Q4 2021 IRadimed Corp Earnings Call
[music].
Welcome to the <unk> Corporation fourth quarter 2021 financial results Conference call.
Speaker 1: Welcome to the I-Ready Med Corporation fourth quarter 2021 financial results conference call. Currently, all participants are in a listen-only mode, and at the end of the call we will conduct a question and answer session.
All participants are in a listen only mode and at the end of the call. We will conduct a question and answer session.
Speaker 1: As a reminder, this call is being recorded today, February 4, 2022, and contains time-sensitive information that is accurate only as of today. Earlier, Iredimed released the financial results for the fourth quarter 2021. A copy of its press release announcing the company's earnings is available under the heading News on their website at Iredimed.com. A copy of the press release is available under the heading News on their website at Iredimed.com.
Reminder, this call is being recorded today February five 2022 and contains time sensitive information.
That is accurate only as of today earlier <unk> released financial results for the fourth quarter 2021, a copy of this press release announcing the company's earnings is available under the heading news on their website at <unk> Dot com a copy of the press release.
Speaker 1: was also furnished to the Security and Exchange Commissions on Form 8K and can be found at sec.gov. This call is being broadcast live over the internet on the company's website at eduredmedcom and a replay of the call will be available on the website for the next 90 days.
It was also furnished to the security and Exchange Commission on form 8-K, and can be found at SEC. Gov. This call is being broadcast over live over the internet on the company's website at <unk> Com and a replay of the call will be available on the website for the next 90 days.
Some of the information to be furnished in todays session will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 forward looking statements are those focused on future performance results plans and events and May include the company's expected future results.
Speaker 1: Some of the information to be furnished in today's session will contain forward-looking statements within the meanings of the Private Security Litigation Reform Act of 1995. Forward-looking statements are those focused on the future performance results, plans, and events, and may include the company's expected future results. I already remind you that future results may differ materially from these forward-looking statements due to risk of failure.
I already met reminds you that future results may differ materially from these forward looking statements due to risks.
Speaker 1: several risk factors. For a description of the relevant risk and uncertainties that may affect the company's business, please see the risk factor section of the company's most recent filed report with the exchange.
Several several risk factors for a description of the relevant risks and uncertainties that may affect the company's business. Please see the risk factors section of the company's most recent filed reports with the inks.
Yes.
Speaker 1: I would now like to turn the conference over to Roger Suzy, President and Chief Executive Officer of Ready My Corporation.
Security and Exchange Commission, which again may be obtained for free from the SEC's website at SEC Dot com.
I'd now like to turn the conference over to Roger Susi, President and Chief Executive Officer of <unk> Corporation. Mr. Susi. Please go ahead.
Speaker 2: Thank you. Good morning and thank you all for participating in the call today.
Good morning, and thank you all for participating in the call today.
Speaker 2: I am happy to report another very good quarter of revenue and earnings growth, as well as an exciting and outstanding year.
I am happy to report another very good quarter of revenue and earnings growth as well as an exciting an outstanding year.
Speaker 2: As we reported in this morning's press release, Q4 revenue was $11.9 million, a 39% increase over the fourth quarter of 2020.
As we reported in this morning's press release Q4 revenue was 11 9 million.
A 39% increase over the fourth quarter of 2020.
non-GAAP earnings were 33 cents or 373% over that fourth quarter 2020.
Speaker 2: non-GAAP earnings were $0.33 or 373% over that fourth quarter 2020.
On a sequential basis, we continued our path of growth trend.
Speaker 2: On a sequential basis, we continued our path of growth trends.
With Q4 revenue coming in at 9% over Q3, 2021 and adjusted earnings.
Speaker 2: with Q4 revenue coming in at 9% over Q3 2021 and adjusted earnings in over 43%.
Over 43%.
From a sales perspective customer man for our products started off and remained strong all year and continually outpaced our expectations.
Speaker 2: From the sales perspective, customer demand for our products started off and remained strong all year and continually outpaced our expectations.
Speaker 2: We saw strength of demand demonstrated in our record bookings, which were 39% higher in the full year 21 over 2020.
We saw strength of demand demonstrated in our record bookings, which were 39% higher than the full year 'twenty one over 2020.
Our string of extremely strong bookings growth continued directly into the fourth quarter when bookings increased nearly 48% over the fourth quarter of 2020 on a sequential basis over 25% from the third quarter 2021.
Speaker 2: Our string of extremely strong bookings growth continued directly into the fourth quarter when bookings increased nearly 48% over the fourth quarter of 2020 on a sequential basis, over 25% from the third quarter 2020.
The level of demand for our products has also allowed us to grow backlog, which at the end of the year stood at $10 9 million compared to $4 4 million at the end of 2020.
Speaker 2: The level of demand for our products has also allowed us to grow backlog, which at the end of the year stood at 10.9 million compared to 4.4 million at the end of 2020. We feel that the strong demand for our products and growing backlog level adds to our confidence and further validates the value that we bring to our customers.
We feel that the strong demand for our products and growing backlog level adds to our confidence in further validates the value that we bring to our customers rigs.
Regarding engineering and new product development.
Speaker 2: regarding engineering and new product development. Much of our attention has turned to supporting the regulatory team towards clearance of our next generation IV pump.
Each of our attention has turned to supporting our regulatory team towards clearance of our next generation IV pump.
Speaker 2: We've continued to work with FDA on the additional testing and documentation they've been requiring. We expect that this will continue for much of the first half of the year and still anticipate potential clearance coming in the second half of 2022.
We've continued to work with FDA on the additional testing and documentation they've been required we expect that this will continue for much of the first half of the year and still anticipate potential clearance coming in the second half of 2022.
Other areas of focus for the engineering team have been finalized and the ferro magnetic detector and preparing for its first deliveries.
Speaker 2: Other areas of focus for the engineering team have been finalized in the ferromagnetic detector and preparing for its first delivery.
Speaker 2: We feel very good about where we are with this device, and we believe that we have technologically superior product in this device compared with other devices currently in the field. With our technology and direct sales team, we are well positioned for success in this market.
We feel very good about where we are with this device and we believe that we have technologically superior products in this device compared with other devices currently in the field.
With our technology and direct sales team, we are well positioned for success in this market.
Speaker 2: Now before turning the call over to Chris for additional information and updates, I'd like to review our 2022 financial guidance with all.
Now before turning the call over to Chris for additional.
Information and updates I'd like to review, our 2022 financial guidance with all of you.
Speaker 2: As I mentioned, we have growing confidence and visibility with the strong results of 2021. We believe we are at an inflection point as customers realize more and more the value of our product spring. Additionally, we continue to take market share with our monitor and we will have this first delivery of the FMD in 2022 as well.
As I mentioned, we have growing confidence in visibility with the strong results of 2021.
We believe we are at an inflection point.
As customers realize more and more of the value that our products spring. Additionally.
Additionally, we continue to make take market share with our monitor and we.
We will have this first deliveries of the F&B in 2022 as well.
That said for the full year 2022, we expect revenue of $51 4 million to $52 2 million with GAAP earnings of 82 to 90.
Speaker 2: That said, for the full year 2022, we expect revenue of $51.4 million to $52.2 million, with GAAP earnings of $0.82 to $0.90 and non-GAAP earnings of $0.91 to $1.1.
And non-GAAP earnings of 91 to one dollar one.
For the first quarter of 2022, we expect revenue of $12 1 million to $12 three.
Speaker 2: For the first quarter of 2022, we expect revenue of 12.1 million to 12.3.
Speaker 2: and with GAAP earnings of 16 to 18 cents and non-GAAP earnings of 20 to 21 cents.
