Good morning. My name is Keena, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter Fiscal Year 2013 Earnings Release Conference Call. [Operator Instructions] Gerry Gould, Vice President of Investor Relations, you may begin.

Thank you, Keena. Good morning. Thank you for joining Haemonetics' Fiscal '13 Third Quarter Conference Call and Webcast. I'm joined by Brian Concannon, President and CEO; and Chris Lindop, CFO and Vice President of Business Development. Please note that our remarks today include statements that could be characterized as forward-looking. Our actual results may differ materially from anticipated results. Additional information concerning factors that could cause actual results to differ materially is available in the Form 8-K we filed this morning, as well as in our 10-K and 10-Qs. On today's call, Brian will review the business and financial highlights of the third quarter. Chris will review our operating performance for the quarter, our annual guidance for fiscal '13 and our outlook for fiscal '14 in more detail. Then Brian will close with summary comments. Before I turn the call over to Brian, I would like to mention the treatment in our adjusted results of certain items, which by their nature and size affect the comparability of our financial results. Consistent with our past practice, we have excluded certain charges from the adjusted financial results we'll talk about today. These include costs associated with the recent whole blood business acquisition, conducting significant integration activities and an inventory reserve established upon a recent whole blood product quality issue that Chris will discuss. In total, we have excluded $25 million of costs from our fiscal '13 third quarter adjusted results primarily for the transaction and integration, including $5 million related to the step-up of acquired inventories and $6 million for the whole blood inventory reserve. On a year-to-date basis, we have excluded $55 million of costs from adjusted income, including $15 million of inventory step-up and $6 million for the whole blood inventory reserve. Further details including comparison with fiscal '12 amounts excluded were provided in our Form 8-K and have been posted to our Investor Relations website. Our press release and website also include a complete P&L and balance sheet, as well as reconciliation of our GAAP and adjusted results. On November 30, we completed a 2-for-1 stock split. Accordingly, all per share amounts and share count figures cited today are stated or have been restated on a post-split basis. With that, I'd like to turn the call over to Brian.

Thank you, Gerry, and good morning, everyone. We reported a third quarter that demonstrated strong profitability, successful integration of the recently acquired whole blood business and continued organic revenue growth across most of our product portfolio. Operating discipline yielded a 100 basis point improvement in operating margin to 16.5% even as we ramped up investments in key growth driver initiatives. As a result, adjusted earnings per share reached $0.50 or $1 on a presplit basis for the first time. Total revenue growth was 29% in the third quarter, including a full quarter of our recently acquired whole blood business. That new business, which represents our initial entry into the $1.2 billion whole blood market, performed well, delivering $55 million of revenue approximately $4.3 million per week and in line with our expectations. On an organic basis, we had 1% revenue growth in the quarter with a number of notable items at the business unit level. Let me briefly mention a few of them. Our commercial plasma business had $68 million of revenue, its third highest quarterly performance ever. Compared with the third quarter of fiscal '12, a record quarter in which our revenues grew 15% to $69 million, in the quarter, revenue was down $1 million or 1%. This reflects the normal ebb and flow in the plasma market. We expect high single-digit percentage growth for plasma in the fourth quarter. Blood Management Solutions continues to drive meaningful growth in our hospital business, which was up 6% in the third quarter and 11% year-to-date. We closed 12 new IMPACT accounts in Q3. We now have 288 IMPACT customers, driving the broader acceptance of Blood Management Solutions, bringing credibility to the value of the solutions implemented. This increased awareness is contributing to the strong growth of our hospital business. We continue…

Thank you, Brian. First, I'll review revenue performance for the third quarter and year-to-date, then highlights of our quarterly financial results, our revenue, earnings and cash flow guidance for fiscal '13 and finally, our preliminary outlook for fiscal '14. In the third quarter of fiscal '13, total revenue was $247 million, up 29% and organic revenue was up 1%. Plasma revenue of $68 million in the quarter was down 1% compared with the third quarter of fiscal '12. In that prior year quarter, we had record revenues and a 15% growth. And so against that comparison, a nearly flat quarter is not concerning. Plasma disposables revenue is up 2% year-to-date, which incorporates a slow start in Japan as a result of the Q4 fiscal '12 buy-in by the Japan Red Cross, as well as lower pricing in the first year of the contract extensions that we put in place. We expect to be at the low end of our previous guidance range of 4% to 6% plasma growth in fiscal '13, and longer-term expect our plasma business to grow consistent with the end market growth rates of the industry. We're very well-positioned with customer contracts covering over 98% of our commercial plasma business through Q3 of fiscal '15. Blood center revenue grew organically by 1% to $57 million with platelets up 2% and red cells down 3%. Platelet growth was strong in emerging markets but partially offset by a decline in Japan, where the impact of a competitor's quality issue benefited the prior year quarter. Remember that we'll have a tough growth comparable in our platelet business in the fourth quarter resulting from the Q4 fiscal '12 buy-in by the Japan Red Cross. Red cell disposables revenue was flat year-to-date in a soft market. Previously characterized as a flat market,…

