Good day, ladies and gentlemen, and welcome to the Haemonetics Fourth Quarter and Fiscal Year 2020 Conference Call and Webcast. At this time, all participants lines are in a listen-only mode. After the speakers’ presentation, there will be question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. Olga Guyette. Ma'am, you may begin.

Thank you. Good morning, everyone. Thank you for joining us for Haemonetics' fourth quarter and fiscal year 2020 conference call and webcast. I'm joined today by Chris Simon, our CEO; and Bill Burke, our CFO. This morning, we posted our fourth quarter and fiscal year 2020 results to our Investor Relations website, including the analytical tables with the information that we'll refer to on this call. Additionally, we provided a complete P&L, balance sheet, summary statement of cash flows as well as reconciliations of our GAAP to non-GAAP financial results. Before we get started, unless noted otherwise, all revenue growth rates discussed today are on an organic basis and exclude impacts from currency, product and the slide decisions, strategic assets of our plasma liquid solutions business and divestitures. As in the past, we'll refer to non-GAAP financial measures throughout this call to help investors understand Haemonetics ongoing business performance. Please note that these measures exclude certain charges and income items. Please refer to this morning's earnings release for details and excluded items, including comparisons with the same periods of fiscal year 2019 and a reconciliation to our GAAP results. Our remarks today include forward-looking statements and our actual results may differ materially from the anticipated results. Haemonetics cautions that these forward-looking statements are subject to risks and uncertainties, including the potential impacts from the COVID-19 pandemic on our results and other factors referenced in the safe harbor statement in our earnings release and in our filings with the SEC. We do not undertake any obligation to update these forward-looking statements. And now I'd like to turn it over to Chris.

Thank you, and good morning. Our thoughts are with those around the world affected by the coronavirus outbreak, which is, first and foremost, a human tragedy. We know the pandemic is top of mind. I want to begin by thanking our 3,000 employees worldwide, who have risen to the challenge of battling this virus, especially our manufacturing, supply chain, customer service and technical support teams on the front-lines, they've worked tirelessly to support our customers. Three broad objectives guide our response to the crisis. Our first priority is business continuity and employee health and safety. All of our plants and distribution centers are open and operational with enhanced safety protocols, and we are committed to high service levels as our teams drive supply chain resilience. With a few exceptions, the vast majority of our products continue to be shipped on time, and we have ample inventory to meet our commitments. Our second priority is preserving cash. We are making pragmatic decisions around contingencies and expense controls for what could be a protracted recovery. Our strong balance sheet allows us to fund important programs. Our third priority is driving growth with a through-cycle mindset. We are building critical capabilities and looking for new opportunities. Last month, we welcomed Anila Lingamneni as Chief Technology Officer to lead our innovation agenda, and we added Mike Coyle to our Board, a proven executive with extensive global medtech expertise. The operational excellence program remains essential to our turnaround and progress to-date has equipped our manufacturing and supply teams to overcome the challenges of the pandemic. These objectives guide are planning across three time horizons. In the immediate situation, we are focused on continuity. We created an integrated nerve center to manage day-to-day and make targeted interventions. We are prioritizing employee safety with remote work and…

Thanks, Chris, and good morning, everyone. I will begin this morning by briefly discussing our fourth quarter and fiscal 2020 results. Then I will focus on the strength of our balance sheet, our capital allocation priorities and the financial actions we are taking. Chris has already discussed revenue, so I'll start with adjusted gross margin, which was 50.3% in the fourth quarter and 51.6% in fiscal 2020, an improvement of 320 and 410 basis points, respectively, compared with the prior year. Consistent with the first nine months of fiscal 2020, the main drivers of this expansion were productivity savings from the complexity reduction initiative and the operational excellence program, product mix and pricing. Adjusted operating expenses in the fourth quarter were $72.7 million, a decrease of $2 million or 3% compared with the prior year. Adjusted operating expenses for fiscal 2020 were $292.8 million, essentially flat when compared with the prior year and as a percentage of revenue were 29.6%, a decrease of 80 basis points. We continue to realize productivity savings and had lower research and development costs for the fiscal 2020 as we completed some of our clinical trials for TEG. These lower costs were partially offset by additional investments in sales and marketing, mainly in our hospital business. Fourth quarter adjusted operating income of $47.3 million increased $4.5 million or 11% compared with the prior year. And for fiscal 2020 was $218 million, an increase of $53 million or 32%. Adjusted operating margins were 19.8% in the fourth quarter and 22% for fiscal 2020, an expansion of 270 and 490 basis points, respectively, compared with the same periods in fiscal 2019 and in line with our guidance for the year. Our adjusted income tax rate was 18% in the fourth quarter and 15% in fiscal 2020, compared…

