Q1 2025 Haemonetics Corp Earnings Call

Operator: Thank you for standing by, and welcome to Haemonetics Corporation's first quarter fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 1-1 again. I would now like to hand the call over to Olga Guyette, Vice President, Investor Relations, and Treasurer.

Operator: Thank you for standing by, and welcome to Heemonetics Corporation's first quarter, fiscal year 2025 earnings conference call. At this time, all participants aren't able to listen the only mode.

Speaker Change: Thank you for standing by and welcome to Haemonetics Corporation's first quarter fiscal year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session.

Operator: After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again.

Speaker Change: To ask a question during the session you will need to press star 1 1 on your telephone.

Operator: To remove yourself from the queue, you may press star 1-1 again.

Olga Guyette: I would now like to hand the call over to Olga Guyette, Vice President, Investor Relations, and Treasury. Please, go ahead.

Speaker Change: To remove yourself from the queue, you may press star 11 again.

Olga Guyette: I would now like to hand the call over to Olga Guyette, Vice President, Investor Relations and Treasury. Please go ahead.

Olga Guyette: Good morning, everyone. Thank you for joining us for Haemonetics' first quarter, fiscal year 2025 conference call and webcast. I'm joined today by Chris Simon, our CEO, and James Mourning, who posted our first quarter of fiscal year 2025 results to our Investor Relations website, along with our fiscal 25 guidance. Before we begin, a quick reminder that old revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of current inflectuation and acquisitions. Our organic revenue growth guidance for fiscal year 2025 incorporates 15 weeks of revenue from offense due to the acquisition closing date being in December 2023.

Olga Guyette: Good morning, everyone. Thank you for joining us for Haemonetics' first quarter fiscal year 2025 conference call and webcast. I'm joined today by Chris Simon, our CEO, and James Derecka, our CFO. This morning, we posted our first quarter fiscal year 2025 results on our Investor Relations website along with our Fiscal 25 guidance. Before we begin, a quick reminder that all revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of currency fluctuation and acquisition.

Olga Guyette: Good morning everyone. Thank you for joining us for Haemonetics first quarter fiscal year 2025 conference call and webcast. I'm joined today by Chris Simon our CEO and James Dureka our CFO .

Unnamed Speaker: This morning, we posted our first quarter fiscal year 2025 results to our Investor Relations website along with our Fiscal 25 guidance, will also refer to other non-GAAP financial measures to help investors understand Haemonetics' ongoing business performance. However, we do not undertake any obligation to update this forward-looking statement.

Speaker Change: This morning, we posted our first quarter Fiscal Year 2025 results to our Investor Relations website along with our Fiscal 25 guidance.

Speaker Change: Before we begin, a quick reminder that all revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of currency fluctuation and acquisitions.

Olga Guyette: Our Organic Revenue Growth Guidance for FY 2025 incorporates 15 weeks of revenue from opt-ins due to the acquisition closing date being in December 2023, and will also refer to other non-GAAP financial measures to help investors understand Haemonetics' ongoing business performance. Please note that these measures exclude certain charges and income items.

Speaker Change: Our Organic Revenue Growth Guidance for FY 2025 incorporates 15 weeks of revenue from opt-ins, due to the acquisition closing date being in December 2023.

Olga Guyette: We will also refer to other non-GAAP financial measures to help investors understand Heemonetics' ongoing business performance. Please note that these measures exclude certain charges and income items. For a full list of excluded items, reconciliation, serve gap results, and comparisons with the prior year periods, please refer to our first quarter, fiscal year 2025 earnings release, available on our website. I remarks today include forward-looking statements and our actual results may differ materially from dissipated results. Factors that may cause a result to differ include those referenced in the safe harbor statement, today's earnings release, and in our other SSC filings.

Speaker Change: We'll also refer to other non-GAAP financial measures to help investors understand Haemonetics' ongoing business performance.

Olga Guyette: For a full list of excluded items, reconciliations or gap results, and comparisons with the prior year periods, please refer to our first quarter fiscal year 2025 earnings release, available on our website. Our remarks today include forward-looking statements, and our actual results may differ materially from anticipated results. Factors that may cause our results to differ include those referenced in the Safe Harbor Statement in today's earnings release and in our other SSE filings. We do not undertake any obligation to update this forward-looking statement. And now, I'd like to turn it over to Chris.

Speaker Change: Please note that these measures exclude certain charges and income items.

Speaker Change: For a full list of excluded items, reconciliations to our gap results, and comparisons with the prior year periods, please refer to our first quarter fiscal year 2025 earnings release, available on our website.

Speaker Change: Our remarks today include forward-looking statements, and our actual results may differ materially from anticipated results.

Speaker Change: Factors that may cause our results to differ include those referenced in the Safe Harbor Statement in today's earnings release and in our other SSE filings. We do not undertake any obligation to update these forward-looking statements.

Olga Guyette: We do not undertake any obligations to update this forward-looking statement.

Christopher Simon: And now, a life has turned out over to Chris. Thanks, Olga. Good morning, and thank you all for joining. Today we report at first quarter revenue of $336 million, growth of 8% on a reported basis and 3% organically, and adjusted earnings per diluted share of $1.2, a 3% decrease from a strong first quarter in the prior year. The start of our fiscal year reflects the strengths in the breadth of our product portfolio, our capacity for continued innovation and growth, and the resilience of our business to succeed in dynamic markets as we navigate ongoing geopolitical challenges.

Christopher Simon: Thanks, Olga. Good morning, and thank you all for joining us. Today, we reported first quarter revenue of $336 million, growth of 8% on a reported basis and 3% organically, and adjusted earnings per diluted share of $1.02, a 3% decrease from a strong first quarter in the prior year. The start of our fiscal year reflects the strength and the breadth of our product portfolio, our capacity for continued innovation and growth, and the resilience of our business to succeed in dynamic markets as we navigate ongoing geopolit

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

Chris: Thanks, Olga. Good morning, and thank you all for joining.

Chris: Today we reported first quarter revenue of $336 million, growth of 8% on a reported basis and 3% organically, and adjusted earnings per diluted share of $1.02, a 3% decrease from a strong first quarter in the prior year.

Unnamed Speaker: The start of our fiscal year reflects the strength and the breadth of our product portfolio, our capacity for continued innovation and growth, and the resilience of our business to succeed in dynamic markets as we navigate ongoing geopolitical challenges. Turning now to our business unit results, plasma revenue declined 3% in the first quarter after growing 35% last year. We have completed more than 30 million persona collections and have compelling real-world evidence of safe and consistent yield enhancement. However, blood center revenue decreased 2% in the quarter.

Speaker Change: The start of our fiscal year reflects the strength and the breadth of our product portfolio, our capacity for continued innovation and growth, and the resilience of our business to succeed in dynamic markets as we navigate ongoing geopolitical challenges.

Christopher Simon: We advance the delivery of plasma-freeze technologies proven to safely lower the cost to collect, reinforcing our status as the leader in addressing the industry's most critical needs. Our blood center solutions are enabling self-sufficient global plasma supply and helping meet increased demand for platelet therapies. In hospital, we are integrating recent acquisitions, launching new products and extending our reaching relevance in attractive markets while delivering robust growth in the rest of the portfolio. Our results underscore Humanetics ability to create significant value for our customers and our shareholders.

Christopher Simon: We advance the delivery of plasmapheresis technologies proven to safely lower the cost to collect, reinforcing our status as the leader in addressing the industry's most critical needs. Our blood center solutions are enabling self-sufficient global plasma supply and helping meet increased demand for platelet therapies. In hospitals, we are integrating recent acquisitions, launching new products, and extending our reach and relevance in attractive markets while delivering robust growth in the rest of the

Speaker Change: We advance the delivery of plasmapheresis technologies proven to safely lower the cost to collect, reinforcing our status as the leader in addressing the industry's most critical needs.

Speaker Change: Our blood center solutions are enabling self-sufficient global plasma supply and helping meet increased demand for platelet therapies.

Speaker Change: In hospital, we are integrating recent acquisitions, launching new products, and extending our reach and relevance in attractive markets, while delivering robust growth in the rest of the portfolio.

Christopher Simon: Our results underscore Haemonetics' ability to create significant value for our customers and our shareholders. We remain committed to accelerating revenue growth, expanding our margins, and enhancing productivity, and we are confident in our strategy for sustained, profitable growth. Turning now to our business unit results, plasma revenue declined 3% in the first quarter after growing 35% last year.

Speaker Change: Our results underscore Humanetics' ability to create significant value for our customers and our shareholders. We remain committed to accelerating revenue growth, expanding our margins, and enhancing productivity, and we are confident in our strategy for sustained, profitable growth.

Christopher Simon: We remain committed to accelerating revenue growth, expanding our margins, and enhancing productivity, and we are confident in our strategy for sustained, profitable growth.

Christopher Simon: Bernie, now for our business unit results. Plasma revenue declined 3% in the first quarter after growing 35% last year. North America disposal revenue was down 5%, driven by CSL's plan transition, excluding the transition and an unforeseen temporary customer plasma center in the quarter. Strong end market demand for IG replacement therapies and the planned expansion of fractionation capacity across the industry support long term growth in the plasma collection market. Near term customers have a heightened focus on lowering cost per liter. We have completed more than 30 million persona collections and have compelling real world evidence of safe and consistent yield enhancements. Full market release of our express plus technology is now underway, significantly improving collection time, door to door time, and center throughput.

Christopher Simon: North America disposal revenue was down 5% driven by CSL's planned transition; excluding the transition and an unforeseen temporary customer plasma center outage, U.S. collection volume growth was in the high single digits. North America Software and Europe Disposable Revenue each grew double digits in the quarter. Strong end market demand for IG replacement therapies and the planned expansion of fractionation capacity across the industry support long-term growth in the plasma collection market. However, in the near term, customers have a heightened focus on lowering costs per liter. We have completed more than 30 million persona collections and have compelling real-world evidence of safe and consistent yield enhancement.

Speaker Change: Turning now to our business unit results.

Speaker Change: Plasma revenue declined 3% in the first quarter after growing 35% last year.

Speaker Change: North America disposal revenue was down 5% driven by CSL's planned transition. Excluding the transition and an unforeseen temporary customer plasma center outage, U.S. collection volume growth was in the high single digits.

Speaker Change: North America Software and Europe Disposable Revenue each grew double digits in the quarter.

Speaker Change: Strong end-market demand for IG replacement therapies and the planned expansion of fractionation capacity across the industry support long-term growth in the plasma collection market. Near-term, customers have a heightened focus on lowering cost per liter.

Speaker Change: We have completed more than 30 million persona collections and have compelling real-world evidence of safe and consistent yield enhancements.

Christopher Simon: The full market release of our Express Plus technology is now underway, significantly improving collection time, door-to-door time, and center throughput. We plan to upgrade the remainder of our Nexus customers to Express Plus and Persona before the end of this fiscal year. Our advanced technology is an enabler of profitable growth for us and our customers. We expect to gain additional market share in the U.S. and globally to continue to deliver revenue growth that outpaces the plasma collections market. We reaffirm our plasma revenue growth guidance for FY 2025 in the range of negative three to negative six percent, driven by the previously announced customer transition. Blood center revenue decreased 2% in the quarter.

Speaker Change: Full market release of our Express Plus technology is now underway, significantly improving collection time, door-to-door time, and center throughput.

Christopher Simon: We plan to operate the remainder of our Nexus customers to Express Plus and Persona before the end of this fiscal year. Our advanced technology is an enabler of profitable growth for us and our customers. We expect to gain additional market share in the US and globally to continue to deliver revenue growth that outpaces the plasma collections market.

Speaker Change: We plan to upgrade the remainder of our Nexus customers to Express Plus and Persona before the end of this fiscal year.

Speaker Change: Our advanced technology is an enabler of profitable growth for us and our customers. We expect to gain additional market share in the U.S. and globally to continue to deliver revenue growth that outpaces the plasma collections market.

Christopher Simon: We reaffirm our plasma revenue growth guidance for FY 2025 in the range of negative 3 to negative 6% driven by the previously announced customer transition. Blood center revenue decreased 2% in the quarter if recess revenue grew 3% driven by continued demand for plasma across several markets and red cell collection share gains in the US, partially offset by order timing among distributors. Old blood revenue declined 14% as we continue to rationalize the franchise to optimize durable contribution as part of our company-wide margin expansion. The increasing focus on plasma self-sufficiency continues to drive international demand for source plasma.

Speaker Change: We reaffirm our Plasma Revenue Growth Guidance for FY 2025 in the range of negative 3 to negative 6 percent, driven by the previously announced customer transition.

Unnamed Speaker: Apheresis revenue grew 3%, driven by continued demand for plasma across several markets and red cell collection share gains in the U.S., partially offset by order timing among distributors. We swiftly adapted to evolving market trends and ensured sufficient commercial and clinical support throughout our U.S. account network. We achieved 68% revenue growth on a reported basis and 19% organic growth. With training and integration largely completed, the team is focused on hitting individual product targets and selling the entire interventional technologies portfolio across both electrophysiology and interventional cardiology.

Christopher Simon: Apharesis revenue grew 3%, driven by continued demand for plasma across several markets and red cell collection share gains in the U.S., partially offset by order timing among distributors. Whole blood revenue declined 14% as we continue to rationalize the franchise to optimize durable contribution as part of our company-wide margin expansion. The increasing focus on plasma self-sufficiency continues to drive international demand for source plasma.

Speaker Change: Blood center revenue decreased 2% in the quarter. Apheresis revenue grew 3%, driven by continued demand for plasma across several markets, and red cell collection share gains in the U.S., partially offset by order timing among distributors.

Speaker Change: Whole blood revenue declined 14% as we continue to rationalize the franchise to optimize durable contribution as part of our company-wide margin expansion.

Speaker Change: The increasing focus on plasma self-sufficiency continues to drive international demand for source plasma. We are strengthening our global customer relationships to expand Nexus's reach.

Christopher Simon: We are strengthening our global customer relationships to expand Nexus's reach.

Christopher Simon: We are strengthening our global customer relationships to expand Nexus's reach. Our FY 2025 guidance for blood center revenue growth is unchanged in the range of negative five to negative seven percent. Moving to our hospital business, first quarter revenue grew 31% on a reported basis, including our newly acquired sensor guided technologies and esophageal protection device and 13% organically. Our interventional franchise has been busy.

Christopher Simon: Our FY 2025 guidance for blood center revenue growth is unchanged in the range of negative 5 to negative 7%.

Speaker Change: Our FY 2025 Guidance for Blood Center Revenue Growth is unchanged in the range of negative 5 to negative 7 percent.

Christopher Simon: Moving to our hospital business, first quarter revenue grew 31% on a reported basis, including our newly acquired sensor guided technology.

Speaker Change: Moving to our hospital business.

Speaker Change: First quarter revenue grew 31% on a reported basis, including our newly acquired sensor-guided technologies and esophageal protection device, and 13% organically.

Christopher Simon: The commercial team completed comprehensive training across our expanded product portfolio, swiftly adapted to evolving market trends, and ensured sufficient commercial and clinical support throughout our U.S. account network. As a result, we achieved 68% revenue growth on a reported basis and 19% organic growth. With training and integration largely completed, the team is focused on hitting individual product targets and selling the entire interventional technologies portfolio across both electrophysiology and interventional cardiology. Growth in the quarter was driven by continued penetration of the top 600 U.S. accounts with our vascular closure devices and increased emphasis on utilization across addressable procedures. The limited market release of Vascade MVP XL, which features a 58 percent larger collagen plug, was a success with very positive This new device allows us to successfully participate in the rapidly growing market of pulse field ablation and increase adoption and procedures like left atrial appendage exposures, where we've seen minimal usage with Vascade MVP.

