Olympus Corp Ord (OCPNF) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

Now we would like to move on to Q&A. My first question is about GI endoscopy doing very well in the United States. Eat off scope penetration for high-end customers. So what is the penetration rate, adoption rate? In other words, It's pretty strong in the first half, but do you think the trend will continue in the second half of the year? That's my first question. Thank you for the question, and I'll have Keith jump in here in a minute. But you're right to point out that our EDOF scope and our EVUS X1 adoption has been strong. We believe there's upside, continued upside to that penetration, not just in North America, but Keith, as the question was about North America, you want to talk about North America specifically? Yeah, look, EVAS X1 represents the leading edge of our innovation strategy. I would say in the U.S. we're still kind of early to mid innings in terms of our penetration rates. You know, EMEA and Japan are a little bit further along, but there's still multiple years of runway ahead in the United States, particularly as we extend the Edovscope family. Thank you. Okay, my second question. R&D expenditure and also contributing to the profitability. Well, R&D expense is actually down by 2.5 billion in the first quarter. What are the factors behind this? And also from second quarter and beyond, should we expect the R&D expense to go up once again because it was lower in the first quarter? So what is your outlook on R&D expenditure? Thank you for the question. You're right, we did have a little timing on R&D in Q1. Some of that was as a result of workforce reduction. We transitioned some of our products to capitalization. But importantly, we really looked at The projects that are contributing to the growth in both divisions and that's where we're focused our R&...