[Operator Instructions] And our first question comes from David Lewis from Morgan Stanley. Your line is open.

Good morning. Thanks for taking the question. Just a few for me this morning, team. So the first thing is, I appreciate the commentary around the impact in April. It does sound like you sort of bounced off the trough. Most classic medical device companies are talking about kind of a return to normalcy, really, over the next two quarters, something around sort of the fourth calendar quarter of the year. We could see some type of normalcy. I just wondered how you would react to that kind of relative recovery? And then I had a couple of follow-ups.

David, it's Chris. Thanks for the question. We've actually set forth two very different macro scenarios, the first of which looks a lot like what you described; a second, which factors in the possible resurgence in the fall as some experts are predicting, in kind of this episodic toggling between opening and closing of markets as we get ample testing, et cetera. The reality is – and just take a step back and a little bit of liberty with your question. The reality is, for us, we need three things to happen. And the macro matters, but it matters much more at the segment and geographic level for us. So the first of those three things is fully 80% of our revenue is tied to collections. Be they the $500 million that we book in plasma or the $300 million associated with our blood center business. What we need to deliver fully against that business is to have a safe collection environment where donors of all elks feel comfortable making their donation. And I feel like in many regards, we're moving rapidly into that recovery now. We can talk more about the nuance to that. But that's the first point, and it's 80% of what we do. The remaining 20% is tied to our hospital business worldwide. And disproportionately, we, through TEG, cell salvage and transfusion management, tied to nonelective procedures. Cardiovascular and trauma are our big drivers. And the health care systems return to some semblance of normalcy, people go and get the necessary medical care that they need. Our markets will recover rapidly associated with that. The third point, it's a bit of an overlay, but the reality is, U.S. is 2/3 of what we do, but it is substantially 100% of our growth engine going forward, particularly plasma and TEG. And we need a healthy recovery in the U.S. It's actually disproportionately important to us returning to accelerate growth. So those three factors drive us. And yes, I think the betting person, you can choose between the two scenarios we outlined, but we're going to work on the assumption that we're in that first scenario and then adjust accordingly.

Okay. And just two more for me, and I'll ask them upfront here. So Chris, how do you think COVID-19 is going to impact your customers? And just curious, I want to focus on, one, just if you could touch at all seropositive COVID patients in terms of serum plasma donations, do you think that's going to be a material driver or, frankly, just not really that material? And the second, kind of, more important is, how does the COVID environment impact customers' desire to adopt NexSys? And actually like I can make a pro case and a con case for why this is a good environment for the adoption of NexSys amongst some large customers, just curious strategically on those two thoughts. And then for Bill, thanks for the update on the CRI. Just wondering if you can update us on the OEP plan and how – where you are on that plan and how COVID could impact that plan here over the balance of 2021?

