時您也基本上保持庫存持平或下降。因此，我們仍然預計今年下半年將產生強勁的自由現金流，我們仍然相信我們處於有利位置，可以實現至少 4 億美元自由現金流的 CGI 計劃。最後，更重要的是，我們將 2024 年自由現金流目標定為 1.15 億美元，至少 1.15 億美元，並將其提高到 1.3 億美元。本季超級強勁的一代。對此感到無比興奮。

David Rescott, Baird.

大衛雷斯科特，貝爾德。

Great. Thanks for taking the questions and congrats on the strong quarter here. My first question is more around the WAVE results looking forward to seeing that. I don't think I've -- I've definitely haven't attended the CiDA or the CIRSE conference in the past. So I'm just wondering if you could give us a sense for maybe what to look for there. And then at least in your view, maybe how data is presented at these two conferences tends to kind of flow into some of the clinical practice?

偉大的。感謝您提出問題，並祝賀本季的強勁表現。我的第一個問題更多的是關於 WAVE 結果，期待看到這一點。我想我過去絕對沒有參加過 CiDA 或 CIRSE 會議。所以我只是想知道你是否能讓我們了解在那裡尋找什麼。然後至少在您看來，也許這兩個會議上的數據呈現方式往往會流入某些臨床實踐？

Yeah. First of all, this is going to be presented by physicians as part of the scientific sessions not by Merit. This is the six-month follow-up results on patients from the randomized arm of the study, what we call the ABF cohort, which includes target lesion primary patency, access circuit primary patency, and safety events. So this is the randomized part of the study. And that will be presented. It'll be presented data from the podium in the scientific sessions.

是的。首先，這將由醫生作為科學會議的一部分而不是透過優點來呈現。這是該研究隨機組（我們稱為 ABF 隊列）患者的 6 個月追蹤結果，其中包括目標病變主要通暢情況、通路主要通暢情況和安全事件。這是研究的隨機部分。這將被呈現。它將在科學會議的講台上展示數據。

In terms of the specific data, come to Lisbon or tune in because we can't speak to it until that date. And then we'll be happy to have the physicians -- not Merit, the doctors talk about the results and how they view it. So I think, we're excited to -- we'll all be there. I can just tell you, the people in this room, we'll be at that meeting in Lisbon, Portugal.

就具體數據而言，請來里斯本或收聽，因為在那之前我們無法透露。然後我們會很高興有醫生——而不是優點，醫生談論結果以及他們如何看待它。所以我認為，我們很高興——我們都會在那裡。我可以告訴你們，在座的各位，我們將參加在葡萄牙里斯本舉行的會議。

Okay. I don't think I'll make it up to Lisbon this year. But my second question is more on China APAC, obviously, that was a strong -- stronger growth driver than you expected from the comments there. I'm just wondering if you can help us think about some of the components of the way in which your business model operates in that market and the level of visibility, at least you have into the next several quarters of growth. I mean it seems like in medtech, it's a weaker kind of macro market in general. It seems like you've held in there a little bit better than maybe expected. So just wondering if your business or the visibility you have into those markets is maybe any different than what some other kind of medtech competitors out there have? Thank you.

好的。我想今年我不會去里斯本了。但我的第二個問題更多的是關於中國亞太地區，顯然，這是一個強大的成長動力，比你從那裡的評論中預期的要強。我只是想知道您是否可以幫助我們考慮一下您的業務模式在該市場中運作的方式以及可見性水平的一些組成部分，至少您已經進入了未來幾個季度的成長。我的意思是，在醫療技術領域，總體而言，它是一個較弱的宏觀市場。看來你的堅持比預期的好。因此，想知道您的業務或您在這些市場中的知名度是否與其他類型的醫療技術競爭對手有什麼不同？謝謝。

Joe can take the China question. But David, just as a point here, I believe that the CIRSE will be able to webcast that information. So if you can't make it there, I think a pass will get you a webcast. I don't know all the details yet. We're trying to find that out. But our understanding is that there is a webcast available for that, so for those of you that can't make it.

