Q3 2020 STAAR Surgical Co Earnings Call
Good day, ladies and gentlemen, thank you for standing by welcome to the STAAR surgical third quarter financial results Conference call.
During todays presentation, all parties will be in listen only mode.
Following the presentation the call would be an open for questions.
If you have a question. Please press star followed by one on your Touchtone phone.
If you are using a speaker equipment today, please lift the handset before making your selection.
This call is being recorded today Wednesday November 4th 2020.
At this time I would like to turn the conference over to Mr., Brian Moore, Vice President Investor and media relations and corporate development for STAAR surgical.
[music], Thank you Stacey and good afternoon, everyone.
Thank you for joining us on the STAAR surgical conference call. This afternoon to discuss the company's financial results for the third quarter ended October 2nd 2020.
On the call today are Karan Mason, President and Chief Executive Officer.
And Patrick Williams, Chief Financial Officer.
The press release of our third quarter results was issued just after four P.M. Eastern time and is now available on Staars website at Www Dot Star Dot com.
Before we begin let me quickly remind you that during the course of this conference call. The company will make forward looking statements.
We caution you that any statement that is not a statement of historical fact is a forward looking statement.
This includes remarks about the companys projections expectations plans beliefs and prospects.
These statements are based on judgment and analysis as of the date of this conference call.
And are subject to numerous important risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements.
The risks and uncertainties associated with the forward looking statements made in this conference call and webcast.
Described in the Safe Harbor statement in today's press release.
As well as far as public periodic filings with the S.P.C.
Except as required by law STAAR assumes no obligation to update these forward looking statements to reflect.
Feature events or actual outcomes and does not intend to do so.
In addition.
To supplement the GAAP numbers, we have provided non-GAAP adjusted net income.
And adjusted earnings per share and sales in constant currency.
We believe that these non-GAAP numbers provide meaningful supplemental information and are helpful in assessing our historical and future performance.
A table reconciling the GAAP information to the non-GAAP information is included in today's press release.
Following our prepared remarks, we will open the line to questions from publishing analyst.
We asked analysts limit themselves to two initial questions.
Then re queue with any follow up.
We thank everyone in advance for their cooperation with this process.
And with that I'd like to turn the call over now to care amazing.
<unk> and CEO of Star.
Thank you Brian Good afternoon, everyone and thank you for joining us on todays call.
Third quarter 2020 rule. So we reported today represent yet another record level of quarterly sales and a return to the levels of growth that are more representative of the demand for our E. Both busy and I see our family of lenses.
For the third quarter of 2020 star's net sales increased 21% over the prior year, driven by 25% Global ice C.L. unit growth.
Markets more fully reopened following COVID-19 related shutdown.
On a regional basis, I feel and good growth in the third quarter was positive in a large majority of the top markets, we track as compared to the second quarter of 2021, just three of our top markets achieved positive I see L. unit growth.
The metrics on a year over year basis.
Standout markets for I.C.L. unit growth in the third quarter and 2020 compared to prior year included.
China up 33% Japan.
Japan up 67% so.
South Korea up 21%.
Rest of Asia Pacific up 67%.
Mean up 24% European distributor markets up, 17% and Germany up 13%.
India and the Middle East, where the two markets that remain most challenged by COVID-19 during the third quarter with each market down more than 50% and I feel units over the prior year period.
Excluding India and the Middle East.
Oh I see all unit growth for the third quarter of 2020 would have been 32% or seven points higher than the 25% we recorded.
Several factors contributed to our growth during the third quarter first.
First we benefited from our strong presence and growing share and the Asia Pacific market.
Many a pac countries seem to be ahead of the curve with respect to affect repeating at managing that COVID-19 Challenge lies.
Life appears to be returning to normal and Asia Pacific geographies earlier than many other locations around the globe for example, our employees in Japan, and China report that COVID-19 impacts daily life less than we're hearing from our employees and other parts of the world glow.
Globally, we continue to support our customers and getting back to pre kobin norms, well also monitoring and either developing trends or actions that could lead to business disruption.
Second we are observing any locations in Asia, and Europe that seems more motivated to reach a quick decision regarding refractive surgery, often selecting the first doctor he or she can sell whereas historically these same patients may have met with two or three doctors they form.
Making a final decision.
The feedback we are receiving from conditions is that patients are increasingly more motivated.