Thanks, David. Really, plasma plays a role – three potential roles in the treatment of COVID-19. There is ongoing trial work and some interest in just a straight application of IVIG, particularly to severe cases to just help as a spike to the immune response and to tamp down some of the over response that you see. So that's one piece. I think there's a second piece, which has gotten a lot of press, which is the use of convalescent plasma. For us, as we noted in our prepared remarks, that's typically been done more with our blood center and a select number of hospitals. We view that initially as a philanthropic initiative. We've made very clear our intent to help wherever and whenever we can. As we talked about it, we're an active forms of engagement in 20 different countries around the world, one convalescent plasma. I think the third piece, which is probably the most grounded scientifically is the notion of a hyperimmune globulin whereby they take convalescent plasma. And they work through the antibodies and essentially create a drug with the human plasma and then administer that in a more targeted dosing that's – we see different press releases around that. That could be as early as mid-summer, probably the early fall is more likely. And that's probably the one that has the most scientific backing behind it. We're happy to participate in all three. We don't think, given the restrictions around what qualifies the donor that there will be material impacts, but we're delighted to be a part of it. It's one of the ways that our technology is being used to fight virus head-on. In terms of your question about NexSys, the NexSys value proposition now at 10 million collections, is nothing short of outstanding. We're talking about meaningful improvement in the reduction of cost per liter. We're talking about meaningful improvement in yields, cycle time, donor satisfaction and compliance and in an environment where our collectors desperately need to increase the throughput in their centers. We think the value proposition is stronger than ever. We see that in the converted customer base and their relative performance. So we're excited about it. Obviously, making conversions in this environment is even more challenging. However, we're doing it, and we feel good about our ability to do so in a safe and effective manner. So – but no, we intend to continue to push ahead with NexSys. And I think our value proposition just got stronger.

David, it's Bill. Just your other question on two savings programs. First, on complexity reduction. Yes, that program was completed. We haven't talked about it much in this fiscal year because most of the actions undertaken were undertaken already. So the savings just came through as planned, and we delivered our $80 million-ish of savings that we committed to. In terms of the OEP program, we're still driving forward with all the planned initiatives related to that program. And we, still, are committed to meeting these savings as planned. If you remember, that is a four-year program overall. I did say in my prepared remarks that we're taking some actions against expenses. We are making sure that we're not taking actions on expenses that would drive these savings going forward. Okay. And in terms of communicating the planned savings on that. We had said it was an $80 million program with the majority of the savings dropping through to the bottom line. In – or at some point, when we issue our guidance, we will give an update of exactly what the savings are both on gross and net debt are coming through the P&L – or plan to come through the P&L for FY2021.

Great. Thanks so much.

Thanks, David.

Thank you. Our next question comes from Larry Keusch from Raymond James. Your line is open.

Thank you. Good morning, everyone. Just two for me. First, Chris, obviously, plasma collections are extremely important to the business, as you have noted. I know that Haemonetics as an organization is there and ready to be supportive of those collections and what needs to be done there. But what do you think will be the response by the actual collectors in putting in plans to try to increase their collection volumes? Because it sounds like their inventory levels are clearly dropping. So how do you think they respond, which ultimately translates into volumes going back up for you guys?

Yes. Thanks, Larry, for the question. I think their response is already well underway. They need, and then we feel very good about our projection of 8% to 10% collection volume as a need to meet the ongoing demand. So anything that they don't collect here in this trough period, as you guys described it, needs to be made up going forward. Really, there are three factors that we and they are dealing with. There is the macro environment, which is just the stay-at-home orders, the students not being in school, on college campuses, for those collection centers, restricted travel across the border, real and perceived and then the less – reduced availability of public transportation. We see movement in all of those, and that's a positive because that creates the underlying flow. The centers themselves and how they manage their capacity. Some centers shut down in April. All are in the process of reopening at this point now in the U.S., at least. The cleaning protocols. It's just not a big impediment, but it drives the psychological effect. Do we lose any capacity there or not? It doesn't appear so. Social distancing requirements, which are quite real. And we have centers that have taken beds out or reconfigure the beds. We're erecting partitions, et cetera. All to comply appropriately with social distancing. The combination of those things is what drives donor psychology and a sense of safety associated with the actual donation itself, coupled with economic motivation, right? We are facing a deep recessionary period. Historically, as we said in our prepared remarks, that's driven donor propensity. And we expect that will be the case here too as well.