喬可以回答中國問題。但是 David，正如這裡指出的那樣，我相信 CIRSE 將能夠透過網路廣播這些資訊。因此，如果您無法到達那裡，我認為通行證將為您提供網路廣播。我還不知道所有細節。我們正在努力找出答案。但我們的理解是，有一個網路廣播可以用於此目的，因此對於那些無法參加的人來說。

Yeah. Thanks, Raul. On China, just as a way of reminder, we don't provide the country-specific growth assumptions, but we did have better-than-expected results from China in the first half of 2024. We like, all the other medtech companies, are affected by volume-based purchasing, and there is some variabilities to that. But we still look at China as a very strong demographic, strong growth market for us. The key for us is just getting through this year and perhaps next year. And then we reset our growth based on a new baseline. We still expect great things from China in the future.

是的。謝謝，勞爾。關於中國，提醒一下，我們沒有提供特定國家的成長假設，但我們確實在 2024 年上半年取得了好於預期的中國業績。我們喜歡，所有其他醫療科技公司都受到基於數量的採購的影響，並且存在一些差異。但我們仍將中國視為人口眾多、成長強勁的市場。對我們來說，關鍵是要度過今年，或許還有明年。然後我們根據新的基準重置我們的成長。我們仍然對中國的未來充滿期待。

Yeah. I think one thing to highlight, too, that we're excited about is that even though we did have a total revenue decline, we did see sales volume growth year over year. So I think that's important because as Joe mentioned, once we reset that, then I think we can get back to normalized levels of growth in China.

是的。我認為還需要強調的一件令我們感到興奮的事情是，儘管我們的總收入確實有所下降，但我們確實看到了銷量逐年增長。所以我認為這很重要，因為正如喬所提到的，一旦我們重新設定，我認為我們就可以恢復中國的正常成長水準。

Jayson Bedford, Raymond James.

傑森貝德福德，雷蒙德詹姆斯。

Good afternoon, guys. So a few questions. Following up on WRAPSODY, I apologize if I missed this, but did you provide an update on expected timing around FDA approval?

下午好，夥計們。所以有幾個問題。繼 WRAPSODY 之後，如果我錯過了這一點，我深表歉意，但是您是否提供了有關 FDA 批准的預期時間的最新資訊？

No. It's in there. It's in their hands. We'll go through all the steps we're prepared for. We're prepared for the various aspects of a PMA, but it's in their hands. Now, we've completed the submission, as we said, we would on time, and now we just sit back and we respond. And when they're done, they're done. So we haven't spoken to it because it's in their hands, Jayson.

不。它就在那裡。它在他們手中。我們將完成我們準備好的所有步驟。我們已經為 PMA 的各個方面做好了準備，但這取決於他們。現在，我們已經完成了提交，正如我們所說，我們會按時完成，現在我們只需坐下來回應。當他們完成時，他們就完成了。所以我們還沒有談論它，因為它在他們手中，傑森。

Got it. Okay. That's fair. OEM flat year to date, but I think I heard you say that you're still expecting double-digit growth for the year. I wonder if you could just kind of confirm that, and I don't mean to be overly obvious with the question. But do you have strong visibility to -- it does imply a pretty big ramp in the second half to get to double digit, if indeed that's the guide.

知道了。好的。這還算公平。今年迄今為止，OEM 業務持平，但我想我聽到您說過，您仍預計今年將實現兩位數的成長。我想知道你能否證實這一點，我並不是想把這個問題問得太明顯。但你是否有很強的可見性——這確實意味著下半年會有相當大的增長，達到兩位數，如果這確實是指導的話。

Yeah. Jason, I mean, first of all, I'd like to highlight our US sales growth was just tremendous, and it continues to be so. And OEM did contribute in the second quarter, so they grew at about 5% on a constant currency basis. That's compared to Q1 where they were down approximately 5%. So we've seen a good rebound. We haven't changed the guidance for OEM because we do feel like we have the visibility to better second half and it does -- obviously, the math would imply that it's a pretty strong back half of the year, and we feel good about what we've guided there.