And with GAAP earnings of 16 to 18 cents and non-GAAP earnings of $20 to 21.
With that I'd now I'd like to turn the call over to Chris and ill run through some more of the detail Chris.
Speaker 2: With that, now I'd like to turn the call over to Chris, and he'll run through some more of the detail. Chris?
Thank you and good morning, everyone.
I will review, our financial results and as always I'll be discussing our results on a GAAP basis as well as on a non-GAAP basis.
Speaker 3: I'll review our phone results and as always I'll be discussing the results on a gap basis as well as on a non-gap basis.
Speaker 3: You can find a description of our non-GAAP operating measures in this morning's earnings release. You can also find a reconciliation of these non-GAAP measures to the nearest GAAP measure on the last page of today's report.
You can find a description of our non-GAAP operating measures in this morning's earnings release, you can also find a reconciliation of these non-GAAP measures to the nearest GAAP measure on the last page of today's release.
Also please keep in mind that when comparing year to date results. During 2020, we recognized $3 2 million of general and administrative expenses related to our former CEO .
Speaker 3: Also, please keep in mind that when comparing year-to-date results, during 2020, we recognized $3.2 million of general administrative expenses related to our former CEO .
As we reported earlier this morning fourth quarter 2021 revenue was $11 9 million.
Speaker 3: As we reported earlier this morning, fourth quarter, 2021 revenue was $11.9 billion. An increase of 38.9% compared to the fourth quarter last.
<unk> of 38, 9% compared to the fourth quarter last year.
And on a sequential basis revenue grew by nine 1% over Q3 2021.
Speaker 3: And on a sequential basis, revenue grew by 9.1% over Q3 2021.
Revenue from domestic sales increased 33, 3% to $9 $5 million during the fourth quarter.
Speaker 3: Revenue from domestic sales increased 33.3% to $9.5 million during the fourth quarter. And revenue from international sales increased 66.8% to 2.4%.
And revenue from international sales increased 66, 8% to $2 4 million.
Overall domestic revenue accounted for 79, 8% of total revenue for the 2021 quarter compared to 83, 1% for the 2020 quarter.
Speaker 3: Overall domestic revenue accounted for 79.8% of total revenue for the 2021 quarter compared to 83.1% for the 2020 quarter.
Device revenue increased 49, 7% to $8 million for the fourth quarter of 2021.
Speaker 3: device revenue increased 49.7% to $8 million for the fourth quarter 2021.
Speaker 3: was driven by a 50.9% increase in monitor revenue, and a 48.5% increase in IV pump revenue.
It was driven by a 59% increase in monitor revenue.
A 48, 5% increase in RV pump revenue.
Speaker 3: The average selling price of our MRI compatible IV infusion pump system during the fourth quarter 2021 was approximately $33,800 compared to approximately $37,600 for the fourth quarter 2020.
The average selling price of our MRI compatible IV infusion pump system during the fourth quarter 2021.
It was approximately $33800.
To approximately $37600 for the fourth quarter 2020.
This decrease relates to higher international unit sales and an unfavorable product sales mix during the current quarter.
Speaker 3: This decrease relates to higher international unit sales and an unfavorable product sales mix during the current quarter.
Speaker 3: the average selling price of our MRI compatible patient vital signs monitoring.
The average selling price of our MRI compatible patient vital signs monitoring system during.
Speaker 3: During the fourth quarter, 21 was approximately $41,000 compared to approximately $37,500. In the same...
During the fourth quarter 'twenty, one was approximately $41000.
Third to approximately $37500.
In the same period of 2020.
Speaker 3: This increase relates to price increases. We have been in the process of instituting across our monitor lineup.
This increase relates to price increases we have been we have been in the process of instituting across our monitor lineup.
Speaker 3: partially offset by unfavorable product sales mix and higher international unit sales during the current quarter.
Partially offset by unfavorable product sales mix and higher international unit sales during the current quarter.
Yeah.
Revenue from disposables and services increased 24, 3% to $3 4 million for the fourth quarter 2021.
Speaker 3: revenue from disposable and service increased 24.3% to $3.4 million for the fourth quarter 2021.
And revenue from our maintenance contracts was consistent on a $5 million.
Speaker 3: and revenue from our maintenance contract was consistent at a half a million dollars for the food.
Gross margin was 77, 9% for the 'twenty, one quarter compared to 75, 3% for the 20 quarter.
Speaker 3: Gross margin was 77.9% for the 21 quarter compared to 75.3% for the 20.
Speaker 3: The increase in gross margin percent is a result of favorable overhead absorption from higher guinea production required to meet customer demand, partially offset by higher international sales.
The increase in gross margin percent as a result of favorable overhead absorption from higher unit production required to meet customer demand.
Partially offset by higher international sales.
We have commented in the past about supply chain matters, and we remain cautious about materials costs at this time.
Speaker 3: We have commented in the past about supply chain matters, and we remain cautious about materials caused at this time.
Speaker 3: However, we continue to believe that any negative impact from higher costs will likely be limited and partially offset by higher levels of unit production required to satisfy.
However, we continue to believe that any negative impact from higher costs will likely be limited.
Actually offset by higher levels of unit production required to satisfy customer demand.
Speaker 3: Resulting in gross margins that are very consistent with our historical rates.
<unk> gross margins that are very consistent with our historical ranges.
Operating expenses were $6 1 million or.
Speaker 3: Operating expenses were $6.1 million, or 51.7% of revenue, compared to $5.8 million, or approximately 67.7% of revenue for the fourth quarter last year. On a dollar basis, this increase is primarily due to higher bonus accruals, payroll and benefits costs, sales activities expenses, and costs related to regulatory activities, partially offset by lower
Or 51, 7% of revenue.
Compared to $5 8 million or approximately 67, 7% of revenue for the fourth quarter last year on a dollar basis. This increase was primarily due to higher bonus accruals payroll and benefits costs sales activities expenses and costs related to regulatory activities.
Partially offset by lower legal and professional expenses.
Speaker 3: As a result, income from operations grew 378% to $3.1 million for the 2021 quarter.
As a result income from operations grew 378% to $3 $1 million for the 2021 quarter.
We recognized a tax benefit during the fourth quarter 'twenty, one of approximately $779000 compared to tax expense of approximately $27000 for the 2020 quarter.
Speaker 3: We recognize the tax benefit during the fourth quarter 21 of approximately $779,000, compared to tax expense of approximately $27,000 for the 2020.
This decrease is due to tax benefits associated with the exercise and sale of stock options.
Speaker 3: This decrease is due to tax benefits associated with the exercise and sale of stock options.
Speaker 3: Partially offset by higher taxable income going forward. We expect a normalized tax.
We offset by higher taxable income.
Going forward, we expect a normalized tax rate.
On a GAAP basis net income was 31 per share compared to <unk> <unk> for.
Speaker 3: on a gap basis, net income was $0.31 per share compared to $0.05.
Speaker 3: for the 2020 quarter. On a non-gap basis, adjusted income was $0.33 per diluted share for the 21 quarter compared to $0.07 for the fourth quarter 2020.
For the 2020 quarter.
non-GAAP basis.
Adjusted income was 33 per diluted share for the 'twenty, one quarter compared to seven four.
For the fourth quarter of 2020.
Cash from operations grew to $11 3 million for the full year 2021 from $5 8 million for the 2020 year for the 2020 full year 2020.
Speaker 3: Cash from operations grew to 11.3M dollars for the full year 2021 from 5.8M for the 2020 year for the 2020 full year 2020.
For the three months ended December 31, 2021, and 2020, our free cash flow are non-GAAP .