Okay. So I guess the punchline there is that sounds like, again, sort of probably hit the trough. And hopefully, we're starting to see all those variety of comments that you made start to move in the right direction relative to where we were.

Yes. And as all of our customers have that same bias, and we stand ready to help them do so.

Okay, great. And then just one for Bill. Recognizing that you are not providing guidance for fiscal 2021 at this point, and you certainly referenced a variety of scenarios that may play out here. What has to happen for you guys to feel comfortable in providing guidance? You clearly stated that you expect to later in the year. But just curious what actually needs to happen for you to get that confidence to be able to provide the guidance?

Well, I think in what Chris just talked about, Larry, it's each of those business units that we have. We have certain guideposts or milestones or key things that we're keeping an eye on, and we need to get comfortable that the revenue that we're seeing associated with each of those milestones starts to change, right? And we're seeing that already, but we need to see some trend over time. Now also, Chris has spoken about some of the greater macroeconomic factors, right? If the economy opens back up and some outbreak happens again with COVID-19, and that sets back the whole world, the United States, in particular. Then that would impact the guidance too. So for me, it's more about a predictable revenue trend, right? When you're looking at doing forecast overall, predictability is most important. We don't want to guide and have this thing blow up again. So we want to be pretty comfortable with the numbers that we provide at some point.

Okay. Very good. Thank you very much.

Thank you. Our next question comes from Anthony Petrone from Jefferies. Your line is open.

Thanks. And I hope everyone's healthy stay safe. A few questions for me. One would be on – a couple on plasma and just as it relates to coronavirus. Chris, you mentioned a hyperimmune globulin. I'm just wondering, what is the potential for that product to potentially be seasonal? And if indeed it does become a seasonal product, what do you think that does overall for plasma kit demand? So that would be the first one. And then the second one on just COVID implications, just a little bit more on the blood center side of things. How substantial was the hit exiting March just in blood donation volumes? And where are we in April? And then I'll have one quick follow-up.

Yes. Thanks, Anthony. I hope you're well. With regards to hyperimmune, this is certainly the area that the leading plasma fractionators are most enthusiastic about. They feel like this is an area that science supports nicely. And as I said, there's perhaps different time horizons as early as July, I think we've seen in some releases and then others saying, early fall. But what this will bring to the market, the actual size and the opportunity. It's really viewed more as a bridge to an eventual vaccine. Now lot's been published about this. We have other coronaviruses that have been in society for a decade or longer where we do not have vaccines, the vaccine science is difficult, say the least. So I think what I've heard to date, and it really is just us playing back our conversations with our customers and everything we try to read and how we tap our scientific advisory committee for input. What we're hearing is hyperimmune globulin largely as a bridge to vaccine. It would be effective for moderate to severe onset, probably a hospitalized patient that's struggling. So it kind of takes you back to what do you believe about the nature of the virus and the epidemiology? And is it seasonal or not? And we don't have any extra perspective on that. We just go by what we're hearing from customers and the external experts. But I think over the next nine to 12 months could be an exciting bridge, I guess, how we're thinking about it. In terms of the blood center business, as you said, we have a pretty sizable business in Asia, China, Korea and Japan, particularly, and they were hit hard early on, drop in collection volumes of north of a 50%, five-zero. Most of that business,…

That's helpful. And Bill, just the last one for me would be on the cost programs, maybe just an update on where we are, specifically to the second restructuring program? And just given the uncertainties out there, can any of that program be accelerated or delayed? And just maybe an update on where you are on that program and how it plays out just given the COVID impacts?