Thanks, Chris. These continue to be exciting times here at Haemonetics, and each quarter is event-filled. The acquisition of the whole blood business is providing a meaningful presence in the $1.2 billion whole blood market, where our own internal plans to launch new technology and automation beginning later this fiscal year are on track. We had a product quality challenge in that business, one that would have been very difficult for our team to handle several years ago. But the capabilities of our quality organization are far advanced in recent years and the problem was addressed quickly with donor and patient safety, regulatory communications and customer needs rightfully in the forefront of our efforts. The whole blood integration is ahead of schedule and our 10 value creation and capture teams are striving to ensure that we realize the full potential of the combined business in the years ahead. They are validating both identified and new benefits, and we continue to be pleased with the earnings power of the combined business. We're planning our next investor day for Thursday, May 16, here in our Braintree, Massachusetts headquarters, and we plan to elaborate further on our value creation and capture initiatives at that time. The planned acquisition of Hemerus Medical is still pending the receipt of required FDA approvals of the SOLX enhanced red cell storage solution. We previously announced that the FDA had requested more information from Hemerus. We currently anticipate FDA approval to occur early in fiscal '14. We made the first $1 million payment, and upon receipt of acquired FDA approvals, we will pay the remaining $26 million. Our contract with Hemerus expires on April 30 and the FDA approval is expected prior to that date. However, any delays could necessitate a negotiation of an extension. Strong revenue and…

[Operator Instructions] Your first question comes from Steve Crowley, Craig-Hallum.

A couple of questions for you. First of all, on OrthoPAT Advance and your product release schedule. Given the difficulties that you're experiencing in the marketplace, the lag time to the release of the product is -- we're still talking maybe 6 months. Any thoughts to having sped that up, given that you've received FDA approval? What are the impediments to accelerating that maneuver?

Steve, this is Brian. I'll take that question. No impediments. What we're doing is we're moving cautiously and carefully. This is an area of focus for us. This is an area that we have unfortunately, stumbled in the past. And I want to make sure that we do this the right way. We're looking at additional resources on how to focus. We're looking at additional partnerships on how to bring this to market, partnerships different than what we had enjoyed in the past but that bring a greater touch to the customer, especially in smaller accounts. So we want to move cautiously here to make sure we do this right. This is a customer base that has clearly set an expectation for us going forward. So again, we're being a bit cautious. We'll accelerate that once we gain confidence that we're meeting those initial customer needs.

What are those customers who are not using OrthoPAT, have gone away from using the legacy OrthoPAT doing? Have they changed workflow? Have they gone to competitive products?

Well, there is no competitive product to the OrthoPAT. So these are customers that have gone to use an allogeneic blood and things of that nature. But they're smaller accounts, Steve. It's a lot of them. It's your community hospitals. It's hospitals where you have less staff dedicated to the focus on a device that clearly has represented a challenge for them. That's why we delayed bringing OrthoPAT Advance out. If you recall, we had originally planned to bring the Advance out sooner. But through the recall of our existing device, we learned that there was really 10 areas of focus that our customers wanted us to address. And the initial launch of Advance only hit 3 of those. This next one will address at least 7 of those. And so that was important for us to get at that again, so we do this right.

Your next question comes from Larry Keusch, Raymond James. Lawrence S. Keusch - Raymond James & Associates, Inc., Research Division: Just two for you guys, if you could. Brian, I'm wondering if you could review again the timelines for auto whole blood. You kind of started with the initial paperless phlebotomy. But if you could walk us through kind of how you're thinking about the next couple of years. And then on OrthoPAT, I understand obviously the challenges with the older device. But could you also talk a little bit about the changes in protocols that are being made in the market, whether it be more preoperative focus on EPO or iron and changing the thresholds for hemoglobin levels, et cetera? That would be great.