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Speaker Change: Our interventional franchise has been busy. The commercial team completed comprehensive training across our expanded product portfolio.

Speaker Change: swiftly adapted to evolving market trends.

Speaker Change: and ensured sufficient commercial and clinical support throughout our U.S. account network.

Speaker Change: We achieved 68% revenue growth on a reported basis and 19% organic growth. With training and integration largely completed, the team is focused on hitting individual product targets and selling the entire interventional technologies portfolio across both electrophysiology and interventional cardiology.

Christopher Simon: With training and integration largely completed, the team is focused on hitting individual product targets and selling the entire interventional technologies portfolio across both electrophysiology and interventional cardiology. Rowsing the quarter was driven by continued penetration of the top 600 U.S. accounts with our vascular closure devices and increased emphasis on utilization across addressable procedures. The Limit at Market released a Vescaid MVP XL, which features a 58% larger college and plug was a success with very positive results across procedures and highly encouraging responses from early adopters. This new device allows us to successfully participate in the rapidly growing market of both the elder population and increase adoption in procedures like less atrial appendages closures, where we've seen minimal usage with Vescaid MVP.

Unnamed Speaker: Growth in the quarter was driven by continued penetration of the top 600 U.S. accounts with our vascular closure devices and increased emphasis on utilization across addressable procedures. Additionally, our newly acquired products delivered a total of $18 million in revenue, further accelerating growth of this franchise. It's early days, but we feel good about the progress we have made, and the business case for these acquisitions is intact. We are excited to launch SavvyWire in Europe in the coming months and extend the unique benefits of this guidewire to more patients by broadening our market access.

Speaker Change: Growth in the quarter was driven by continued penetration of the top 600 US accounts with our vascular closure devices and increased emphasis on utilization across addressable procedures.

Speaker Change: The limited market release of Vascade MVP XL, which features a 58% larger collagen plug, was a success, with very positive results across procedures and highly encouraging responses from early adopters.

Speaker Change: This new device allows us to successfully participate in the rapidly growing market of pulse field ablation and increase adoption and procedures like left atrial appendage exposures where we've seen minimal usage with BESCADE MVP.

Christopher Simon: With full market release underway and an ongoing development program to expeditiously expand the label to larger access points, we are further strengthening our leadership and enabling treatment of atrial fibrillation regardless of the ablation technology used. We are making significant progress internationally as well, having established our presence in over 100 accounts in Japan with further plans and our additional European markets this year. We are strengthening our field for support to convey our unique clinical and economic benefits over the competition, and we expect to sustain 20% plus growth in the vascular closure business and further expand our leadership position in this $2.7 billion market.

Christopher Simon: With full market release underway and an ongoing development program to expeditiously expand the label to larger access points, we are further strengthening our leadership and enabling treatment of atrial fibrillation regardless of the ablation technology used. We are making significant progress internationally as well, having established our presence in over 100 accounts in Japan with further plans to enter additional European markets this year. We are strengthening our field for support to convey our unique clinical and economic benefits over the competition, and we expect to sustain 20% plus growth in the vascular closure business and further expand our leadership position in this $2.7 billion market.

Speaker Change: With full market release underway and an ongoing development program to expeditiously expand the label to larger access points, we are further strengthening our leadership in enabling treatment of atrial fibrillation regardless of the ablation technology used.

Speaker Change: We are making significant progress internationally as well, having established our presence in over 100 accounts in Japan, with further plans to enter additional European markets this year.

Speaker Change: We are strengthening our field for support to convey our unique clinical and economic benefits over the competition and we expect to sustain 20% plus growth in the vascular closure business and further expand our leadership position in this 2.7 billion dollar market

Christopher Simon: Our newly acquired products delivered a total of $18 million in revenue, further accelerating growth of this franchise. It's early days, but we feel good about the progress we have made, and the business case for these acquisitions is intact. We are excited to launch SavvyWire in Europe in the coming months and extend the unique benefits of this guide wire to more patients by broadening our market access. We are also highly encouraged by the progress and positive feedback for NZOETM, with its considerable clinical benefits, including reduced esophageal injury during radio frequency cardiac ablation. It presents a compelling market opportunity as a reliable, safe, and significantly more cost-effective alternative to emerging capital-based technologies that safely and effectively treat atrial fibrillation.

Christopher Simon: Our newly acquired products delivered a total of $18 million in revenue, further accelerating the growth of this franchise. It's early days, but we feel good about the progress we have made, and the business case for these acquisitions is intact. We are excited to launch SavvyWire in Europe in the coming months and extend the unique benefits of this guidewire to more patients by broadening our market access. We are also highly encouraged by the progress and positive feedback for Enzo ETM.

Speaker Change: Our newly acquired products delivered a total of $18 million in revenue, further accelerating growth of this franchise. It's early days, but we feel good about the progress we have made and the business case for these acquisitions is intact.

Speaker Change: We are excited to launch SavvyWire in Europe in the coming months and extend the unique benefits of this guidewire to more patients by broadening our market access.

Speaker Change: We are also highly encouraged by the progress and positive feedback for ENSO ETM.

Christopher Simon: With its considerable clinical benefits, including reduced esophageal injury during radiofrequency cardiac ablation, it presents a compelling market opportunity as a reliable, safe, and significantly more cost-effective alternative to emerging catheter-based technologies to safely and effectively treat atrial fibrillation.

Speaker Change: with its considerable clinical benefits, including reduced esophageal injury during radiofrequency cardiac ablation.

Speaker Change: It presents a compelling market opportunity as a reliable,

Speaker Change: a safe and significantly more cost-effective alternative to emerging catheter-based technologies.

Christopher Simon: Our blood management technologies franchise also had a strong first quarter with 10% revenue growth. In the Stasis Management delivered double-digit growth in North America, driven by strong capital sales and increased disposable utilization on the TAG 6S platform. Our new Hepburn neutralization cartridge is helping clinicians serve fully heparinized patients and enabling deeper penetration into accounts performing adult cardiovascular surgeries and liver transplantation. Success in the U.S. was partially offset by geopolitical market challenges in China. Transfusion management benefited from new account openings for safe trace TX and blood track in North America and EMIA. We invested an additional channel expansion and further enhanced the platform, positioning us to win share.

Christopher Simon: Our blood management technologies franchise also had a strong first quarter with 10% revenue growth. Immunostasis management delivered double-digit growth in North America, driven by strong capital sales and increased disposable utilization on the TAG6S platform. Our new heparin neutralization cartridge is helping clinicians serve fully heparinized patients and enabling deeper penetration into accounts performing adult cardiovascular surgeries and liver transplantation.

Unnamed Speaker: Our blood management technologies franchise also had a strong first quarter with 10% revenue growth. Hemostasis management delivered double-digit growth in North America, driven by strong capital sales and increased disposable utilization on the TAG6S platform. Our new heparin neutralization cartridge is helping clinicians serve fully heparinized patients and enabling deeper penetration into accounts performing adult cardiovascular surgeries and liver transplantation.

Speaker Change: to safely and effectively treat atrial fibrillation.

Speaker Change: Our blood management technologies franchise also had a strong first quarter with 10% revenue growth.

Speaker Change: Homestasis management delivered double-digit growth in North America driven by strong capital sales and increased disposable utilization on the TAG 6S platform.

Speaker Change: Our new Heparin Neutralization Cartridge is helping clinicians serve fully heparinized patients and enabling deeper penetration into accounts performing adult cardiovascular surgeries and liver transplantation. Success in the US was partially offset by geopolitical market challenges in China.

James: Success in the U.S. was partially offset by geopolitical market challenges in China. However, transfusion management benefited from new account openings for SafeTrace TX and BloodTrack in North America and EMEA. We invested in additional channel expansion and further enhanced the platform, positioning us to win share. CellSalvage also had an impressive quarter across all markets with additional upside from last-time buy orders in our older generation devices. We are excited about the opportunities ahead of us and expect growth in our hospital business to accelerate in subsequent quarters, driven by new product launches, sales synergies from newly acquired products, and improved efficiency of scale.

Unnamed Speaker: Success in the U.S. was partially offset by geopolitical market challenges in China. Nearly half of that decline was related to FX impacts, with the remainder due to increased adjusted operating expenses. We reaffirm our adjusted operating margin guidance for Fiscal 25 at 23 to 24 percent, anticipating steady improvements each subsequent quarter as we progress toward our long-range plan of achieving operating margins in the high 20s. The adjusted income tax rate was 20% for the first quarter, compared with 21% one year ago.

Speaker Change: Transfusion management benefited from new account openings for SafeTrace TX and BloodTrack in North America and EMEA. We invested in additional channel expansion and further enhanced the platform, positioning us to win share.

Christopher Simon: Cell salvage also had an impressive quarter across all markets with additional upside from last time by orders in our older generation device.

Speaker Change: Cell Salvage also had an impressive quarter across all markets with additional upside from last time by orders in our older generation device.

Christopher Simon: We are excited about the opportunities ahead of us and expect growth in our hospital business to accelerate in subsequent quarters driven by new product launches, sales synergies from newly acquired products, and improving efficiency of scale. We reaffirm our previously issued guidance and expect hospital-reported revenue growth of 27 to 32% and organic revenue growth of 13 to 16% in FY 2025. We expect a strong year ahead as we continue to refine our portfolio to drive sustainable revenue growth at attractive margins. For the total company, we continue to expect reported revenue growth to be in the range of 5-8%, and organic growth could be flat to 3% for FY 2025.

Speaker Change: We are excited about the opportunities ahead of us and expect growth in our hospital business to accelerate in subsequent quarters, driven by new product launches, sales synergies from newly acquired products,

James: We reaffirm our previously issued guidance and expect hospital reported revenue growth of 27 to 32% and organic revenue growth of 13 to 16% in FY 2025. We expect a strong year ahead as we continue to refine our portfolio to drive sustainable revenue growth at attractive margins. For the total company, we continue to expect reported revenue growth to be in the range of 5 to 8 percent and organic growth to be flat to 3 percent for FY 2025. Now, I'll pass it over to James to discuss the rest of our financial performance and fiscal year 2025 guidance. Thank you, Chris.

Speaker Change: and Improving Efficiency of Scale. We reaffirm our previously issued guidance and expect hospital reported revenue growth.

Speaker Change: of 27% to 32% and organic revenue growth of 13% to 16% in FY 2025.

Speaker Change: We expect a strong year ahead as we continue to refine our portfolio to drive sustainable revenue growth at attractive margins.

Speaker Change: For the total company, we continue to expect reported revenue growth to be in the range of 5% to 8% and organic growth to be flat to 3% for FY 2025. Now, I'll pass it over to James to discuss the rest of our financial performance and fiscal year 2025 guidance.

James Mourning: Now I'll pass it over to James to discuss the rest of our financial performance in fiscal year 2025 guidance. Thank you, Chris, and good morning, everyone. As Chris mentioned, this quarter has been an exceptionally productive one across the organization. We successfully launched new products and continued to integrate acquisitions, all while maintaining a strong focus on our short and midterm objectives. The effect of portfolio evolution is becoming more meaningful in driving higher margins and positioning us for sustained success. We ended the first quarter with an adjusted growth margin of 55.3%, up 110 basis points from last year, driven by volume and mix, with a disproportionate contribution from the growing momentum in our hospital business unit.

James: And good morning, everyone. As Chris mentioned, this quarter has been an exceptionally productive one across the organization. We successfully launched new products and continued to integrate acquisitions, all while maintaining a strong focus on our short and midterm objectives. The effect of portfolio evolution is becoming more meaningful in driving higher margins and positioning us for sustained success. We ended the first quarter with an adjusted gross margin of 55.3 percent, up 110 basis points from last year, driven by volume and mix, with a disproportionate contribution from the growing momentum in our hospital business unit.

James: Thank you, Chris, and good morning, everyone.

James: As Chris mentioned, this quarter has been an exceptionally productive one across the organization. We successfully launched new products and continued to integrate acquisitions, all while maintaining a strong focus on our short- and mid-term objectives.

James: The effect of portfolio evolution is becoming more meaningful in driving higher margins and positioning us for sustained success.

Speaker Change: We ended the first quarter with an adjusted gross margin of 55.3%, up 110 basis points from last year, driven by volume and mix, with a disproportionate contribution from the growing momentum in our hospital business unit.

James Mourning: Adjusted operating expenses in the first quarter were $114.9 million, an increase of $16 million, or 17%, compared with the first quarter of the prior year. As a percentage of revenue, adjusted operating expenses increased by 250 basis points to 34.2%. The increase in adjusted operating expenses in the quarter was primarily due to the recent acquisitions of Op-Sense and Attuned Medical along with additional growth investments. First quarter adjusted operating income was $71 million, an increase of 0.8 million or 1%, and our adjusted operating margin was 21.1%, down 150 basis points compared with a very strong quarter last year.

James: Adjusted operating expenses in the first quarter were $114.9 million, an increase of $16 million, or 17 percent, compared with the first quarter of the prior year. As a percentage of revenue, adjusted operating expenses increased by 250 basis points to 34.2%.

Speaker Change: Adjusted operating expenses in the first quarter were $114.9 million, an increase of $16 million, or 17%, compared with the first quarter of the prior year.

Speaker Change: As a percentage of revenue, adjusted operating expenses increased by 250 basis points to 34.2%.

James: The increase in adjusted operating expenses in the quarter was primarily due to the recent acquisitions of Opsense and Attune Medical, along with additional growth investments. First quarter adjusted operating income was $71 million, an increase of 0.8 million or 1%, and our adjusted operating margin was 21.1%, down 150 basis points compared with a very strong quarter last year. Nearly half of that decline was related to FX impacts, with the remainder due to increased adjusted operating expenses.

Speaker Change: The increase in adjusted operating expenses in the quarter was primarily due to the recent acquisitions of Opsense and Attune Medical, along with additional growth investments.

Speaker Change: First quarter Adjusted Operating Income was $71 million, an increase of .8 million or 1%, and our Adjusted Operating Margin was 21.1%, down 150 basis points compared with a very strong quarter last year.

James Mourning: Nearly half of that decline was related to effects impacts, with the remainder due to increased adjusted operating expenses. Sequentially, our adjusted operating margin expanded by 230 basis points compared with a fourth quarter of fiscal 24. Primarily driven by improved adjusted growth margin, lower performance-based compensation, and higher plasma inventory reducing the need for freight expediting. This was our first full quarter with both Op-Sense and Attuned. While there is more work to do to synergize these acquisitions fully, we already see benefits of these high-margin products helping us offset increased costs. We expect these benefits to increase as we expand our commercial strategies in the top U.S.

Speaker Change: Nearly half of that decline was related to FX impacts, with the remainder due to increased adjusted operating expenses.

James: sequentially, our adjusted operating margin expanded by 230 basis points compared with the fourth quarter of fiscal 24, primarily driven by improved adjusted gross margin, lower performance-based compensation, and higher plasma inventory, reducing the need for freight expediting. This was our first full quarter with both Opsense and Attune.

James: sequentially.

Speaker Change: Our adjusted operating margin expanded by 230 basis points.

