Meridian Bioscience (VIVO) Q1 2019 Earnings Conference Call Transcript

Meridian Bioscience (VIVO)
Q1 2019 Earnings Conference Call
Jan. 24, 2019 9:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

See all our earnings call transcripts.

Prepared Remarks:

Operator

Good morning. My name is Heidi, and I will be your conference operator today. At this time, I would like to welcome everyone to the Meridian Bioscience fiscal first-quarter earnings call. [Operator instructions] Eric Rasmussen, chief financial officer, you may begin your conference.

Eric Rasmussen -- Chief Financial Officer

Thanks, Heidi. By now you should have access to a copy of the earnings press release. If you do not, please go to the Investor Relations section of our website to access the press release and this morning's presentation. Before we begin today, let me remind you that the company's remarks do include forward-looking statements.

Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the company's control, including risks and uncertainties described from time-to-time in the company's SEC filings. The company's results may differ materially from those projected. The company undertakes no obligation to publicly update any forward-looking statement. Additionally, as discussed on Slide 3, we refer to non-GAAP financial measures, specifically operating expenses, operating income, operating margin, net income and earnings per share.

A reconciliation of these non-GAAP financial measures with the most directly comparable GAAP measure is included in our press release, which is available, again, on our website. With that, I'll jump right into our first-quarter results and on Slide 5. As we reported earlier today, total revenue for the first quarter of fiscal 2019 were $51.5 million, as compared to $52.3 million in the first quarter of fiscal 2018. This represented a 1.5% decrease in total or about 1% decline, excluding the impact of foreign currency exchange rates and was in line with the preliminary results we announced on January 7.

This decline was driven by our Diagnostics segment, where revenues decreased about 2% as our Life Science business had essentially flat sales in the quarter. Despite the consolidated sales decline, gross profit of 61 -- gross profit margin of 61.3% improved slightly, up 10 basis points, as improvement in our Life Science business offset negative pricing and volume impact in Diagnostics. On an adjusted or non-GAAP basis, first-quarter operating income increased to $11.1 million or about 17% compared to $9.5 million a year ago. This increase was entirely a result of lower operating expenses year over year, reflecting our cost reduction and consolidation actions in 2018, as well as ongoing expense management discipline.

Sales and marketing expense was down $1.2 million, primarily a result of reorganization actions taken in 2018, as well as lower sales commissions. Lower R&D expense largely reflected clinical trial activities related to CMV that took place in first quarter of fiscal 2018. And G&A expenses were also lower, including savings from fiscal 2018 organizational streamlining initiatives. The non-GAAP operating income in the quarter was 21.6% or 330 basis point improvement over first quarter of 2018.

On a non-GAAP basis, net earnings of $8.6 million and earnings per share of $0.20 increased 30% -- 31% and 33%, respectively, in the quarter. These results reflect the benefit of the full year -- full phase in of U.S. tax reform in fiscal 2019. On a GAAP basis, GAAP operating income of $10.6 million included litigation costs of approximately $600,000 in the quarter compared to combined litigation and restructuring charges of approximately $1.5 million in last year's results.

GAAP net earnings and earnings per share in the quarter increased 29% and 27%, respectively. Turning to the next slide, highlighting our operating segment results. Both of our business units posted operating income and operating margin improvement compared to the first-quarter fiscal 2018, despite soft revenues. First, Diagnostics.

As mentioned previously, Diagnostics revenues declined 2% to $36.7 million, predominantly driven by an overall revenue decline of 16% in molecular products, including notably C. diff, which experienced significant volume pressure in the quarter. This pressure combined with pricing related declines in H. pylori drove an 8% revenue decline in GI-related products and diagnostics.

Continued growth in lead products, which were up 5% and better availability of certain respiratory products compared to a year ago partially offset these declines. Diagnostics operating income increased 2.5% to $8.8 million on a non-GAAP basis. As previously mentioned, lower R&D expense from lower clinical trial activity supported the operating expense reduction as well as lower sales commissions and costs associated with regaining lead testing venous blood claims. Operating margins for core Diagnostics in the quarter were 24%, up from 23% a year ago, both on a non-GAAP basis.

On turning to the Life Science side. Life Science revenues were about flat in the quarter at $14.8 million, as strong growth in molecular reagent products offset a year-over-year decline in immunoreagent revenues. Europe had strong demand in the quarter boosted by both new customers and new products. Other regions, particularly China, had softer-than-expected customer order activity after closing out fiscal 2018 on a strong note.

