Hansen Medical Inc. ( HNSN)

Q3 2010 Earnings Call Transcript

November 3, 2010 4:45 pm ET


Matt Clawson – IR, Allen & Caron Inc.

Bruce Barclay – President and CEO

Peter Osborne – Interim CFO


James [ph] – Morgan Stanley

Tim Lee – Piper Jaffray

Sameer Harish – Needham & Company



Good afternoon, ladies and gentlemen, thank you for standing by. Welcome to the Hansen Medical 2010 third quarter and nine months results conference call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions. (Operator instructions)

I would now like to turn the conference over to our host Mr. Matt Clawson, with Allen & Caron. Please go ahead sir.

Matt Clawson

Thank you, Brandy. Good afternoon, everyone. Welcome to Hansen Medical’s 2010 third quarter results conference call. With us today are Hansen Medical’s President and CEO, Bruce Barclay; and the Company’s Interim Chief Financial Officer, Peter Osborne.

Before I turn the call over to management, please remember that our prepared remarks and responses to questions will contain forward-looking statements that are subject to a number of risks and uncertainties, the examples of such statements include statements about our expected operational and financial results, the timing and results of our clinical studies, the receipt and timing of future regulatory approvals, and the timing of future product launches.

Actual results may differ materially from those set forth in these statements due to the risks and uncertainties inherent in our business including

enrollment delays and uncertain timelines, costs, and results of clinical studies and of developing new products; potential safety and regulatory issues that could slow or suspend sales; the rate of adoption of our systems and the rate of use of our catheters at customers that have purchased our systems; our ability to successfully manage our manufacturing and operating expenses; the scope and validity of intellectual property rights applicable to our products; competition from other companies; the effect of credit, financial and general economic conditions on capital spending by potential purchasers of our systems; additional cost and resources necessary to address existing and potential claims and proceedings related to the restatement of our financial statements; our ability to remediate material weakness in internal controls over financial reporting and other risks detailed in the Risk Factors section of our periodic SEC filings, including our quarterly report on Form 10-Q for the three months ended June 30, 2010 as filed with the SEC on August 6 of this year.

We undertake no obligation to revise or update information herein to reflect events or circumstances in the future even if new information becomes available.

With that, it’s now my pleasure to turn the call over to Hansen Medical’s President and CEO, Bruce Barclay. Good morning, Bruce.

Bruce Barclay

Thanks, Matt. Good afternoon everyone and thank you all for joining our third quarter results conference call. Before I begin my prepared remarks I want to introduce Matt Clawson and welcome him to the Hansen team. Matt is a partner at Allen & Caron, our new Investor Relations and corporate communications firm. Many of you on the call both on the buy side and on the sell side know Matt and his firm and have had a chance to talk with him already. And we are very pleased to have them working with the company and going forward on our IR and PR needs.

I am happy to be reporting our third quarter results, my first full quarter as CEO. Over the summer months and end of the fall, I continued working to get to know the needs of our various constituents, internal and external and overlaid that information on the relevant market dynamics that are in force today.

I have also come to understand in a much more specific way, the opportunities and challenges facing the company. The good news is that I am more optimistic than I was even three months ago about our ability to succeed and ultimately create sustained value for our shareholders. The record number of procedures performed in the third quarter is a strong testament to physicians’ growing confidence in the safety and effectiveness of our products as well as their institutions understanding of the positive value proposition that we bring.

That strong procedure growth was only one facet of the progress we made at the company in the last three months. We’ve been busy working to re-establish momentum in all areas of the business and rekindle the enthusiasm of our customers, employees and investors that was so strong only a short time ago. What we have at Hansen is a game changing technology in interventional medicine.

So as I said in our last call, there is much work to be done at the company in order to realize that full potential. As you can see from traditional P&L metrics we are not yet to the point where we are seeing a steady ramp on the top and bottom lines. The current lumpiness is a result of the continuing uneven commercial ramp of the Sensei systems.

That said the uneven topline results will likely mask some significant achievements in our commercial, regulatory and operational areas and those who have passed those sales figures should recognize that progress and its underlying importance in this and coming quarters. My focus is on improving our execution in all areas of the business and meeting our commitments to our customers, our partners and our shareholders.

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