Jim Clemmer: It does make sense, it’s Jim. A little bit of — it’s a mix of everything. So we’re always gaining new users. And sometimes you lose users, too. So it’s just kind of a mix that happens all the time. The product is so unique and special that we’re always getting new interest in new users. And sometimes we’ve been under challenged to continue that usage to make sure that the physicians trained and can use it. With other things happening, — there’s also a gray area between where AngioVac works, our AlphaVac can work or other competitive products can work. So as we’re learning that and getting our customers better aligned to the change in market is better trained, we’ll see a little of choppiness there. We’ve learned a lot had a master class 2 weeks ago, where I sat in again over a weekend with some of new users.
And right afterwards, a couple of users use it the first week right after the master training class. So we know that people see the value of it, how easy it is to use, although it’s complex from user standpoint the benefits it drives and patient outcomes are dynamic. So Jayson, it’s choppy. Yes, there’s always some accounts leaving, some accounts are coming in. I’m trying to give you a straight answer, but it’s a moving target.
Jayson Bedford: And I don’t think I heard you mention left heart and where you are with AngioVac or time line regulatory process?
Jim Clemmer: Yes. We’re really excited by what we believe AngioVac can do in the left heart, the size of the market, we believe how we can treat. What we’ve gotten from the FDA is different guidance than they gave us initially. They’ve kind of rethought the approach that they want us to take and have given us different guidance. So it’s changing our approach towards it. So we have to look at the time line again and how that will affect the new level of really they’ve raised the bar and what they want what they initially communicated with us. So we’ve got to come back to Jayson and communicate to you what that means from a time line perspective because it will push our time line out. What they’ve asked us for is a little more comprehensive than the initial request was.
Operator: Our next questions come from the line of Bill Plovanic with Canaccord. Please proceed with your questions.
Bill Plovanic: My first question is, as we look at guidance for the year, that will be a pretty big jump in the fourth quarter. I was just — help us just to get to the low end. So help us understand what you’re contemplating in terms of getting to the low end, meeting the low end or even getting to the high end of that updated guidance.
Steve Trowbridge: Yes, Bill, it’s a good question. I mean, part of the things I understand is structurally the fourth quarter has about 4 more selling days in it than the third quarter. So — and it doesn’t have the same holiday cadence that the Q3 had. So we typically see a big jump going into the Q4 from Q3 every year given our typical seasonality. So I think that’s the first part of it. Second part is if you look at some of the products like Auryon and NanoKnife that are on their growth trajectory, we’re very excited and they’re going to continue their sequential growth, which is going to add to that increased selling days. We do expect we’re going to see a pickup in AngioVac, as Jim mentioned. And we have seen that here in the first month of March so far.
We’ve been very pleased with the pace that we’ve seen at AngioVac coming from some of those changes that Jim had mentioned. And then when you build into that some of the dynamics that we were talking about with Jayson on the previous call around the back order, getting some of those components in and clearing that, all those dynamics together give us confidence, certainly to what you were asking to is the bottom end of the range. But we’re — as you can imagine, we put the range out there, and we’re looking at that range and targeting midpoint.
Bill Plovanic: And then from a cash flow standpoint, I think — and correct me if I’m wrong, originally, you were targeting that you would end the year being cash flow neutral for the year. Given where you sit today, kind of how do you feel about that? Do you still think that’s the case?
Steve Trowbridge: Look, we’re still striving for that. I think given the revenue change that we talked about here, if you look at the kind of midpoint to midpoint from our original guidance to where we’re going, we do think that we may be maybe $5 million or so off of that, but we’re still going to continue to strive for it. We do expect we’re going to see significant cash generation and we’ll continue to push towards that.
Bill Plovanic: And then just with the AlphaVac and AngioVac, I mean as you look at the AlphaVac growth and the kind of decrease in the AngioVac, do you think this is just cannibalization of the same doctors and customers? Or is AlphaVac really drawing in a new customer and you’re just kind of with the AngioVac just going down and kind of losing some of that share?
Jim Clemmer: So Bill, a little bit of both. Back when we launched the AlphaVac last summer, we tracked every procedure we’ve done, tracked who did the procedure which specialty, which physician had performed the procedure and what they would have used as an alternative. And early on, we saw some of that cannibalization. Now that was also when last summer and last fall, there was a little pressure in the hospitals as far as employee staffing and some challenges there. Lately, we’ve seen that shift change, and we’re finding less and less. We knew there’d be some cannibalization. It’s gotten a lot less so we’re finding — we’re replacing a potential other products or other technology or other treatment protocol than we were 6 or 9 months ago.
So we like the way that shift is occurring. It has been a challenge for us during this year, and it will always remain there. But we think the shift is working well as we educate our teams and our customers as to when to use which product and how.
Operator: I’d now like to turn the call back over to Mr. Clemmer for any closing remarks. Mr. Clemmer?
Jim Clemmer: Thanks, Darryl, and thanks to the listeners today. We appreciate the feedback we’ve received. We’ll work hard to continue to grow our company and show our investors we can become a growth and profitable company as we treat patients in need around the globe. Thank you for listening today.
Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
