The Spectranetics Corporation (NASDAQ:SPNC) Q4 2014 Earnings Conference Call - Final Transcript

Feb 19, 2015 • 04:30 am ET


The Spectranetics Corporation (NASDAQ:SPNC) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Spectranetics Corporation 2014 Fourth Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will have a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder, this conference call is being recorded. I would now like to turn the call over to Lynn Pieper. Please go ahead.

Lynn Pieper

Thanks, Nicholas. This is Lynn Pieper with Westwicke Partners. Thank you for participating in today's call. Joining me from Spectranetics is President and Chief Executive Officer, Scott Drake and Chief Financial Officer, Guy Childs. Earlier today, Spectranetics released financial results for the quarter and year ended December 31, 2014. If you have not received this news release or if you'd like to be added to the company's distribution list, please call Westwicke Partners at 415-513-1280.

(Forward-Looking Cautionary Statements) This conference call contains time-sensitive information and is accurate only as of the live broadcast, February 19, 2015.

I'll now turn over the call to Scott Drake. Scott?

Scott Drake

Thanks Lynn and good afternoon everyone. Q4 capped off a very productive year for our company. Strong tactical execution, accelerating growth, and meaningful strategic progress were evident across the business. Today I will begin by highlighting our performance for each segment, then talk about our major growth drivers and pipeline progress. Guy will go deeper into financials and 2015 outlook and we look forward to fielding your questions.

On the top line, this quarter we posted 51% overall growth, 16% organic both on a constant currency basis. Performance was highlighted by faster than market growth across focus areas, continued success with our AngioScore integration, and robust performance across U.S. and global regions. In Vascular Intervention, we achieved 91% growth, 19% organic, again both constant currency.

U.S. peripheral atherectomy was up 30% and above the knee growth was even stronger at 34%. These results were achieved over a strong prior year quarter and demonstrate ISR traction. We are still in early stages of the ISR launch but physician feedback demand for training new accounts and deeper penetration all point to us being on track with our guidance of 15 million to 20 million this year.

I am also pleased to report that the AngioScore integration is on or ahead of schedule. Operational milestones are largely complete, gross margin for this business is 560 basis points ahead of prior year, and the commercial team is settling in with another quarter of solid performance. On the Lead Management front, where growth returned to double-digit levels posting a top line constant currency increase of 15%, performance was driven by our expanded sales team gaining traction and increasing per rep productivity.

They are driving awareness via our infection campaign and physicians increasingly see the need to act earlier and remove infected devices. Patient's lives depend on the success of this campaign. We're also performing well with our mechanical tools launch. We are seeing complimentary use of laser and mechanical devices with current