Life Science non-GAAP operating income increased significantly in the quarter to $5.1 million as a result of significantly lower costs overall and the result of restructuring and consolidation activities in fiscal 2018. At 34.6%, Life Science operating margin exceeded 30% for the second consecutive quarter on a non-GAAP basis. Turning to Slide 7, we discuss our updated guidance for full-year fiscal 2019. Our fiscal-quarter results did cause -- our first-quarter results did cause us to reexamine our outlook for the remainder of fiscal 2019, and we're providing updated guidance based on this reexamination.

We're now providing consolidated revenue guidance of flat to 2% growth based on lower growth expectations in diagnostics as well as the softer-than-expected order patterns in Q1 in our Life Science business. Revenue guidance is now low single-digit declines in the Diagnostic segment and high single digit to low double-digit revenue growth in the Life Science segment. In just a minute, Jack will provide a little more color on some of the major underlying factors that are driving these updated expectations. We're also adjusting our operating margin guidance.

GAAP operating margin guidance is now approximately 19%, representing primarily the expectation for litigation expense carryover into fiscal 2019. Non-GAAP operating margin for the company remains in the approximately 20% range. Our guidance in margin contribution between our Diagnostics and Life Science businesses has also been updated with stronger Life Science operating margin performance expected to largely match margin pressure and diagnostic as the year progresses. While the tax rate was lower than expected in Q1, a result of mix -- profit mix in low tax jurisdictions, our tax guidance for the balance of the year remains 25.5%, resulting in a full year tax rate of 24.5% to 25%.

Accordingly, reflecting the net effect of these changes, our GAAP EPS guidance of $0.72 to $0.74 and our non-GAAP EPS guidance remains at $0.74 to $0.76 per share. Lastly, it is important to note that strong demand for respiratory related products in the second quarter of fiscal 2018 will make for difficult comparisons, particularly in our Diagnostics business in Q2. As a result, our guidance implies revenue growth that is back-end weighted in the year. And with that, I'll turn it over to Jack.

Jack Kenny -- Chief Executive Officer

Thank you, Eric. I'm going to start first with the Diagnostic business and focus on Page 9. As we're in the early stages of our new strategic plan, there is much work to be done to build a stronger, more sustainable Diagnostic business. Working to rebuild the pipeline of products is critical to our long term success, but will not provide significant growth drivers in fiscal '19.

Our R&D investment is under way with significant focus on executing the Curian platform and menu as we speak. This ongoing work will have positive impact in fiscal '20 and '21. As we prepared for fiscal '19, we built specific strategies to drive near-term performance while reestablishing a strong pipeline of products. As we came into fiscal '19, we focused on putting new products into the hands of our sales team.

We established partnerships for two new products: The addition of calprotectin and Lyme test fit well into our existing product portfolio. In addition, we've internally developed product initiatives to drive near-term revenue in our Diagnostics business. We recently received approval for our novel molecular CMV assay for newborns and have refocused commercial efforts for our lead care products to drive sales into our IDN and hospital customers. These two product areas will help us to drive further relevance with our IDN customers to better manage the health of our children.

In addition to those four products, we established a strategic partnership with DiaSorin in fiscal Q1 to drive collaboration commercially and to drive the sales of Meridian's HpSA assay on the DiaSorin liaison instrument. This exciting new product is a first fully automated HpSA test on the market and is a highly attractive product offering to reference labs, IDNs and to stand-alone hospitals. These 5 key products were all added to the commercial teams' product offering in Q1 and in early Q2, driving sales of these products as fiscal 2019 continues while protecting the base by contracting strategies and rigorous commercial efforts are key for the fiscal year and to bridge toward further new products for our Diagnostics business. Moving over to Page 10.

I want to take a minute and talk about the Life Science business. As we look at our Life Science business in fiscal -- for fiscal 2019, we continue to see strong growth prospects for the business. This Life Science business has been a good growing business for Meridian on an annual basis. However, we do tend to see more volatility on a quarter-to-quarter basis due to the timing of large bulk orders from our diagnostic manufacturer customers.

This currently has greater impact on the immunoassay part of the Life Science business, but we do anticipate over time this will be the case for the molecular business as well, as our new strategy is increasingly focused on selling to molecular manufacturers versus academia. While we anticipate swings from quarter to quarter, we do foresee continued growth for the Life Science business overall and remain extremely optimistic. The business is well-positioned for continued growth in 2019 and beyond. We're excited to launch several new products on the Life Science side of the business.