James: compared with the fourth quarter of fiscal 24, primarily driven by improved adjusted gross margin, lower performance-based compensation, and higher plasma inventory, reducing the need for freight expediting.

James: While there is more work to do to synergize these acquisitions fully, we already see benefits from these high-margin products, helping us offset increased costs. We expect these benefits to increase as we expand our commercial strategies in the top U.S. accounts in Fiscal 25 and beyond. We reaffirm our adjusted operating margin guidance for Fiscal 25 at 23 to 24 percent, anticipating steady improvements each subsequent quarter as we progress toward our long-range plan of achieving operating margins in the high 20s. The adjusted income tax rate was 20% for the first quarter, compared with 21% one year ago.

James: This was our first full quarter with both Opsense and Attune. While there is more work to do to synergize these acquisitions fully, we already see benefits of these high-margin products, helping us offset increased costs.

James: We expect these benefits to increase as we expand our commercial strategies in the top U.S. accounts in Fiscal 25 and beyond.

James Mourning: accounts in fiscal 25 and beyond.

James Mourning: We reaffirm our adjusted operating margin guidance for fiscal 25 at 23 to 24%. Anticipating steady improvements, each subsequent quarter, as we progress toward our long-range plan of achieving operating margins in the high 20. The adjusted income tax rate was 20% for the first quarter, compared with 21% 1 year ago. We expect our fiscal 25 adjusted income tax rate to be approximately 23%. First quarter adjusted income was $52.4 million, down $1.3 million or 2%. An adjusted earnings per diluted share was $1.2 million, down 3%, when compared with the strong first quarter of fiscal 24. Changes in the adjusted income tax rate, interest expense, and foreign exchange had a $0.7 million negative impact on the first quarter adjusted earnings per diluted share when compared with the prior year.

James: We reaffirm our adjusted operating margin guidance for Fiscal 25 at 23 to 24 percent, anticipating steady improvements each subsequent quarter as we progress toward our long-range plan of achieving operating margins in the high 20s.

James: The adjusted income tax rate was 20% for the first quarter, compared with 21% one year ago. We expect our fiscal 25 adjusted income tax rate to be approximately 23%.

James: We expect our fiscal 25 adjusted income tax rate to be approximately 23 percent. First quarter adjusted income was $52.4 million, down $1.3 million, or 2%, and adjusted earnings per diluted share was $1.02, down 3% when compared with the strong first quarter of fiscal 24. Changes in the adjusted income tax rate, interest expense, and foreign exchange had a 7 cent negative impact on the first quarter adjusted earnings per diluted share when compared with the prior year.

James: First quarter adjusted income was $52.4 million, down $1.3 million, or 2%, and adjusted earnings per diluted share was $1.02.

James: down three percent when compared with the strong first quarter of fiscal twenty-four

James: Changes in the adjusted income tax rate, interest expense, and foreign exchange had a $0.07 negative impact on the first quarter adjusted earnings for diluted share when compared with the prior year.

James Mourning: We remain optimistic about our prospects and our ability to capitalize on emerging market trends, optimize our portfolio mix, and realize savings through operational excellence.

James: We remain optimistic about our prospects and our ability to capitalize on emerging market trends, optimize our portfolio mix, and realize savings through operational excellence. We reaffirm our adjusted earnings per diluted share guidance of $4.45 to $4.75. At the midpoint of our guidance range, we now anticipate approximately $0.34 of impacts from interest expense, FX, income tax, and share count, with interest expense being responsible for about half of that. Turning now to select Cash Flow and Balance Sheet Highlights.

Unnamed Speaker: We remain optimistic about our prospects and our ability to capitalize on emerging market trends, optimize our portfolio mix, and realize savings through operational excellence, primarily related to lower debt income and higher working capital due to increased inventory and the timing of certain payments. Through our long-term strategic focus, we are cultivating a powerful, sustainable growth engine poised to deliver value to our shareholders well into the future.

James: We remain optimistic about our prospects and our ability to capitalize on emerging market trends, optimize our portfolio mix, and realize savings through operational excellence.

James Mourning: We reaffirm our adjusted earnings per diluted share guidance of $4.45 to $4.75. At the midpoint of our guidance range, we now anticipate approximately 34 cents of impacts from interest expense, effects, income tax, and share count, with interest expense being responsible for about half of that.

James: We reaffirm our adjusted earnings per diluted share guidance of $4.45 to $4.75.

James: At the midpoint of our guidance range, we now anticipate approximately $0.34 of impacts from interest expense, FX, income tax, and share count, with interest expense being responsible for about half of that.

James Mourning: Turning now to select cash flow and balance sheet highlights. In our first quarter, we had a cash outflow of $27 million, primarily related to lower debt income and higher working capital due to increased inventory and the timing of certain payments. Combined with additional CAPEX spend, net of proceeds from the sale of one of our manufacturing facilities, we had a free cash outflow of $17 million. Our expectation for free cash flow remains unchanged at $130 to $180 million in fiscal 25. Cash on hand at the end of the quarter was $344 million, up $166 million since the end of fiscal 24, primarily due to our recently completed debt financing, net of the repurchase of a portion of our convertible notes due in 2026.

James: In our first quarter, we had a cash outflow of $27 million, primarily related to lower debt income and higher working capital due to increased inventory and the timing of certain payments, combined with additional CapEx spend, net of proceeds from the sale of one of our manufacturing facilities. Our expectation for free cash flow remains unchanged at $130 to $180 million in Fiscal 25.

James: Turning now to select cash flow and balance sheet highlights. In our first quarter, we had a cash outflow of 27 million dollars, primarily related to lower debt income and higher working capital due to increased inventory and the timing of certain payments.

James: Combined with additional CapEx spend, net of proceeds from the sale of one of our manufacturing facilities, we had a free cash outflow of $17 million.

James: Our expectation for free cash flow remains unchanged at $130 to $180 million in fiscal 25.

James: Cash on hand at the end of the quarter was $344 million, up $166 million since the end of fiscal 24, primarily due to our recently completed debt financing, net of the repurchase of a portion of our convertible notes due in 2026, new capped call transactions and transaction-related fees, and the paydown of borrowings on the revolving credit facility used to help fund the recent acquisitions of Offsense and Attune. Our updated debt capital structure includes a recently refinanced credit facility consisting of a $250 million unsecured term loan A and a $750 million unsecured revolving facility, as well as $1 billion in convertible notes, which puts our net leverage ratio at approximately 2.8 times EBITDA at the end of our first quarter.

James: cash on hand at the end of the quarter was three hundred and forty four million dollars

James: up $166 million since the end of fiscal 24.

James: primarily due to our recently completed debt financings net of the repurchase of a portion of our convertible notes due in 2026.

James Mourning: New CAPEX called transactions and transaction-related fees and the pay-down of borrowings on the revolving credit facility used to help fund the recent acquisitions of Op-Sense and Attuned. Our updated debt capital structure includes a recently refinanced credit facility consisting of $250 million unsecured term loan A and a $750 million unsecured revolving facility, as well as $1 billion in convertible notes, which puts our net leverage ratio at approximately 2.8 times EBITDA at the end of our first quarter. In addition to the credit facility refinancing discussed on our May earnings call, during the first quarter we issued $700 million of convertible securities with a 2.5% coupon and a capped call, ensuring the protection of the conversion price until the share price reaches $180 or a 100% premium over the issue price of $90 a share.

James: new capped call transactions and transaction related fees and the pay down of borrowings on the revolving credit facility used to help fund the recent acquisitions of Opsense and Attune.

Operator: Thank you for standing by and welcome to Heemonetics Corporation's first quarter, fiscal year, 2025 earnings conference call. At this time, all participants aren't able to listen the only mode.

James: are updated.

James: debt capital structure includes a recently refinance credit facility consisting of of two hundred and fifty million dollar unsecured term loan a and a seven hundred and fifty million dollar unsecured revolving facility as well as one billion dollars in convertible notes

Operator: After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, you may press star 1-1 again.

Olga Guyette: I would now like to hand the call over to Olga Guyette, vice president, investor relations, and treasury. Please, go ahead.

James: which puts our net leverage ratio at approximately 2.8 times EBITDA at the end of our first quarter.

James: In addition to the credit facility refinancing discussed on our May earnings call, during the first quarter, we issued $700 million of convertible securities with a 2.5% coupon and a capped call, ensuring the protection of the conversion price until the share price reaches $180, or a 100% premium over the issue price of $90 a share.

Olga Guyette: Good morning, everyone. Thank you for joining us for Heemonetics' first quarter, fiscal year 2025 conference call and webcast. I'm joined today by Chris Simon, our CEO and James Mourning, who posted our first quarter of fiscal year 2025 results to our investor relations website, along with our fiscal 25 guidance. Before we begin, a quick reminder that old revenue growth rates discussed today are organic, unless specified otherwise, and exclude the impact of current inflectuation and acquisitions.

James: In addition to the credit facility refinancing discussed on our May earnings call,

James: During the first quarter, we issued $700 million of convertible securities with a 2.5% coupon and a capped call, ensuring the protection of the conversion price until the share price reaches $180.

James Mourning: This transaction allowed us to mitigate risks associated with upcoming convertible note maturities and pre-fund a portion of our growth agenda at attractive interest rates, while helping to ensure we remain in a strong financial position when pursuing additional growth opportunities.

James: or 100% premium over the issue price of $90 a share.

James: This transaction allowed us to mitigate risks associated with upcoming convertible note maturities and pre-fund a portion of our growth agenda at attractive interest rates, while helping to ensure we remain in a strong financial position when pursuing additional growth opportunities. Before we transition to Q&A, I would like to share some key takeaways as we reflect on the start of our fiscal year and our strategic direction moving forward. Our first quarter performance demonstrated our strength and impact.

James: This transaction allowed us to mitigate risks associated with upcoming convertible note maturities and pre-fund a portion of our growth agenda at attractive interest rates, while helping to ensure we remain in a strong financial position when pursuing additional growth opportunities.

Olga Guyette: Our organic revenue growth guidance for fiscal year 2025 incorporates 15 weeks of revenue from offense due to the acquisition closing date being in December 2023. We will also refer to other non-gap financial measures to help investors understand Heemonetics' ongoing business performance. Please note that these measures exclude certain charges and income items. For a full list of excluded items, reconciliation serve gap results and comparisons with the prior year periods, please refer to our first quarter, fiscal year 2025 earnings release, available on our website.

James Mourning: Before we transition to Q&A, I would like to share some key takeaways as we reflect on the start of our fiscal year and our strategic direction moving forward. Our first quarter performance demonstrated our strength and impact. We continued to expand our industry presence and leadership across our business units while proving our resilience as we advanced our growth amidst changing market trends and geopolitical challenges.

James: Before we transition to Q&A, I would like to share some key takeaways as we reflect on the start of our fiscal year and our strategic direction moving forward.

James: We continued to expand our industry presence and leadership across our business units, while proving our resilience as we advanced our growth amidst changing market trends and geopolitical challenges. We are driving our innovation with new products both launched and in the pipeline. Our focus on innovation is paving the way for further expansion into high-growth markets and enhancing our financial performance both in the near term and in the long run. Our debt financing was an important step in strategically enhancing our access to capital and increasing flexibility in capital deployment.

James: Our first quarter performance demonstrated our strength and impact. We continued to expand our industry presence and leadership across our business units while proving our resilience as we advanced our growth amidst changing market trends and geopolitical challenges.

James Mourning: We are forwarding our innovation with new products, both launched and in the pipeline. Our focus on innovation is paving the way for further expansion into high growth markets and enhancing our financial performance both in the near term and in the long run.

Olga Guyette: I remarks today include forward-looking statements and our actual results may differ materially from dissipated results. Factors that may cause a result to differ include those reference in the safe harbor statement today's earnings release and in our other SSC filings. We do not undertake any obligations to update this forward-looking statement.

James: We are forwarding our innovation with new products both launched and in the pipeline. Our focus on innovation is paving the way for further expansion into high-growth markets and enhancing our financial performance both in the near term and in the long run.

James Mourning: Our debt financing was an important step in strategically enhancing our access to capital and increasing flexibility in capital deployment. This will help us ensure we remain in a strong financial position when pursuing additional organic or inorganic growth opportunities.

Christopher Simon: And now, a life has turned out over to Chris. Thanks, Olga. Good morning and thank you all for joining. Today we report at first quarter revenue of $336 million, growth of 8% on a reported basis and 3% organically and adjusted earnings per diluted share of $1.2, a 3% decrease from a strong first quarter in the prior year. The start of our fiscal year reflects the strengths in the breadth of our product portfolio, our capacity for continued innovation and growth and the resilience of our business to succeed in dynamic markets as we navigate ongoing geopolitical challenges.

James: Our debt financing was an important step in strategically enhancing our access to capital and increasing flexibility in capital deployment.

James: This will help us ensure we remain in a strong financial position when pursuing additional organic or inorganic growth opportunities. And finally, we remain committed to achieving the objectives outlined in our long-range plan. Through our long-term strategic focus, we are cultivating a powerful, sustainable growth engine poised to deliver value to our shareholders well into the future. Thank you, and we can now proceed with Q&A.

James: This will help us ensure we remain in a strong financial position when pursuing additional organic or inorganic growth opportunities.

James Mourning: And finally, we remain committed to achieving the objectives outlined in our long-range plan. Through our long term strategic focus, we are cultivating a powerful, sustainable growth engine, poised to deliver value to our shareholders well into the future.

James: and finally we remain committed to achieving the objectives outlined in our long range plan

James: Through our long-term strategic focus, we are cultivating a powerful, sustainable growth engine poised to deliver value to our shareholders well into the future.

Christopher Simon: We advance the delivery of plasma-freeze technologies proven to safely lower the cost to collect reinforcing our status as the leader in addressing the industry's most critical needs. Our blood center solutions are enabling self-sufficient global plasma supply and helping meet increased demand for platelet therapies. In hospital, we are integrating recent acquisitions, launching new products and extending our reaching relevance in attractive markets while delivering robust growth in the rest of the portfolio. Our results underscore humanetics ability to create significant value for our customers and our shareholders. We remain committed to accelerating revenue growth, expanding our margins and enhancing productivity, and we are confident in our strategy for sustained, profitable growth.

Operator: Thank you, and we can now proceed with Q&A.

Speaker Change: Thank you and we can now proceed with Q&A.

Operator: As a reminder, do ask a question. You will need to press star 11 on your telephone. To remove yourself from the queue, you may press Star 11 again.

Operator: As a reminder, please ask a question. You will need to press star one on your telephone. To remove yourself from the queue, you may press star 11 again.

Speaker Change: As a reminder, do ask a question, you will need to press star 11 on your telephone.

Operator: To remove yourself from the queue, you may press star 11 again. Thank you. Our first question comes from the line of Anthony Petrone of Zoho, America.

Operator: Please limit yourself to one question and one follow-up to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster.

Operator: Please limit yourself to one question and one follow-up to allow everyone the opportunity to participate. Please stand by while we compile the Q&A rocket. Thank you. Thanks for watching. Our first question comes from the line of Anthony Petrone of Mizuho, America.

Speaker Change: To remove yourself from the queue, you may press star 11 again.

Speaker Change: Please limit yourself to one question and one follow-up to allow everyone the opportunity to participate.

James: Please stand by while we compile the Q&A roster.