是的。傑森，我的意思是，首先，我想強調我們在美國的銷售成長是巨大的，而且將繼續如此。OEM 確實在第二季做出了貢獻，因此以固定匯率計算，它們的成長率約為 5%。與第一季相比下降了約 5%。所以我們看到了良好的反彈。我們沒有改變對 OEM 的指導，因為我們確實覺得下半年會更好，而且確實如此——顯然，數學意味著今年下半年會相當強勁，我們對此感覺良好我們已經在那裡指導過。

So again, I think we're really happy how things bounce back. And we're seeing some pretty strong demand there. As you know, there was also a deal announced which we included was in our guidance. But nevertheless, I'll highlight it with Medtronic on their spine business that our OEM division is helping with. So strong demand, for sure.

再說一次，我認為我們對事情的反彈感到非常高興。我們看到那裡有一些相當強勁的需求。如您所知，我們還宣布了一項交易，並將其納入我們的指導中。但儘管如此，我還是要重點介紹美敦力 (Medtronic) 的脊椎業務，我們的 OEM 部門正在為其提供幫助。需求如此強勁，這是肯定的。

And that pipeline is filling back up, Jayson. So we do have probably more visibility there of the stuff that's coming -- those orders are coming in behaviors going back to what we would see has been kind of the general after the ups and downs in the workouts of COVID. It's starting to come back to normalization.

傑森，這條管道正在重新填滿。因此，我們確實可能對即將發生的事情有更多的了解——這些訂單的行為方式可以追溯到我們在新冠疫情經歷起起落落之後所看到的一般情況。它開始恢復正常化。

Yeah. And we have -- we have seen in the past the 20% plus growth quarters from OEM. So while we're not necessarily saying when that will happen, it's not out of the ordinary for this sales division.

是的。我們在過去的季度中看到 OEM 的成長率超過 20%。因此，雖然我們不一定會說這種情況何時會發生，但這對該銷售部門來說並不罕見。

Okay. Yeah, the business obviously lends itself to some pretty good visibility. And last one, I guess for me just on the EGS deal and the improving growth profile there, is there an international angle to the strategy or is it mostly US driven?

好的。是的，這項業務顯然具有相當好的知名度。最後一個問題，我想對我來說，關於 EGS 交易和那裡不斷改善的成長狀況，該策略是否有國際視角，或主要是美國驅動的？

Well, it is mostly US driven. However, they do have -- and I think they just didn't have the bandwidth. We think that's one of the things we're exploring as they have sales coming out of Europe and the Middle East, and we think we can add to that and we'll be pursuing those growth opportunities wisely and very methodically.

嗯，這主要是美國驅動的。然而，他們確實有——而且我認為他們只是沒有頻寬。我們認為這是我們正在探索的事情之一，因為他們的銷售來自歐洲和中東，我們認為我們可以對此進行補充，我們將明智且非常有條理地尋求這些成長機會。

Craig Bijou, Bank of America.

克雷格‧比茹，美國銀行。

Thanks, guys, for taking the questions, and congrats on a strong quarter. Just had a couple of quick follow-ups on China and the better-than-expected results in Q2. Just wondered, was that VBPs maybe not coming through on certain products you were expecting or the impact -- the pricing impact from the VBP wasn't as big as you expected? Or maybe the underlying markets got a little bit better there?

謝謝大家提出問題，並恭喜本季表現強勁。剛剛對中國進行了一些快速跟進，第二季的結果好於預期。只是想知道，VBP 是否可能不會在您預期的某些產品上實現，或者 VBP 的定價影響是否沒有您預期的那麼大？或者那裡的基礎市場可能會好一點？

And then a similar question for the rest of the year and how conservative you guys think you are on the VBP side? And I think this was alluded to in a couple of other questions, but the growth of the underlying China medical device market, just any thoughts there? It sounds like you still expect volumes to grow. So that's positive. But any broader thoughts on the underlying market there? Thanks, guys.