Speaker 3: For the three months ended December 31, 2021 and 2020 are free cash flow, a non-gap measure.
Measure.
Speaker 3: was $3.3 million and $2.4 million, respectively.
It was $3 $3 million and $2 4 million respectively.
Now I'll provide some additional commentary around the financial guidance that Roger just reviewed.
Speaker 3: Now I'll provide some additional commentary around the financial guidance that Roger just reviewed.
Speaker 3: From a revenue standpoint, we are not providing guidance on a product by product basis. However, we expect growth across all products with our monitor leading the way.
From a revenue standpoint, we are not providing guidance on a product by product basis. However, we expect growth across all products with our monitor leading away.
Speaker 3: We have also begun to forecast modest amounts of revenue from the sale of our FMD and anticipate these sales will ramp throughout the year We expect gross margins
We have also begun to forecast modest amount of revenue from the sale of our F&D anticipate these sales will ramp throughout the year.
We expect gross margins that are consistent with historical ranges.
Speaker 3: and expect operating expenses from, expect higher operating expenses from higher sales commissions and head.
And we expect operating expenses from <unk>.
Expect higher operating expenses from higher sales commissions and headcount.
We also expect additional costs in Q1 and Q2 of 2022.
Speaker 3: We also expect additional costs in Q1 and Q2 of 2022.
Speaker 3: related to the testing and administrative matters from our 510K applicant.
Related to the testing and administrative matters from our five 10-K application.
We expect the bulk of these additional regulatory and engineering costs will diminish significantly in the second half of the year.
Speaker 3: We expect the bulk of these additional regulatory and engineering costs will diminish significantly in the second half of the year.
We also anticipate our normalized tax rate for 2022, as well as as well as modest growth in our diluted share count.
Speaker 3: We also anticipate a normalized tax rate for 2022, as well as modest growth in our diluted share count. And with that.
And with that I'll turn the call over for questions.
No.
Speaker 1: Thank you. If you have a question at this time, please press star then 1 on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key.
Thank you if you have a question at this time. Please press Star then one on your Touchtone telephone. If your question has been answered already wished can move yourself from the queue. Please press the pound key.
Speaker 1: And our first question comes from the line of Scott Henry with Ross Capital. Your line is open. Please go ahead.
And our first question comes from the line of Scott Henry with Roth Capital. Your line is open. Please go ahead.
Speaker 4: thank you uh... good morning and congratulations on on strong results and guidance for next year
Thank you good morning, and congratulations on the strong results and guidance for next year.
Speaker 4: I did have a couple of questions. First, with regards to the backlog, is that tilted in one category versus the other, or is it largely split between monitors?
I did have a couple of questions first.
With regards to the backlog.
Is that tilted.
In one category versus the other or is it largely split between monitors and pumps.
Speaker 3: I would say, Scott, that we wouldn't normally get into the composition of backlog, but I would say that we've got healthy levels of backlog across pumps, monitors, and to a smaller extent, disposables.
I would say.
Scott.
We wouldn't normally get into the composition of backlog, but I would say that we've got a healthy levels of backlog across pumps monitors and <unk>.
Mauler to a smaller extent disposables.
Okay and.
Speaker 4: You know, at some point does production catch up such that you fill the backlog or how should we think about...
At some point does production catch up such that you fill the backlog or.
Yeah, how should we think about.
Speaker 4: you know what what happened that backlog it over time media do you expect to work through it in twenty twenty two or is it just kind of a steady state backlog that we should
What happens to that backlog over time, I mean, do you expect to work through it in 2022 or is it just kind of a steady state backlog that we should think about.
Speaker 3: I think there's a steady state and I think we're having those discussions internally of what
There is a steady state.
I think.
We're having those discussions internally of what.
Speaker 3: how much backlog should we carry as a percentage of future revenue, but at the same time, manage lead time so that we're not asking our customers to wait too long for our products.
How much backlog should we carry.
As a percentage of future revenue.
But at the same time manage lead times, so that we're not asking our customers to wait too long for our products.
Okay, Great and then.
Speaker 4: you really strong guidance for 2022.
Really strong guidance for 2022 and I.
Speaker 4: I know, Chris, you're typically a conservative guy, so it makes it even more impressive.
I know, Chris you typically conservative Guy so it makes it even more impressive.
Yeah.
Speaker 4: question is, is the guidance reliant on the next generation pump coming out, or does that factor into your outlook for 2022?
Question is yes.
Is the guidance reliant on the next generation pump coming out or does that factor into your outlook for 2022.
We haven't included.
Speaker 3: any revenue contribution from the next gen.
Any.
Revenue contribution from the next Gen pump.
Speaker 3: I mean, our feeling, you know, we still feel, and I think Roger said this in his comments, that, you know, the back half of the year is still our base case.
Our feeling we still feel and I think Roger said this in his comments that the back half of the year is still our base case.
Speaker 3: But even if it comes in the back half of the year, it's still gonna have to work through the sales cycle. So.
But even if it comes in the back half of the year, it's still going to have to work through the sales cycle. So.
Speaker 3: So we may, in fact, have a few placements towards the end of the year, but the real contribution from the next-gen pump is going to be in 2022.
So we may in fact have a few placements towards the end of the year, but.
The real contribution from our next Gen pump is going to be in 2023.
Speaker 2: Yeah, no, it's just Scott, just Rogers can pipe in. We didn't, we included zero revenue for the new pump in this guidance.
Yes, Scott just at Rogers to pipe and we didn't.
We included zero revenue new pump in this guidance.
Okay, great. Thank you for that color and I guess, just a final question.
Speaker 4: Okay, great. Thank you for that color. And I guess just the final question, again, on this theme of...
Again on this theme of.
Speaker 4: You know, why 2022 looks as strong as it does, it sounds like you said that the monitor would be a key driver, at least that's what I took away. Is there something, I mean, are you just reaching that inflection point where it's gaining traction? Why the optimism for the monitors in 2022?
Why 2022 looks as strong as it does it sounds like.
You said that the monitor would be a key driver or at least that's what I took away.
There's something I mean are you just reaching that inflection point where were.
It's gaining traction or.
Why the optimism for the monitors in 2022.
Well, maybe I can take that one Chris if you don't mind.
Speaker 2: Well, maybe I could take that one, Chris, if you don't mind. Yeah, sure. So, yeah, I use that word inflection. That's, I'm gonna use it good probably a lot. You know, we're really seeing that.
So.
Yeah, I used that word inflection when I use it probably a lot.
We're really seeing that.
The stars.
Speaker 2: The stars are lining up with the monitor in a few of its aspects, right? Number one, our sales team has really learned how to position it.
Lining up with the monitor.
In a few of its aspects right number one.
Our sales team has really learned how to position it.
Speaker 2: go in and help positions use it, hands-on sort of work, compete with the big competitor, Philips. And so that's a big contributor that the sales teams come up to speed on it.
Go in and help physicians use it hands on sort of work.
We compete with the <unk>.
The big competitor Philips and and so.
That's a big contributor the sales teams come up to speed on it.
Speaker 2: A second big contributor is that, as Chris mentioned, we have been fairly successful at increasing the price of it.
Our second big contributor is that as Chris mentioned, we have been fairly successful increasing the price of it.
We're selling more.
Speaker 2: And the third aspect that's probably helping this out a bit is it's no secret that the big competitor, Philips, has their hands full with some other issues.
And the third aspect that.
It's probably helping us out a bit is it's no secret that the big competitor Philips has their hands full with some other issues and.
Speaker 2: That's probably helping us a good bit as well. And overall, probably the biggest point that's causing this inflection is.
