Q1 2024 IRADIMED CORP Earnings Call
Operator: Welcome to IRadimed Corporation's first quarter of 2024 financial results conference call. Currently, all participants are in listen-only mode, and at the end of the call, we will conduct a question and answer session.
Okay.
Operator: This call is being recorded today, May 2nd, 2024, and contains time-sensitive, accurate information only today. Earlier, IRadimed released its financial results for the first quarter of 2024. A copy of this press release announcing the company's earnings is available under the heading news on their website, iradimed.com. A copy of the press release was also furnished to the Securities and Exchange Commission on Form 8K and can be found at sec.gov. This call is being broadcast live over the internet on the company website at iradimed.com, and a replay will be available on the website for the next 90 days.
Welcome to <unk>.
Operator: Corporation first quarter of 2024 financial results Conference call.
Speaker Change: Currently all participants are in listen only mode and at the end of the call. We will conduct a question and answer session.
Operator: This call is being recorded today may <unk> 2024, and contains time sensitive accurate information early today.
Operator: Earlier <unk>.
Operator: Released its financial results for the first quarter of 2020 for a copy of this press release announcing the company's earnings is available under the heading news on their website <unk> Dot com.
Operator: A copy of the press release was also furnished to Securities and Exchange Commission on form 8-K that can be found at S. E C Dot Gov.
Operator: This call is being broadcast live over the Internet on the company website at irrelevant dotcom.
Operator: And a replay will be available on the website for the next 90 days.
Operator: Some of the information in today's session will constitute forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. Forward-looking statements focus on future performance results, plans, and events and may include the company's expected future results. IRadimed reminds you that future results may differ materially from these forward-looking statements due to several risk factors. For a description of relevant risks and uncertainties that may affect the company's business, please see the Risk Factors section of the company's most recent reports filed with the Securities and Exchange Commission, which may be obtained free from the SEC website at sec.gov. I would like to turn the call over to Roger Susi, President and Chief Executive Officer of IRadimed Corporation. Mr. Susi.
Operator: Some of the information in today's session will constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Roger E. Susi: Forward looking statements focused on future performance results plans and events and the company's expertise.
Roger E. Susi: <unk> results.
Operator: It reminds you that future results may differ materially from these forward looking statements due to several risk factors.
Roger E. Susi: For a description of risks and uncertainties that may affect the Companys proceeds. Please see the risk factors section of the company's most recent reports filed with the securities and exchange commissions, which may be obtained free from the Sec's website at SEC Gov.
Operator: I would like to turn the call over to Roger Susi, President and Chief Executive Officer of <unk> Corporation, Mr. Susie.
Roger E. Susi: Good morning. Thank you all for joining us on today's call. As recently reported, I'm once again very pleased to announce yet another consecutive quarter of record IRadimed revenue generated in our recent Q1 2024 quarter. This is our 11th consecutive quarter of revenue increases in a row. As this morning's press release announced, in the first quarter of 2024, revenue came in at $17.6 million, representing a 13.7% increase over the first quarter of 2023. GAAP diluted earnings per share for the first quarter were $0.32.
Roger E. Susi: Good morning, Thank you all for joining us on today's call.
Roger E. Susi: As recently reported I'm once again very pleased to announce yet another consecutive quarter of record net.
Roger E. Susi: Net revenue generated in our recent Q1 2024 quarter.
Roger E. Susi: This is our 11th revenue increase in a row.
Roger E. Susi: This morning's press release announced in the first quarter of 2024 revenue came in at $17 6 million, representing a 13.7% increase over the first quarter of 'twenty three.
Roger E. Susi: GAAP diluted earnings per share for the first quarter were 32 cents, while non-GAAP diluted earnings were <unk> 36 per share a 20% increase over Q1 'twenty three.
Roger E. Susi: While non-GAAP diluted earnings were $0.36 per share, a 20% increase over Q1 of 2023. All product lines performed well, with our inside and outside teams executing exceptionally well. From the revenue standpoint in Q1, the MR patient monitor bested the IV pump and increased by 38% compared to Q1 of 23. However, this doesn't show the strength of one product line over the other, as bookings for the MR IV pump product in Q1 greatly exceeded expectations. So we actually expect that in Q2. As I previously discussed, we notified customers with pumps seven years and older that our extended maintenance would no longer be offered for such older devices.
Roger E. Susi: All product lines performed well with our inside and outside teams executing exceptionally well from the revenue standpoint in Q1, the MRI patient monitor bested the IV pump.