Anthony Petrone: Our first question comes from the line of Anthony Protrone of New Zooho Americas. Thank you and good morning, everyone. If you start with plasma and on hospital, on the plasma end of the equation, maybe a little bit, Chris, on where do you think we are in the cycle just coming out of COVID, meaning inventory builds at the fractionators, are we approaching some level of supply-demand equilibrium, are fractionators still building inventories?

Speaker Change: Our first question comes from the line of Anthony Petrone of Mizzouho, Americas.

Anthony Petrone: Thank you and good morning, everyone. Maybe start with plasma and I'll have one on hospitals. On the plasma end of the equation, maybe a little bit, Chris, on where do you think we are in the cycle just coming out of COVID, meaning inventory builds at the Fractionators, are we approaching... Some level of supply-demand equilibrium.

Anthony Petrone: Thank you and good morning everyone. Maybe start with plasma and I'll have one on hospital.

Christopher Simon: Bernie now for our business unit results. Plasma revenue declined 3% in the first quarter after growing 35% last year. North America disposal revenue was down 5% driven by CSL's plan transition, excluding the transition and an unforeseen temporary customer plasma center in the quarter.

Anthony Petrone: On the plasma end of the equation, maybe a little bit, Chris, on where you think we are in the at the Fractionators, are we approaching... And, you know, a follow-up on plasma would be we're seeing increasing reports of adverse effects.

Anthony Petrone: On the plasma end of the equation, maybe a little bit, Chris, on where do you think we are in the in the cycle just coming out of COVID, meaning inventory builds at the fractionators? Are we approaching

Christopher Simon: Our fractionate is still building inventories. And, you know, a follow-up on plasma would be we're seeing increasing reports of adverse events with RICA reported to the MAW database. I'm not sure if there's any update on just where CSL is tracking in terms of their wind down. Is it in line with your expectations, is it slower, is it faster? And then I'll have one follow-up on hospitalization.

Chris: Some level of supply-demand equilibrium. Our fractionate are still building inventories.

Anthony Petrone: And a follow-up on Plasma would be we're seeing increasing reports of adverse events with Rika reported to the MOD database. Not sure if there's any update on just, you know, where CSL is tracking in terms of their wind down. Is it in line with your expectations slower, is it faster, and then I'll have one follow-up on hospital.

Speaker Change: And, you know, a follow-up on plasma would be, we're seeing increasing reports of adverse

Christopher Simon: Strong end market demand for IG replacement therapies and the planned expansion of fractionation capacity across the industry support long term growth in the plasma collection market near term customers have a heightened focus on lowering cost per liter. We have completed more than 30 million persona collections and have compelling real world evidence of safe and consistent yield enhancements full market release of our express plus technology is now underway significantly improving collection time door to door time and center throughput.

Speaker Change: events with RICA reported to the MAW database. Not sure if there's any update on just, you know, where CSL is tracking in terms of their wind down. Is it in line with your expectations? Is it slower? Is it faster? And then I'll have one follow up on hospital.

Christopher Simon: Good morning, Anthony. With regard to plasma supply and demand, demand remains really robust, right? We look at short-term and long-term There's, by our estimations, an additional increase in fractionation capacity over the next decade in excess of 6% that's already been announced where there's confirmed commitments. It'll grow from there, we presume.

Christopher Simon: Good morning, Anthony. With regards to plasma supply demand, demand remains really robust, right? We look at short-term and long-term shares by our estimations an additional increase in fractionation capacity over the next decade in excess of six percent that's already been announced where there's confirmed commitments. It'll grow from there, we presume. So we feel quite good about the long-term demand for IG-based replacement therapies and our customers' commitment therein. In the near-term, I think it really does vary significantly from one customer to the next. We called out a specific set of issues at one customer's collection centers early in the quarter, and I think some folks took advantage of that to trim back a bit on what has been collecting hand-over-fists to replenish the inventory.

Speaker Change: Good morning, Anthony. With regards to plasma supply demand, demand remains really robust, right? We look at short-term and long-term. There's, by our estimations, an additional increase in fractionation capacity.

Christopher Simon: We plan to operate the remainder of our Nexus customers to express plus and persona before the end of this fiscal year. Our advanced technology is an enabler profitable growth for us and our customers. We expect to gain additional market share in the US and globally to continue to deliver revenue growth that outpaces the plasma collections market.

Speaker Change: over the next decade.

Speaker Change: in excess of 6% that's already been announced where there's confirmed commitments. It'll grow from there, we presume.

Christopher Simon: So we feel quite good about the long-term demand for IG-based replacement therapies and our customers' commitment thereto. In the near term, however, I think it really does vary significantly from one customer to the next. We called out a specific set of issues at one customer's collection centers early in the quarter, and I think some folks took advantage of that to trim back a bit on what they had been collecting hand over fist to replenish their inventories.

Speaker Change: So, we feel quite good about the long-term demand for IG-based replacement therapies and our customers' commitment therein. In the near term, I think it really does vary significantly from one customer to the next.

Christopher Simon: We reaffirm our plasma revenue growth guidance for FY 2025 in the range of negative 3 to negative 6% driven by the previously announced customer transition. Blood center revenue decreased 2% in the quarter if recess revenue grew 3% driven by continued demand for plasma across several markets and red cell collection share gains in the US partially offset by order timing among distributors. Old blood revenue declined 14% as we continue to rationalize the franchise to optimize durable contribution as part of our company wide margin expansion. The increasing focus on plasma self-sufficiency continues to drive international demand for source plasma. We are strengthening our global customer relationships to expand Nexus's reach.

Speaker Change: We called out a specific set of issues at one customer's collection centers early in the quarter.

Speaker Change: And I think some folks took advantage of that to trim back a bit on what has been collecting hand over fist to replenish their inventories. We do see a shift and a rebalancing towards

Christopher Simon: We do see a shift and a rebalancing towards inventory rebuild, combined with lower cost per liter. The benefit for that both in the quarter and over the remainder of the year is a heightened demand for everything and anything we can do to improve productivity, increased demand for both upgrades and conversions, and you see that in kind of our performance over the course of the year. So we still feel quite good about where we are in the cycle. There is a rebalancing and that'll you'll play forward as you would expect.

Christopher Simon: We do see a shift and a rebalancing towards inventory rebuild combined with lower cost per liter. The benefit for that, both in the quarter and over the remainder of the year, is a heightened demand for everything and anything we can do to improve productivity, increased demand for both upgrades and conversions. And you see that in our performance over the course of the year. So we still feel quite good about where we are in the cycle.

Speaker Change: inventory rebuild combined with lower cost per liter. The benefit for that...

Speaker Change: Both in the quarter and over the remainder of the year is a heightened demand for, you know, everything and anything we can do to improve productivity. Increased demand for both upgrades and conversions, and you see that in kind of our performance over the course of the year. So we still feel quite good.

Christopher Simon: Our FY 2025 guidance for blood center revenue growth is unchanged in the range of negative 5 negative 7%.

Speaker Change: about where we are in the cycle. There is a rebalancing, and that'll play forward as you would expect.

Christopher Simon: There is a rebalancing, and that'll play out, as you would expect. With regard to our competitor's device, I'm going to leave that aside for now. What I would say is that, in terms of the agreement with CSL, nothing has changed. They're still purchasing according to the forecast. We know there's an $85 million floor on that based on the agreement that's in place, and we really don't have anything further to say about it at this point in the year.

Christopher Simon: With regards to our competitors' device, I'm going to leave that aside for now. What I would say is that, in terms of the agreement with CSL, nothing has changed. They're purchasing according to the forecast. We know there's an $85 million floor on that based on the agreement that's in place and really don't have anything further to say about it at this point in the year.

Christopher Simon: Moving to our hospital business first quarter revenue grew 31% on a reported basis including our newly acquired sensor guided technology. [inaudible] With training and integration largely completed, the team is focused on hitting individual product targets and selling the entire interventional technologies portfolio across both electrophysiology and interventional cardiology. Rowsing the quarter was driven by continued penetration of the top 600 U.S, accounts with our vascular closure devices and increased emphasis on utilization across addressable procedures.

Speaker Change: With regards to our competitor's device, I'm going to leave that aside for now. What I would say is that in terms of the agreement with CSL, nothing has changed. They're purchasing according to the forecast. We know there's an $85 million floor on that based on the agreement that's in place.

Anthony Petrone: I'm very good. And then a follow-up on the hospital will be on Vascade MEP. Maybe just a little bit on the attach rate to pulse field deblation. PFA volumes had another good quarter in the June period. So maybe a little bit on the attach rate of MVP to PFA. And when you look at Excel, what will be the benefit of introducing that into the market?

Anthony Petrone: Very good.

Speaker Change: and really don't have anything further to say about it at this point in the year.

Anthony Petrone: And then a follow-up on hospital, it'll be on Bascade MEP. It's just a little bit on the attach rate to Postfield ablation. PFA volumes had another good quarter in the June period, and so maybe a little bit on the attach rate of MVP to PFA.

Speaker Change: I'm very good. And then a follow-up on hospital will be on BASC-8 MEP. Maybe just a little bit on the attach rate to pulse field ablation.

Speaker Change: PFA volumes had another good quarter in the June period.

Anthony Petrone: And when you look at Excel, what will be the benefit of introducing that into the market? Do you get an increased attach rate to PFA with that new solution?

Speaker Change: and so maybe a little bit on the attach rate of MVP to PFA and when you look at Excel, you know, what will be the benefit of introducing that into the market? Do you get an increased attach rate to PFA with that new solution? Thanks again.

Christopher Simon: Do you get an increase in attach rate to PFA with that new solution? Thanks. Thanks, Anthony. Pulse field afflation is...

Anthony Petrone: Thanks again.

Christopher Simon: Pulse field inflation is for sure a disruptive force in the market. We spent a lot of time modeling this, as you can imagine, both for vascular closure and also for esophageal protection.

Christopher Simon: Thank you. Postfield ablation is for sure a disruptive force in the market. We spent a lot of time modeling.

Unnamed Speaker: Thank you, Anthony. Pulse field ablation is...

Speaker Change: Thanks Anthony. Pulse field inflation is for sure a disruptive force in the market. We spent a lot of time modeling this as you could imagine both for vascular closure but also for esophageal protection. What's happening is very much consistent with what we forecast would happen. The advent of MVP XL is a game changer for us and there's a lot of

Christopher Simon: The Limit at Market released a Vescaid MVP XL, which features a 58% larger college and plug was a success with very positive results across procedures and highly encouraging responses from early adopters. This new device allows us to successfully participate in the rapidly growing market of both the elder population and increase adoption in procedures like less atrial appendages closures, where we've seen minimal usage with Vescaid MVP. With full market release underway and an ongoing development program to expeditiously expand the label to larger access points, we are further strengthening our leadership and enabling treatment of atrial fibrillation regardless of the ablation technology used.

Christopher Simon: This is you could imagine both Fervasca, a closure, but also for a soft-of-geal protection. What's happening is very much consistent with what we forecast would happen. The advent of MVP Excel is a game changer for us. And there's a lot of speculation in the market. It is the tan being reduced, et cetera. We don't see any of that. The crystal clear PFA is a net positive for Humanetics, interventional technologies portfolio. The new Excel product has completed limited market release over 350 procedures across a wide range of different therapeutics products performed exceptionally well. Feedback has been truly outstanding.

Christopher Simon: What's happening is very much consistent with what we forecast would happen. The advent of MVPXL is a game changer for us, and there's a lot of speculation in the market. Is the TAM being reduced, et cetera? We don't see any of that. It would be crystal clear.

Speaker Change: You know, speculation in the market is the TAM being reduced, etc. We don't see any of that. It would be crystal clear. PFA is a net positive for Haemonetics Interventional Technologies portfolio.

Christopher Simon: PFA is a net positive for Haemonetics' interventional technologies portfolio. The new XL product has completed limited market release and has been used in over 350 procedures across a wide range of different therapeutics. The product's performed exceptionally well, and feedback has been truly outstanding. We'll get that into the market now. We're going to proceed ahead of schedule with a full market release because we think it's the right technology across a range of different applications. One of the things quite powerful for us is not only ablation of all forms but also left HVOL appendage closure, which is an area where the base MVP product hasn't enjoyed a lot of success because it's really just not the right technology. We have a 58% larger collagen plug associated with XL, and we think that's really well positioned for the market going forward.

Michael Matson: Our next question comes from the line of Mike Matson of NEDA.

Speaker Change: The new Excel product is...

Speaker Change: Completed limited market release over 350 procedures across a wide range of

Speaker Change: Different therapeutics products performed exceptionally well. Feedback's been truly outstanding. So we'll get that into the market now. We're going to proceed ahead of schedule with full market release because we think it's the right technology across a range of different applications. And so one of the things quite powerful for us is not only on ablation of all forms, but also left HVOL appendage closure, which is an area where the base MVP product

Christopher Simon: So we'll get that into the market now. We're going to proceed a bit ahead of schedule with full market release because we think it's the right technology across a range of different applications. And so one of the things quite powerful for us is not only on ablation of all forms, but also left HVOL appendage closure, which is an area where the base MVP product hasn't enjoyed a lot of success because it's really just not the right technology. We have a 58% larger college and plug associated with Excel. And we think that's really well-positioned for the market going forward.

Christopher Simon: We are making significant progress internationally as well, having established our presence in over 100 accounts in Japan with further plans and our additional European markets this year. We are strengthening our field for support to convey our unique clinical and economic benefits over the competition, and we expect to sustain 20% plus growth in the vascular closure business and further expand our leadership position in this $2.7 billion market. Our newly acquired products delivered a total of $18 million in revenue, further accelerating growth of this franchise.

Speaker Change: hasn't enjoyed a lot of success because it's really just not the right technology. We have a 58% larger collagen plug associated with XL, and we think that's really well-positioned for the market going forward.

Christopher Simon: It's early days, but we feel good about the progress we have made and the business case for these acquisitions is intact. We are excited to launch SavvyWire in Europe in the coming months and extend the unique benefits of this guide wire to more patients by broadening our market access. We are also highly encouraged by the progress and positive feedback for NZOETM with its considerable clinical benefits, including reduced esophageal injury during radio frequency cardiac ablation.

Michael Matson: I'm next question and comes from the line of Mike Matson, of Needham. Yeah, I think you just start with plasma, so I think you mentioned that you're, you have set to upgrade the rest of your customer's six plus and persona by the end of the fiscal year. So is it safe to assume that if there's still a kind of price in hell in there and not part of the business, obviously excluding your CSL? Yeah, Mike, we'll, we now anticipate that all of our North American customers on Nexus will have upgraded to both Express Plus and Persona on their existing centers, and yes, the product is priced to reflect the technological advantages that are gained from both pieces of that part of the equation.

Speaker Change: Thank you. Our next question comes from the line of Mike Matson of Needham.

Christopher Simon: Yeah, thanks. You know, just to start with Plasma, so I think you mentioned that you expect to upgrade the rest of your customers to Express Plus and Persona by the end of the fiscal year. So, is it safe to assume that there's still kind of a price entailment in there, in that part of the business, obviously excluding, you know, CSL?

Mike Matson: Yeah, thanks. You know, just to start with Plasma. So, I think you mentioned that you're, you expect to upgrade the rest of your customers to Express Plus and Persona by the end of the fiscal year.

Mike Matson: So, is it safe to assume that there's still kind of a price entail in there, in that part of the business, obviously excluding, you know, CSL?

