This is an interesting way to think about Exactech with revenue as a backdrop going all the way back to the shortly after our founding in 1985. We started as a hip replacement company treating patients with arthritis of the hip with total hip replacement systems and develop modest revenue and then in early 90s developed a relationship with the hospital for special surgery in New York City to design a new total knee system that was in fact evolution of technology that had previously been marketed worldwide by a major competitor.When we had access to this technology and launched the product in 1996 we knew of the small private company we did not have the financial resources to do justice to the commercial opportunity that would be available to us with this new Optetrak knee system. So we raised a little bit of money in an ITO, and that money allowed us to commercialize this knee system on the scale that we were capable of the company of the size we were at the time. From 1996 to 2007 we went on a pretty good run of consistent growth as we expanded our hip replacement and knee replacement lines. Guidance of the biologic segment of orthopedics and ultimately the extremities market and picked up the distribution agreement for a bone cement product. That was all growth that was fueled out of operations and a little bit of debt with no further equity raised during that time. Then in 2008 with a two small acquisitions which got us into the spine market and began a journey of having more direct operations outside the U.S., which I will talk about more later. That year by the way we grew 24% ex-acquisition, 38% with the acquisitions, and then with the rest of the world over the last several years we slowed down to a pace of about 8% to 10% growth rates, but yes still continue to outpace the market and in some segments we substantially outpace the market.
This is just a current look at second quarter to confirm what I have just stated about the Exactech outpacing market growth rates on a weighted average basis, certainly double the market growth rates in the second quarter of this year. Also point out that over 15 years time we do have a compound average growth rate of 17%. Even under the difficult environment recently we have managed to put forth strategies that allow us to continue to outpace the market.The market in what we do like the market in most of the industries around the world has slowed down substantially. This slide looked a lot more attractive with respect to growth rates three or four years ago. It still remains very attractive. It’s a sable market and in most cases it looks to be growing slightly in most cases. And these are the segments of orthopedics that Exactech competes in. So we are in the larger segments with spine, knees, hips and biologics, and also in extremities which is growing faster. We are in extremities only with the upper extremity, specifically a total shoulder replacement system. What that means in terms of the orthopedic segments that we are not in or slower growing and relatively smaller segments of sports medicine, trauma and soft goods. Soft goods being braces and casting materials and those kinds of things were usually office based sales. This is a pictorial representation of those segments that we are competing in and the products that we offer with the associated growth rates for 2011, with the major core segments of our business hip, knee, and extremities growing either above market growth rates or substantially above market growth rates. Read the rest of this transcript for free on seekingalpha.com