Okay. Let me start with automated whole blood. And again, we'll launch the paperless phlebotomy later this quarter. We're doing it with 1 blood center. We're doing it at the fixed site location to bring this up. And then we'll go to a full market release on that product, followed later in the fiscal year with the wireless tower, which will then allow us to expand in the mobile drives. We'll do that initially at that 1 blood center, which was the pilot. And that will take us in a range of 20 to 30 mobile drives. We'll expand that and really drive the connectivity of the mobile drive back to the base system in the blood center, so really focused on the automation of blood collection. We will, hopefully with the acquisition of Hemerus, go through the process of then qualifying the Pall filters on the SOLX solution. That will take the better part of the year, we expect. And then Hemerus, which isn't necessary in the automated whole blood launch but it is an additive opportunity, this could then allow us to accelerate adoption. But this is year 2 and beyond with Hemerus. And then in the third fiscal year, we'll launch the actual collector device and the disposable that goes with that. So that's no change to what we've told you before, but hopefully it provides that clarification you're looking for. Relative to OrthoPAT, what's changing? There are a number of things changing, not only in orthopedic surgeries, but let's face it, in cardiovascular surgeries as well. Cell salvage is standard of care in the cardiovascular space. It is not yet in the orthopedic space, and that's our focus. As much as there are a number of technologies that affect blood loss, not the least of which is what we're bringing to market, which is a focus on blood management solutions, the opportunity to drive better cost in clinical outcomes in the orthopedic space are still there, still significant. Our IMPACT analysis shows that. We need to bring a device to that market that our customers find easier to use in that space and allows us to grow adoption in that space more rapidly. That's our focus.

Your next question comes from Larry Solow, CJS Securities.

Just two questions. I'll just lay them out and you could respond. Just on the first, obviously, you guys are doing a nice job in controlling costs and not accelerating as much as I think most expected. Is there any way to sort of parse that out where you're seeing most of the benefit? Is it from less-than-expected cost on the whole blood side? Or are you getting more leverage on your legacy business? And then the second question is just response to one of the comments you made about sort of you're seeing some better blood management in hospitals and if you could just explain that dynamic a little more, give us a little more color. Is that, I mean, hopefully due to partially your efforts? But what's going on? Is that something that's accelerating recently that would impact red blood cell demand?

Larry, let me take the cost question. We're seeing -- of course, what we're seeing is obviously costs are increasing. They're not increasing as rapidly as some folks expected. And where we had sort of identified the areas that we would invest, it was really in the legacy business. So we're focused on channeling profitability of the whole blood business into growth drivers in the legacy business. And that has moved a little more slowly than we expected initially at the beginning of the year. And so that's really what's happening. The whole blood business is tending to be a little more profitable than we had expected so that the surprises there are a positive surprises.

And let me talk about the better blood management, Larry. And there's a mixed bag of information that we're getting depending upon who you're talking with. We're still not seeing any significant ramp-up relative to surgeries in that marketplace, especially elective surgeries. But that said, we are getting anecdotal information from our blood center customers who, by the way, are partnering now on bringing blood management solutions to our hospital customers, that they're seeing that impact in overall blood demand. Again, it's not significant, but it is certainly muting the growth in that space. That's a good thing. We expected that. It's just a matter of when that would start to happen. And so it seems to be logical. You're seeing our hospital business up double-digits. You're seeing that impact. And if you relate that growth to better blood management practices in the hospitals, which we do, then you're seeing that corresponding impact in your blood center business. But that's something that the industry can take pride in because that clearly in this day and age of health care reform is going to result in lower cost of blood products and better clinical outcomes in the hospital environment.

Your next question comes from David Lewis, Morgan Stanley.

This is actually James in for David. I just wanted to talk about organic growth trends through to the past couple of years and into '14. I think the message for investors in 2013 was largely that you had put the pieces in place for growth and you'd have a little bit of an acceleration on the top line. Now you're lowering guidance to your 4% organic from 4% to 6%, but you still expect things to get materially better into next year and have about 200 basis point uptick in growth. What can you point to in terms of what gives you the confidence and the visibility in what's driving that growth inflection?

Yes. And I would start out by saying that we're not lowering our guidance, we're narrowing our guidance well within the range of the 4% to 6%. And I think that's an important distinction. As we have 1 quarter left, we can look to a finer point of finish. But your point is still a valid point, which is what's going on with organic growth. I mean, you look at a 1% organic growth this quarter, 6% last quarter, overall 4%, 5% to 7% next year. Give us confidence, fair question. And what you're seeing this quarter and it starts really -- what was a bit of a drag in this quarter? Clearly, plasma, but you've got to tear it apart to understand it. At $68 million in the quarter, our third highest quarter ever in plasma, we're up again $69 million in the quarter of fiscal '12, our best quarter ever. So we're seeing that positive benefit there look at somewhat of a drag in the quarter. The other pieces, and we talked about this last quarter, what's behind some of that is that you've seen a shift from our European market in plasma collection to the U.S. And this is from a higher-cost product in Europe to a lower-cost product in the U.S. So as we talked about the new contracts, we've got this business secured 98% through Q3 of fiscal '15, we're seeing a little bit more cost pressure not just from the contract negotiations but because of that shift. But we feel good that we're still within the range. We feel good that this is an end market that's still growing. We feel good that as we look forward into the future, we're going to grow with where that end market is growing at. The bigger issue in the quarter beyond plasma is just the impact of OrthoPAT. And we called that out. I'm disappointed in this. This is a team that's gotten a lot of attention, a lot of focus from us and really understanding what do we need to do. I'm glad that first question asked such detail because I want to be clear that we're looking at this very carefully, and we're going to move cautiously to ensure we understand what our customers' needs, we meet those expectations. Why? Because this is so critical to blood management, the cost of blood and the clinical outcomes in that space. It's educational. It's a bit challenging. It will move slow. But once we do this right, I do feel confident in our ability to grow that business. And that will contribute to organic growth as we go forward.