Likely seek visual freedom as a pandemic has been quite challenging as expressed by their patients wear glasses and contact lenses.
There also appears to be a sentiment amongst patients to do something good for themselves.
As one of our clinicians and Spain shared with us.
Third COVID-19 related closures and delays such as in the National College entry entrance exam in China, which was pushed back a month or two July may have shifted some of our normal demand cycle from the second quarter into the third quarter.
And fourth we effectively targeted and supporting geographies with significant volume opportunity during the third quarter with patient recruiting surgeon training and marketing.
During the peak season in China, we resumed in personnel on site patient educational road shows at hospitals hotels in the third quarter, where our customers promoted evolve with high definition and premium messaging we.
We had active marketing campaigns in China, Japan, and Korea via digital outdoor commuter train and subway stations and or social media platforms. We also resumed advertising in Germany, and Spain as those markets more fully reopened.
In the U.S., we expanded our strategic relationships with surgeons, it's a real refractive restart program to support clinics is the U.S. market reopened.
The success of this program has prompted a continuance of many facets of our surgeon support into went through the fourth quarter.
Finally, as a measure of our success in awareness beyond your sales are evil websites true twice as many unique visitors in the third quarter compared to the year ago period.
On a year to date basis through the third quarter, our doctor visits are up nearly 250% over the prior year period.
Turning now to our pipeline of products and potential catalysts first arent 2021 and beyond.
We have made meaningful progress relating to our two new products for the U.S. and European markets.
In the U.S. The primary study analysis cohort of 300 subjects has been enrolled and the implanted with our evil family of myopia lenses, which sets the stage for first half 2021 submission to the FDA.
And if marketing approval is obtained the opening of the U.S. market to our Eva lenses.
Our clinical trial sites continue to adhere to clinical trial protocols.
We look forward to sharing additional details when appropriate in 2021.
Today, We also announced the initial launch and commercialization of our Ebola Veeva presbyopia correcting lens in Europe.
Details on our progress including publication of the first peer reviewed clinical paper.
Sam or web sites launching in several countries and the first patient in plant of the Evoque Veeva lens in Belgium are contained in a separate press release, we issued this afternoon.
With Veeva stars introduce an implantable lens to treat presbyopia designed to deliver all of the benefits of the evil wins for myopia with the added benefit of addressing near intermediate and distance visual acuity Clint.
Clinical trial results have been evaluated and reported in an article written by our principal investigators and medical monitor and recently published in clinical ophthalmology.
The conclusion of the study authors is as follows close.
This multi center prospective clinical investigation demonstrated the ability of they eat off I feel to correct myopia and presbyopia.
Resulting in improvement of uncorrected near intermediate and distance visual acuity without compromising the quality of vision.
They eat off I feel a lot of subjects to perform tasks of daily living without glasses or contact lenses.
Subjects reported significant improvements in quality of life with high levels of spectacle independence and satisfaction unclear.
We are conducting a phase rollout of our Eva Eva Lance's to gather information on best practices and patient selection and patient management to optimize the objective and subjective factors that will delight patients in this large addressable market.
The initial surgeon recognized as leaders in their respective markets for refractive surgery will be implanting the lance as well is making significant contributions to the evoque FIFA playbook of best practices, thereby providing a pathway to full commercialization of the lens in the second half of two.
2021.
The third quarter of 2020 was a strong quarter for star on multiple levels.
Most importantly, we believe the essential fundamental demand for our evil lenses has gained momentum.
And it's reflecting what we experienced pre cope it then.
The star team remains focused on creating a lens be future within refractive vision correction, where we believe we have the opportunity to move our global market share from 10% in the near term to 20% to 30% plus global market share in the foreseeable future.
We feel very good about our business today and with the exception of the unknown switch the pandemic cold we.
We are reiterating our outlook for the remainder of 2020 provided in August which has its close out the year with the fourth quarter in the range of approximately $43 million net sales with the caveat of increased spending to support it strongly developing outlook for 20.
21.
Patrick.
Thank you Karen and good afternoon, everyone.
Total net sales for Q3, 2020 were $47.1 million up 21% as compared to $39.1 million net sales in the year ago quarter and up 34% on a sequential basis from Q2 2020 <unk>.
The increase in net sales was attributable to the strong growth in those markets as Karen mentioned earlier.