Christopher Simon: It presents a compelling market opportunity as a reliable, safe and significantly more cost-effective alternative to emerging capital-based technologies safely and effectively treat atrial fibrillation. Our blood management technologies franchise also had a strong first quarter with 10% revenue growth. In the Stasis Management delivered double-digit growth in North America, driven by strong capital sales and increased disposable utilization on the TAG 6S platform. Our new Hepburn neutralization cartridge is helping clinicians serve fully heparinized patients and enabling deeper penetration into accounts performing adult cardiovascular surgeries and liver transplantation.

Christopher Simon: Yeah, Mike, we now anticipate that all of our North American customers on Nexus will have upgraded to both Express Plus and Persona in their existing centers, and yes, the product is priced to reflect the technological advantages that are gained from both pieces of that part of the equation.

Speaker Change: Yeah, Mike, we now anticipate that all of our North American customers on Nexus will have upgraded to both Express Plus.

Speaker Change: and Persona on their existing centers, and yes, the product is priced to reflect the technological advantages that are gained from both pieces of that part of the equation.

Michael Matson: Okay, got it. And then just a couple on the interventional business. So, with Vascade MVP XL, are you getting a price premium for that?

Christopher Simon: And then just a couple of things on the interventional business. So, with FASCADE, MVP, Excel, are you getting a price premium for that? And then just in terms of the sales force, the cross training that occurred, is that completed, and to what degree do you think that was disruptive in the quarter that you just reported?

Mike Matson: Okay, got it.

Speaker Change: And then, just a couple on the interventional business. So, with Fascade MVP XL, are you getting a price premium for that? And then, just in terms of the sales force, you know, the cross-training that occurred, is that completed and to what degree do you think that was disruptive in the quarter that you just reported?

Christopher Simon: And then just in terms of the sales force, you know, the cross-training that occurred, is that completed? Into what degree do you think that was disruptive in the core that you just reported? Yeah, so the XL product is a 58% larger plug. As I mentioned a moment ago, we do command a modest premium for that. We want to be, you know, cost-effective. And it's one of the things that we look at, you know, same day discharge, time to emulation, et cetera. It's an incredibly cost effective therapy. There is a price increase, but relative to the base ablation RF or especially now PFA, it's a really economical form of closure.

Christopher Simon: Success in the U.S, was partially offset by geopolitical market challenges in China. Transfusion management benefited from new account openings for safe trace TX and blood track in North America and EMIA. We invested an additional channel expansion and further enhanced the platform positioning us to win share. Cell salvage also had an impressive quarter across all markets with additional upside from last time by orders in our older generation device.

Christopher Simon: Yeah, so the XL product is a 58% larger plug, as I mentioned a moment ago. We do command a modest premium for that. We want to be, you know, cost-effective, and that's one of the things that we look at, you know, same-day discharge, time to ambulation, etc. It's an incredibly cost-effective therapy. There is a price increase, but relative to the base ablation RF or, especially now, PFA, it's a really economical form of closure. In terms of training, Mike, you're exactly right. This was a big lift, right?

Unnamed Speaker: Yeah, so the XL product is a 58% savings.

Speaker Change: Thank you for your time.

Speaker Change: Yeah, so the XL product is a 58% larger plug, as I mentioned a moment ago. We do command a modest premium for that. We want to be cost effective, and it's one of the things that we look at.

Speaker Change: Thank you.

Speaker Change: same day discharge, time to ambulation, et cetera. It's an incredibly cost-effective therapy. There is price increase, but relative to the base ablation RF, or especially now PFA, it's a really economical form of closure. In terms of the training, Mike, you're exactly right. This was a big lift, right? We went from a sales force that was exceptionally good.

Christopher Simon: We are excited about the opportunities ahead of us and expect growth in our hospital business to accelerate in subsequent quarters driven by new product launches, sales synergies from newly acquired products, and improving efficiency of scale. We reaffirm our previously issued guidance and expect hospital reported revenue growth of 27 to 32% and organic revenue growth of 13 to 16% in FY 2025. We expect a strong year ahead as we continue to refine our portfolio to drive sustainable revenue growth at attractive margins. For the total company, we continue to expect reported revenue growth to be in the range of 5-8%, and organic growth could be flat to 3% for FY 2025.

Christopher Simon: In terms of the training, like you're exactly right; this was, this was a big left, right? We went from a sales force that was exceptionally good at closure across a variety of procedures. And we've now introduced both guide wire technology, sensor-based guide wire technologies, and this off the geoprotection. It is a classic portfolio sale. And I think if anything in reflection, I'd say, you know, we took our time. We are going slow to go faster further over time. And we want to get this right. If you think about the nature of Tavar procedures, for example, where savvy wire plays a critical role.

Christopher Simon: We went from a sales force that was exceptionally good at closure across a variety of procedures, and we've now introduced both guidewire technology, sensor-based guidewire technologies, and esophageal protection. It is a classic portfolio sale, and I think, in reflection, I'd say, you know, we took our time. We are going slow to go faster further over time, and we want to get this right. If you think about the nature of TAVR procedures, for example, where Savvy Wire plays a critical role, it's a much more involved procedure.

Mike Matson: at Clojure across a variety of procedures. And we've now introduced both guidewire technology, sensor-based guidewire technologies, and esophageal protection. It is a classic portfolio sale. And I think, if anything, in reflection, I'd say, you know, we took our time. We are going slow.

Speaker Change: to go faster, further over time, and we want to get this right. If you think about the nature of TAVR procedures, for example, where Savvy Wire plays a critical role, it's a much more involved procedure. The role of the representatives, both our territory managers and our clinicals, is much more critical.

Christopher Simon: It's a much more involved procedure; the role of the representatives, both our territory managers and our clinicals, is much more critical. And we want to make sure they are fully equipped and confident to be able to provide the support. We think we're there now. It did probably take a little more time in the quarter than we had originally anticipated, but again, going slow to go faster further is the right answer for us here.

James Mourning: Now I'll pass it over to James to discuss the rest of our financial performance in fiscal year 2025 guidance. Thank you Chris and good morning everyone. As Chris mentioned, this quarter has been an exceptionally productive one across the organization. We successfully launched new products and continued to integrate acquisitions all while maintaining a strong focus on our short and midterm objectives. The effect of portfolio evolution is becoming more meaningful in driving higher margins and positioning us for sustained success.

Christopher Simon: The role of the representatives, both our territory managers and our clinicals, is much more critical, and we want to make sure they are fully equipped and confident to be able to provide the support. We think we're there now. It did probably take a little more time in the quarter than we had originally anticipated, but again, going slow to go faster is the right answer for us here. Okay, got it. Thanks.

Speaker Change: And we want to make sure they are fully equipped and confident to be able to provide the support. We think we're there now. It did probably take a little more time in the quarter than we had originally anticipated, but again, going slow to go faster further is the right answer for us here.

Michael Matson: Okay, got it. Thanks.

Operator: Thank you.

Andrew Cooper: Our next question comes from the line of Andrew Cooper of Raymond James. Hey, everybody. Thanks for the questions. Maybe first just on plasma, thinking back to the commentary last quarter and into the year. You talked about the non CSL business, I think, growing 8 to 12%. Now you're talking about converting more of those customers to, to express blossom personas. So just would love an update on that metric and how you think about the remaining customers and the growth. As well as maybe a little more color on some of the share games you seem increasingly confident about.

Speaker Change: Okay, got it. Thanks.

Operator: comes from the line of Andrew Cooper of Raymond James.

Speaker Change: Thank you. Our next question...

Unnamed Speaker: of Andrew Cooper of Raymond James.

Speaker Change: comes from the line.

James Mourning: We ended the first quarter with an adjusted growth margin of 55.3%, up 110 basis points from last year driven by volume and mix with a disproportionate contribution from the growing momentum in our hospital business unit. Adjusted operating expenses in the first quarter were $114.9 million, an increase of 16 million or 17% compared with the first quarter of the prior year. As a percentage of revenue, adjusted operating expenses increased by 250 basis points to 34.2%.

Speaker Change: of Andrew Cooper of Raymond James

Andrew Cooper: Hey, everybody. Thanks for the questions. Maybe first, just on Plasma, thinking back to the commentary last quarter and into the year, you talked about the non-CSL business, I think, growing 8% to 12%. Now you're talking about converting more of those customers to Express Plus and Persona. So just would love an update on that metric and how you think about the remaining customers and the growth, as well as maybe a little more color on some of the share gains you've seen increasing. That's something I'm extremely confident about.

Speaker Change: Hey everybody, thanks for the questions.

Andrew Cooper: Maybe first, just on Plasma, thinking back to the commentary last quarter and into the year. You talked about the non-CSL business, I think, growing 8 to 12 percent. Now you're talking about converting more of those customers to...

Speaker Change: to Express Plus and Persona. So just would love an update on that metric and how you think about the remaining customers and the growth, as well as maybe a little more color on some of the share gains you seem increasingly confident about.

Christopher Simon: Yeah. So, look, we guide it. At the beginning of the year, we were looking at a combination of underlying collection demand, our ability to command a price premium for the new, you know, superior technology, and share gains. And I think all three of those forces are at work.

Christopher Simon: Yeah, so look, we guide it to the beginning of the year. We're looking at the combination of underlying collection demand, our ability to command a price premium for the new superior technology, and share gains. And I think all three of those forces are at work. There's going to be puts and takes amongst them, Andrew, on a quarter-to-quarter basis. We left the guidance unchanged because we are confident, particularly those latter two factors: upgrades and share gains are back and loaded. And we knew that, and we expect that to build over the course of the year. So we feel confident leaving the guidance as is.

James Mourning: The increase in adjusted operating expenses in the quarter was primarily due to the recent acquisitions of op-sense and attuned medical along with additional growth investments. First quarter adjusted operating income was $71 million, an increase of 0.8 million or 1% and our adjusted operating margin was 21.1% down 150 basis points compared with a very strong quarter last year. Nearly half of that decline was related to effects impacts with the remainder due to increased adjusted operating expenses.

Speaker Change: Yeah, so look, we guide it at the beginning of the year, we're looking at a combination of

Speaker Change: underlying collection demand, our ability to command a price premium for the new, you know, superior technology, and share gains. And I think all three of those forces are at work. There's going to be puts and takes amongst them, Andrew, on a quarter-to-quarter basis. We left the guidance unchanged.

Christopher Simon: There's going to be puts and takes amongst them, Andrew, on a quarter-to-quarter basis. We left the guidance unchanged because we are confident that, particularly those latter two factors, upgrades and share gains, are back and loaded. And we knew that, and we expect that to build over the course of the year. So, we feel confident leaving the guidance as is. There's probably a bit of, you know, it's our first quarter, and, you know, as a general practice, I'd prefer we don't change guidance after one quarter.

Andrew Cooper: because we are confident, particularly those latter two factors, upgrades and share gains.

Andrew Cooper: are back and loaded, and we knew that, and we expect that to build over the course of the year. So we feel confident leaving the guidance as-is.

Christopher Simon: You know, we just built the forecast 90 days ago, and we want to live into it a bit. If there's an opportunity to change it as the year progresses, we will. But for where we sit right now, we feel quite good about both the CSL and the non-CSL forecast.

Christopher Simon: There's probably a bit of, you know, it's our first quarter. And, you know, as a general practice, it prefer we don't change guidance after one quarter. You know, we just built the forecast 90 days ago, and we want to live into it a bit. If there's an opportunity to change it as the year progresses, we will; but for where we sit right now, we feel quite good about both GSL and the non-CSL forecast.

Speaker Change: There's probably a bit of, you know, it's our first quarter, and, you know, as a general practice, I'd prefer we don't change guidance after one quarter. You know, we just built the forecast 90 days ago, and we want to live into it a bit. If there's an opportunity to change it as the year progresses, we will. But for where we sit right now, we feel quite good about both...

James Mourning: Sequentially, our adjusted operating margin expanded by 230 basis points compared with a fourth quarter of fiscal 24. Primarily driven by improved adjusted growth margin, lower performance-based compensation, and higher plasma inventory reducing the need for freight expediting. This was our first full quarter with both op-sense and attuned. While there is more work to do to synergize these acquisitions fully, we already see benefits of these high margin products helping us offset increased costs. We expect these benefits to increase as we expand our commercial strategies in the top U.S, accounts in fiscal 25 and beyond.

Andrew Cooper: Okay, helpful. And then maybe just on hospital, you know, you called out a couple of items that really are going to help with the acceleration from sort of the near the lower end of the guide to start the year. Can you maybe size for us new product contribution versus revenue synergies for some of the efficiencies of the sales force that you talked about to help us think about that again, acceleration from the low teens, you know, maybe closer towards the mid teens in terms of the midpoint of guidance?

Andrew Cooper: Okay, helpful. And then Maybe just on hospital, you know, you called out a couple of items that really are going to help with the acceleration from sort of the near lower end of the guide to start the year. Can you maybe size for us the new product contribution versus revenue synergies for some of the efficiencies of the salesforce that you talked about to help us think about that, again, acceleration from the low teens, you know, maybe closer to the mid teens in terms of the midpoint of guidance?

Speaker Change: CSL and the non-CSL forecast.

Speaker Change: Okay, helpful. And then...

Speaker Change: Maybe just on hospital, you know, you called out a couple of items that really are going to help with the acceleration from sort of near the lower end of the guide to start the year.

Speaker Change: Can you maybe size for us new product contribution versus revenue synergies for some of the efficiencies of the sales force that you talked about to help us think about that, again, acceleration from the low teens, maybe closer towards the mid-teens in terms of the midpoint of guidance?

Christopher Simon: Sure, Andrew. Vascular closure is the real engine within the portfolio, particularly in North America, and particularly in utilization, given that we are now well north of 80% of account penetration across the T600. So, you know, we'll drive utilization; that's critical. That is the big, biggest single driver. The additional product overlay, we called out, there's an additional 18 million of revenue in the quarter. You know, that's included, and it will be meaningfully accretive to our gross margins as the year progresses. In the quarter, it was actually dilutive to our operating income margins. I can let James comment more on that, but we, again, this goes slow to go faster further.

Christopher Simon: Sure, Andrew. Vascular closure is the real engine within the portfolio, particularly in North America and particularly in utilization, given that we are now well north of 80 percent of account penetration across the T600. So, you know, we'll drive utilization. That's critical. That is the biggest single driver.

James Mourning: We reaffirm our adjusted operating margin guidance for fiscal 25 at 23 to 24%. Anticipating steady improvements, each subsequent quarter, as we progress toward our long-range plan of achieving operating margins in the high 20. The adjusted income tax rate was 20% for the first quarter, compared with 21% 1 year ago. We expect our fiscal 25 adjusted income tax rate to be approximately 23%. First quarter adjusted income was $52.4 million, down 1.3 million or 2%.

Speaker Change: Sure. Thank you.

Speaker Change: vascular closure is the real engine within the portfolio particularly in the north american and particularly in utilization given that we are now well north of eighty percent of account penetration across the t six hundred so you know we'll drive utilization that's critical that is the big biggest single driver the additional product overlay we called out and there's an additional eighteen million of revenue in the quarter you know that's included and it will be meaningfully accretive to our gross margins as the year progresses

Christopher Simon: The additional product overlay we called out, there was an additional $18 million of revenue in the quarter. You know, that's included, and it will be meaningfully accretive to our gross margins as the year progresses. In the quarter, it was actually dilutive to our operating income margins.