That's probably.
Helping us a good bit as well.
And overall, probably the biggest point of that is causing this inflection is we've got enough of the product out. There now there are certainly others show six or 800 of these units out there now that.
Speaker 2: We've got enough of the product out there now. There's certainly, you know, there's, oh, six or 800 of these units out there now that
Speaker 2: It's no longer looked at as maybe a bit of a dare or a very new product.
It's no longer look that is maybe a bit of a dare or very new product.
Speaker 2: that you might feel a little risk being the first one to buy, that is probably the largest contributor in the mind of the customer. I think all of these factors together are what give us great cause for looking very excitedly at the potential to monitor into the next few years.
That you might feel a little risk being the first one to buy that.
Is probably the largest.
Contributor in the mind of the customer.
Yes.
And I think all of these factors together our.
What give us great cars for.
Looking very excitedly at the potential to monitor into the next.
A few years it anyway.
Okay, great. Thank you Roger that was really helpful that should do it for me, Thanks, again, guys and congratulations.
Speaker 4: Okay, great. Thank you, Roger. That was really helpful. That should do it for me. Thanks again, guys, and congratulations.
Thanks Scott.
Speaker 1: Thank you. And as a reminder, if you have a question at this time, please press star, then 1.
Thank you.
As a reminder, if you have a question at this time. Please press Star then one.
Speaker 1: And our next question comes from the line of Lisa Springer with Singular Research. Your line is open. Please go ahead.
And our next question comes from the line of Lisa Springer with singular research. Your line is open. Please go ahead.
Speaker 5: Thank you and congratulations on a really strong quarter and a really good year.
Thank you.
Resolutions on a really strong quarter in a really good year.
Speaker 5: My first question is I wonder if you can comment on how you see sales unfolding in the US market versus the European market in 2022. Are you seeing one market stronger than the other?
My question. My first question is I want to I Wonder if you can comment on how you see sales unfolding in the U S market versus the European market. In 2022 are you seen one market.
Longer than the other.
Speaker 2: Oh yeah, the domestic market is definitely opening up much quicker since with the COVID issue, that's primarily what I'm referring to when I say opening. I'd say the COVID
Yes, the domestic market is definitely.
Opening up much quicker.
Yes.
Since with the Covid issue, that's primarily what im referring to when I say opening right.
I'd say the Covid.
Yes.
Problems in Europe .
Speaker 2: problems in Europe continue to be a bit of a drag on sales growth there. But all in all, the monitor's acceptability and how the buyer is looking at it is very positive in both.
Continue to be a bit of a drag on sales growth there.
But.
All in all the monitors acceptability and how the buyer is looking at it is very positive in both.
Speaker 2: in all areas of the world, also Asia, and even we even had a large order in Mexico come in a few weeks ago. So that monitor is just really starting to impress.
In all areas of the World also Asia and even that.
We even had a large order in Mexico come in.
A few weeks ago. So that monitor is just really starting to impress I think.
Speaker 5: OK, excellent. Ann, can you comment on what assumptions you're making about supply chain issues in 2022? Are you looking for them to ease in the second half of the year?
Okay excellent and can you comment on what assumptions, you're making about supply chain issues. In 2022 are you looking for him to ease in the second half of the year.
Speaker 2: Well, like Chris said, it's no fun. I think that's what Chris was trying to say. We deal with it quite a bit on a near daily basis.
I'll, let Chris said there.
It's no fun I think that's what Chris was trying to say.
We deal with it.
Quite quite a bit on a near daily basis, but.
Speaker 2: I suppose having been in that fight now for the last several months.
I suppose having been in that fight now for the last several months.
Speaker 2: we feel two things. We feel that we've gotten our hands around the critical stuff that we need. And as you alluded to, we do see that this is
We feel two things, we feel that we've gotten our hands around the critical staff that we need.
And as you alluded to we do see.
We didn't see that this is.
Speaker 2: and capacity from chip suppliers and so forth is.
Capacity from chip suppliers and so forth.
Is.
Speaker 2: is starting to show a little glimmer of hope that it's not gonna continue, it's not getting worse, and that it's not gonna continue for an exorbitantly long period of time.
It is starting to show a little glimmer of hope that its not going to continue it's not getting worse and that is not going to continue for.
Exorbitantly long period of time.
Okay.
Speaker 5: Okay. And could you comment for me on the cadence of revenues, quarterly revenues you see in 22? Are you expecting the majority of revenues in the second half of the year?
Could you comment for me on the cadence of revenue quarterly revenue, you're seeing 22 are you expecting the majority of revenues in the second half of the year.
No I think we've got a nice even rollout throughout the year I think.
Speaker 3: No, I think we got a nice even rollout throughout the year. I think the one item that might impact second half revenue or cause it to accelerate a little bit more than the first half is just how the FMD ramps up. And again, it's not a lot of money that's coming in for the FMD, but we do anticipate the second half of the year to be higher than the first.
The one the one item.
Impact second half revenue.
Or cause it to accelerate a little bit more than the first half is just how the FMT ramps up.
And again, it's not a lot of money that's coming in.
F&B, but it but we do anticipate the second half of the year to be.
Higher than the first half when it comes to that product.
Speaker 3: As for the other products, we expect nice even growth to come through.
Okay.
We expect we'd expect from ice even growth to come through.
Okay, and then just one more question.
Speaker 5: Okay, and then just one more question. You're building up quite a bit of cash on the balance sheet. I'm just wondering what are your priorities for allocating capital, if you can comment on the cash position?
You're building up quite a bit of cash on the balance sheet I'm. Just wondering what are your priorities for allocating capital if you could comment on the cash position.
I think before I would take that Chris Scott, Yes, I would say that the board continues to have these discussions around the capital.
Speaker 3: I think the board continues to have these discussions. Yeah, I said that the board continues to have these discussions around capital, or it's something that we are very aware of, and we don't have any more comments other than that at this point, but these are discussions that continue to consume a lot of time at the board level. Okay.
Something that we.
Are very aware of and.
We don't have any any more comment other than that.
At this point, but these are discussions that continue to consume a lot of time at the board level.
Okay.
Okay. Thank you very much gentlemen.
Thank you.
Speaker 1: Thank you, and I'm showing no further questions at this time, and I would like to turn the conference back over to Roger Soucy for any further remarks.
Thank you and I'm showing no further questions at this time I would like to turn the conference back over to Roger Susi for any further remarks.
Speaker 2: Well, thank you. And well, please forgive me again for being a bit repetitious, but I'd like to drive home just how very pleased we are with our results and how proud of the entire team's performance this year that we all are.
Well thank you.
And please.
Please forgive me again for being a bit repetitious, but I'd like to drive home just how very pleased we are with our results and how proud of the entire team's performance. This year that we all are.
Speaker 2: I had said earlier and believe that we are at an inflection point, we've used that word a few times, as customers realize more and more the value that our products bring to them.
I had said earlier in <unk>.
And believe that we are at an inflection point, we use that word a few times as customers realize more and more of the value of our debt.
Our products bring to them.
Speaker 2: which in turn gives us faith in our guidance. And it's a confirmation that we have the right products at the right time. And so we'll continue to make significant strides in building demand. And we look forward to expanding our momentum continually through 2022.
Which in turn gives us faith in our guidance.
And it's a confirmation that we have the right products at the right time, and so we'll continue to make significant strides in building demand and we look forward to expanding our momentum continually through 2022.
As always we will.
Speaker 2: As always, we remain steadfast in our optimism and look forward to speaking with you again soon. Thank you all.
We remain steadfast in our optimism and look forward to speaking with you again soon thank you all.