In terms of product mix I feel sales represented 88% of total company net sales for the third quarter 2020, and other products represented 12%, which is consistent with the recent trend.
Gross profit for Q3, 2020 was $34.9 million or 74.1% of net sales as compared to gross profit of $29.1 million or 74.4% of net sales for the prior year quarter, and 24.4 million or 69.4% of net sales for Q2 2020.
The 30 basis point change to gross margin as compared to prior year quarter is primarily due to geographic sales mix period costs associated with manufacturing expansion projects and increase sales mix of injector parts, which carry a lower margin than our IPO.
The 470 basis point sequential increase in gross margin from the second quarter is due to higher sales and a return to a more normalized level of manufacturing following a voluntary six week COVID-19 manufacturing Pos.
Consistent with our comments on the last call. We continue to expect gross margin in the low 70% range for the fourth quarter of 2020.
Moving down the income statement total operating expenses for Q3, 2020 were $30 million as compared to $25.7 million in the year ago quarter and $25.5 million for Q2 2020.
We continue our cost containment measures related to non essential variable costs, while also expanding programs designed to drive growth.
We expect total Q4 2020 operating expenses to be similar to our Q3 2020 results.
Taking a closer look at the components of operating expenses GNS expense for Q3, 2020 was $8.6 million compared to 7.1 million for the year ago quarter and $7.8 million for Q2 2020.
The year over year increase in DNA is due to increased salary related expenses variable compensation and facility costs.
The increase from Q2 2020 was due to increased variable compensation consulting costs and facility cost.
For the fourth quarter, we expect GDP to be up slightly from Q3 2020, as we begin investments to support 2021 and beyond.
Selling and marketing expense was $12.7 million for Q3, 2020 compared to $12.5 million for the year ago quarter and $10.3 million for Q2 2020.
The increase in selling marketing expense from the prior year quarter was due to increased salary related expenses advertising and promotional activities and variable compensation offset by decreased trade show and travel expenses.
And the increase from Q2 2020 was due to increased advertising and promotional activities salary related expenses variable compensation and trade show expenses.
For the fourth quarter, we expect selling and marketing expense to be down slightly from our Q3 2020 results.
Research and development expense was $8.8 million in Q3, 2020 compared to $6.2 million for the year ago quarter, and 7.3 million for Q2.
The increase in research and development expense as compared to both periods was primarily due to increased clinical clinical expenses associated with our ido evoke clinical trial in the U.S. and increased salary related expenses and variable compensation for.
For the fourth quarter, we expect R&D to be up from our Q3 2020 results.
Operating income in Q3, 2020 was $4.9 million or 10.4% of net sales as compared to $3.3 million or 8.5% of net sales for the year ago quarter.
The 190 basis point year over year expansion in operating margin is due to leverage on fixed and variable operating expenses during the quarter.
Net income for the third quarter was 4 million or eight cents per diluted share compared to net income of 2.4 million or five cents per share in the year ago quarter.
On a non-GAAP basis adjusted net income for Q3, 2020 was $6.7 million or 14 cents per diluted share compared to adjusted net income of $5.5 million or 12 cents per diluted share in the year ago period.
A table reconciling the GAAP information to the non-GAAP information is included in todays financial release.
Turning to our balance sheet, our cash and cash equivalents as of October 2nd 2020 totaled $128.3 million.
$12 million compared to 116.3 million at the end of second quarter 2020.
The sequential increase from the second quarter is primarily attributable to $9.6 million in cash generated from operations.
Before we open up the call to your questions I would like to highlight several upcoming investor meetings and conferences that start we'll be attending.
On November 17th start we'll be attending the Jefferies, London Virtual health care conference on.
On November 19th start we'll be participating in the Stephen's annual investment conference.
Karen and I look forward to speaking with many of you at these events in the coming weeks and this concludes our prepared remarks, operator, we are now ready to take your questions.
I wanted to ask a question. Please press star one on your telephone keypad.
Star one to ask a question.
And your first question comes from Anthony Petrone Jefferies. Please go ahead Sir.
Hi, Thank you and I hope, everyone is doing well and congratulations on a good quarter here maybe.
Maybe carrying a couple on on China first and then a follow up on evil Veeva.
And just looking at the the numbers for China.
China in particular, it actually looks like sequentially pricing.