Our new AMH Inhibin B product has strong business potential primarily in the China market, which remains a key growth area for our Life Science business. We also continue to see strong customer interest in our new tropical disease products around the globe. Our new TRU Block Ultra product is building strong customer interest with large diagnostic companies as this is a key ingredient to build great immunoassay tests. And last but not least, our recent launch of our new Lyo ready PCR enzymes will enable significant benefits for our molecular diagnostics customers and is generating strong customer interest worldwide.

We see great customer interest in each of these products as we launch them onto the marketplace and remain optimistic on the sales growth from these new product offerings. We anticipate strong growth in fiscal '19 and beyond from the impact of these new products and the planned future product offerings currently in development. Let's move quickly to Page 11. As we look at the overall Meridian business, we're in the early stages of our strategy execution.

In Diagnostics, this means repositioning the business for growth, while at the same time managing the ongoing competitive pressures this business faces. We've driven initiatives in 2018 to streamline our organization, which provide us the flexibility to allocate increased investment back into the business and drive future growth. We're ramping up R&D efforts within the organization. We anticipate further acceleration in investment over time as these products move through the new product development stage gates and into clinical trials.

We'll continue to invest in the reshaping of the Diagnostics business for the long term and execute on initiatives to drive topline and bottom line performance in the near term. In the near term, we continue to see our Life Science business as the primary driver of growth for the company. We see strong prospects for the Life Science business over the coming years, and we'll work diligently to change the trajectory of the Diagnostic business on a sustainable basis. With that, we wanted to now open it up to any questions that you guys may have. 

Questions and Answers:

Operator

[Operator instructions] And your first question comes from the line of Bill Quirk from Piper Jaffray. Please go ahead.

Bill Quirk -- Piper Jaffray -- Analyst

Great. Thanks, and good morning, everybody.

Jack Kenny -- Chief Executive Officer

Hey, Bill, how are you doing?

Bill Quirk -- Piper Jaffray -- Analyst

Hey, I'm very well, Jack. Thank you. So a couple of questions. I guess, first off just on the pricing pressure across a couple of tests and in particular H.

pylori. How should we think about the duration of that? Is this something that you'd expect to see over the course of '19? And having revised or updated contracts, we should see that kind of peter off in 2020. Just trying to get a handle on how long we should be thinking about that.

Jack Kenny -- Chief Executive Officer

So when we planned for 2019 we did plan for price challenges on the HpSA front. We have -- as you know, we have some large diagnostic companies, the large reference labs, and we did work to secure new contracts with them, which did have some pricing benefits to those customers. So we have kind of planned and modeled for that to occur throughout the year in those large reference lab customers. We do anticipate some price challenges as well as competition comes in on the ImmunoCard and those other products.

But we think that this year will be the big year for price challenge and then it will be a lesser, a much lesser degree as we go forward after 2019.

Bill Quirk -- Piper Jaffray -- Analyst

OK. That's very helpful. Thank you. And then I guess, just a bigger picture question, you certainly talked about a number of moves that you're making here, be it new products or new systems that reinvigorate growth in the Diagnostic side.

Can you just talk culturally about what you're doing internally to kind of reinvigorate the growth culture within Meridian and specifically within the Diagnostic group?

Jack Kenny -- Chief Executive Officer

So we -- the -- probably the biggest challenge we have coming into an organization like this is to kind of reshape and redefine the culture, something that we started 12-plus months ago and we continue to do that. We are trying to drive the organization into more of a growth-focused look at the business overall versus short-term profitability. Yes, we love having good profitability, which we had again in this quarter, but we're really pushing the organization toward growth initiatives. From an R&D perspective on the Diagnostic side, we're really overhauling the approach to new product development, really aligning all the different groups that have to come together to build a growth engine over time, having a commercial team and the voice of the customer working closely with your R&D team as well as your RA team and your operations team.

All of those things have to kind of come together to kind of reestablish the pipeline. We wanted to ensure that the products we have in development on the R&D front truly will hit the market in the right place and focus in the areas of our strategy. So there's been some work on that front. Bill, we even had to overhaul a little bit of the culture even in the way that we incented the entire corporation.

