CUTR
#Sure.
Well, you look back several years, Japan accounted for about 25% of our total revenue.
So it's always been a material part of our business and spend a lot of time out there just to make sure we're staying close to what's happening with our organization.
We have a great leadership there.
The sales team in particular is really been significantly upgraded in my view.
And as <UNK> mentioned in his prepared comments, foreign exchange will remain a wild card.
However, we think that Japan is a critical long-term part of our overall strategy.
And we announced earlier in the quarter that we got a big regulatory indication in Japan and that product, enlighten, is in its early days in that market and which we anticipate continuing to be a strong part of our future there.
It was in the final months.
And so we really just began a lot of our marketing activities with that clearance.
So it, again, it's early days with enlighten in Japan.
Well our entire sales team in Japan is focusing on the products.
And I'm hesitant to project out after such a short experience in Japan.
With that said, the early indications the interest from physicians it's extremely high.
And we've got an energized sales team so we think that our outlook is very encouraging in Japan.
Well, we're direct in Japan.
We don't have any distributor relationship.
There are sub dealers in Japan that are common.
But it really is a direct model.
And I think our sales headcount there is around eight for our capital equipment.
Well on the issue of pricing, I think it's a number of factors that are probably pretty obvious but having technology that's well differentiated is a critical component, also coupled with a highly trained sales team that can tell a value story with our products and high utility and have a team that can sell premium products and get rewarded with the appropriate pricing.
So it's hitting on all those things and I think that our comment about having growth among all of our major product categories is another indication that we've got a sales team that can effectively tell a pretty complex portfolio story and I think all those things manifest itself into the selling price of the products.
Well that's the only trends of overall average selling price pressure.
The volume for a given product category will change from quarter to quarter, but I think the 30,000-foot view is that across the board we think we're getting our fair pricing.
Hi, Ryan.
Sure.
I think, looking back about a year, there was a lot of moving balls in the air at that time, but the equivalent headcount there was at least 10 to 12 people down from where we are today.
So the 47 would fall into say the 35, 37 range.
Going forward ---+
I think by the halfway point in this year, we anticipate being somewhere around 50 and then we plan to continue to add through the end of the year, approaching 60 sales reps.
And just to the apples to apples, did have a fair amount of turnover with the sales team a year ago, in Q1 of a year ago.
So there are a lot of new hires that are reflected in <UNK>'s numbers so sales versus productivity lagged that.
So I think we've got a much bigger and stronger sales team in place when we compare it to the same period a year ago.
That's correct.
Well I think one of the critical components is that our sales management team just does a really good job of training these reps.
And the management team is extremely hands-on with the reps and I think that is one of the key reasons that our relatively new sales team that was on board a year ago was able to ramp up faster than what we've experienced historically.
And again, having great products.
So with that all, it's a great combination.
Right.
When we budgeted and actually now as we have guided, assumes exchange rates that were very similar to that of the end of the year.
We don't project increases or decreases in foreign exchange rate during the budgeting process and now the forecasting and at this point we've pretty much kept our rates the same.
So the long way of answering your question that we haven't, our guidance does include the current exchange rate.
Yes, <UNK>.
We touched on Japan already, so I won't focus more time on that.
But we think the trends there are looking really good.
And once again, I think the sales management in Japan has made a big difference.
We're doing similar things with our direct operation in Europe and with an anticipation of improved results.
And then that coupled with continued sales force expansion where we're direct and locating new distributor partners where we opt to do that.
So we're shining a bright light on the global commercial side.
But the North American market is obviously the largest single market and when you have a management team that's stable and in place, scaling that is a lot easier than say scaling your business in France.
Thank you.
I'm sorry.
New accounts, are they new customers.
Well actually, we're seeing a mixture of both, whether they're new or existing customers.
I'd say that really our install base is still very interested.
They're not just derms and plastics, but we're finding that product to be well-suited for some of our non-core physicians as well.
But with that said, we're finding half the transactions that are non-existing customers as well.
So penetrating both sides.
Yes.
In that range.
At any given time, we've got lots in progress.
I can't give you an exact number, but we clearly want to have all of the technological advances that we've done with enlighten and these other products allow us to be marketed in these markets around the globe.
So we do anticipate additional clearances, but I can't give you a specific number.
I have to say that it's not obvious to us that acquisition had any impact on the Company.
But in terms of talent, Larry has opted to build his own salespeople and they're usually not industry people.
Every now and then we'll hire somebody from within the industry, but I think Larry and his team have a unique approach and they like to build people up in terms of learning the business the way that Larry and the team think is best.
I don't think so really.
I think that top talent usually doesn't want to leave their jobs.
So that's why we think that finding people from different backgrounds in the medical field has been helpful to us.
But having very hands-on sales management around the globe think is the critical component there.
You're welcome.
Yes, thank you.
Thank you for participating on the call today.
We'll be attending many investor marketing events in the second quarter and hope to see you in the coming months.
We look forward to updating you on our business progress on the second-quarter 2016 conference call in August 2016.
Good afternoon and thank you for your continued interest in Cutera.