Roger E. Susi: It increased by 38% compared to Q1.
Roger E. Susi: 23.
Roger E. Susi: However, this doesn't show the strength of one product line over the other as bookings for the MRI IV pump product in Q1 greatly exceeded expectations. So we actually expect that in Q2, the table may turn in favor of pump revenue.
Roger E. Susi: As I previously discussed we notified customers with pumps seven years and older that are extended maintenance would no longer be offered for sexual their devices.
Roger E. Susi: This, as expected, has prompted the uptick in pump orders we've seen in Q1, which we hope to continue to see in the upcoming quarters as well. To be sure, our major products remain viable and suitable for their markets, while we continue to make inroads with our newer FMD products. Previously, I've spoken about reducing our delivery time for disposables and the associated reduction in backlog. Though, as seen in financial disclosures, the disposable business remains strong and growing, we have managed to reduce the lead time for these products and continue to work to improve these lead times.
Roger E. Susi: This as expected has prompted the uptick in pump orders, we've seen in Q1, which we hope to continue to see in the upcoming quarters as well to be sure our major products remain viable and fitting for their markets. While we continue to make in roads with our newer M D product.
Roger E. Susi: Previously I had spoken about reducing our delivery time for disposables and AR and the associated reduction of backlog.
Roger E. Susi: Though as seen in our financial disclosures the disposable business remains strong and growing we have managed to reduce the lead time of these products and continue to work to improve these lead times. The orders continue growing production is not outpaced.
Roger E. Susi: Though orders continue growing, production is not outpaced. Along those lines, we recently began construction on our new 61,000 square foot manufacturing facility here in Orlando, Florida, to consolidate operations, improve efficiencies, and prepare for the continued and expanding growth we foresee.
Roger E. Susi: Along those lines. We recently began construction on our new 61000 square foot manufacturing facility here in Orlando, Florida to consolidate operations improve efficiencies and prepare for the continued and expanding growth we foresee.
Roger E. Susi: We anticipate spending approximately $13 million on its development over the next 12 months, and we will keep you posted in these coming quarters as construction progresses towards a moving date. Now, regarding the progress of our 510K submission for the new 3870 MRI-IV pump, the team is focused and pushing very hard, yet we are still not quite there due primarily to some expanded testing. As previously reported, we have engaged a third-party consultant with two very recent ex-FDA reviewers on their staff, from whom we are getting excellent input.
Roger E. Susi: We anticipate spending approximately 13 million on its development over the next 12 months and we will keep you posted in these coming quarters as conjecture as construction progresses towards a move in date.
Roger E. Susi: Now regarding the progress of our five 10-K submission for the new 38, 70, MRI IV pump. The team is focused and pushing very hard yeah. We are still not quite there due primarily to some expanded testing as previously reported we have engaged a third party consultant with two very recent X F D. A.
Roger E. Susi: Viewers on their staff from whom we are getting excellent input.
Roger E. Susi: Their feedback has, however, driven us to repeat some of the previous tests, mainly because the device under test has been under test for many months, and it has undergone some changes. Our ex-FDA consultants believe the FDA would be much more comfortable with all testing done on the absolute final configuration of the device. Therefore, the aim is to have the test reports reference the very latest version of the device, thus removing any questions.
Roger E. Susi: Their feedback has however, driven us to repeat some of the previous tests that mainly because of devices under test for many months to go and they have undergone some changes.
Roger E. Susi: Our ex FDA consultants believe the FDA would be much more comfortable with all testing done on the absolute final configuration of the device. Therefore, the aim is to have the test reports.
Roger E. Susi: It's anticipated these steps should impact the delivery of the 510K by approximately nine to ten weeks, still remain on plan with expected clearance in Q1 2025, and plan to show revenue from the new device in the back half of 2025. I'd like to present our expected financial performance guidance for the coming quarter and balance of the year. For the second quarter of 2020, for financial guidance, we expect revenue of $17.6 to $17.8 million, gap diluted earnings per share of 33 cents to 36 cents, and non-gap diluted earnings per share of 36 to 39 cents.
Roger E. Susi: References the very latest versions of the device, that's removing any coke questions.
Roger E. Susi: As anticipated these steps should impact the delivery of the 500 10-K by approximately nine to 10 weeks.
Roger E. Susi: Still we remain on plan with expect to clearance in Q1, 2025 and plan to show the revenue from the new device in the back half of 2025.