Unnamed Speaker: In the quarter, it was actually dilutive to our operating income margins. I can let James comment more on that, but we, again, this goes slow to go faster. We didn't act more aggressively on the cost synergies because we're in a process of listening and learning. They're both quite good companies. They're good at what they do. We wanted to make sure we understood at a more intimate level what they do, what their secret of success is, and how do we make sure we incorporate and build upon that. That's what you see in the quarter. As the year progresses, both synergies, both cost synergies and sales synergies, will really come into effect, and that's what's reflected in our guidance.

Christopher Simon: I can let James comment more on that, but we, again, this goes slow to go faster and further. We didn't act more aggressively on the cost synergies because we're in a process of listening and learning. They're both quite good companies. They're good at what they do. We wanted to make sure we understood at a more intimate level what they do, what their secret of success is, and how do we make sure we incorporate and build upon that. That's what you see in the quarter. As the year progresses, both synergies, both cost synergies and sales synergies, will really come into effect, and that's what's reflected in our guidance.

Speaker Change: in the quarter.

Speaker Change: It was actually dilutive to our operating income margins. I can let James comment more on that. But we, again, this goes slow to go faster, further. We didn't act more aggressively on the cost synergies because we're in a process of listening and learning. They're both quite good companies. They're good at what they do. We wanted to make sure we understood.

Christopher Simon: We didn't act more aggressively on the cost synergies because we're in a process of listening and learning. They're both quite good companies. They're good at what they do. We wanted to make sure we understood at a more intimate level what they do, what's their secret of success, and how do we make sure we incorporate and build upon that? So, that's what you see in the quarter.

James Mourning: An adjusted earnings per diluted share was $1.2 million, down 3%, when compared with the strong first quarter of fiscal 24. Changes in the adjusted income tax rate, interest expense, and foreign exchange had a $0.7 million negative impact on the first quarter adjusted earnings per diluted share when compared with the prior year. We remain optimistic about our prospects and our ability to capitalize on emerging market trends, optimize our portfolio mix, and realize savings through operational excellence.

James: At a more intimate level, what they do, what's their secret of success, and how do we make sure we incorporate and build upon that. So that's what you see in the quarter. As the year progresses, both synergies, both cost synergies and sales synergies will really come into effect, and that's what's reflected in our guidance.

Christopher Simon: As the year progresses, both synergies, both cost synergies and sales synergies will really come into effect, and that's what's reflected in our guidance.

Andrew Cooper: Okay, I will stop there and jump back in the queue. Thank you.

Andrew Cooper: Okay, I will stop there and jump back in the queue. Thank you.

Speaker Change: Okay, I will stop there and jump back in the queue. Thank you.

Larry Solo: Our next question comes from the line of Larry Solo of CJS Securities.

Larry Solow: This next question comes from the line of Larry Solow of CJS Security.

Operator: This question comes from the line of Larry Solow of CJS Security.

Larry Solo: thank you and next question comes from the line of larry solo of cjs securities

James Mourning: We reaffirm our adjusted earnings per diluted share guidance of $4.45 to $4.75. At the midpoint of our guidance range, we now anticipate approximately 34 cents of impacts from interest expense, effects, income tax, and share count, with interest expense being responsible for about half of that.

Lawrence Solow: Good morning, everybody. I guess just a couple of follow-ups on the plasma side. Chris or James, just give us the volume price, the breakdown by quarter. I don't know if that's available, just approximately. And then on the persona, how much, approximately how many I've already switched to, or you adopted the persona already of your own...

Larry Solow: Good morning, everybody. I guess just a couple of follow-ups on the plasma side. Chris or James, just give us the volume price, the breakdown by quarter. I don't know if that's available, just approximately. And then on the persona, how much, approximately how many have already switched to, or adopted the persona already of yours...

Larry Solo: Good morning, everybody. I guess just a couple of follow-ups on the positive side, Chris or James, just give us the volume price, the breakdown in the quarter, and if that's available, just approximately. And then on the persona, how much do you get approximately? How many I've already switched to adoptive persona already of your? Let me start with that.

Larry Solo: Good morning, everybody. I guess just a couple of follow-ups on the plasma side, Chris or James. Just give us the volume price, the breakdown in the quarter. I don't know if that's available, just approximately. And then on the persona, how much approximately?

Speaker Change: 've already switched to per are you adopted person already of your customers

James Mourning: Turning now to select cash flow and balance sheet highlights. In our first quarter, we had a cash outflow of $27 million, primarily related to lower debt income and higher working capital due to increased inventory and the timing of certain payments. Combined with additional CAPEX spend, net of proceeds from the sale of one of our manufacturing facilities, we had a free cash outflow of $17 million. Our expectation for free cash flow remains unchanged at $130 to $180 million in fiscal 25.

Christopher Simon: Let me start with that, and I'll let James answer the breakdown. In terms of persona, it's not a big secret.

Unnamed Speaker: Let me start with that, and I'll let James answer the breakdown. In terms of persona, you know, it's not a big secret.

Larry Solo: I'll let James answer the breakdown. In terms of persona, it's not a big secret. We've had more than 50% of the procedures heading into the year. We're well north of that and moving quickly against the remainder. So we'll provide updates at a more substantive basis when jointly with our customers. Everybody's comfortable doing that, Larry, but did some. It's proceeded rapidly, and we feel quite good about it. We want to be cautious because we don't control. We've said this from the outset with Nexus. We will move absolutely as fast as our customers are prepared to move, but no faster.

James: let me start with that and i'll james answer the breakdown in terms of persona it's not a big secret we've had more than fifty percent of the procedures heading into the year

Christopher Simon: We've had more than 50% of the procedures in place heading into the year. We're well north of that and moving quickly against the remainder. So we'll provide updates on a more substantive basis when we do it jointly with our customers. Everybody's comfortable doing that, Larry, but it's proceeding rapidly, and we feel quite good about it. We want to be cautious because we don't control, right?

Unnamed Speaker: We've had more than 50% of the procedures done heading into the year. We're well north of that and moving quickly against the remainder. So we'll provide updates on a more substantive basis when we do it jointly with our customers. Everybody's comfortable doing that, Larry, but it's proceeding rapidly, and we feel quite good about it. You know, we want to be cautious because we don't control them, right? We said this from the outset with Nexus. We will move absolutely as fast as our customers are prepared to move, but no faster. And in this case, they now want to move quite quickly, and that's what you will see in our results going forward.

Speaker Change: We're well north of that and moving quickly against the remainder, so we'll provide updates at a more substantive basis when jointly with our customers. Everybody's comfortable doing that, Larry, but it's proceeding rapidly, and we feel quite good about it. You know, we want to be cautious because we don't control, right? We said this from the outset with Nexus. We will move absolutely as fast.

Christopher Simon: We said this from the outset with Nexus. We will move absolutely as fast as our customers are prepared to move, but no faster. And in this case, they now want to move quite quickly, and that's what you see in our results going forward. And Larry, on the volume price split out, and I'll refer to the non-CSL customers, that's probably volume, as you heard Chris talking about. We expect technology switches and share gains to be more backloaded.

Larry Solo: And in this case, they now want to move quite quickly, and that's what you see in our results going forward.

James Mourning: Cash on hand at the end of the quarter was $344 million, up $166 million since the end of fiscal 24, primarily due to our recently completed debt financing, net of the repurchase of a portion of our convertible notes, due in 2026. New CAPEX called transactions and transaction-related fees and the pay-down of borrowings on the revolving credit facility used to help fund the recent acquisitions of op-sense and attuned. Our updated debt capital structure includes a recently refinanced credit facility consisting of $250 million unsecured term loan A and a $750 million unsecured revolving facility, as well as $1 billion in convertible notes, which puts our net leverage ratio at approximately 2.8 times EBITDA at the end of our first quarter.

Larry Solo: as our customers are prepared to move.

Larry Solo: but no faster and in this case they now want to move quite quickly and that that's what you see in our results going forward

Larry Solo: And Larry on the volume price split out now, refer to the non CSL customers. That's that's for definitely volume as you heard Chris talking about. We expect technology switches and share gains to be more back and loaded. Gotcha. So not much on the price. Mostly volume. Gotcha. Okay.

Larry Solo: and larry on the volume price split out not furtherthe noncl customers that's that's forperidly volume as ' heard chris talking about expect technology switches and share gains to be more back up loaded

James: Gotcha. So not much on the price side, mostly volume. Gotcha. Okay. And then could you speak real briefly just on VASCA, the MVP XL system, the larger bore, sort of the market opportunity there and, you know, your rollout plans?

Christopher Simon: And then just could you speak real briefly just on the Vascade MVP Excel system, the larger board, sort of the market opportunity there and your roll out plans. Yeah, so I just to reiterate we went into limited market release. We want to make sure that we had proper use case really understood the devices performance. We've obviously done extensive animal testing and have a very good level of comfort, but we wanted to do the limit of market release. Make sure that it's performing as expected. As I said, feedback's been absolutely outstanding. Now north of 350 procedures across the number of very high performing centers, feedback's been extraordinary, as good as anything we've seen or heard.

Speaker Change: Gotcha, so not much on the price side, mostly volume. Gotcha. Okay, and then just could you speak real briefly just on the VASCA, the MVP XL system, the larger bore, sort of the market opportunity there and, you know, your rollout plans. Thanks.

James Mourning: In addition to the credit facility refinancing discussed on our May earnings call, during the first quarter we issued $700 million of convertible securities with a 2.5% coupon and a capped call, ensuring the protection of the conversion price until the share price reaches $180 or a 100% premium over the issue price of $90 a share. This transaction allowed us to mitigate risks associated with upcoming convertible note maturities and pre-fund a portion of our growth agenda at attractive interest rates, while helping to ensure we remain in a strong financial position when pursuing additional growth opportunities.

Christopher Simon: Yeah, so just to reiterate, we went into limited market release. We wanted to make sure that we had a proper use case, really understood the device's performance. We've obviously done extensive animal testing and have a very good level of comfort, but we wanted to do the limited market release and make sure that it's performing as expected. As I said, feedback's been absolutely outstanding. Now north of 350 procedures across a number of very high-performing centers, the feedback's been extraordinary, as good as anything we've seen or heard.

Speaker Change: yeah so i just to reiterate we went into limited market release we want to make sure that we had

Larry Solo: Proper use case, really understood the device's performance. We've obviously done extensive animal testing and have a very good level of comfort, but we wanted to do the limited market release, make sure that it's performing as expected. As I said, feedback's been absolutely outstanding. Now, north of 350 procedures across a number of very high-performing centers, feedback's been extraordinary, as good as anything we've seen or heard. So...

Christopher Simon: So the device performs as advertised. It'll get broad spectrum use as appropriate. And where we don't yet have indications on our label for certain appenditure sizes. We are actively pursuing that with the regulatory authorities, and we expect that to be forthcoming. So, but the device is intact, forming well. We're now compiling real world evidence, and we'll do that even more extensively when we go into full release now to be able to get a broader label expansion. Gotcha.

Christopher Simon: So the device performs as advertised. It'll get broad-spectrum use as appropriate, and where we don't yet have indications on our label for certain appendix sizes and whole sizes, we are actively pursuing that with the regulatory authorities, and we expect that to be forthcoming. But the device is intact and performing well. We're now compiling real-world evidence, and we'll do that even more extensively when we go into full release now to be able to get a broader label expansion.

Speaker Change: the device performan is advertised it'll get broad spectrum use as appropriate and where we don't yet

Speaker Change: have indications on our label for certain appendits your size you all sizes

Larry Solo: we are actively pursuing that with the regulatory authorities and we expect that to be forthcoming so but the device is is intact forming well we're now compiling real world evidence and we'll do that even more extensively when we go into full release now to be able to get a broader label expansion

Lawrence Solow: Gotcha. Great. Thanks, Chris.

Larry Solo: Great. Thanks.

Larry Solo: Appreciate it.

James Mourning: Before we transition to Q&A, I would like to share some key takeaways as we reflect on the start of our fiscal year and our strategic direction moving forward. Our first quarter performance demonstrated our strength and impact. We continued to expand our industry presence and leadership across our business units while proving our resilience as we advanced our growth amidst changing market trends and geopolitical challenges. We are forwarding our innovation with new products both launched and in the pipeline.

Operator: Thank you again to ask a question. Please press star 11 on your telephone. Again, that star 11 on your telephone task question.

Operator: Thank you. Again, to ask a question, please press star 11 on your telephone. Again, that's star 11 on your telephone to ask a question. Our next question comes from the line of Joanne Wuensch of Citi.

Ross: go your grad thanks rross appreciate

Speaker Change: thank you again to ask a question please press star one one on your telephone again that star one one on your telephone task

Joy Wan: Our next question comes from the line of joy and want of city. Thank you very much. Can you hear me? Okay? Excellent.

Joyand Wunch: questionour next question comes from the line of joyand wunch of city

Joanne Wuensch: Thank you very much. Can you hear me okay? Yes, sir. Excellent. Good morning, everybody.

Unnamed Speaker: Thank you very much. Can you hear me okay?

Joyand Wunch: Thank you very much. Can you hear me okay?

Christopher Simon: I want to just spend a minute more on vascular closure, please. I'm under the impression that there's still a large percentage of procedures that are manual compression procedures. Could you sort of quantify what's using a closure device at this stage and what moves people towards manual compression?

Joy Wan: Good morning, everybody.

Joy Wan: I want to just spend a minute more on vascular closure, please. I'm under the impression that there's still a large percentage of procedures that are manual compression procedures. Could you sort of quantify what's using a closure device at this stage and what moves people towards manual compression.

Larry Solo: restaurant

Speaker Change: Excellent. Good morning, everybody. I want to just spend a minute more on vascular closure, please. I'm under the impression that there's still a large percentage of procedures that are manual compression procedures. Could you sort of quantify what's using a closure device at this stage and what moves people?

James Mourning: Our focus on innovation is paving the way for further expansion into high growth markets and enhancing our financial performance both in the near term and in the long run. Our debt financing was an important step in strategically enhancing our access to capital and increasing flexibility in capital deployment. This will help us ensure we remain in a strong financial position when pursuing additional organic or inorganic growth opportunities. And finally, we remain committed to achieving the objectives outlined in our long range plan. Through our long term strategic focus, we are cultivating a powerful, sustainable growth engine, poised to deliver value to our shareholders well into the future.

Joanne Wuensch: And then I also want to go back to the PSA opportunity. I think that a little bit of clarification of why you think Vascade XL could be better for PSA would be really great. Thank you so much. Yeah, thanks.

Christopher Simon: And then I also want to go back to the PFA opportunity. I think that a little bit of clarification of why you think vascular Excel could be better for PFA will be really great. Thank you so much. Yeah, thanks for the questions. Yeah, our biggest competition in vascular closure worldwide is some combination of compression and suturing, figure of eight typically. And so, you know, we are looking, you know, we've penetrated, as I said, more than 80% of the T600 that does 90% of the procedures in the U.S. within those. Our utilization rates are still in the low to mid-40s.

Larry Solo: towards manual compression, and then I also want to go back to the PFA opportunity. I think that a little bit of clarification of why you think BASC-8XL could be better for PFA would be really great. Thank you so much.

Christopher Simon: Yeah, thanks for the questions, Joanne. Yeah, our biggest competition in vascular closure worldwide is some combination of compression and suturing, figure of eight, typically. And so, you know, we are looking, you know, we've penetrated, as I said, more than 80% of the T600 that does 90% of the procedures in the U.S. But within those, our utilization rates are still in the low to mid 40s.