When we -- if you look before 2018, our -- the way that an incentive bonus would occur in the company, it was 100% based on earnings per share and how do we do versus what we committed to Wall Street. We changed that in fiscal 2018 to really focus on three things: The sales growth of the company; earnings per share still being important; and third, being your personal performance in the job. So every individual will have how did they perform in their job. Frontline people will have 70% of their bonus based on how they did in their job, are they meeting or exceeding expectations.

We really wanted to get everybody rowing in the same direction to start building the strategy for growth. The only other thing I would say, Bill, in regards to growth is, we're also changing the culture in that we're really taking a more programmatic look at investment into the business. Clearly, we're looking to invest further from an R&D perspective, but also a more programmatic looking into mergers and acquisitions and the opportunities that they may bring for the business over time, that being the case in both Diagnostics and in Life Science. So Eric, I don't know if you have anything else you think to add there?

Eric Rasmussen -- Chief Financial Officer

No. I'm good.

Bill Quirk -- Piper Jaffray -- Analyst

All right. Very good. Thanks, guys.

Jack Kenny -- Chief Executive Officer

Thanks, Bill.

Operator

And your next question comes from the line of Catherine Schulte with Baird. Please go ahead.

Catherine Schulte -- Robert W. Baird -- Analyst

Hey, guys, thanks for the question. How are you?

Jack Kenny -- Chief Executive Officer

Good. Doing well.

Catherine Schulte -- Robert W. Baird -- Analyst

Just curious, as you look at your Diagnostics portfolio today, how much do you think you can improve performance by enhancing menu or commercial execution versus needing the new Curian platform or looking into M&A? I'm just trying to get your assessment on what it would take to get Diagnostics back to, let's say, mid-single-digit growth.

Jack Kenny -- Chief Executive Officer

So we do believe that there's opportunity from a commercial execution standpoint and general kind of blocking and tackling efforts that are there. But Catherine, honestly, clearly for more sustainable consistent growth in Diagnostics, we will need to have some product enhancements that are coming. There are -- one of the things we did in the short term, Catherine, was, we have some products, as we reorganize the business, for example, our lead care products, we have nearly 7,000 pediatrician offices that have lead care systems. We have now engaged the 30 or so people that we have on the commercial front calling on hospitals to take those existing products and help those hospital health systems try to put programs in place to manage the lead for their, if you will, across their health system, primarily because all of these IDNs are owning many of the hospitals -- or owning, excuse me, most of the physicians.

60% to 65% of the physicians are now owned by these IDNs. So we think that there is some short-term opportunities by redirecting the sales team, but for us to get into the Diagnostic business in sustainable mid-single-digit type growth and beyond, enhancing our molecular position is going to be key. And then we do believe we're on the path with Curian and the menu that we intend to put on that product that will help us on the immunoassay side. So realistically firing on all three of those: the lead, the immunoassay and on the molecular is going to be the key to get to a high single-digit type of growth business for Diagnostics.

Catherine Schulte -- Robert W. Baird -- Analyst

Very helpful. And then just a quick followup to Bill's question. On the Diagnostics side, what's the overall pricing headwind that you assumed in guidance?

Jack Kenny -- Chief Executive Officer

Well, we assume for some reduction in -- on the overall or on particular -- in particular products. I mean, HpSA was the primary -- was primarily isolated -- was the primary area where we assumed some price headwinds and price erosion this year and generally assumed a stable -- a more stable price environment for the broader product line.

Catherine Schulte -- Robert W. Baird -- Analyst

OK. And then on the Life Science side, just given order timing can make these quarters lumpy, can you just give us some details on how orders looked for this business? And when should we be expecting an especially high second quarter some large orders slipped from 1Q?

Jack Kenny -- Chief Executive Officer

So we -- if you look back, we did have a very strong Q4 across the Life Science business. So that was one of those quarters that we really did have a significant growth in. As Eric mentioned before, for example in China, a lot of those customers did place their large bulk orders in September time frame. So we did -- we were lighter in China in Q1.

As we look at Q2, we do anticipate bounce back. We did have a harder comparable in Q2 from last year. If you look at our quarter to quarter, Q2 last year was one of our more positive Life Science versus the year before. Believe we had about $16.5 million in the Life Science business in Q2 of last year.

So we do anticipate good growth still in Q2 for Life Science, but we have a higher comp. I think it was about $16.5 million versus the $14.8 million that we had, if you will, in Q1.