This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.
Okay.
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Yes.
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Speaker 6: And.
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Speaker 6: .
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Welcome to the Readymade Corporation fourth quarter 2021 financial results Conference call. Currently all participants are in a listen only mode and at the end of the call. We will conduct a question and answer session. As a reminder, this call is being recorded today February four 2022 and contains time central.
Speaker 1: Welcome to the iRADIMED Corporation fourth quarter 2021 financial results conference call. Currently all participants are in a listen-only mode and at the end of the call we will conduct the question and answer session.
Speaker 1: As a reminder, this call is being recorded today, February 4, 2022, and contains time-sensitive information that is accurate only as of today. Earlier, Aritamed released the financial results for the fourth quarter 2021. A copy of its press release announcing the company's earnings is available under the headings News on their website at aritamed.com. A copy of the press release.
That's information that is accurate only as of today earlier I already met released financial results for the fourth quarter 2021, a copy of the press release announcing the company's earnings is available under the heading news on their website, a red Red Dot com a copy of the press release.
Speaker 1: was also furnished to the Security and Exchange Commissions on Form 8K and can be found at sec.gov. This call is being broadcast live over the internet on the company's website at www.edurandmed.com and a replay of the call will be available on the website for the next 90 days.
Also furnished to the security and exchange Commission on form 8-K, and can be found at SEC. Gov. This call is being broadcast over live over the internet on the company's website at a red Med com.
And a replay of the call will be available on the website for the next 90 days.
Some of the information to be furnished in todays session will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 forward looking statements are those focused on the future performance results plans and events and May include the company's expected future results already.
Speaker 1: Some of the information to be furnished in today's session will contain forward-looking statements within the meanings of the Private Security Litigation Reform Act of 1995. Forward-looking statements are those focused on the future performance results, plans and events and may include the company's expected future results. I already remind you that future results may differ materially from these forward-looking statements due to risk.
It reminds you that future results may differ materially from these forward looking statements due to risks.
Speaker 1: several risk factors. For a description of the relevant risk and uncertainties that may affect the company's business, please see the risk factors section of the company's most recent filed report with the
Several risk factors for a description of the relevant risks and uncertainties that may affect the company's business. Please see the risk factors section of the company's most recently filed report with fixed.
Speaker 1: Security and Exchange Commission, which again, may be obtained for free from the SEC's website at sec.com. I would now like to turn the conference over to Roger Soucy, President and Chief Executive Officer of ReadyMyCorporation. Mr. Soucy, please go ahead. Okay, I'll...
Security and Exchange Commission, which again may be obtained for free from the SEC's website at SEC Dot Com I would now like to turn the conference over to Roger Susi, President and Chief Executive Officer of Freddie Mac Corporation. Mr. Susi. Please go ahead.
Speaker 2: Thank you. Good morning and thank you all for participating in the call today.
Good morning, and thank you all for participating in the call today.
Speaker 2: I am happy to report another very good quarter of revenue and earnings growth, as well as an exciting and outstanding year.
Hi, I'm happy to report another very good quarter of revenue and earnings growth as well as an exciting an outstanding year.
Speaker 2: As we reported in this morning's press release, Q4 revenue was $11.9 million, a 39% increase over the fourth quarter of 2020.
As we reported in this morning's press release Q4 revenue was $11 9 million.
A 39% increase over the fourth quarter of 2020.
Speaker 2: non-GAAP earnings were 33 cents or 373 percent over that fourth quarter 2020.
non-GAAP earnings were 33 cents or 373% over that fourth quarter 2020.
On a sequential basis, we continued our path of growth trend.
Speaker 2: with Q4 revenue coming in at 9% over Q3, 2021, and adjusted earnings in at over 43%.
With Q4 revenue coming in at 9% over Q3, 2021 and adjusted earnings.
Over 43%.
Yeah.
Speaker 2: From the sales perspective, customer demand for our products started off and remained strong all year and continually outpaced our expectations.
From a sales perspective customer demand for our products started off and remained strong all year and continually outpaced our expectations.
We saw strength.
<unk> demonstrated in our record bookings, which were 39% higher than the full year 'twenty one over 2020.
Speaker 2: Our string of extremely strong bookings growth continued directly into the fourth quarter when bookings increased nearly 48 percent over the fourth quarter of 2020 on a sequential basis, over 25 percent from the third quarter of 2020.
Our string of extremely strong bookings growth continued directly into the fourth quarter when bookings increased nearly 48% over the fourth quarter of 2020 on a sequential basis over 25% from the third quarter 2021.
Yeah.
Speaker 2: The level of demand for our products has also allowed us to grow backlog, which at the end of the year stood at 10.9 million compared to 4.4 million at the end of 2020. We feel that the strong demand for our products and growing backlog level adds to our confidence and further validates the value that we bring to our customers.
The level of demand for our products has also allowed us to grow backlog, which at the end of the year stood at $10 9 million compared to $4 4 million at the end of 2020, we feel that the strong demand for our products and growing backlog level and adds to our confidence in further validates the value.
We bring to our customers.
Speaker 2: Regarding engineering and new product development, much of our attention has turned to supporting the regulatory team towards clearance of our next generation IV pump.
Regarding engineering and new product development much of our attention has turned to supporting our regulatory team towards clearance of our next generation IV pump with.
Speaker 2: We've continued to work with FDA on the additional testing and documentation they've been requiring. We expect that this will continue for much of the first half of the year and still anticipate potential clearance coming in the second half of 2022.
We've continued to work with FDA on the additional testing and documentation they've been required we expect that this will continue for much of the first half of the year and still anticipate potential clearance coming in the second half of 2022.
Other areas of focus for the engineering team have been finalized and the ferro magnetic detector and preparing for its first deliveries.
Speaker 2: Other areas of focus for the engineering team have been finalized in the ferromagnetic detector and preparing for its first delivery.
Speaker 2: We feel very good about where we are with this device, and we believe that we have technologically superior product in this device compared with other devices currently in the field. With our technology and direct sales team, we are well positioned for success in this market.
We feel very good about where we are with this device and we believe that we have technologically superior products in this device compared with other devices currently in the field.
With our technology and direct sales team, we are well positioned for success in this market.
Speaker 2: Now, before turning the call over to Chris for additional information and updates, I'd like to review our 2022 financial guidance with all.
Now before turning the call over to Chris for additional.
The information and updates I'd like to review, our 2022 financial guidance with all of you.
Speaker 2: As I mentioned, we have growing confidence and visibility with the strong results of 2021. We believe we are at an inflection point as customers realize more and more the value that our products bring. Additionally, we continue to take market share with our monitor, and we will have this first delivery of the FMD in 2022 as well.
As I mentioned, we have growing confidence in visibility with the strong results of 2021, we believe we are at an inflection point.
As customers realize more and more of the value that our products spring <unk>.
Additionally, we continue to take market share with our monitor and we.
We will have this first deliveries of the <unk> in 2022 as well.
Speaker 2: That said, for the full year 2022, we expect revenue of 51.4 million to 52.2 million with gap earnings of 82 cents to 90 cents and non-gap earnings of 91 to a dollar one.
That said for the full year 2022, we expect revenue of $51 4 million to $52 2 million with GAAP earnings of 82 to 90.
And non-GAAP earnings of 91 to a dollar one.
For the first quarter of 2022, we expect revenue of $12 1 million to $12 three.
Speaker 2: For the first quarter of 2022, we expect revenue of 12.1 million to 12.3.
Speaker 2: and with GAAP earnings of 16 to 18 cents and non-GAAP earnings of 20 to 21 cents.