Sort of a normalized then even improved and so maybe just to check our math there did pricing in China improve and when you look at the 33% implant increase and how does that stack up in terms of the patients when you.
Sort of bifurcate between high Myopia, then and more moderate mild patients and then I'll have a follow up on Veeva.
Oh. Thank you Anthony appreciate it in terms of pricing in China, Yes, we had a strong quarter really on as peace globally.
And a lot of that was due to mix and when we look at Torrance first as ferric our tour business continues to improve as well as take a larger share of our total IC sales volume.
With regard to higher my own versus medium MYOB suite definitely, especially in China, which is specific to your question.
We are definitely going down the diverter curve, we have stories of of individuals that mine is one that we're very interested in not having any need for glasses, and especially wearing masks could soften as we do now so yes. The mix in China is continuing to go down.
On the Doctor occurred toward more of what has typically been a laser vision correction targeted market.
Well that's helpful. And then the the two follow ups real quick ill add one in there one would be when you look at the China implant 33 in Japan in particular 67, yeah.
Is there a way to splice out how much is still coming from deferred procedures coming back into the fold or is that new demand and then just the the strategy for the launch with with Veeva is that going to be a combination of direct and distributor and I'll get back in queue. Thanks again.
Okay.
So with regard to our third quarter revenue how much of its new demand how much of it is hold over we we I did refer in my script. The fact that there was some variation in normal the normal busy season for example in China is that young people.
So their college entrance exams were delayed that made they're going back to school delayed which made third quarter heavier than for some categories are most interested implant patients going up a bit in Q3. So there was a little bit of that but I believe for the most part when we talk.
Talk to where clinicians surgeons and what we get back is that there's just there's tremendous interest and enthusiasm for visual freedom.
And a lot of it is related to I think a reaction to the pandemic.
And so I would say that the majority of what we are seeing is not hold over but new demand with regard to the veeva lunch.
As I said in my prepared remarks, we really are working with those refractive surgeons in the major markets across Europe, who are excellent at implanting, our myopic evil lands and working with them on that.
Pulling out very effectively are you press, the opic lens, which adds several levels of new units. So to speak in terms of working with patience and understanding the motivation for which visual correction need they have the highest regard or highest requirement.
So as result of that there's a lot of patient selection criteria that goes into it.
I have two very properly target the patients you need to make sure that you would have excellent patient banishment post surgery and follow up.
And so with the best Implanters, we are rolling this product out and we expect by next year hopefully in person in Barcelona are evil playbook will be made available and we will make they evolve Eva lens commercially available to all surgeons, including those who are currently.
Served by our distributor both those or distributor markets. Both those that are your our normal distribution as well as hybrid.
That's great. Thanks again.
You're welcome.
Oh.
And your next question comes from Chris Cooley.
Right.
Good afternoon, everyone and congratulations on the record quarter since taking the questions.
Thanks, Chris.
If I could start.
With U.S., maybe little bit goes from here.
Help us understand what's the response of response.
What's the change in terms of your reach when you think about a surgeon population here in the United States, If we think about.
The current kind of premium on planters for clean.
Speaking of mile wells on the positive side, but also higher in the slots practices.
Just trying to think about what's the current appraisals and how those slots with Greece program is helping spawned within that network.
One of those completions there Dan.
And so the launch I just got a quick follow up.
Sure. So the refractive restart program was designed to support surgeons, who are coming back after the worst of coated and reopening their practices.
Many of whom had been either strong to what I'd call medium.
Users of our vision I see on U.S. The goal of the Refrac and restart was to help the surgeon attract patients by us providing the surgeons for bilateral implant patients one of those lenses free of charge and so the surgeon had the opportunity there.
Determine how they wanted to offer that benefit to their patients.
What we have found is that a majority of the refractive free start surgeons that signed on and there were hundreds.
Their goal was to really become more familiar with the business and I feel in preparation for evil and also to be able to offer their patients quite an opportunity to get our lenses first is a potentially a lasik procedure at maybe equal or.
Or even less price and so it got a lot of patients that maybe had in the past been told that either they did not qualify for a laser vision procedure. They were called again and brought back in and or new patients, who came and you Wanna visual freedom.
And were offered Ebo, and whom many of cone selected it. So as result of that we were up sequentially over 70% in units. When you count those that were provided free of charge. So we've had a lot of very happy patients and a lot of very happy surgeons, who are getting more and more.