Perfect. It's very helpful. And then I did just want to push a little bit on plasma growth. I know that you had a very tough comp. But again, you ended up guiding towards of the lower end of your prior range on guidance. And if you look back at this business historically, it's actually -- it's fairly unusual for plasma to decline from the second quarter to the third quarter. So it does feel like things changed a little bit there. I mean, are you hearing anything different from your customers in terms of what they're expecting than you were before?

Yes. And again, that's the one we talked about earlier. That is that distinct shift you're seeing from our European customers collecting plasma and now buying it from U.S. collectors. And so you're seeing it with a different price point. And so that's that shift that's occurring in that space.

[Operator Instructions] Your next question comes from Jim Sidoti, Sidoti & Company. James Sidoti - Sidoti & Company, LLC: A couple of questions. On the expenses going forward, you indicated that you're going to see those start to pick up again. Can you just give us a little detail? You mentioned infrastructure. Is that people? Is that equipment? Or what's driving that increase in expenses in the fourth quarter?

Jim, most of what's going to -- you'll see in the fourth quarter are R&D projects, episodic R&D projects that we're going to move forward. So you'll see a ramp-up in R&D spending in the fourth quarter.

And you're also seeing, Jim, a continuation of investments we've made, primarily in emerging markets. I think we told you we finished last fiscal year with roughly about 70 employees in China with our focus there. You're seeing some outstanding results coming out of that market. We'll have about 120, maybe 125 employees by the end of this fiscal year in that market alone. James Sidoti - Sidoti & Company, LLC: All right. And then my second question is regarding the whole blood paperless launch. Can you just give us a sense what is a blood center have to do to adopt this technology? Is it rewriting their standard operating procedure? Is there any kind of approvals they need to get? Or how easy is it for them to adopt the whole blood paperless?

Yes. I mean, what you're talking about, the answer to your question is do they have to have new procedures, the answer to that is absolutely yes. They're going to change the way in which they gather that data today versus the way that they will be gathering it tomorrow. Remember, we're talking about a customer in an industry that is highly regulated. And we're talking about a process today that is very manual. This is not something our customers have done wrong at all. This is an example of where industry has not responded as rapidly as we maybe could've and should've. But that's our process. We're focusing on that. We're catching up. So this is a very significant change for our blood center customers and does require them to completely rewrite their procedures and what they do and how they do it. That's why we will have teams of people that not only are in those blood centers in the fixed locations in the weeks during that implementation, but teams that will then ultimately go out on every mobile drive as they convert those mobile drives with the wireless tower when we launch that later in fiscal '14.

And there are no further questions at this time. I'll turn the call back over to Mr. Concannon for closing remarks.

Thank you, Keena. With 1 quarter remaining, we're well-positioned to achieve our objectives for this fiscal year. The investments in our growth drivers are paying off with organic growth in emerging markets up 12%, diagnostics up 19% and our hospital business up 11% year-to-date. The integration of our most recent acquisition is going well with all integration activities either completed or tracking on or ahead of schedule. Our whole blood business is exactly where we expected it to be, and we'll begin the launch of the first phase of our automated whole blood product later this quarter. We've been able to make great progress with our value creation and capture teams, teams that are focused on unleashing the earnings power of the combined business. We believe this focus will allow us to continue making prudent investments driving top line growth, while improving the overall profitability of the business longer term. Our outlook for fiscal '14 with 5% to 7% organic revenue growth and earnings per share growing approximately 20% should give confidence in the potential of this business. We believe our best years are still to come. We'll share more details of the work being done by our value creation and capture teams at our investor conference here in our Braintree headquarters on May 16. We hope you'll make plans to join us. Thank you for your time this morning.

This concludes today's Haemonetics' Third Quarter Fiscal Year 2013 Earnings Release Conference Call. You may now disconnect.