And with GAAP earnings of 16 to 18 cents and non-GAAP earnings of $20 to 21.
Speaker 2: With that, now I'd like to turn the call over to Chris, and he'll run through some more of the details. Chris?
With that I'd now I'd like to turn the call over to Chris and he will run through some more of the detail Chris.
Thank you and good morning, everyone.
Speaker 3: I'll review our financial results, and as always, I'll be discussing the results on a gap basis, as well as on a non-gap basis.
I'll review, our financial results and as always I'll be discussing our results on a GAAP basis as well as on a non-GAAP basis.
Speaker 3: You can find a description of our non-gap operating measures in this morning's earnings release. You can also find a reconciliation of these non- GAAP measures to the nearest gap measure on the last page of today's.
You can find a description of our non-GAAP operating measures in this morning's earnings release, you can also find a reconciliation of these non-GAAP measures to the nearest GAAP measure on the last page of today's release.
Also please keep in mind that when comparing year to date results. During 2020, we recognized $3 $2 million of general and administrative expenses related to our former CEO .
Speaker 3: Also, please keep in mind that when comparing year-to-date results, during 2020, we recognized $3.2 million of general administrative expenses related to our former CEO .
Speaker 3: As we reported earlier this morning, fourth quarter 2021 revenue was $11.9 million, an increase of 38.9% compared to the fourth quarter last.
As we reported earlier this morning fourth quarter 2021 revenue was $11 9 million.
An increase of 38, 9% compared to the fourth quarter last year.
And on a sequential basis revenue grew by nine 1% over Q3 2021.
Speaker 3: And on a sequential basis, revenue grew by 9.1% over Q3 2021.
Revenue from domestic sales increased 33, 3% to $9 $5 million during the fourth quarter and.
Speaker 3: Revenue from domestic sales increased 33.3% to $9.5 million during the fourth quarter. And revenue from international sales increased 66.8% to 2.4 million during the fourth quarter.
And revenue from international sales increased 66, 8% to $2 4 million.
Speaker 3: Overall, domestic revenue accounted for 79.8% of total revenue for the 2021 quarter, compared to 83.1% for the 2020 quarter.
Overall domestic revenue accounted for 79, 8% of total revenue for the 2021 quarter compared to 83, 1% for the 2020 quarter.
Okay.
Speaker 3: Device revenue increased 49.7% to $8 million for the fourth quarter 2021.
Device revenue increased 49, 7% to $8 million for the fourth quarter 2021.
Speaker 3: This was driven by a 50.9% increase in monitor revenue and a 48.5% increase in IV pump revenue.
This was driven by a 59% increase in monitor revenue and a 48, 5% increase in IV pump revenue.
Speaker 3: The average selling price of our MRI compatible IV infusion pump system during the 4th quarter 2021 was approximately $33,800 compared to approximately $37,600 for the 4th quarter 2020.
The average selling price of our MRI compatible IV infusion pump system during the fourth quarter 2021 was approximately $33800.
Compared to approximately $37600 for the fourth quarter 2020.
Speaker 3: This decrease relates to higher international unit sales and an unfavorable product sales mix during the current quarter.
This decrease relates to higher international unit sales and an unfavorable product sales mix during the current quarter.
Speaker 3: The average selling price of our MRI-compatible patient bioscience monitoring.
The average selling price of our MRI compatible patient vital signs monitoring system.
Speaker 3: During the 4th quarter, 21 was approximately 41,000 dollars compared to approximately 37,500 dollars in the same.
During the fourth quarter 'twenty, one was approximately $41000.
Paired to approximately $37500.
In the same period of 2020.
Speaker 3: This increase relates to price increases we have been in the process of instituting across our monitored lineup.
This increase relates to price increases we have been we have been in the process of instituting across our monitor lineup.
Speaker 3: Partially offset by unfavorable product sales mix and higher international unit sales during the current quarter.
Partially offset by unfavorable product sales mix and higher international unit sales during the current quarter.
Yes.
Revenue from Disposables and service increased 24, 3% to $3 4 million for the fourth quarter 2021.
Speaker 3: Revenue from disposables and service increased 24.3% to $3.4 million for the fourth quarter 2021.
Speaker 3: And revenue from our maintenance contracts was consistent at a half a million dollars.
And revenue from our maintenance contracts was consistent on a $5 million for both periods.
Gross margin was 77, 9% for the 'twenty, one quarter compared to 75, 3% with a 20 quarter.
Speaker 3: Gross margin was 77.9% for the 21 quarter compared to 75.3% for the 20 quarter.
Speaker 3: The increase in gross margin percent is a result of favorable overhead absorption from higher unit production required to meet customer demand, partially offset by higher international sales.
The increase in gross margin percent as a result of favorable overhead absorption from higher unit production required to meet customer demand.
Partially offset by higher international sales.
We have commented in the past about supply chain matters, and we remain cautious about materials costs at this time.
Speaker 3: We have commented in the past about supply chain matters, and we remain cautious about materials costs at this time.
Speaker 3: However, we continue to believe that any negative impact from higher costs will likely be limited and partially offset by higher levels of unit production required to satisfy.
However, we continue to believe that any negative impact from higher costs will likely be limited.
We offset by higher levels of unit production required to satisfy customer demand.
Speaker 3: Resulting in gross margins that are very consistent with our historical rates.
<unk> gross margins that are very consistent with our historical ranges.
Operating expenses were $6 1 million or 51, 7% of revenue.
Speaker 3: Operating expenses were $6.1 million or 51.7% of revenue compared to $5.8 million or approximately $67.7% of revenue for the fourth quarter last year. On a dollar basis, this increase is primarily due to higher bonus accruals, payroll and benefits costs, sales activities expenses, and costs related regulatory activities, partially offset by lowered.
Compared to $5 8 million or approximately 67, 7% of revenue for the fourth quarter last year.
On a dollar basis. This increase was primarily due to higher bonus accruals payroll and benefits costs.
Sales activities expenses and costs related to regulatory activities.
Partially offset by lower legal and professional expenses.
Speaker 3: As a result, income from operations grew 378% to $3.1 million for the 2021 quarter.
As a result income from operations grew 378% to $3 $1 million for the 2021 quarter.
We.
Speaker 3: We recognize the tax benefit during the fourth quarter of 21 of approximately $779,000 compared to tax expense of approximately $27,000 for the 2020.
The tax benefit during the fourth quarter 'twenty, one of approximately $779000 compared to tax expense of approximately $27000 for the 2020 quarter.
This decrease is due to tax benefits associated with the exercise and sale of stock options.
Speaker 3: This decrease is due to tax benefits associated with the exercise and sale of stock options.
Speaker 3: partially offset by higher taxable income. Going forward, we expect a normalized tax.
Partially offset by higher taxable income.
Going forward, we expect a normalized tax rate.
On a GAAP basis net income was 31 per share compared to <unk>.
Speaker 3: on a GAAP basis. Net income was 31 cents per share compared to 5 cents.
Speaker 3: the 2020 quarter. On a non-GAAP basis, adjusted income was 33 cents per diluted share for the 21 quarter compared to 7 cents for the fourth quarter 2020.
For the 2020 quarter on it.
non-GAAP basis.
Adjusted income was <unk> 33 per diluted share for the 'twenty, one quarter compared to seven.
For the fourth quarter 2020.
Cash from operations grew to $11 3 million for the full year 2021 from $5 8 million for the 2020 year for 2020, our full year 2020.
Speaker 3: Cash from operations grew to $11.3 million for the full year 2021 from 5.8 million for the 2020 year for the 2020 full year 2020.
