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Read More Total revenues for the quarter were less than we had previously anticipated. In the quarter, we had 18 net placements of XTRAC systems while XTRAC recurring revenues increased sequentially from the [first] quarter by over 10%. We identified several areas where we think there is potential for improvement going forward. Specifically, there are three areas we are targeting that we believe will boost recurring revenue growth back to a level that better reflects our capabilities. First, the total number of XTRAC systems deployed in the United States as of June 30, 2016 increased to 748, up approximately 13% from the 664 systems in place at the end of the second quarter of 2015. In the last two quarters, it has become apparent that more of the new XTRAC placements that have been made over the last year are growing at a slower pace than had been previously experienced with new placements. The reason this is occurring is that as the installed base has grown, many of the new accounts have little or no prior experience with phototherapy and are slower to adapt to this new technology in their practice. Therefore, we will be devoting more resources to training dermatologists and their office staff in practices that have not used phototherapy previously, while the her latest blog use and the applicability of the XTRAC system to patients with psoriasis as well as vitiligo and atopic dermatitis. We are now utilizing more of our clinical specialist time in training these practices with the goal of shortening the time required to train the practices on the use of the XTRAC system, including identification of the applicable patients for XTRAC therapy. We think there is an opportunity to drive the launch process more quickly, and reach a higher level and greater consistency of procedures immediately following placement of the XTRAC system in the coming quarters.
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