Excited about the possibility of vivo coming to the U.S. next year.
That's great I appreciate the color and then just lastly from me on formal regulatory front just want to make sure.
Were level southern appropriately going into next year.
Do you anticipate that you will require panel.
For the Ito ones in the United States and also could you remind us X.
Expectations for when you launch a again a trial or start to process phone, assuming it would be a supplemental filing for veeva here in the United States as well, Thank you and again congratulations on the quarter.
Thank you Chris.
It's a class three medical device.
Going for approval, we're on a panel track.
It is our assessment that based on the fact that this is a safety study where the endpoints are clear.
At this point, we do not expect that there will be a panel but of course that is decision for the empty, but our belief at this point.
Is that if and when.
We are able to provide the F.D.A. with the critical information and data that supports the approval that we would then be able to go direct to to approval.
With regard to bring veeva to the United States as soon as the full evil a family of lenses is approved by the FDA in the U.S.. We are immediately going into an <unk> discussion on breed, bringing veeva to the U.S.
And your next question.
Ryan Zimmerman.
Thank you congrats on the quarter and so.
Sign to see a couple of questions for me.
Number one Karen just loves US Japan is doing great. It's almost half the size now of China in terms of sales and so you know my previous viewpoint of that market was there was certainly a lot smaller than China. So I'm. Just wondering if you could help us understand what your penetration looks like in Japan.
And whether your view of that market has changed or has it gotten bigger as Japan has has outperformed.
It's from a unit growth perspective.
[noise] well, Japan is a very exciting story four star we have been working very effectively with.
The key opinion leaders in Japan, who are very significant in terms of the Japanese societies determinations, and so what's been going on is that with the pullback of laser vision correction.
And procedures, which at one point were about 400000.
Now all refractive procedures in Japan are anywhere per those surgeons somewhere in the 80 to 100000 procedure range. What we are now experiencing is you know above 30% at least market share.
So where we are headed.
In Japan is to continue to work with surgeon groups and practices and University Tayo wells.
Who want to bring only lens based practices as a standard to the market.
And just recently actually in the August Forbes, Japan covered two of our surgeons Dr. Shimizu and Dr. kit is Iowa.
They themselves in that article very clearly indicated.
What I just told you about laser vision correction, what's going on in terms of never refractive procedures and why the I feel is the best choice.
Hey, Brian its Patrick It is a reminder, Japan, if you're looking at it it does have.
Our injector revenue in there so that might be why you're kind of thinking that overall, Japan is going higher but the just remember that is a couple of million dollars a quarter of a revenue that does get lumped into geography, Japan.
Okay. That's very helpful. Thank you for that clarification, Patrick and then maybe just a follow up on Anthony's question, just actually just two quick ones for me.
Just.
On the China performance I mean, certainly the data points have been very positive for the quarter and Karen I'm. Just wondering if you could speak a little bit to the seasonality of gas into the fourth quarter and then your durability of that dynamic in the fourth quarter. I think you know certainly was some pull forward or.
The dynamic of the college I just examples just wondering if you could kind of if you're able to quantify what that benefit was and what you expect going forward in China.
Well, we talked about in August.
What our growth projections were.
And what was being reported in terms of actual number I feel implant it and we came up with around 35% average what we reported for the third quarter was 33% growth now that sales to the distributor.
What it's been going on in a very strong China market for us.
As demand outweighing, what we are selling.
And so as a result of that that's a good position to be in.
And that we expect continuing growth even into the fourth quarter and that we have used up quite a bit of the inventory.
In Q3, but all of that is figured into our projection.
Approximately 43 million in revenue for Q4, even with a very strong China and that's because we are looking at a global map of coded as potential challenges.
With the additional so the middle East and India, continuing to be honest slow recovery.
But there is no doubt that China growth is very strong.
Okay. That's very helpful. And then just quickly for me and I'll hop back in queue.
You can you talk about timing what submission to the FDA I think first half 21 are you still expecting.
A few months potentially of being out in the market in 21 as you start to launch vivo in the U.S.
Or are you expect or at the various are you expecting some revenue.
At the tail end of 21 with Eagle in the U.S.. Thanks for taking the questions.
Sure. Thank you Ryan well, we would love to have.
Revenue in the U.S. the minute, we can get it up and so at this point in time.