For the three months ended December 31, 2021, and 2020, our free cash flow, a non-GAAP measure was $3 $3 million and $2 4 million respectively.
Speaker 3: For the three months ended December 31, 2021, and 2020, are free cash flow, a non-gap measure.
Speaker 3: was $3.3 million and $2.4 million, respectively.
Now I'll provide some additional commentary around the financial guidance that Roger just reviewed.
Speaker 3: Now I'll provide some additional commentary around the financial guidance that Roger just reviewed.
Speaker 3: From a revenue standpoint, we are not providing guidance on a product-by-product basis. However, we expect growth across all products with our monitor leading the way.
From a revenue standpoint, we are not providing guidance on a product by product basis. However, we expect growth across all products with our monitor leading away.
Speaker 3: We have also begun to forecast modest amounts of revenue from the sale of our FMD and anticipate these sales will ramp throughout the year We expect gross margins
We have also begun to forecast modest amount of revenue from the sale of our F&D and anticipate these sales will ramp throughout the year.
We expect gross margins that are consistent with historical ranges.
Speaker 3: and expect higher operating expenses from higher sales commissions and head.
And we expect operating expenses from expect higher operating expenses from higher sales commissions and headcount.
Speaker 3: We also expect additional costs in Q1 and Q2 of 2022.
We also expect additional costs in Q1 and Q2 of 2022.
Speaker 3: related to the testing and administrative matters from our 510k application.
Related to the testing and administrative matters from our five 10-K application.
We expect the bulk of these additional regulatory and engineering costs will diminish significantly in the second half of the year.
Speaker 3: We expect the bulk of these additional regulatory and engineering costs will diminish significantly in the second half of the year.
Speaker 3: We also anticipate a normalized tax rate for 2022, as well as modest growth in our diluted share count. And with that,
We also anticipate our normalized tax rate for 2022, as well as as well as modest growth in our diluted share count.
And with that I'll turn the call over for questions Michelle.
Speaker 1: Thank you. If you have a question at this time, please press star then 1 on your touchtone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key.
Thank you if you have a question at this time. Please press Star then one on your Touchtone telephone. If your question has been answered already Washington move yourself from the queue. Please press the pound key.
Speaker 1: And our first question comes from the line of Scott Henry with Roth Capital. Your line is open. Please go ahead.
And our first question comes from the line of Scott Henry with Roth Capital. Your line is open. Please go ahead.
Speaker 4: Thank you, good morning and congratulations on the strong results and guidance for next year.
Thank you good morning, and congratulations on the strong results and guidance for next year.
<unk>.
Speaker 4: I did have a couple questions. First, with regards to the backlog, is that tilted in one category versus the other or is it largely split between monitors?
I did have a couple of questions firstly with regards to the backlog.
Is that tilted.
In one category versus the other or is it largely split between monitors and pumps.
Speaker 3: I would say, Scott, that we wouldn't normally get into the composition of backlog, but I would say that we've got healthy levels of backlog across pumps, monitors, and to a smaller extent, disposables.
I would say.
Scott.
We wouldn't normally get into the composition of backlog, but I would say that we've got a healthy levels of backlog across pumps monitors and smaller to a smaller extent disposables.
Okay and.
Speaker 4: You know, at some point, does production catch up such that you fill the backlog or, you know, how should we think about?
At some point does production catch up such that you fill the backlog or yes.
How should we think about.
Speaker 4: what happens to that backlog over time? I mean, do you expect to work through it in 2022, or is it just kind of a steady state backlog that we should?
What happens to that backlog over time, I mean, do you expect to work through it in 2022 or is it just kind of a steady state backlog that we should think about.
Speaker 3: I think there's a steady state and I think we're having those discussions internally of what
I think there is a steady state and I think.
We're having those discussions internally of what.
Speaker 3: How much backlog should we carry as a percentage of future revenue? But at the same time, manage lead time so that we're not asking our customers to wait too long for our products.
How much backlog.
We carry.
As a percentage of future revenue.
But at the same time manage lead time, so that we're not asking our customers to wait too long for our products.
Okay, Great and then.
Speaker 4: really strong guidance for 2022.
Really strong guidance for 2022.
Speaker 4: I know Chris, you're typically a conservative guy so it makes it even more impressive.
I know, Chris you typically conservative Guy so it makes it even more impressive.
Bob.
Speaker 4: question is, is the guidance reliant on the next generation pump coming out or does that factor into your outlook for 2022?
Question is yes.
Is the guidance reliant on the next generation pump coming out or does that factor into your outlook for 2022.
We haven't included.
Speaker 3: any revenue contribution from the next gen.
Any.
Revenue contribution from the next Gen pump.
Speaker 3: I mean, our feeling, you know, we still feel and I think Roger said this in his comments that, you know, the back half of the year is still our base case.
Our feeling.
We still feel and I think Roger said this in his comments that the back half of the year is still our base case.
Speaker 3: But even if it comes in the back half of the year, it's still going to have to work through the sales cycle.
But even if it comes in the back half of the year, it's still going to have to work through the sales cycle. So.
Speaker 3: So we may, in fact, have a few placements towards the end of the year, but the real contribution from the next-gen pump is going to be in 2020.
So we may in fact have a few placements towards the end of the year, but.
The real contribution is coming from an extra pump is going to be in 2023.
Speaker 2: Yeah, no, just Roger's can pipe in. We included zero revenue of the new pump in this guide.
Yeah, No Scot Rogers can pipe and we didn't.
We included zero revenue in the new pump business guidance.
Speaker 4: Great, thank you for that color. And I guess just the final question, again on this theme of...
Okay, great. Thank you for that color and then I guess just a final question.
Again on the theme of.
Speaker 4: You know, why 2022 looks as strong as it does, it sounds like you said that the monitor would be a key driver, at least that's what I took away. Is there something, I mean, are you just reaching that inflection point where it's gaining traction? Why the optimism for the monitors in 2022?
Why 2022 looks as strong as it does it sounds like you said the monitor would be a key driver or at least that's what I took away.
There's something I mean are you just reaching that inflection point where were.
It's gaining traction or what.
Why the optimism for the monitors in 2022.
Speaker 2: Well, maybe I could take that one, Chris, if you don't mind. Yeah, go. So, yeah, I use that word inflection. That's, I'm gonna use it good probably a lot. You know, we're really seeing that.
Maybe I can take that one Chris if you don't mind.
Yes.
Yeah, I used that word inflection.
And I use it probably a lot.
Yes, we're really seeing that.
Speaker 2: The stars are lining up with the monitor in a few of its aspects, right? Number one, our sales team has really learned how to position it.
The stars are aligning up with the monitor.
In a few of its aspects right number one.
Our sales team has really learned how to position it.
Speaker 2: go in and help positions use it, hands-on sort of work, compete with the big competitor, Philips. And so that's a big contributor that the sales teams come up to speed on it.
Go in and help physicians use it hands on sort of work.
We compete with the big Big competitor Philips and.
And so.
That's a big contributor that the sales teams come up to speed on it.
Speaker 2: A second bit contributor is that, as Chris mentioned, we have been fairly successful at increasing the price of it. Wow.
Our second big contributor is that as Chris mentioned, we have been fairly successful increasing the price of it.
While we are selling more.
Speaker 2: And the third aspect that's probably helping us out a bit is it's no secret that the big competitor, Phillips, has their hands full with some other issues.
And the third aspect that.
Thats, probably helping us out a bit is it's no secret that the big competitor Philips has their hands full with some other issues and.
That's probably.
Speaker 2: That's probably helping us a good bit as well. And overall, probably the biggest point that's causing this inflection is.