今年剩下的時間也會有類似的問題，你們認為自己在 VBP 方面有多保守？我認為這在其他幾個問題中也提到過，但是中國醫療器材市場的成長，有什麼想法嗎？聽起來您仍然預期銷量會成長。所以這是積極的。但對那裡的基礎市場有更廣泛的想法嗎？多謝你們。

Yeah. And so, I'll let Joe kind of tackle the market in what he sees there. But first of all, we haven't changed our second-half VBP headwind assumptions. Those kind of stay. I will say that during the first half of the year, obviously, we've done better than expected, clearly as we talked about. And I think the one thing that I do want to highlight, which I think is really important, is that we continue to grow sales of units on a year-over-year basis, which I think is really important because we're able to overcome some of that volume-based purchasing impact.

是的。因此，我會讓喬根據他的看法來應對市場。但首先，我們並沒有改變下半年 VBP 逆風假設。那種住宿。我想說的是，在今年上半年，顯然我們做得比預期要好，正如我們所說的。我認為我確實想強調的一件事，我認為非常重要的是，我們的單位銷售量繼續逐年增長，我認為這非常重要，因為我們能夠克服一些基於數量的採購影響。

So we're definitely seeing it in our P&L. We're definitely getting hit with VBP. But our team is doing an excellent job of continuing to grow units, which is giving us a little bit of upside. So optimistic about China.

所以我們肯定會在損益表中看到這一點。我們肯定受到了 VBP 的打擊。但我們的團隊在繼續擴大單位方面做得非常出色，這為我們帶來了一些好處。對中國如此樂觀。

Joe, what do you what do you think?

喬，你覺得怎麼樣？

Yeah. I think the overall unit growth highlights the fact that the procedural growth in China is still strong. So while we're dealing with the VBP headwinds, the first-half VBP was largely in line with our expectations. So there's no real change even in our second-half guidance. We still expect -- it's in our plan right now.

是的。我認為整體單位成長凸顯了中國的程序成長仍然強勁的事實。因此，雖然我們正在應對 VBP 的不利因素，但上半年的 VBP 基本上符合我們的預期。因此，即使我們下半年的指導也沒有真正的變化。我們仍然期待——它現在就在我們的計劃中。

John Young, Canaccord.

約翰·楊，Canaccord。

Hey. Good afternoon and thanks for squeezing in here. First, I just want to touch on WRAPSODY too. A lot of questions have been asked on it. But maybe just going back here, what is the commercial infrastructure for the product today, Fred, and how you think about building it up to the PMA approvals so you're ready at launch?

嘿。下午好，感謝您擠在這裡。首先，我也想談談 WRAPSODY。對此提出了很多問題。但也許只是回到這裡，弗雷德，今天該產品的商業基礎設施是什麼，以及您如何考慮將其構建為 PMA 批准，以便為發布做好準備？

We put together a renal therapy group that we put together last year that a number of products that are in there that that product will fall into. They include things like the Surfacer and our hemodialysis products because they call on the same position and the same point of sale. So part of that has been under development getting ready for this for some time.

我們去年組建了一個腎臟治療小組，該小組的許多產品都屬於該小組。它們包括 Surfacer 和我們的血液透析產品等產品，因為它們需要相同的位置和相同的銷售點。因此，其中一部分已經在開發中，為此做好了一段時間的準備。

So Joe, do you want to comment any further on that?

