Good afternoon and welcome to AtriCure’s Fourth Quarter 2012 Earnings Conference Call. My name is Derrick and I’ll be your operator for today. At this time, all participants is in a listen-only mode. We will facilitate the question-and-answer session towards the end of the conference. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Lynn Pieper, AtriCure Investor Relations Consultant from Westwicke Partners for few introductory comments. Please proceed.

Thank you, Derrick. By now, you should have received a copy of the earnings press release. If you’ve not received a copy, please call 513-755-4136 to have one e-mailed to you. Before we begin today, let me remind you that the company’s remarks may include forward-looking statements. These statements include, but are not limited to, those that address activities, events or developments that AtriCure expects, believes or anticipates, will or may occur in the future, such as revenue and earnings estimates, other predictions of financial performance, launches of new products and market acceptance of new products. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond AtriCure’s control, including, but not limited to, the rate and degree of market acceptance of AtriCure’s products, governmental approvals, and other risks and uncertainties described from time-to-time in AtriCure’s SEC filings. AtriCure’s results may differ materially from those projected on today’s call. AtriCure undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additionally, we may refer to non-GAAP financial metrics. A reconciliation of these non-GAAP metrics is included in our press release, which is available on our website. I’d like to remind everyone on the call today that the Food and Drug Administration, or FDA, has not approved certain AtriCure products for the treatment of atrial fibrillation or AF or for stroke reduction. The company and others acting on its behalf may not promote these non-approved products to train doctors for the surgical treatment of AF or stroke reduction unless the product is still indicated. These restrictions do not prevent doctors from choosing to use the products for their treatment of AF or stroke reduction will prevent AtriCure for engaging in sales and marketing efforts to focus only on the general attributes of the products for the current cleared usage. AtriCure educates and trains doctors in the proper use of its products and related technologies, including for the treatment of AF in accordance with the product specified indication. With that I’d like to turn the call over to Mike Carrel, President and Chief Executive Officer of AtriCure. Mike.

Thank you, Lynn. Good afternoon and welcome to AtriCure’s fourth quarter and year-end 2012 conference call. Joining me today is Andy wade, our Chief Financial Officer. On today’s call, I’ll provide review of business trends, our strategy for capitalizing on our AF approval, new product developments and an update on our clinical trial progress. Andy will provide more detail on our fourth quarter financial results and will also provide our outlook for 2013. As many of you know, I joined AtriCure in early November and spent the past several months working closely with employees and visiting customers to define the strategic and operating priorities of the company. Specifically, I have visited over 75 customers met and received feedback from almost our entire organization attended over five key trenches, many of our educational sessions and spent time with our clinical consultants. During this time we completed our 2013 growth oriented budgeting strategy. I have learned a great deal and are more excited today than when I joined. I continue to be impressed by the resiliency of this team and my first impressions are the same as what I learned during my diligence. We have a highly talented group of people including employees and physicians and alike who are all committed to our growth and success. We have a great brand and even better customer service ethic that permute every aspect of the company. When you combine all of this with our FDA label, significant IP, exceptional products, first class sales force and now a strong balance sheet, we are well positioned to accelerate our growth in the upcoming years. Our foundation is strong. Now, we need to invest in key areas and execute. In the mist of the all the leadership changes, the company stay true to its mission and had…

Thanks Mike, for the fourth quarter of 2012, revenue increase 9.5% to 18.4 million. Revenue from product sales in the U.S. was $13.7 million, an increase of 10.2% from the fourth quarter of 2011. Revenue from open chest oblation related product sales in the U.S increased by approximately $1.1 million to 8.4 million with the decrease in sales of products used in minimally invasive procedures of approximately 300,000 to 3.4 million. U.S. sales of the AtriClip system during the fourth quarter of 2012 were $1.9 million as compared to $1.4 million for the fourth quarter of 2011. International revenue grew 7.8% on a GAAP basis and 10.1% on the constant currency basis as compared to the fourth quarter of 2011, up to 4.7 million. The increase in the international revenue was driven primarily by growth in Europe. Consistent with prior quarters, we experienced a modest decline in ASPs in the fourth quarter. Gross margin for the fourth quarter of 2012 was 70.8% as compared with the 70% for the fourth quarter of 2011 and 71.6% for the third quarter of 2012. Similar to what we have described for earlier quarters, the year-over-year change in gross margin was primarily the result of investment and manufacturing and quality systems to transition and maintain the manufacturing of PMA-approved product to support our expanding operations. Along with the small portion driven by the continued increase and the mix of international sales and an increase in the placement of capital equipment. We also took a $225,000 charge to our inventory reserve, equal to approximately 125 basis point on gross margin. We continue to be highly focused on increasing efficiencies and reducing product cost. Operating expenses increased 10.6% or approximately 1.4 million from 13.4 million for the fourth quarter of 2011 to 14.9 million for the…

(Operator Instructions). For the interest of time, please limit yourself to one question and one follow-up. Our first question is coming from the line of Tom Gunderson, Piper Jaffray. Tom Gunderson – Piper Jaffray: Hi. Good afternoon.

