Q2 2008 NORTHSTAR NEUROSCIENCE INC Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good afternoon and thank you for joining Northstar Neuroscience Second Quarter Conference Call. A copy of today's press release is available in the investor's relations section of the Company's website at www.northstarneuro.com or alternatively as furnished on form 8K with the Securities and Exchange Commission and available on the commission's website at www.sec.gov.

Today's call is being recorded and will be available for replay for 30 days, shortly after the call ends in the Investor Relations section of the Company's website. Hosting today's call is Mr. John Bowers, Northstar President and Chief Executive Officer and Mr. Ray Calvert, the Company's Chief Financial Officer.

All participants on today's call are advised that the discussions made include forward-looking statements reflecting management's current forecasts of certain aspects of the Company's future. Forward-looking statements are denoted by such phrases as will, believes, expects, estimates, plans and anticipates, and other expressions that look to the future events and performance.

Forward-looking statements also include statements regarding the result of the Company's clinical trials. In particular the companies' prospects and Everest clinical trials, the Company's current are planned clinical trials, the status of the Company's FDA regulatory process, and the future operating plans, financial results, and cash flow expectations. In addition, there can be no assurance regarding the results of the Company's engagement of the financial advisors or analysts of the strategic alternative or that such engagement of analysts will result in [transition] or arrangements with the third party.

The Company may also make forward-looking statements in response to your questions. These statements are based on currently information that management has assessed, which by nature is dynamic and subject to rapid and even abrupt changes. The Company does not undertake any obligations to update any forward-looking statements.

The Company's actual results can differ materially from those stated in or implied by management forward-looking statement, due to risks and uncertainties associated with the Company's business that include, but is not limited to risk factors disclosed in the Company's most recent filings quarterly report on form 10Q.

Management encourages you to read these disclosures.

I would like to now turn the call over to Mr. John Bowers, Northstar President and Chief Executive Officer. Mr. Bowers, please proceed.

JOHN BOWERS, PRESIDENT, CEO, & DIRECTOR, NORTHSTAR NEUROSCIENCE: Thank you. On today's call, Ray and I will provide you with an update on our clinical program for depression and review our financial results and guidance. We'll also be discussing our future strategic direction, including an update of the review process being conducted by Northstar and our Board of Directors.

Before I begin, I'd like to comment on the recent public dialogue with certain of our shareholders. As you may know, we've been publicly contacted by certain shareholders who have either offered to enter into negotiations to purchase the Company at a significant discount to cash value, or who have suggested an immediate liquidation of the Company.

We value the input of all our shareholders and take their points of view and suggestions seriously. We remain committed to exploring all options to enhance long term shareholder value for all shareholders of Northstar.

Since our Everest trial data was announced in January, our management team and our Board of Directors have engaged in a comprehensive process to determine how to prove best to prudently utilize the Company's resources to accomplish this goal.

Before I comment on our recent changes, I'd like to review what we've accomplished since our initial Everest pivotal trial primary end point data was released. In February, we took steps to conserve capital that included a reduction in force and other cost cutting measures.

Subsequently, we completed the full analysis of the extensive Everest data …