喬，你想對此發表進一步評論嗎？

Yeah. As Fred mentioned, we established a renal therapy sales group, and we've been adding to that this year in preparation for WRAPSODY. The good thing for us is, as Fred mentioned, we have other renal therapies products that we're frankly under focused previously. So when we broke out this team, they've been able to focus on these products that we already have, grow that business, while at the same time, we've been spending a lot of time training them up on WRAPSODY, leading them hear physician experiences in other approved markets outside of the United States. So we feel like we're doing all we can. We expect to add to that team over time, but we're going to be judicious in how we do that.

是的。正如 Fred 所提到的，我們建立了一個腎臟治療銷售小組，今年我們一直在增加這個小組，為 WRAPSODY 做準備。對我們來說，好處是，正如 Fred 所提到的，我們還有其他腎臟治療產品，坦白說，我們之前一直在關注這些產品。因此，當我們組建這個團隊時，他們能夠專注於我們已有的這些產品，發展業務，同時，我們花了很多時間對他們進行 WRAPSODY 培訓，領導他們聽取美國以外其他批准市場的醫生經驗。所以我們覺得我們正在盡我們所能。我們預計隨著時間的推移會增加該團隊的成員，但我們會謹慎行事。

The other thing to add too, John, is that you can clearly see that team is performing well, right? They have the angio products, which are slightly ahead of where we anticipated they would be. And so clearly, they're doing a good job in the integration part of things from them.

另一件要補充的事情是，約翰，你可以清楚地看到團隊表現良好，對嗎？他們擁有血管產品，略高於我們的預期。很明顯，他們在整合他們的東西方面做得很好。

And let me just maybe add the last end to that. And that is, I think, the ability for these guys to focus on six to eight products all at the point of sale is really significant. Again, as Joe pointed out, we've seen that performance and we're being, I think, very cognizant of making sure we stay within our budgets, at the same time making sure that people are trained when it comes in, we can go to the market without having either too much inventory because that's another important part of this. The training and the focus.

讓我也許添加最後一個結尾。我認為，這些人在銷售點專注於六到八種產品的能力非常重要。再次，正如喬指出的那樣，我們已經看到了這種表現，我認為我們非常清楚地確保我們保持在預算範圍內，同時確保人們在進來時接受培訓，我們可以進入市場時不要有太多庫存，因為這是另一個重要部分。培訓和重點。

Focus is the key because of Merit's broad product bag and you can't -- it's hard to do. So with this, we think that it was the right call. It was developed some 18 months ago, and we're just working through it. And when we get approval, we'll be all set with people that know the product and they have complementary products to sell with it.

專注是關鍵，因為 Merit 擁有廣泛的產品包，但你不能——這很難做到。因此，我們認為這是正確的決定。它是大約 18 個月前開發的，我們剛剛完成它。當我們獲得批准時，我們將配備了解該產品的人員，並且他們有可以與之一起銷售的互補產品。

Great. And maybe just a follow-up on that approval. On the submission, I heard you that at the FDA (inaudible) have you gotten any deficiency letter yet back? Or has the 180-day clock stopped for questions at this point yet?

偉大的。也許只是該批准的後續行動。在提交時，我聽說您在 FDA（聽不清楚）收到任何缺陷信嗎？或者說 180 天的時鐘此時已經停止提問了嗎？

We generally don't comment, but I will -- on the stuff that comes in because it could be misunderstood misconstrued, and whatever. They have it. The clock is ticking. That's where -- I'll leave it at that.

我們通常不會發表評論，但我會對出現的內容發表評論，因為它可能會被誤解，等等。他們有。時鐘正在滴答作響。這就是——我就這樣吧。

Jim Sidoti, Sidoti & Company.

吉姆‧西多蒂 (Jim Sidoti)，西多蒂公司。

Hi. Good afternoon. And thanks for taking the question. On WRAPSODY, do you think that presenting the data in Spain will have any impact on your international sales of the product? And do you think that there is an international market for the product?

