Cardiovascular Systems, Inc.

Good morning, and thank you for attending today's Cardiovascular Systems Inc. Fiscal 2022 Third Quarter Earnings. My name is Austin, and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to our host, Jack Neeson from Cardiovascular Systems, Jack, you may proceed.

Thank you. Good morning and welcome to our fiscal 22 third quarter conference call. With me today are Scott Ward, CSI Chairman, President and Chief Executive Officer, Rhonda Robb, Chief Operating Officer, and Jeff Points, Chief Financial Officer. Earlier this morning we issued a press release announcing third quarter results. You may find a copy of this release on the investor relations section of our corporate website. Here you may also find an earning supplement that includes additional details on our performance and outlook. During today's call, we will make forward-looking statements. These forward-looking statements are covered under the safe harbor provisions of the private securities litigation reform act of 1995 and include statements regarding CSI's future financial and operating results or other statements that are not historical facts. Actual results could differ materially from those stated or implied by our forward-looking statements due to certain risks and uncertainties, including those described in our most recent form 10 K and subsequent quarterly reports on form 10 Q. In particular, The COVID-19 pandemic has created risks and uncertainties for our business, results of operations, financial condition and prospects, which we will discuss on this call. CSI disclaims any duty to update or revise our forward-looking statements as a result of new information, future events, developments or otherwise. We will also refer to non-GAAP measures because we believe they provide useful information for our investors. Today's press release contains a reconciliation table to GAAP results. I will now turn the call over to Scott Ward.

Thank you, Jack. Good morning, everyone, and thank you for joining the call. As we get started, I want to tell you how proud I am of our team here at CSI. During Q3, we persevered through Omicron, and our field sales and clinical support teams continued to provide outstanding support for our customers and patients under difficult conditions. In addition, our manufacturing and supply chain teams continued to deliver outstanding performance and we are largely unaffected by global supply chain challenges. Today, we reported Q3 results that were in line with our expectations. Despite the impact that Omicron had on hospital capacity and procedure volumes in January and into February, our Q3 sales were encouraging as we exited March with some momentum in the U.S., and our international sales remained strong throughout the quarter. For the quarter, worldwide revenue of 56.2 million represented a 4.9% sequential decrease compared to Q2 and 11.1% versus the prior year. As we have noted previously, the duration and severity of the Delta and Omicron outbreaks and the resulting decline in outpatient visits throughout the past year have had an enduring impact on procedure volumes. Although we only have limited visibility into the patient referral channel, we believe there is a small COVID-related backlog, but the capacity of hospitals and OBLs to manage the inflow has been negatively impacted by staffing shortages and turnover. We are seeing staffing slowly improve, and we expect the backlog of cases to gradually flow through our accounts during the remainder of the calendar year. We are encouraged that the key operating statistics in our business continue to demonstrate strong demand for our products. Performance metrics like new customers trained and new contracts exceeded our expectations in the quarter. In addition, our support devices continue to gain traction and drive incremental revenue. We are excited about the early demand for our Scoreflex NC scoring balloon. and we expect this device to emerge as an important growth driver in our coronary business in the quarters ahead. Outside the U.S., we continue to deliver robust growth as we expand our geographic footprint and open new accounts in areas like Japan and Europe. This momentum is expected to continue as the adoption of coronary and peripheral atherectomy continues to gain traction in international markets. In the third quarter, We had several notable achievements that support our strategy to enter new growth markets and transform CSI into a more formidable, multi-product, multinational company. We announced new initiatives to develop peripheral and coronary intravascular lithotripsy balloons, as well as a full line of aspiration and mechanical thrombectomy devices for the treatment of peripheral vascular disease and pulmonary embolism. We also completed the first in human clinical experience of our new PVAD device for high-risk PCI and the peripheral Everolimus drug-coated balloon. These are just a few of the developments that give us a sense of optimism and excitement about the future. We believe that our new products will significantly enhance patient care and the growth potential for this portfolio is largely underappreciated. As our product pipeline has rapidly progressed, we are now preparing to initiate several new clinical research programs. To prepare for this increased clinical activity, we recently announced that Dr. Jeff Chambers has joined CSI as our new chief medical officer. Jeff is a practicing interventional cardiologist with extensive experience in patient care, as well as the design and conduct of clinical research programs. In addition to medical affairs and patient safety, Jeff will lead our clinical research organization, and he will infuse medical expertise into all areas of our business. In a moment, Rhonda will provide additional information regarding our commercial progress, but now Jeff Points will provide you with additional details regarding our third quarter financial results. Jeff.