Helping us a good bit as well.
And overall, probably the biggest component of that is causing this inflection is we've got enough of the product out. There now there are certainly others. So six or 800 of these units out there now that.
Speaker 2: We've got enough of the product out there now. There's certainly other so six or eight hundred of these units out there now that
Speaker 2: It's no longer looked at as maybe a bit of a dare or very new product.
It's no longer look that is maybe a bit of a dare or very new product.
Speaker 2: that you might feel a little risk being the first one to buy. That is probably the largest contributor in the mind of the customer. And I think all of these factors together are what give us great, great cause for, you know, looking very excitedly at the potential of the monitor into the next couple, few years at any rate.
That you might feel a little risk being the first one to buy that.
<unk> is probably the largest.
Contributor in the mind of the customer.
Yes.
And I think all of these factors together our.
What gave us.
Great cause for looking very excited at the potential to monitor in the next.
A few years anyway.
Speaker 4: okay great thank you roger though that was really helpful uh... that you do it for me uh... thanks again guiding congratulations
Okay, great. Thank you Roger that was really helpful that should do it for me, Thanks, again, guys and congratulations.
Thanks Scott.
Speaker 1: Thank you. And as a reminder, if you have a question at this time, please press star, then 1.
Thank you.
As a reminder, if you have a question at this time. Please press Star then one.
Speaker 1: And our next question comes from the line of Lisa Springer with Singular Research. Your line is open. Please go ahead.
And our next question comes from the line of Lisa Springer with singular research. Your line is open. Please go ahead.
Speaker 5: Thank you. I'm really strong quarter in a really good year.
Thank you and congratulations on a really strong quarter in a really good year.
Speaker 5: My first question is I wonder if you can comment on how you see sales unfolding in the US market versus the European market in 2022. Are you seeing one market stronger than the other?
My question. My first question is I want to I Wonder if you can comment on how you see sales unfolding in the U S market versus the European market. In 2022 are you seen one market stronger than the other.
Speaker 2: Oh yeah, the domestic market is definitely opening up much quicker since with the COVID issue, you know, that's primarily what I'm referring to when I say opening, right? I'd say the COVID
Yes, the domestic market is definitely.
Opening up much quicker.
Yes, yes.
Since with the Covid issue, that's primarily what I'm, referring to when I say opening right.
I would say the COVID-19 .
Sure.
Speaker 2: problems in Europe continue to be a bit of a drag on sales growth there. But all in all, the monitors acceptability and how the buyer is looking at it is very positive in both.
Problems in Europe .
To be a bit of a drag on sales growth there.
But.
All in all the monitors acceptability and the buyer is looking at it is very positive in both.
Speaker 2: in all areas of the world, also Asia, and we even had a large order in Mexico come in a few weeks ago. So that monitor is just really starting to impress, I think.
All areas of the World also Asia and even.
We even had a large order in Mexico come in.
A few weeks ago. So yeah that monitor is just really starting to impress I think.
Speaker 5: Okay, excellent. And can you comment on what assumptions you're making about supply chain issues in 2022? Are you looking for them to ease in a second half of the year?
Okay excellent and can you comment on what assumptions, you're making about the supply chain issues. In 2022 are you looking for him to ease in the second half of the year.
Speaker 2: Well, like Chris said, you know, they're, it's no fun. I think that's what Chris was trying to say. We deal with it, you know, quite, quite a bit on a near daily basis. But...
Well I'll, let Chris said there.
It's no fun I think that's what Chris was trying to say.
We deal with it.
Quite quite a bit on a near daily basis, but.
Speaker 2: I suppose having been in that fight now for the last several months.
I suppose having been in that fight now for the last several months.
Speaker 2: We feel two things. We feel that we've gotten our hands around the critical stuff that we need. And as you alluded to, we do see that this is
We feel two things, we feel that we've gotten our hands around the critical staff that we need.
And as you alluded to we do see.
We do see that this is.
Speaker 2: and capacity from chip suppliers and so forth is.
And capacity from chip suppliers and so forth is.
Speaker 2: is starting to show a little glimmer of hope that it's not going to continue, it's not getting worse and that it's not going to continue for an exorbitantly long period of time.
It is starting to show a little glimmer of hope that its not going to continue it's not getting worse and that is not going to continue for.
Exorbitantly long period of time.
Okay.
Speaker 5: Okay. And could you comment for me on the cadence of revenues, quarterly revenues you see in 22? Are you expecting the majority of revenues in the second half of the year?
Could you comment for me on the cadence of revenue quarterly revenue as you see in 'twenty two or are you expecting the majority of revenues in the second half of the year.
Speaker 3: No, I think we got a nice even roll out throughout the year. I think the 1, the 1 item that might impact 2nd, half revenue or cause it to accelerate a little bit more than the 1st, half is just how the. Fm, D ramps up and again, it's not a lot of money that's coming in for the, but but we do anticipate. The 2nd, half of the year to be higher than the.
No I think we've got a nice even rollout throughout the year I think.
The one.
The one item.
It might impact second half revenue.
Cause it to accelerate a little bit more than the first half is just how the FMT ramps up.
And again, it's not a lot of money that's coming in.
The F&B, but it but we do anticipate the second half of the year to be.
Higher than the first half when it comes to that product.
Speaker 3: I think the other products we expect would expect nice even growth to come from
Okay.
We would expect a nice even growth to come through.
Speaker 5: OK, and then just one more question. You're building up quite a bit of cash on the balance sheet. I'm just wondering what are your priorities for allocating capital, if you comment on the cash position?
Okay, and then just one more question Youre building up quite a bit of cash on the balance sheet I'm. Just wondering what are your priorities for allocating capital if you could comment on the cash position.
I think the Congress.
Speaker 3: I think the board continues to have these discussions around capital or something that we are very aware of and You know, we don't have any any more comments other than that At this point, but these are discussions that continue to consume a lot of time at the board level Okay.
Yes, I would say that the board continues to have these discussions around capital were something that we are.
Are very aware of.
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We don't have any any more comment other than that.
At this point, but these are discussions that continue to consume a lot of time at the board level.
Okay.
Thank you very much gentlemen.
Thank you.
Speaker 1: Thank you and I'm showing no further questions at this time and I would like to turn the conference back over to Roger Sussi for any further remarks.
Thank you and I'm showing no further questions at this time I would like to turn the conference back over to Roger Susi for any further remarks.
Speaker 2: Well, thank you. And well, please forgive me again for being a bit repetitious. But I'd like to drive home just how very pleased we are with our results and how proud of the entire team's performance this year that we all are.
Well thank you.
Please forgive me again are being a bit repetitious, but I'd like to drive home just how very pleased we are with our results and how proud of the entire team's performance. This year that we all are.
Speaker 2: I had said earlier and believe that we are at an inflection point, we've used that word a few times as customers realize more and more the value of our products bring to them.
I had said earlier.
And believe that we are at an inflection point, we use that word a few times as customers realize more and more of the value of our.
That our products bring to them.
Speaker 2: which in turn gives us faith in our guidance and it's a confirmation that we have the right products at the right time and so we'll continue to make significant strides in building demand and we look forward to expanding our momentum continually through 2022.
In turn gives us faith in our guidance and it's a confirmation that we have the right products at the right time, and so we will continue to make significant strides in building demand and we look forward to expanding our momentum continually through 2022.
Speaker 2: As always, we remain steadfast in our optimism and look forward to speaking with you again soon. Thank you all.
As always we remain steadfast in our optimism and look forward to speaking with you again soon thank you all.
Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect.
This concludes today's conference call. Thank you for participating you may now disconnect.