你好。午安.感謝您提出問題。在WRAPSODY上，您認為在西班牙展示數據會對您產品的國際銷售產生任何影響嗎？您認為該產品有國際市場嗎？

Well, first of all, Jim, we're already selling in international and data is the name of the game to physicians. That is the name of the game. We hear it over and over every day. Where is the data, where is this, where is that on a lot of products. And if you don't have it, how do you prove that it's efficacious. So data is important. It will have an impact, and we're very excited to be able to deliver this in -- at CIRSE.

好吧，首先，吉姆，我們已經在國際上進行銷售，而數據對醫生來說就是遊戲的名稱。這就是遊戲的名稱。我們每天都會一遍又一遍地聽到它。很多產品上的資料在哪裡，這個在哪裡，那個在哪裡。如果你沒有它，你如何證明它是有效的。所以數據很重要。它將產生影響，我們非常高興能夠在 CIRSE 上實現這一目標。

Okay. And then can you just give us some sense on the impact of the acquisition on the sales team? How big was the EndoGastric sales team that you brought in compared to what you had with your sales -- existing sales force?

好的。那麼能否為我們介紹一下收購對銷售團隊的影響？與您現有的銷售團隊相比，您引進的 EndoGastric 銷售團隊有多大？

So it was about 50% of the size of our Endotek sales force. So we could have taken more, but we decided to selectively hire those we thought were in strategic areas and where we had the opportunity. So it will grow that overall force by about 50%.

因此，這大約是我們 Endotek 銷售團隊規模的 50%。因此，我們本可以採取更多措施，但我們決定選擇性地僱用那些我們認為處於戰略領域並且我們有機會的人。因此，整體力量將增加約 50%。

I'm sorry. Was that 15% or 50%?

對不起。是 15% 還是 50%？

50%.

50%。

50%. Okay. And then also, I'm sure that there was a lot of customer overlap, but are there new customers that you'll be calling on now for your core products?

50%。好的。另外，我確信有很多客戶重疊，但是您現在是否會為您的核心產品尋求新客戶？

The bottom line is every customer there is a customer of ours already.

最重要的是，每個客戶都已經是我們的客戶了。

Maybe two customer -- new customer --

也許有兩個客戶—新客戶--

So that was one of the beauties of all this, Jim, is that they're not new people that we don't know or that they don't. So when we're calling on lab, they know who we are and we know who they are. So I've never seen anything quite like this where every account that we have, they have as well and they have something in there. So -- but let me go the other way around. Every account that they have is an account that we're already calling on, okay?

所以這一切的美妙之處之一，吉姆，就是他們不是我們不認​​識或他們不認識的新人。因此，當我們拜訪實驗室時，他們知道我們是誰，我們也知道他們是誰。所以我從來沒有見過這樣的事情，我們擁有的每個帳戶，他們也有，而且裡面都有東西。那麼——但讓我反過來說。他們擁有的每個帳戶都是我們已經調用的帳戶，好嗎？

Thank you. And I'm showing no further questions in the queue at this time. I will now turn the call back over to Mr. Fred Lampropoulos for any closing remarks.

謝謝。目前我在隊列中沒有顯示任何其他問題。現在，我將把電話轉回給 Fred Lampropoulos 先生，讓其發表結束語。

Ladies and gentlemen, it's a long call, so we appreciate your patience. There was a lot of things to talk about. Raul and I and Joe will be around for the next couple of hours to answer specific questions. We want to thank you for your interest and for -- I thought the questions were great. So thank you very much for your interest and our best wishes from 100 degrees of heat in the mountain land of Salt Lake City, Utah.

女士們先生們，這是一個漫長的通話，所以我們感謝您的耐心等待。有很多事情要談。勞爾、我和喬將在接下來的幾個小時內回答具體問題。我們要感謝您的興趣以及—我認為這些問題很好。非常感謝您的關注，以及我們在猶他州鹽湖城山區 100 度高溫下的最美好的祝愿。

Good evening. Best wishes.

晚安.最好的祝愿。

This concludes our conference call for today. Thank you all for your participation. You may now disconnect.

我們今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。