Patterson Companies Earnings Call Insights: Dental Equipment and Medical Side
Patterson Companies, Inc. (NASDAQ:PDCO) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Kevin Ellich – Piper Jaffray: Just wanted to start off with dental equipment obviously you have the tough comp from the CEREC trade-up program. But just wondering what else did you guys see and what was impacting it and how did basic dental perform, basic dental equipment perform this quarter?
Scott P. Anderson – Chairman, President and CEO: First of all I talk about CEREC, because that had the biggest impact in the quarter. It really came in right on our internal plan and the early four things that went on in the quarter around CEREC number one is we placed all new Omnicams in our training centers as well as established new demonstration units with all of our sales people in our branches. Two as we began to deliver Omnicams to customers trading up from Bluecam we have a substantial backlog of customers to get to in the coming quarters, which we are very excited about. Three is we also sold and installed new Omnicam units to new customers and four I think is one of the really important points as we really worked over this first quarter to normalize our inventory level of CEREC products to position ourselves to meet the ongoing demand throughout our entire fiscal year. So we feel very good about our CEREC pipeline and we expect double-digit growth in our fiscal year. I would also note that Sirona has been stellar in our agreed upon delivery schedule and we remain on track with that. On the core equipment business, it was down slightly in the quarter coming off really six month run of strong business but it still sort of bumps along the same level that it’s been at for really the last three years. I would say we’re cautiously optimistic though in what we see in the pipeline already out of the gate in our second quarter and feel good about this market conditions going into the end of the calendar year.
Kevin Ellich – Piper Jaffray: And then Scott, your comment about expecting double-digit growth for the year is that just on the CEREC sales or is that for all of equipment?
Scott P. Anderson – Chairman, President and CEO: I think when you put all of our equipment together, we expect to get there by the end of the fiscal year obviously strong double-digit sales in CEREC and our digital products and mid-single-digit sales for our core equipment piece…