Thanks, Anthony. Yes, on the operational excellence program, and like I said to David Lewis, we are still planning on delivering all the savings there. We started the program back in August on our journey to get to $80 million plus of savings. Our intent is still to go as fast as possible with all the independent projects that encompass delivering a significant amount of savings. The organization is all mobilized to do this. We have no intent of pulling back on these savings. These are key programs to continue to drive the gross margin improvements and operating margin improvements, I think that we're all expecting. Like I said, we will update again when we issue guidance at some point, we'll give specifics about what the savings would be in FY2021, and we'll go year-by-year after that. And if we see some movement up or down, and we feel like we can change the overall guidance on the program, we'll do it at that point. But yes, we are full speed ahead with this program. We're still very optimistic about it.

Thanks again.

Thanks, Anthony.

Thank you. Our next question comes from Dave Turkaly from JMP. Your line is open.

Great. Thanks, Chris, you mentioned the acquisition. I was wondering if you could maybe give us a little color on ClotPro and maybe how that will interact with TEG and TEG success?

Yes. Thanks, Steve. Appreciate that. Hopeful as well. With regards to enicor and the ClotPro technology, this is an active tip product. It's essentially a really, really nice complement to our existing TEG 6s business. We imagine it over time, displacing the TEG 5000, particularly lab-based setting. It was developed by an individual and a team that have just deep roots in viscoelastic testing. We have CE marked approval for Europe. It's in a number of important Asia-Pacific markets. We will work with that team to get the U.S. FDA approval and expand off of that base. And we're increasingly just looking at hemostasis management and the landscape there is a real opportunity for us. We've talked in the past, we believe it's a $500 million market opportunity in total. That expands with the acquisition of our nonhospital-based rights from Coramed, the originators on TEG. So this is kind of a one, two combination, which opens up the aperture outside the hospital for us inside of care, enicor itself brings us even more squarely into the lab space with a state-of-the-art product, it's low-cost to manufacture and has the necessary support. So we're hopeful this is how we drive against what will be a $500 million-plus opportunity for us, and we manage it as an integrated portfolio in hospital.

Just one quick follow-up. It sounds like you don't have any supply chain issues, and I don't believe you have any facilities in China. But I was wondering if you could just comment quickly on the big ones that you do have and maybe where capacity is at this point? Are you running at 100% or close across the globe?

Yes. So we've – I think the progress we have made in our corporate turnaround over the last four years has equipped us to respond to this crisis as admirably as we have, tremendous respect for our global manufacturing and supply chain colleagues, our global business service colleagues. These are frontline workers who are out there. They can't shelter in place. They're responding to the call. We have six production facilities worldwide. All six are operational. We've had our experience with COVID, and we have detailed protocols for how we address it. So I would say if they are 100% operational, the actual capacity varies depending on – in Malaysia, where we have restrictions around how many folks we're allowed to have at work and which folks we're allowed to have, similar challenges in Tijuana. An interesting factor is between those two sites, 70% of our employment base is female. And obviously, for pregnant women, there are specific concerns. So we're doing a bunch of monitoring and testing. We have temperature readings at all of our sites. For our three North American manufacturing sites, U.S. sites, we're in good shape, and that's where the bulk of our plasma production is coming from. We're at full capacity, and we feel great about that. We are also able to continue our tech service and customer support, including the field-based work that we do. Our people are trained. They're equipped with PPE. They're able to go in, and they've been given essential worker status to be able to keep our network of equipment up and operational worldwide. So it is a dailing challenge. I mentioned in the prepared remarks that we have this integrated nerve center that meets daily and reviews this. But I've been really, really impressed, humbled by the organization's response to this. It's been nothing short of outstanding. Thanks, Dave.

Thank you. Our next question comes from Larry Solow from CJS Securities. Your line is open.

Great. Good morning and I echo the well wishes to everybody and your families as well. Most of my questions have been answered. Just a couple maybe on the plasma and hopeful of a recovery. Hopefully, as you said, it's sort of entering that stage. Is there any – maybe a little bit of granularity regionally? Just to sort of give us a little more confidence in potential recovery? In other words, clearly, I may not want to go donate and may not have been able to donate in say, Brooklyn, New York or wherever where there's just crazy outbreaks of coronavirus going on. But in other areas of the country where it hasn't been so bad, have things been considerably better, that gives you some confidence that as we get to – as things start to get lacked, then donor confidence improves, things will rapidly ratchet up.