Catherine Schulte -- Robert W. Baird -- Analyst

All right. Very helpful. Thank you.

Jack Kenny -- Chief Executive Officer

Thank you, Catherine.

Operator

And your next question comes from the line of Brian Weinstein with William Blair. Please go ahead.

Andrew Brackmann -- William Blair & Company -- Analyst

Hi, guys. This is actually Andrew Brackmann on for Brian. Wanted to first start on the pricing pressures. I know there's been a lot of questions on this and sorry if you've already talked about this, we missed the first part of the call.

But can you maybe talk about what specifically you're doing there to offset these pricing pressures that you're facing? Is there anything that you're offering customers different? Or is there really nothing that you can do there in the short term?

Eric Rasmussen -- Chief Financial Officer

So it's simple. The primary pricing impact is on the HpSA front. The other stuff is, I would describe as more business as usual pricing where you've got if you're contracting customers you may give them some benefit. And the bulk of that was really from the large reference labs.

So we have a very good handle as to what the pricing impact from the HpSA would be from these two customers that's planned throughout the year. Part of that, Andrew, is our efforts with the partners over DiaSorin is one of the efforts we're taking. We believe that there will be some price erosion in HpSA. As competition comes in and as the market does, but we think that there is real market growth opportunity there because we only have about 15% of the H.

pylori testing market is being done with stool antigen. So one of the key efforts that we're really focused on, Andrew, is expanding that pipe. The partnership with DiaSorin has got very strong initial positive reaction in the marketplace. We do believe that we can not only help customers that want to take that testing in themselves versus sending it to a reference lab, but also quite frankly, find a serum based testing and other types of tests that perhaps they want to convert to H.

pylori stool antigen. So a lot of it, Andrew, has to do with realistically increasing the volume. We did perform better than we had anticipated on HpSA in Q1. So we were negative, but we were able to offset some of that negativity from price with some other initiatives that we have on the H.

pylori front.

Andrew Brackmann -- William Blair & Company -- Analyst

Got it. OK. Thanks. And then maybe shifting gears little bit.

Eric, this might be a question for you. Could you maybe talk about what you're seeing on the M&A front right now, the current environment for deals that are coming across your desk? And then as you think about your appetite for M&A, are you favoring more toward diagnostics or life sciences right now? And maybe a little bit more color on the size that we should expect? Thanks.

Eric Rasmussen -- Chief Financial Officer

Yes, sure. Thanks, Andrew. I think -- listen, I think it's a robust environment. I think there are groups -- of still a robust environment.

Obviously, the broader kind of uncertainty and valuation in the broader market and some of the changes in the valuations may have changed in some segments of the M&A market, the activity, but I think the kinds of companies we've been talking to, the kinds of targets we've been potentially looking at, there -- it's a kind of environment where there as motivated as ever to do things. So I think -- I don't -- I think, it's still a pretty healthy environment and we're seeing things, we're getting inbound inquiries almost every day on certain things, some things fit some thing don't, and we're evaluating those. And in terms of the -- where our focus is, I think top priority right now is, we're -- obviously, both are important, both looking at the Life Science business and the Diagnostics business, I think our bigger priority is to address and reposition, do what we need to do from an acquisition standpoint to help reposition the Diagnostics business for growth and finding the kind of products and capabilities that will help us do that and accelerating that through acquisition as well as on top of our own internal development. So Diagnostics is a priority.

That's not to say that we're not also looking at the Life Science side. And I would -- what I would characterize as we would be looking at smaller kind of niche kind of transactions on the -- very niche transactions on the Life Science side with anything -- I think anything more significant would come on the Diagnostics side for the -- at least for the foreseeable future.

Andrew Brackmann -- William Blair & Company -- Analyst

Yes. OK. And then I guess, a followup to that. As far as timing, do you think that we should expect something in the next 12 months? Or do you think it's further out than that?

Eric Rasmussen -- Chief Financial Officer

It's really hard to say how these things work. I mean, you got to find two people in a dance and be able to find the right and have both people that kind of like each other and you get to the right [Inaudible] so that's -- and I'm not -- so I think are we hopeful to be finding something within fiscal 2019 that is rising to a level that we want to come back to you and talk to you about it, I think we're hopeful that, that happens, but obviously it's hard to predict that.