Speaker Change: Yeah, thanks for the questions. Yeah, our biggest competition in vascular closure

Speaker Change: worldwide is some combination of compression.

Speaker Change: and suituring figure of a typically and soyou know we are looking we've penetrated as i said more than eighty percent of the t six hundred does ninety percent of the procedures in the u s

Christopher Simon: And that's our biggest single opportunity, converting folks off of manual compression or suturing to our more sophisticated, you know, clearly superior technology. And so that's a process that's underway. When we say we've penetrated an account, we may have one set of clinicians or one EP lab within that account using our closure device, but we still have to work our way through the others. In some cases, there are challenges with, you know, value-added committees. You know, what's their cycle for meeting?

Christopher Simon: And that's our biggest single opportunity is converting folks off of manual compression or suturing to our more sophisticated, you know, clearly superior technologies. So that's a process that's underway. When we say we've penetrated an account, we may have one set of collisions or one EP lab within that account using our closure device. We still have to work our way through the others. In some cases, there are challenges with, you know, value-added committees. You know, what's their cycle for meeting? Do we have the approval? Can you know, our clinicians aware that they're able to use the technology?

Larry Solo: within those our utilization rates are still in the low toamid forty s and that's our biggest single opportunity is converting folks off of no compression or suting are more sophisticated you know clearly superior technologies of fact of processes underway

Operator: Thank you, and we can now proceed with Q&A. As a reminder, do ask a question you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again.

Operator: Please limit yourself to one question and one follow-up to allow everyone the opportunity to participate. Please stand by while we compile the Q&A roster.

Larry Solo: when we say we've penetrated an account we may have

Larry Solo: one set of coinicians or one ep lab within that account using our closure device

Larry Solo: We still have to work our way through the others. In some cases, there are challenges with value-added committees. What's their cycle for meeting? Do we have the approval? Are clinicians aware that they're able to use the technology? What we do see with VASC-8 in all forms is that once a clinician has adopted,

Christopher Simon: Do we have the approval? Can, you know, are clinicians aware that they're able to use the technology? And then what we do see with VASC-8 in all forms is that once a clinician has adopted it, it's incredibly sticky. It's just a better procedure. And you see that in all the use cases in terms of outcomes, in terms of, you know, patient satisfaction. We hear that. The nursing staff hears that. And then, after the fact, when they start to accumulate some volume, they can see how beneficial it is to the economics of the hospital overall. So it really checks all the boxes, Joanne. It's better clinically. It's better economically and environmentally.

Anthony Petrone: Our first question comes from the line of Anthony Protrone of New Zooho Americas. Thank you and good morning, everyone.

Christopher Simon: And then what we do see with Vascade in all forms is that once a clinician has adopted, it's incredibly sticky. It's just a better procedure. And you see that in all the use cases, in terms of the outcomes, in terms of, you know, patient satisfaction. We hear that; the nursing staff hears that. And then after the fact, when they start to accumulate some volume, they can see how beneficial it is to the economics of the hospital overall. So, it really checks all boxes, you know, and it's better clinically, it's better economically, and we have an increasing body of evidence, real world evidence, to support that case.

Christopher Simon: If you start with Plasma and on hospital, on the Plasma end of the equation, maybe a little bit, Chris, on where do you think we are in the cycle just coming out of COVID, meaning inventory builds at the fractionators, are we approaching some level of supply-demand equilibrium, are fractionators still building inventories? And a follow-up on Plasma would be we're seeing increasing reports of adverse events with Rika reported to the mod database.

Larry Solo: It's incredibly sticky. It's just a better procedure, and you see that in all the use cases, in terms of the outcomes, in terms of patient satisfaction. We hear that, the nursing staff hears that, and then after the fact, when they start to accumulate some volume, they can see how beneficial it is to the economics of the hospital overall. So it really checks all boxes, Joanne. It's better clinically, it's better economically, and we have an increasing body of evidence, real-world evidence.

Christopher Simon: And we have an increasing body of evidence, real-world evidence, to support that case. So we feel, you know, quite good about it. With regard to PFA, we did extensive animal testing before we brought MVP to the market for regulatory approval. We got the PMA, as I mentioned before in our last call. And we wanted to proceed with a limited market release just to make sure we have, you know, firsthand experience with the use case before we do what we're doing now, which is roll it out broadly. So does that answer your question?

Christopher Simon: So we feel, you know, quite good about it.

Larry Solo: to support that case so

Christopher Simon: With regard to PFA, we've done extensive animal testing before we brought MVP to the market for, for, you know, regulatory approval. We got the PMA, as I mentioned before in our last call. And we wanted to proceed with a limited market release just to make sure we have, you know, firsthand experience on the use case before we do what we're doing now, which is roll up broadly. Does that answer your question? It's close enough.

Speaker Change: We feel, you know, quite good about it. With regard to PFA, we've done extensive animal testing before we brought MVP to the market for, you know, regulatory approval. We got the PMA, as I mentioned before in our last call, and we wanted to proceed with a limited market release just to make sure we have, you know, first-hand experience on the use case.

Christopher Simon: Not sure if there's any update on just, you know, where CSL is tracking in terms of their wind down. Is it in line with your expectations slower, is it faster, and then I'll have one follow-up on hospital.

Christopher Simon: Good morning, Anthony. With regards to plasma supply demand, demand remains really robust, right? We look at short-term and long-term shares by our estimations an additional increase in fractionation capacity over the next decade in excess of six percent that's already been announced where there's confirmed commitments. It'll grow from there, we presume. So we feel quite good about the long-term demand for IG-based replacement therapies and our customers' commitment therein. In the near-term, I think it really does vary significantly from one customer to the next.

Larry Solo: before we do what we're doing now, which is roll it broadly. Does that answer your question?

Joanne Wuensch: It's close enough. Thank you very much.

Joy Wan: Thank you very much. Thank you.

Speaker Change: It's close enough. Thank you very much.

Operator: Our next question comes from the lines. Michael Petusky, Barrington Research

Michael Patusky: Our next question comes from the line. Michael Patusky, a Barrington Research. Good morning. Hey, Chris, I think last quarter you had talked about, you know, was some progress for vascular closure in Japan in terms of active accounts. And also, sort of talked about, hey, Europe's been a little bit slower in terms of penetrating any talk, you know, vagaries around reimbursement from country to country and some differences in treatment methodologies. I'm just wondering any learnings in any of those markets that would be interesting to share. Thanks.

Speaker Change: Thank you.

michael btusky: our next question comes in the line michael btusky a bearrington research

Michael Petusky: Good morning. Hey, Chris, I think last quarter you talked about, you know, some progress on banker closure in Japan in terms of actual accounts and also sort of talked about, hey, Europe's been a little bit slower in terms of penetration, and you talked about, you know, vagaries around reimbursement from country to country and some treatment methodologies. I'm just wondering if you have any learnings from any of those markets that would be interesting to share?

Unnamed Speaker: Good morning. I think last quarter you talked about, you know, some progress for vascular closure in Japan in terms of actual accounts, and you also sort of talked about, hey, Europe's been a little bit slower in terms of penetrating, and you talked about, you know, vagaries around reimbursement from country to country and some treatment methodologies. I'm just wondering, any learnings in any of those markets that would be interesting to share?

michael btusky: Good morning. Hey, Chris, I think last quarter you had talked about, you know, some progress for basketball closure in Japan in terms of active accounts, and also sort of talked about, hey, Europe's been a little bit slower in terms of...

Speaker Change: penetrating, and you talked about vagaries around reimbursement from country to country and some differences in treatment methodologies. I'm just wondering, any learnings in any of those markets that would be interesting to share?

Christopher Simon: We called out a specific set of issues at one customer's collection centers early in the quarter and I think some folks took advantage of that to trim back a bit on what has been collecting hand-over fists to replenish the inventory. We do see a shift and a rebalancing towards inventory rebuild combined with lower cost per liter. The benefit for that both in the quarter and over the remainder of the year is a heightened demand for everything and anything we can do to improve productivity, increased demand for both upgrades and conversions and you see that in kind of our performance over the course of the year. So we still feel quite good about where we are in the cycle. There is a rebalancing and that'll you'll play forward as you would expect.

Christopher Simon: Thanks for the question, Mike. So, Vascade in Japan's and unmedicated success. We were able to secure not only the market release from the regulatory authorities, but very favorable reimbursement. And you see that, you know, Japan has always been a safety-first medical device market. And Vascade is an incredibly safe product. The data they have there in markets has been really helpful. So we're in excess of 100 accounts now. We work through a third-party distributor. That just continued to go from strength to strength. We're really, really delivering in the Japanese market. And I think there's additional upside for us as the year progresses there.

Christopher Simon: Thanks for the question, Mike. So, Vascade in Japan is an unmitigated success. We were able to secure not only market release from the regulatory authorities but very favorable reimbursement. And you see that, you know, Japan has always been a safety-first medical device market, and Vascade is an incredibly safe product. The data they have in the market has been really helpful. So, we're in excess of 100 accounts now. We work through a third-party distributor, and that just continues to go from strength to strength. We're really, really delivering in the Japanese market, and I think there's additional upside for us as the year progresses there. Europe is a more mixed story.

Speaker Change: Thanks for the question, Mike. So Vascade in Japan is an unmitigated success. We were able to secure not only the market release from the regulatory authorities, but very favorable reimbursement. And you see that, you know.

michael btusky: Japan has always been a safety-first medical device market, and Vestgate is an incredibly safe product. The data they have there in market has been really helpful. So we're in excess of 100 accounts now. We work through a third-party distributor. That just continues to go from strength to strength.

michael btusky: really delivering in the japanese market and i think there's additional upside

Christopher Simon: Europe is a more mixed story. The reimbursement's been a challenge. There's some vagaries with the reimbursement profile that, you know, same day just starts doesn't have the same reimbursement benefits that it would have in the US. So we're working our way through that, changing it, where appropriate. And there's a hybrid model of organic sales team, but some joint work with distributors. So very confident in the profile, very confident in the long-term success. We are converting from a market that does primarily suturing as opposed to compression. And, and therefore, you know, some of the discussion around the economic benefits and time to discharge, etc., is more nuanced.

Christopher Simon: The reimbursement's been a challenge. There are some vagaries with the reimbursement profile that, you know, same-day discharge doesn't have the same reimbursement benefits that it would have in the U.S. So we're working our way through that, changing it where appropriate, and there's a hybrid model of an organic sales team with some joint work with distributors. So I'm very confident in the profile; I'm very confident in its long-term success. We are converting from a market that primarily does suturing as opposed to compression, and therefore, you know, some of the discussion around the economic benefits and time to discharge, et cetera, is more nuanced. We have a lot of confidence that we'll be successful. It's just gonna be a slower build, which is what we're experiencing.

Speaker Change: for us as the year progresses there.

Christopher Simon: With regards to our competitors' device, I'm going to leave that aside for now. What I would say is that in terms of the agreement with CSL, nothing has changed. They're purchasing according to the forecast. We know there's an $85 million floor on that based on the agreement that's in place and really don't have anything further to say about it at this point in the year.

Speaker Change: Europe is a more mixed story. The reimbursement's been a challenge. There's some vagaries with the reimbursement profile, that same-day discharge doesn't have the same reimbursement benefits that it would have in the U.S. So we're working our way through that, changing it where appropriate. And there's a hybrid model of organic sales team but some joint work with distributors. So I'm very confident in the profile, very confident in the long-term success.

Anthony Petrone: Very good.

Anthony Petrone: And then a follow-up on hospital, it'll be on Bascade MEP. It's just a little bit on the attach rate to Postfield Ablation. PFA volumes had another good quarter in the June period and so maybe a little bit on the attach rate of MVP to PFA.

Speaker Change: we are converting from a market that does primarily situring as opposed to compression and therefore you know some of the discussion around the economic benefits and time to discharge etc is more nuanced we a lot of confidence that will be successful it going to be a slower bil which is what we'reexperiencing

Michael Patusky: We have a lot of confidence that will be successful. It's going to be a slower build, which is what we're experiencing. Okay, terrific.

Unnamed Speaker: Okay, terrific. And James, I may have missed this, or you may not have mentioned it. Did you talk about any impact from operational excellence in the quarter, by any chance?

Michael Petusky: Okay, terrific. And James, I may have missed this, or you may not have mentioned it. Did you talk about any impact from operational excellence in the quarter, by any chance?

Christopher Simon: And when you look at Excel, what will be the benefit of introducing that into the market? Do you get an increased attach rate to PFA with that new solution? Thanks again. Thank you. Postfield Ablation is for sure a disruptive force in the market. We spent a lot of time modeling. This is you could imagine both Fervasca, a closure, but also for a soft-of-geal protection. What's happening is very much consistent with what we forecast would happen.

James Mourning: And James, I may have, I may have missed the three, may have not mentioned. Did, did you talk about any impact from operational excellence in the quarter? In the quarter, I believe the amount, well, the amount for the full year was nine million in total, with five million drop through. And we didn't break out anything separate from the quarter. Okay. All right.

Speaker Change: okay terrific and james i may i may have necessary may have not mentioned it did did you talk about any impact from operational excellence and in the quarter finany chance

James: In the quarter, I believe the amount for the full year was $9 million in total with $5 million drop-through, and we didn't break out anything separate from the quarter.

James: In the quarter, I believe the amount for the full year was $9 million in total with $5 million drop-through, and we didn't break out anything separate from the quarter.

Michael Petusky: Okay. All right. Thanks, guys. I appreciate it.

Michael Patusky: Thanks, guys. Appreciate it.

Operator: Thank you.

Christopher Simon: Thank you. I would now like to turn the conference back to Chris Simon for his closing remarks, sir.

Christopher Simon: The advent of MVP Excel is a game changer for us. And there's a lot of speculation in the market. It is the tan being reduced, et cetera. We don't see any of that. The crystal clear PFA is a net positive for humanetics, interventional technologies portfolio. The new Excel product has completed limited market release over 350 procedures across a wide range of different therapeutics products performed exceptionally well. Feedback has been truly outstanding.

Christopher Simon: I would now like to turn the conference back to Chris Simon for closing remarks, sir. Yeah. Again, thank you all for your time this morning. I, I hope what you take away from our results is the resilience and the diversification of our portfolio, particularly across our three value drivers. If I start with Nexus, you know, there's clearly a rebalancing amongst our customers in terms of cost per leader in addition to having ample inventory supply; it really favors our value proposition. And we're seeing that in terms of accelerated upgrades. And we anticipate additional share gains as the year progresses.

Speaker Change: Okay. All right. Thanks, guys. Appreciate it.

James: thank you i would now like to turn the conference back to chris simon for closing remarks sir

Christopher Simon: Again, thank you all for your time this morning. I hope what you take away from our results is the resilience and the diversification of our portfolio, particularly across our three value drivers. If I start with Nexus, you know, there's clearly a rebalancing amongst our customers in terms of cost per liter, in addition to having ample inventory supply. It really favors our value proposition, and we're seeing that in terms of accelerated upgrades, and we anticipate additional share gains as the year progresses. TAG continues to hum along. There are geopolitical challenges, particularly in China, and we saw some headwinds there that we are working our way through. They are unlikely to get resolved in the short term.

James: yeah

Chris Simon: again thank you all for your time this morning

Speaker Change: I hope what you take away from our results is the resilience.