Yes. Larry, thanks. Look, we segment this. It's not a segmentation that we're going to provide going forward because it gets a little too close for comfort for our customers. But we absolutely look at differences by customer, and they've taken different responses. And we look at differences by type of collection center. There are absolutely effects as it pertains to hotspots, et cetera. The reality is the collections in the U.S. are concentrated largely South and East in the country. And to-date, at least, fortunately, have not been at the absolute hotspots. That's not entirely – it's not perfectly true but there are counties, there are cities, et cetera. But in the main, we don't see a lot of collection in the Northeast, for example, right? What we have done is we've looked very carefully to account for this at stay-at-home orders, what's the nature of the order? What effect is it having psychologically on the donor base? Donors are exempt. They're considered essential. And they have – we can give them letters for safe passes as can our plasma customers. So in all cases, they have the ability, but the stay-at-home order does have a psychological effect. College campuses, right? The college campuses are not in session, the students are home. Students are still here. But their propensity to donate is less at home than it would be on campus. The collection centers are still open on those college campuses, but they're meaningfully lower capacity utilization.

Nobody around.

Yes. The border sites, right, not all, but some of our customers have meaningful sites along, for example, the Mexico border. Individuals are allowed to travel across the border and donate. However, the early interpretation of that was mixed and folks thought they were required to self quarantine. There were some challenges where certain U.S. sites weren't accepting immigrant donors, et cetera. The vast majority of that has been corrected for, but it's a challenge. And as all these things, and on the Board of Advamed, I sit in these discussions. Each company has had to deal with this on a geographic basis, down to the local municipality in terms of determining this is essential. And then we have rights to do this, and here's how we're going to do it in a safe and effective manner. So we've worked through that. The other factor is new centers, right. New centers that haven't yet established themselves in their local community. We see an impact on those. So when Bill talks about scenario planning, we do think about it at the macro level, particularly on lockdown stay at home, et cetera. But we're also very micro about this. What will it mean for the individual collection centers. There are 800 collection centers in the U.S. We have them categorized as such. It's what gives us confidence that the recovery is already underway. However, it will be step wise. And there will be setbacks, and it will be episodic, and we stand ready to help our customers manage through it. But – and when we get to the other side, candidly, it won't look like it did six months ago, right? There will be a new normal. That will be different. As I said, I think that reinforces our value proposition to the industry. But we'll see, and we'll work our way through that.

And the centers themselves, and I realize you're not running the center, and then maybe they have to speak for themselves. But I imagine they have – it's evolving in different adaptive measures. But I mean, I assume some of them are staying to have less donors in the facility at any given time, less employees and maybe they can even offer more – inevitably more cash payment to lure donors in. I guess these all levers that don't really concern you per se but indirectly would be of benefit.

They concern us quite a bit, right? We ourselves as partners to the industry. And the most important thing in that regard is the donor psychology. Do they feel safe and properly compensated for their donation? And I think we can help with that quite materially. For example, software applications underway to help with – we don't – one of the ways that they practice safe social distancing is by not having a large queue of donors in their lobby. So a number of our customers, for example, who didn't previously use appointment systems, are moving to an appointment system. We have applications to help with that. Donors who show up are asked to remain, for example, in their car or outside if they have that option. How they know and can they get called forward using digital technology to make the experience interactive, even if it's not in close physical contact. So there's a bunch of ways to help make that happen as well as practicing social distancing within the centers, how they spread them out, et cetera, which is my reference to a new normal. I think some of that will persist right long after the world's figured out an appropriate scientific response to COVID-19, and we're working that through now. And we're thinking about structural changes and regulatory changes that may stay beyond the actual outbreak, and how do we help our customers adapt that proactively.

Great I appreciate that. Thanks.

Thanks.

Thanks.