Hi, Tom. Tom Gunderson – Piper Jaffray: So, Andy, just a quick clarification on adjusted EBITDA, that’s GAAP EBITDA and then including stock comp as well?

That’s right. Tom Gunderson – Piper Jaffray: Okay. And it looks like at $945,000 loss for the quarter and 3 to 5 million projection for the 2013 year, it’s pretty close to the run rate that you ran in the fourth quarter as a midpoint. I mean that’s the way we’re going to – I’m looking at modeling here and the modeling will be pretty close to what you did in the fourth quarter?

Right. Tom Gunderson – Piper Jaffray: Okay. Thanks. And then Mike, my goodness! 75 customers and 5 trade shows and four months plus meeting all of the employees, what was the one overwriting trend, what was sort of – did you get any ah-ha moments where after-tucking to 50 customers, you knew what the next 25 are going to say as far as what you needed to do to maybe help them a little bit and jazz sales at the same time?

Two things, let’s say, not only they are ah-ha moment, I think they are more confirming statements, one was that, continue to invest in educating and physician education was by far came across from every single person that I met across the board, not just here in the U.S. but globally. Number two was to continue to focus and actually lead the filed from a clinical science standpoint. Continue to invest in the right types of trials and make sure that we’re not – we’re spending our money where we’re going to actually get approval that we can take advantage of. And what I was most impress from the customers, as they want us to be successful long-term, because they believe that is important for the field more than anything else. And that was I’d say probably the biggest movement, how much they really embrace this company for success, not for their own personal success, but truly for eventually patient outcomes and having good technologies in the market. Tom Gunderson – Piper Jaffray: Got it. Thank you guys.

The next question is from the line of Jason Mills, Canaccord Genuity. Jeff – Canaccord Genuity: Hi, guys. This is Jeff coming in for Jason. Thanks for taking the questions. Mike, my calculation that U.S. open heart ablation revenue excluding AtriClip was low in the second half of 2012 versus the first half we would have expected open heart revenues in the U.S. to ramp as its 2012 given increasing number trained centers. So could you give us a little more color explaining the reason for this trend? And what will improve the slope of this sequential curve?

I mean the key growth area and I believe the open market is actually probably the most exciting near-term – it is the most exciting near-term market for us. We believe that that market is where you’re going to see the growth in 2013. If you look at over the year, we’re about 13% growth on that open side. And when I’m looking at it overall the business I truly believe that’s really where we’re going to see. Education is critical towards that. We are continuing to see competitive conversions as I briefly mentioned. We had 15 competitive conversions in the most recent quarters. Those conversions take time to actually to drive to revenue though. They don’t just convert over night and tomorrow getting revenue. They need to get bit of inventory. They might be using they need to get trained on our product and up in running. They need to get close with our reps, so they are actually bring us new cases, and that just take time. And I believe there are continued focus on that education is going to be critical. People are switching now because we have an advantage. We got the only FDA approved product which matters. A product have proven efficacy and we are the one doing the certification course. And you combined those three things together and we are getting the exposure, it’s just – it’s not going happen overnight. Jeff – Canaccord Genuity: Great. Very helpful. Just a couple of housekeeping questions. With regard to the guidance, what are your expectations for U.S. and international growth in that 9% to 11% range?

We’ve not given specific guidance by area. We are obviously investing a tremendous amount in international. We think the international can go at a faster pace than it did this year for sure. And so on the U.S., I believe we are going to continue to seek strong growth on the open side and on the open clip, and hopefully getting on the track back on the MIS side towards stabilization on that throughout the year.

The next question is coming from line of Danielle Antalfy from Leerink Swann. Danielle Antalfy – Leerink Swann: Hi. Good afternoon, guys. Thanks so much for taking the question. If I could start and push you a little bit on the long-term guidance, you are reinvesting heavily. Can you talk about what you see is the keys to getting you back up towards that 15% range from a top line growth perspective, the puts and takes there. And also on 2013 guidance what are the puts and take that get you to the high end of the range versus the 11% versus the 9%.

