Niobe orders at $4.6 million or less that our expectations due to delayed customer decisions. Conversely, our Niobe pipeline of late-stage customers continue to demonstrate a growing interest in our platform, driven by the rebounding of reference sites in North America, and the expansion into Eastern Europe and Asia. Modeling our sales process and the conversion of late-stage customers into order, supports our forecast for growth in new orders this year on the platform.
Odyssey incoming orders of $2.5 million including 45% of orders coming from standard labs, continue to demonstrate strong market interest for Odyssey, as the clinical networking platform for all interventional suits. Niobe utilization continued to grow in the fourth quarter – over the fourth quarter of 2010, although not reflected in the recurring revenue due to fluctuations and shipments of disposables.
As we indicated in our fourth quarter results call, we expected the first quarter would be challenging. I will now discuss the factors that impacted our first quarter and the actions we are taking that give us confidence that we will exceed our expectations for the year.
As we discussed in the fall, we did experience a delay in the imaging partners’ magnetic model being shipped for a six-month period. I am pleased to announce that this is on schedule to be resolved and shipments will resume this quarter. More importantly, I want to discuss the overall Niobe trends.To start, let me provide some historical perspective on Niobe sales. Since 2003, we systematically grew new Niobe annual placements until the irrigated catheter delay and recall in 2007 and 2008. Since that period, Niobe orders that we converted to revenue in a given year have ranged from 20 to 30 per year, indicating an adoption rate that we believe does not reflect our system’s value in this high growth market. With approximately 400 newer renovated EP labs built per year globally, the market potential is much greater than the 20 or 30 Niobes we have historically sold. We firmly believe that we can accelerate the sales rate to 50 to 100 new platforms per year with the right system enhancements combined with Niobe’s proven safety and efficacy benefits. Read the rest of this transcript for free on seekingalpha.com
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