Viking Systems Inc., a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery, today announced it expects to report record sales for the first quarter ended March 31, 2011.
Viking said it anticipates it will report revenues in excess of $3.0 million, a more than 50 percent increase compared with $1.9 million in revenue reported for last year’s first quarter, and more than a 30 percent sequential increase over the fourth quarter of 2010.
The company bases its positive expectations on its processing of 22 orders of its recently released 3DHD Vision Systems, as well as orders for four of its previous generation systems.
“We are pleased to be off to such a good start with Viking’s 3DHD system. Considering a typical capital equipment sales cycle is six to twelve months and that the first demonstration units essentially did not get deployed by distributors until early January 2011, this is a very encouraging start. All reports from our distributors indicate that the product is well-received and the purchasing process for systems is underway in most markets,” Jed Kennedy, president and CEO of Viking Systems stated in the press release. “Many of our distributors are now inquiring about purchasing additional demonstration systems to keep up with their demonstration schedules.”
International sales played an integral, leading role in the company’s quarterly success; all of the customer system sales in the quarter were in markets outside the United States. Viking said that it has 11 distributors covering international markets, and the company anticipates that a majority of its 3DHD sales in 2011 will be through these distributors.
“We have always believed that sales would ramp up more quickly outside the United States, especially in those markets where our distributors previously carried our earlier generation product, and our first quarter sales confirm this belief. In the United States, we first instituted the distributor model in conjunction with the launch of 3DHD in the past six months. Additionally, in the United States, we believe current 2D suppliers and existing buying group contracts will affect our rate of market penetration,” Kennedy stated.
Kennedy said the company’s first-quarter results reflect that the company is on target with its production schedule and that it plans on driving market success with placement of its demonstration units.
“The sales process has three distinct steps: a surgical demonstration of the system, then a quotation for the configuration requested by the customer and, finally, working through the administrative process to get the purchase approved. The process varies a little depending on the particular market, but the three steps are fairly consistent and it usually starts with a successful demonstration,” Kennedy stated. “We look forward to increasing our footprint in the industry as end-users are introduced to the benefits of our 3DHD visualization systems for complex minimally invasive surgeries.”
For more information visit www.vikingsystems.com