The puts and take if you break down on our business really simply on the open concomitant side that’s where we are seeing the short term 2013 and ‘14 that we continue to see growth. I do believe this education part from that we have is going to continue to show an acceleration on that side in the U.S. market. On top of that we are starting to see more and more clips being applied, one more doing that. We don’t have specific statistics around the percentage of open cases that we have that are tied to that. But we are seeing a nice increase; it was 265 growth in the U.S. market last year on the clip side. So I believe those two things are really going to begin to start to trend to get us towards that 15% that we talked in the outer years. Combined that with from an MIS standpoint as we get in to the trials and we start moving forward with that and getting more sites up and running in surgeon trend, we’ll begin to stabilize that business and that should begin to kind of show to get – and that applies to both 2013 and to the future years. If we get that up to kind of base line, you’ll begin to see us at the top end of the range, if you just kind of do the math on it, and then in the longer term obviously hopefully getting that back to on the growth pad. Danielle Antalfy – Leerink Swann: Okay. That’s helpful. And then do did just do this cash raise, how do we think about cash position to get you to profitability, were you have to go back to the market or guys still comfortable where you are at this point?

We feel very comfortable to where are right now. Danielle Antalfy – Leerink Swann: Okay. Great. Thanks so much guys.

Your next question is coming from the line Matt Dolan, ROTH Capital Partner. Chris Luis – ROTH Capital Partner: Hi, guys. This is Chris Luis on line for Matt. Thanks for taking the questions.

Hi, Chris. Chris Luis – ROTH Capital Partner: You’ve touched on international expansion plans for the year, but can you provide some more detail on the progress you’ve made so far internationally perhaps where you are adding some of the reps and how many have been added so far and how many you expect to add by year-end?

Sure. So, a couple of things on the international front. The first thing we did in the international front was actually add a little more infrastructure, so we brought in international marketing manager to help us actually understand reimbursement and the appropriate business plan to go after the different countries. On top of that we actually added somebody in the service levels that can provide better service to both our distributors and on the direct basis. We’re beginning to recruit and expand coverage very specifically in Germany where we currently had about two reps, we anticipate that to grow at least double over the course of the year and in some other areas as well. We’re converting our UK from a distributorship into a direct model. That will happen mid to end of year. And so we’re making progress on all of those fronts on the European continent, specifically in Asia what we’re doing is we’re renegotiating our contract with our distributor to add additional products and to get those approved. That won’t have much of an impact on 2013, but we do see that ‘14 and ‘15 having some impact on our growth rates and working very closely with the distributor to get those products into the market and to get some more growth out of the Japanese market place, where we have a dominant share today just on the clamps. And then in China, we have a very good distributor that we’re working with and I’ll be visiting there in the May timeframe to talk to that distributor about growth plans and they’re going to be doing to kind of expand their sales force to enable us to grow our products there as well. Chris Luis – ROTH Capital Partner: Okay. Thanks. That’s helpful. And then with the number that the investment needs you’ve highlighted on the call, how should we expect that increased operating spend trend throughout the year given the different investment?

I think it will be pretty – we’re not going to hire everybody upfront. We did hire some of the key people pretty quickly in January, February, so some of them are expensive individuals let’s just say at the beginning of the year, but we do have hiring in that 25 to 30 plus range throughout the year; it will be throughout the year, it’s not all going to be in the first quarter. Chris Luis – ROTH Capital Partner: Okay. And then in terms of the gross margin down a bit sequentially, how should we expect that to play out throughout 2013?

Sure. Chris, this is Andy. We’ve got some programs in place with our operations folks to help offset some of the things I talked about earlier in terms of the device excise tax. And also the pricing pressure that we might expect, which again would be very small, but obviously we have given the guidance that 70% to 72%, we’re working on some programs to help offset those. So I’d anticipate modest improvement as the year goes along. And then especially, as we ramp and grow, as we get further in outside of ‘13 we would continue to expect to leverage our operating structure. Chris Luis – ROTH Capital Partner: Okay. Thank you.

And at this time, I am showing no further questions in queue. I will like to turn the call back over to Mr. Mike Carrel for any closing remark.

All right. Well, everybody thank you very much for joining us today. Look forward to speaking with you on the road over the coming months. Have a great day.

Ladies and gentlemen that conclude today’s conference. We thank you for your participation. You may now disconnect. Have a great day.