Thank you. Our next question comes from Mike Matson from Needham & Company. Your line is open.

Hi. Thanks for taking my questions. I guess I just wanted to start on the income statement. So I was wondering if you could help us out in terms of thinking about the impact of potentially sizable revenue declines on gross margin. And then in addition, just when you look at your OpEx, how much of that is fixed? How much is variable?

Okay, Mike. So it's Bill. On the revenue piece first, the largest portion of the revenue impact was in hospital, I think Chris has gone through that. What we did quantify were two things. We quantified the impact on EPS. So EPS, overall, we said it was about a $0.06 impact that would be a combination of the gross margin drop-through from the revenue as well as some expenses that we incurred to basically keep our employees safe across the globe who are coming to work every day and keeping us up and running. We haven't said exactly what the gross margin impact on the revenue is or what the revenue dollars are. But we did say on basis points that we had about a 70 basis point impact on gross margin in Q4 and 120 basis point impact on the operating margins when you put everything I just said together. Okay. So I'm not going to split out specifically exactly what the costs were or what the dollar amount was. I think just looking at it from a margin percentage basis and then the impact on EPS was all we want to provide today.

Now, that's helpful. But I guess what I was getting at is when we get into the first quarter here and potentially see a larger decline in revenue, how should we think about – think through the impact on gross margin and on your OpEx in terms of modeling? I know you're not giving guidance, but I guess anything you could say would be helpful, particularly with OpEx, like if you can even just tell us how much of it is fixed versus variable? We know those are kind of hard to define maybe, but...

Yes. Well, we said we would issue guidance in the future, and I hate to get into exactly what the quarter is. We did provide what the collection volume decline was in plasma, and we provided a range in the prepared remarks of the impact that we saw in April on the hospital business. We do believe that we've – hopefully, April is the low point. We start to gradually trend out of those April declines. And we're running these different scenarios now with all different milestones and guideposts. And Chris just went through all those different factors in plasma, for example, that would impact the revenue. So we're looking at all of those independently. And then we're taking appropriate action on our expense base to offset those impacts with our view of cash preservation overall for the company. But at this point, we're not going to provide particular guidance for the quarter or for the fiscal year.

Okay. Understand. And then just my final question would be, maybe this ties in to Chris' comments of kind of the new normal. But are there any new product opportunities here around infection prevention and things like that in the plasma centers or the blood collection business?

Yes. Thanks, Mike. I appreciate that. I'd come at it in a couple of ways because I actually think it applies across our portfolio, which we're – I think, we have the benefit of dealing with essential medical care across the board. When I think about plasma, probably the single biggest positive I walked through the three different arms that the folks are looking at for the use of plasma, convalescent plasma, hyperimmune, et cetera. I think one of the real positives of this is you can't turn on a news feed without hearing about plasma, which is something that a large portion of global population didn't know or understand its use, right? And now I think it's very much seen as on the forefront of fighting disease. And I hope one of the silver linings of all of this is that it allows a reframing of the discussion around remunerated collection of plasma as a life saving, life enhancing therapy. And I think that there's momentum there that we can build upon that bodes well for donor psychology going forward. I think equally so, we see this in our TEG business, one of the real positives that we've experienced is researchers using TEG to understand hypercoagulopathy in a thoratic response. We now know that a large number of fatalities of COVID are associated with clotting in different factors, whether it's pulmonary embolism in the lung or stroke or cardiovascular cascade and there's something going on with the blood coagulation here. TEG is the most sophisticated instrument to use to understand that, and we see a surge in demand for that early on that it's – again, it's yet to be determined what it might mean for us by way of use going forward. But in the near term, it's very encouraging to know that our technology can be used as part of the fight. So we remain optimistic that as the markets move towards recovery, the essential nature of what we do will come back to the fore and we'll benefit accordingly.

Thank you.

Thank you. And that does conclude our question-and-answer session for today's conference. Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, and you may all disconnect. Everyone, have a wonderful day.