We're uncomfortable and I'm sure you can imagine.
You know, 100%, saying that we expect to have revenue because we've got to get through it and appropriately with the FDA all the steps to approval.
But I can tell you that everything is being prepared as if we could go to market tomorrow.
Okay. Appreciate it congrats again.
Thank you.
Your next question comes from Andrew Brochmann with William Blair.
I can't I, Patrick good afternoon, Thanks for taking the questions Karen maybe to go back to a point you made earlier on the call related to patients, making when I see all the season, a little bit quicker than normal I guess, how should we be thinking about that trend continuing over the longer term and I guess related to the demographic here are there any other sort of macro.
Changes that you witnessed in this recovery period here.
Yeah I think.
Yeah, we have a weekly call with global Representatives about markets and momentum and co head and and and other obvious business indicators of where we're headed.
And one of the things that keeps happening [noise].
Is that.
Because of the necessary sacrifices that so many people are making.
Where they are unable to have the kind of social life family events et cetera, and because when they do go out they have to wear masks or other apparatus that are challenging for eyeglass some contact lens wearers.
There is a sentiment that they want to do something good for themselves. We've heard that were more than what we've heard of many times and so you are I know aware that you know the plastic surgery experience right now is much greater we believe that whether you're talking about.
Liners or are evil lenses or certain procedures for static.
Benefit patients.
Patients are just excited and they're anxious and once they make up their mind. They want it today and so people are going into our surgeons, austin's, rather well and going I want even though I want it now that's going to happen and so that that's a sea change.
From a couple of years ago, where patients were on average surgeons would tell us patients would wait a year.
From the time, they started researching and having one two or three visits with with several doctors before they let anybody touched there right now we think part of the reason why this is approved as well as social media has really picked up and I talked about the fact that our dot finder visits are up 250% and you know.
When we're talking about events, we do in China hundreds of thousands.
Of individuals you know he kinda or listen to tick tock presentations et cetera. So I just think the momentum is really out there for individuals who really want to take care of the things that are challenging to them and vision care is a really high priority.
Perfect. Thanks for thanks for all that cover color, maybe shifting gears here just around market share I think you had talked about 20% share in China sort of by year end. So I guess first is that sort of the assumption that that you're working with and I guess longer term I think it was around this time last year, you had sort of talked about the 25% target by the end.
2022, obviously made some big strides this year. So I guess, how should we be thinking about that longer term target over next couple of years.
Yeah, we still are there and if we could do the 25% earlier, we will imagine is certainly you know the wins that are back and it's really up to us to make sure that we take excellent advice.
Manage and do what we need to do to make sure that we.
We can't deliver to try it out all of the lens demand that we foresee and yes. It is in the 25% range were already passed 20%.
Perfect. Thanks, guys.
Thank you Andrew.
And your next question comes from Bruce Jackson Benchmark.
Thank you for taking my question, if we could look at the seasonality in Europe in the fourth quarter generally it's up it's up sequentially. This year, we've got Cocanino gene. So the possibility of some increased locked down and the offset of the Yudof launch.
Earlier, you mentioned that you eat off launches can be kind of a controlled launch how are you looking at all these puts and takes in terms of the sequential sales growth for Europe in the fourth quarter.
Sure just as a reminder, Bruce last year, we switched from our normal sequential growth quarter by quarter through Q4, and Q3 became our largest corridor.
And it is really based now on China being a big part of our units and as result of that they're busy season.
<unk> is an overwhelming indicator for growth in the Q2 Q3 timeframe Q4, we then usually have Europe jump in in a big way as and then Korea in the winter months that even blend into January et cetera. So the way we see it is.
As a Q3 will be our biggest quarter. This year and Q4 will be very nice growth double digit growth from prior year, but will be modulating a bit by are watching what's going on in certain markets around the world some not still fully recovered and others.
Requiring shut down so we just want to be careful and prudent and we measure this.
Daily and right now what I'm reporting is what we see for the fourth quarter.
Okay. That's helpful. Thank you very much.
Thank you Bruce.
And now I'll turn the call over to Karen Mason for closing remarks.
Thank you for your participation on our call today, we look forward to speaking with many of you in the days or weeks ahead. We appreciate your interest and investment in STAAR surgical please take good care all the best to all of you.
Thank you for joining today's conference call you may now disconnect.
[noise].