Jack Kenny -- Chief Executive Officer

Yes. I would think, Andrew, my only comment to that would be is that, we understand on the molecular front whether internal or external partnership, the different strategy that we may take that we need to act in the near future to really stabilize and build a stronger molecular part of our business. So we have a lot of energy focused in regards to internal and external and other collaborations and what are the go-forward plan from a molecular standpoint that we certainly anticipate moving forward in this fiscal year.

Andrew Brackmann -- William Blair & Company -- Analyst

Got it. OK. Thanks, guys.

Operator

And your next question comes from the line of Mark Massaro with Canaccord Genuity. Please go ahead.

Max Masucci -- Canaccord Genuity -- Analyst

This is Max Masucci on for Mark. Hey, how is it going? So I see you've rebranded your illumigene platform, which is now Alethia. Can you talk about the motivation for the rebrand? And just a general update on the timelines for the launches within your molecular system pipeline?

Jack Kenny -- Chief Executive Officer

So the illumipro platform has obviously been out for a while. There were some reasons from a legal perspective that we needed to move that naming over to -- from illumipro to Alethia and so that is the primary driver of moving from illumipro to Alethia. From a menu standpoint, the most recent launch of our congenital CMV on Alethia is the newest product and a very unique product that we're offering to the market, the only automated test for newborns from a congenital CMV standpoint that can be used off of a saliva sample. So we're pretty excited about that.

We're very active in our overall analysis on the molecular front and the molecular front looking at next generation platforms. And so we would anticipate that there will be continued effort and energy into the next generation for molecular, as we then still look at how does Alethia fit into our overall long-term strategies.

Max Masucci -- Canaccord Genuity -- Analyst

Great. And then can you remind us what's left in the venous blood remediation process? And are you still expecting remediated product to be back in the market sometime in spring?

Jack Kenny -- Chief Executive Officer

So we had significant milestones, if you will, in the most recent quarter where we have resubmitted back to the FDA to reinstate the venous blood claim across the three different platforms that we have. So that was submitted to them in the December time frame. And we got our fees in, in time. So even with government shutdown, we're being told that they are working on our submission.

So we have submitted that with the goal of working with the FDA here in Q2 and are hopeful that we'll be able to bring that product back later in the fiscal year as planned.

Max Masucci -- Canaccord Genuity -- Analyst

Great. And then one more if I can. So can you just speak to some of the competitive dynamics you're seeing in the respiratory landscape? And what's your initial impression about how this year's flu season is shaping up and kind of your positioning there?

Jack Kenny -- Chief Executive Officer

So the respiratory space is a large market and certainly a crowded market, but we do believe a nice marketplace and one that we want to continue to participate in. So if you look at our strategic direction, we're going to focus first on our Diagnostic business on being great in gastrointestinal and then pediatric point-of-care, but we view the respiratory space as a bit of a bridge between the pediatric point-of-care where they want respiratory tests, things like flu and/or Group A Strep or RSV test along those lines. But those tests are also in demand on the customer base side in the laboratory as well. So we do envision respiratory being important part of our strategy as we go forward.

But, again, we would characterize that as a competitive marketplace, relatively commoditized marketplace. What we're looking to offer is to offer some solutions that go across both immunoassay and the molecular front, which we think can provide a level of differentiation versus many of the folks in the marketplace. When we look at this year's flu season, this clearly has not been the flu season that we had last year, the length of severity, although I will tell you that half of our damn office is sick right now. So I feel like in the Ohio area the flu season has hit us.

So in recent weeks, we've certainly seen a spike on that front, but we do anticipate that our flu and overall respiratory business will not enjoy the level of flu season from a business standpoint that occurred in 2018.

Max Masucci -- Canaccord Genuity -- Analyst

Great. That's it for me. Feel better over there.

Jack Kenny -- Chief Executive Officer

[Inaudible] But talk to [Inaudible] that will keep him healthy.

Operator

And there are no further questions in the queue.

Jack Kenny -- Chief Executive Officer

Well, thank you very much for joining us today on this call. We look forward to future calls with you to continue to let you know how our business is progressing, as well as the overall trajectory of our business. And thank you again for joining. Have a good day.

Duration: 33 minutes

Call Participants:

Eric Rasmussen -- Chief Financial Officer

Jack Kenny -- Chief Executive Officer

Bill Quirk -- Piper Jaffray -- Analyst

Catherine Schulte -- Robert W. Baird -- Analyst

Andrew Brackmann -- William Blair & Company -- Analyst

Max Masucci -- Canaccord Genuity -- Analyst

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