Haemonetics Corporation (NYSE:HAE) Q2 2024 Earnings Call Transcript

Chris Simon: Yes, Mike, your recollection is exactly right. And there’s been no additional developments there. We’re working collaboratively with CSL and all of our customers to meet their accelerated demand. So as I said earlier, they’re participating fully in the growth that we’re experiencing this year. And we expect, as we communicated before, a substantial contribution again in our fiscal 2025. But we’ll have more to say about that when we guide for 2025 in May.

Michael Petusky: Okay. Great. And then just – I just want to clarify on the rationalization of the products in Blood Center and I guess the hope for transition is – do you guys expect – and I understand it’s going to take place over multiple years, but do you guys expect any sort of net revenue loss at the end of this? I mean how much revenue are we actually talking about in terms of current contribution?

Chris Simon: Yes, it’s an interesting dynamic for us, right? Because we’ve taken a micro look at this code-by-code SKU by SKU. We are definitely influence, as we said in the prepared remarks, by the product recall, some challenges that have arisen as a result of that, the increased regulatory burden that these products would face for CE Mark and other approval via MDR or IVDR. So we’ve kind of put that all in the mix and taking a hard look and said, the best path for us is to end of life, those specific codes. So longer term, not this year beyond what’s in our guidance. But longer term, there will be a dampening effect on the overall revenue from that portion of the portfolio. It’s a modest portion of the Blood Center portfolio, which is the smallest of our three businesses, as you know.

We do not expect any negative effect on the overall contribution. Our actual margins. In fact, our margin percent will increase as a result of delisting these products, but more on that when we guide for 2025.

Michael Petusky: Okay. Great. Thanks a lot. Nice quarter.

Operator: Thank you so much. And there are no further questions at this time. This concludes today’s conference call. Thank you for participating, and you may now disconnect. Everyone, you have a great day.