Speaker Change: and the diversification of our portfolio particularly across our three

Speaker Change: value drivers. If I start with Nexus, you know, there's clearly a rebalancing amongst our customers.

Speaker Change: in terms of cost per leader in addition to having ample

Christopher Simon: So we'll get that into the market now. We're going to proceed a bit ahead of schedule with full market release because we think it's the right technology across a range of different applications. And so one of the things quite powerful for us is not only on ablation of all forms, but also left HVOL appendage closure, which is an area where the base MVP product hasn't enjoyed a lot of success because it's really just not the right technology. We have a 58% larger college and plug associated with Excel. And we think that's really a well-positioned for the market going forward. Thank you.

Speaker Change: It really favors our value proposition and we're seeing that in terms of accelerated upgrades and we anticipate additional share gains as the year progresses.

Christopher Simon: Tag, tag continues to hum along. There are geopolitical challenges, particularly in China. And we saw some headwinds there that we are working our way through; they are unlikely to get resolved in the short term. We will continue to work at it. And fortunately, we have really outsized strength in both North America and EMEA, much larger markets and a really highly energized team that's fully committed to delivering against that. And then interventional technologies, as I called out earlier, PFA is a disruptive and very positive influence in the market. But it is also a net positive for us, particularly now with the launch of MVP XL.

Speaker Change: Tag continues to hum along. There are geopolitical challenges, particularly in China, and we saw some headwinds there that we are working our way through. They are unlikely to get resolved in the short term. We will continue to work at it. And fortunately, we have...

Christopher Simon: We will continue to work on it. And fortunately, we have really outsized strength in both North America and EMEA, much larger markets, and a really highly energized team that's fully committed to delivering on that. And then interventional technologies, as I called out earlier, PFA is a disruptive and very positive influence in the market, but it is also a net positive for us, particularly now with the launch of MVP XL. And we've largely completed the integration and the training that was all part of the original plan, and I think you'll see that team really find its footing and move forward with a much more sophisticated portfolio sale that is part of the long-term plan that we had delivered.

Speaker Change: Really outsized strength in both North America and EMEA, much larger markets.

Speaker Change: and a really highly energized team that's fully committed to delivering against that.

Speaker Change: Interventional technologies, as I called out earlier, PFA is a disruptive and very positive influence in the market, but it is also a net positive for us, particularly now with the launch of MVP XL.

Christopher Simon: I'm next question and comes from the line of Mike Matson, of Needham. Yeah, I think you just start with plasma, so I think you mentioned that you're, you have set to upgrade the rest of your customer's six plus and persona by the end of the fiscal year. So is it safe to assume that if there's still a kind of price in hell in there and not part of the business, obviously excluding your CSL?

Christopher Simon: And you know, we've largely completed the integration and the training that was all part of the original plan. And I think you'll see that team really find its footing and move forward with a much more sophisticated portfolio sale. That is part of the long-term plan that we had delivered. So across our three big value drivers, we're coming into our own. I'm excited about what we were able to do even when each of those faced external challenges in the quarter with the rest of the portfolio. And I think as those three come back online, I expect that we just go from strength to strength.

Speaker Change: And, you know, we've largely completed the integration and the training that was all part of the original plan. And I think you'll see that team really find its footing and move forward with a much more sophisticated portfolio sale that is part of the long-term plan that we had delivered. So across our three big, you know, value drivers, we're coming into our own.

Christopher Simon: So across our three big value drivers, we're coming into our own. I'm excited about what we were able to do, even when each of those faced external challenges in the quarter, with the rest of the portfolio. And I think as those three come back online as expected, we just go from strength to strength. So thanks for the time this morning. I appreciate the questions.

Speaker Change: ' excited about what we were able to do even when each of those faced external challenges in the quarter with the rest of the portfolio and i think as those three come back on li expect that we just go from strength strenth so thanks for the time this morning appreciate the questions

Christopher Simon: Yeah, Mike, we'll, we now anticipate that all of our North American customers on Nexus will have upgraded to both Express Plus and Persona on their existing centers and yes, the product is priced to reflect the technological advantages that are gained from both pieces of that part of the equation. Okay, got it. And then just a couple on the interventional business. So with Vascade MVP XL, are you getting a price premium for that?

Christopher Simon: So thanks for the time this morning and appreciate the questions.

Operator: This concludes today's conference call. Thank you for participating.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Operator: You may now disconnect. Thank you.

Speaker Change: This concludes today's conference call. Thank you for participating. You may now disconnect.

Christopher Simon: And then just in terms of the sales force, you know, the cross-training that occurred, is that completed into what degree do you think that was disruptive in the core that you just reported? Yeah, so the XL product is a 58% larger plug. As I mentioned a moment ago, we do command a modest premium for that. We want to be, you know, cost effective. And it's one of the things that we look at, you know, same day, discharge, time to emulation, et cetera, it's an incredibly cost effective therapy. There is price increase, but relative to the base ablation RF or especially now PFA, it's a really economical form of closure.

Christopher Simon: In terms of the training, like you're exactly right, this was, this was a big left, right? We went from a sales force that was exceptionally good at closure across a variety of procedures. And we've now introduced both guide wire technology, sensor-based guide wire technologies and this off the geoprotection. It is a classic portfolio sale. And I think if anything in reflection, I'd say, you know, we took our time. We are going slow to go faster further over time.

Christopher Simon: And we want to get this right. If you think about the nature of Tavar procedures, for example, where savvy wire plays a critical role. It's a much more involved procedure, the role of the representatives, both our territory managers and our clinicals is much more critical. And we want to make sure they are fully equipped and confident to be able to provide the support. We think we're there now. It did probably take a little more time in the quarter than we had originally anticipated, but again, going slow to go faster further is the right answer for us here. Okay, got it. Thanks. Thank you.

Michael Matson: Our next question comes from the line of Andrew Cooper of Raymond James.

Christopher Simon: Hey, everybody. Thanks for the questions. Maybe first just on plasma, thinking back to the commentary last quarter and into the year. You talked about the non the non CSL business, I think, growing 8 to 12%. Now you're talking about converting more of those customers to, to express blossom personas. So just would love an update on that metric and how you think about the remaining customers and the growth. As well as maybe a little more color on some of the share games you seem increasingly confident about.

Christopher Simon: Yeah, so look, we guide it to the beginning of the year. We're looking at the combination of underlying collection demand, our ability to command a price premium for the new superior technology, and share gains. And I think all three of those forces are at work. There's going to be puts and takes amongst them, Andrew, on a quarter to quarter basis. We left the guidance unchanged because we are confident, particularly those latter two factors, upgrades and share gains are back and loaded.

Christopher Simon: And we knew that, and we expect that to build over the course of the year. So we feel confident leaving the guidance as is. There's probably a bit of, you know, it's our first quarter. And, you know, as a general practice, it prefer we don't change guidance after one quarter. You know, we just built the forecast 90 days ago, and we want to live into it a bit. If there's an opportunity to change it as the year progresses, we will, but for where we sit right now, we feel quite good about both GSL and the non-CSL forecast.

Christopher Simon: Okay, helpful. And then maybe just on hospital, you know, you called out a couple of items that really are going to help with the acceleration from sort of the near the lower end of the guide to start the year. Can you maybe size for us new product contribution versus revenue synergies for some of the efficiencies of the sales force that you talked about to help us think about that again, acceleration from the low teens, you know, maybe closer towards the mid teens in terms of the midpoint of guidance?

Christopher Simon: Sure, Andrew. Vascular closure is the real engine within the portfolio, particularly in North America, and particularly in utilization, given that we are now well north of 80% of account penetration across the T600. So, you know, we'll drive utilization, that's critical. That is the big, biggest single driver. The additional product overlay, we called out, there's an additional 18 million of revenue in the quarter. You know, that's included, and it will be meaningfully accretive to our gross margins as the year progresses.

Christopher Simon: In the quarter, it was actually dilutive to our operating income margins. I can let James comment more on that, but we, again, this goes slow to go faster further. We didn't act more aggressively on the cost synergies because we're in a process of listening and learning. They're both quite good companies. They're good at what they do. We wanted to make sure we understood at a more intimate level, what they do, what's their secret of success, and how do we make sure we incorporate and build upon that? So, that's what you see in the quarter. As the year progresses, both synergies, both cost synergies and sales synergies will really come into effect, and that's what's reflected in our guidance.

Michael Matson: Okay, I will stop there and jump back in the queue.

Andrew Cooper: Thank you.

Andrew Cooper: Our next question comes from the line of Larry Solo of CJS Securities.

Larry Solo: Good morning, everybody. I guess just a couple of follow-ups on the positive side, Chris, or James, just give us the volume price, the breakdown in the quarter, and if that's available, just approximately. And then on the persona, how much do you get approximately? How many I've already switched to adoptive persona already of your Let me start with that. I'll let James answer the breakdown. In terms of persona, it's not a big secret.

Larry Solo: We've had more than 50% of the procedures heading into the year. We're well north of that and moving quickly against the remainder. So we'll provide updates at a more substantive basis when jointly with our customers. Everybody's comfortable doing that Larry, but did some. It's proceeded rapidly and we feel quite good about it. We want to be cautious because we don't control. We've said this from the outset with Nexus. We will move absolutely as fast as our customers are prepared to move, but no faster.

Larry Solo: And in this case, they now want to move quite quickly and that's what you see in our results going forward. And Larry on the volume price split out now, refer to the non CSL customers. That's that's for definitely volume as you heard Chris talking about. We expect technology switches and share gains to be more back and loaded. Gotcha. So not much on the price. Mostly volume. Gotcha. Okay.

Christopher Simon: And then just could you speak real briefly just on the Vascade MVP Excel system, the larger board, sort of the market opportunity there and your roll out plans. Yeah, so I just to reiterate we went into limited market release. We want to make sure that we had proper use case really understood the devices performance. We've obviously done extensive animal testing and have very good level of comfort, but we wanted to do the limit of market release.

Christopher Simon: Make sure that it's performing as expected. As I said, feedback's been absolutely outstanding. Now north of 350 procedures across the number of very high performing centers feedback's been extraordinary as good as anything we've seen or heard. So the device performs is advertised. It'll get broad spectrum use as appropriate. And where we don't yet have indications on our label for certain appenditure sizes. We are actively pursuing that with the regulatory authorities and we expect that to be forthcoming.

Christopher Simon: So, but the device is intact, forming well. We're now compiling real world evidence and we'll do that even more extensively when we go into full release now to be able to get a broader label expansion. Gotcha.

Larry Solo: Great. Thanks. Appreciate it.

Operator: Thank you again to ask a question. Please press star 11 on your telephone. Again, that star 11 on your telephone task question.

Joy Wan: Our next question comes from the line of joy and want of city. Thank you very much. Can you hear me? Okay? Excellent.

Joy Wan: Good morning, everybody. I want to just spend a minute more on vascular closure, please. I'm under the impression that there's still a large percentage of procedures that are manual compression procedures. Could you sort of quantify what's using a closure device at this stage and what moves people towards manual compression.

Christopher Simon: And then I also want to go back to the PFA opportunity. I think that a little bit of clarification of why you think vascular Excel could be better for PFA will be really great. Thank you so much. Yeah, thanks for the questions. Yeah, our biggest competition in vascular closure worldwide is some combination of compression and suturing, figure of eight typically. And so, you know, we are looking, you know, we've penetrated, as I said, more than 80% of the T600 that does 90% of the procedures in the U.S, within those.

Christopher Simon: Our utilization rates are still in the low to mid-40s. And that's our biggest single opportunity is converting folks off of manual compression or suturing to our more sophisticated, you know, clearly superior technologies. So that's a process that's underway. When we say we've penetrated an account, we may have one set of collisions or one EP lab within that account using our closure device. We still have to work our way through the others.

Christopher Simon: In some cases, there are challenges with, you know, value-added committees. You know, what's their cycle for meeting? Do we have the approval? Can, you know, our clinicians aware that they're able to use the technology? And then what we do see with Vascade in all forms is that once a clinician has adopted, it's incredibly sticky. It's just a better procedure. And you see that in all the use cases, in terms of the outcomes, in terms of, you know, patient satisfaction.

Christopher Simon: We hear that, the nursing staff hears that. And then after the fact, when they start to accumulate some volume, they can see how beneficial it is to the economics of the hospital overall. So it, it really checks all boxes, you know, and it's better clinically, it's better economically, and we have an increasing body of evidence, real world evidence, to support that case. So we feel, you know, quite good about it.

Christopher Simon: With regard to PFA, we've done extensive animal testing before we brought MVP to the market for, for, you know, regulatory approval. We got the PMA, as I mentioned before in our last call. And we wanted to proceed with a limited market release just to make sure we have, you know, firsthand experience on the use case before we do what we're doing now, which is roll-up broadly. Does that answer your question? It's close enough. Thank you very much. Thank you.

Michael Patusky: Our next question comes from the line. Michael Patusky, a Barrington research. Good morning. Hey, Chris, I think last quarter you had talked about, you know, was some progress for vascular closure in Japan in terms of active accounts. And also, sort of talked about, hey, Europe's been a little bit slower in terms of penetrating any talk, you know, vagaries around reimbursement from country to country and some differences in treatment methodologies. I'm just wondering any learnings in any of those markets that would be interesting to share.

Michael Patusky: Thanks. Thanks for the question, Mike. So, Vascade in Japan's and unmedicated success. We were able to secure not only the market release from the regulatory authorities, but very favorable reimbursement. And you see that, you know, Japan has always been a safety first medical device market. And Vascade is an incredibly safe product. The data they have there in markets has been really helpful. So we're in excess of 100 accounts now. We work through a third party distributor. That just continued to go from strength to strength. We're really, really delivering in the Japanese market. And I think there's additional upside for us as the year progresses there.

Christopher Simon: Europe is a more mixed story. The reimbursement's been a challenge. There's some vagaries with the reimbursement profile that, you know, same day just starts doesn't have the same reimbursement benefits that it would have in the US. So we're working our way through that, changing it, we're appropriate. And there's a hybrid model of organic sales team, but some joint work with distributors. So very confident in the profile, very confident in the long-term success.

Christopher Simon: We are converting from a market that does primarily suturing as opposed to compression. And, and therefore, you know, some of the discussion around the economic benefits and time to discharge, etc., is more nuanced. We have a lot of confidence that will be successful. It's going to be a slower build, which is what we're experiencing.

James Mourning: Okay, terrific, and James, I may have missed the three, may have not mentioned it. Did you talk about any impact from operational excellence in the quarter? In the quarter? I believe the amount, well, the amount for the full year was 9 million in total with 5 million drop-through and we didn't break out anything separate from the quarter. Okay, all right. Thanks, guys. Appreciate it. Thank you.

Christopher Simon: I would now like to turn the conference back to Chris Simon for closing remarks, sir. Again, thank you all for your time this morning. I hope what you take away from our results is the resilience and the diversification of our portfolio, particularly across our three value drivers. If I start with Nexus, you know, there's clearly a rebalancing amongst our customers in terms of cost per liter in addition to having ample inventory supply.

Christopher Simon: It really favors our value proposition, and we're seeing that in terms of accelerated upgrades, and we anticipate additional share gains as the year progresses tag, tag continues to hum along. There are geopolitical challenges, particularly in China, and we saw some headwinds there that we are working our way through there unlikely to get resolved in the short term. We will continue work at it. And fortunately, we have really[inaudible]