Haemonetics Corporation (NYSE:HAE) Q2 2024 Earnings Call Transcript

So they typically have two to three weeks. In many cases, we’ve cut that in half as a result of this. And then we’ve got into a focus, a micro focus on how to make sure that we don’t turn those reductions into stock out. So we’re in the process of it. At the end of the day, I can sit here and tell you with confidence that we will ship every bowl we make over the second half of the year to meet the growing demand in third quarters, and then we forecasted this is always our most robust quarter of the year. If we get any reprieve from demand in the fourth quarter, we’ll use that to rebuild inventories first our customers and then our own. So the effect – the net effect to answer your question directly is reflected in our guidance, and we have a lot of confidence that we can make up for it in the second half.

Andrew Cooper: Okay. That is super helpful. Maybe just one more, sticking with plasma. You mentioned in the prepared remarks seeing share gains on the software side. Wondering if you’re seeing anything or there’s anything to report on sort of the collection device side as well, anything you’re hearing or any potential to take share, especially now that you go to market with at least some talking points on Express Plus and eventually a full rollout there. Just wondering if anything changing in the competitive landscape from that perspective.

Chris Simon: Yes. We continue to be very bullish on our competitive advantage. We’re absolutely convinced, as I said in the prepared remarks that NexSys is the industry standard. – the fully integrated collection, the bidirectional communication, the superior donor response, right, to a quiet well-functioning system. And so we feel quite good about that. The upgrade software were a meaningful tailwind for us in the quarter, and that’s great. In terms of the actual device placements, actually, when you go through our inventory in some regards, we’ve slowed the pace of place and it’s not because of any drop in demand that the opposite. But with our customers, we’re becoming very focused on fleet optimization, getting more done with the existing devices.

So we’ve got active programs there. So device count is not the right metric on this. We continue to look at churn rates which continue to go up particularly, and this is the real driver for growth for us in the quarter. Our customers with Persona outperformed the rest of the field meaningfully driving our growth. So not only are they collecting more per donation, but they’re actually kind of pushing the front edge of that. And I think that’s a reflection of their ability to recruit and retain donors. So again, quite bullish on the system. And with regards to the Express Plus and the speed up, that’s in the market. We’ve purposely done a limited market release working with a handful of customers to make sure there’s no disruption. But it is in the market.

The feedback to date has been outstanding.

Andrew Cooper: Great. I appreciate it. I will stop there.

Operator: Thank you so much. Your next question comes from the line of Mike Matson of Needham & Company. Your line is now open.

Mike Matson: Good morning. Just a few on the OpSens deal. So I guess, first, are you more excited about their SFR opportunity kind of traditional SFR with OptoWire or the SavvyWire-TAVR opportunity? And then are you going to sort of – I assume they have some sort of sales force. So I guess that would get integrated with your existing kind of base closure sales force and you’d have a single group selling both product lines?

Chris Simon: Yes, Mike, thanks for the questions. I’ll start, and I’ll invite Stu to comment. We are very optimistic about the deal, have to recognize that we’re in an interesting period where – they are in the process of soliciting shareholder approval. So we’ll be somewhat guarded in what we say just because we will be respectful of that process. In terms of the assets, right, we actually define it in three parts. We’re very enthusiastic about SavvyWire. We think what SavvyWire can do in the TAVR space and more broadly in interventional is super exciting, and we are in the very, very early innings of that for sure. OptoWire and OptoMonitor or the second piece, great Guidewire, real interesting potential and support there.