Roger E. Susi: Now I'd like to present, our expected financial performance guidance for the coming quarter and balance of the year for.
Roger E. Susi: For the second quarter of 2024 financial guidance, we expect revenues $17 six to 17.8.
Roger E. Susi: Yeah.
Roger E. Susi: GAAP diluted earnings per share of <unk> 33 to 36.
Roger E. Susi: And non-GAAP diluted earnings per share of <unk> 36 to 39 cents.
Roger E. Susi: We reiterate our guidance for the full year of 2024. We expect to report revenues of $72 to $74 million, with GAAP diluted earnings per share of $1.37 to $1.47, and non-GAAP diluted earnings per share of $1.52 to $1.62. Lastly, I'm pleased to report that our Board of Directors has declared a quarterly cash dividend of 15 cents payable on May 30, 2024, and we expect to pay the quarterly cash dividend going forward to reward our loyal shareholders. Now I'd like to turn the call over to Jack Glenn, our CFO, to review the quarter's financial results. Thank you, Roger.
Roger E. Susi: We reiterate our guidance for the full year of 2024, we expect to report revenues of 72 to 74 million with GAAP diluted earnings per share of $1 37 to $1 47, and non-GAAP diluted earnings per share of $1 52 to $1 62.
John F. Glenn: Lastly, I am pleased to.
John F. Glenn: A report that our board of directors has declared a quarterly cash dividend of 15 cents payable on May 32024, and we expect to pay the quarterly cash dividend going forward too.
John F. Glenn: To reward our loyal shareholders.
Roger E. Susi: Now I'd like to turn the call over to Jack Glenn Our CFO to review the quarter's financial results.
John F. Glenn: Thank you, Roger, and good morning, everyone. As in the past, our results have been reported on both a GAAP and a non-GAAP basis. You can find a description of our non-GAAP operating measures in this morning's earnings release and a reconciliation of these non-GAAP measures to the GAAP measure on the last page of today's release. As we reported earlier this morning, revenue in the first quarter of 2024 was $17.6 million, an increase of 14% compared to the first quarter of 2023.
John F. Glenn: You Roger and good morning, everyone.
John F. Glenn: As in the past our results have been reported on both a GAAP and non-GAAP basis, you can find a description of our non-GAAP operating measures in this morning's earnings release and a reconciliation.
John F. Glenn: <unk> of these non-GAAP measures to the GAAP measure on the last page of today's release.
John F. Glenn: Domestic sales increased 12% to $13.4 million, and international sales increased 20% to $4.2 million. Overall, domestic revenue accounted for 76% of total revenue for Q1 2024 compared to 77% for Q1 2023. Device revenue increased 13% to $11.9 million, driven by a 38% increase in monitor revenue.
John F. Glenn: As we reported earlier this morning revenue in the first quarter of 2024 was $17 6 million, an increase of 14% compared to the first quarter of 2023.
John F. Glenn: Domestic sales increased 12% to $13 4 million and international sales increased 20% to $4 2 million.
John F. Glenn: Overall domestic revenue accounted for 76% of total revenue for Q1 2024 compared to 77% for Q1 2023.
John F. Glenn: Okay.
John F. Glenn: Device revenue increased 13% to $11 9 million driven by a 38% increase in monitor revenue.
John F. Glenn: Revenue from disposables and services increased 17% to a record $5.2 million for the first quarter of 2024, while our maintenance contracts remain stable at $487,000. The gross margin was 76.1% for the first quarter of 2024 compared to 75.7% for the 2023 quarter. The increase in gross margin is primarily due to increased revenue, decreased raw material costs, and direct labor efficiencies offset by overhead spending. Operating expenses were $8.6 million, or 49% of revenue, compared to $7.7 million, or 50% of revenue, for the first quarter of 2023. On a dollar basis, this increase is primarily due to higher sales and marketing expenses for higher sales commissions, sales activity expenses, and payroll and benefit expenses.
John F. Glenn: Revenue from disposables and services increased 17% to a record $5 2 million for the first quarter of 2024, while our maintenance contracts remains stable at 487000.
John F. Glenn: The gross margin was 76, 1% for the first 2024 quarter compared to 75, 7% for the 2023 quarter.
John F. Glenn: The increase in gross margin is primarily due to increased revenue decreased raw material costs and direct labor efficiencies.
John F. Glenn: Set by overhead spending.
John F. Glenn: Operating expenses were $8 6 million or <unk>, 49% of revenue compared to $7 7 million or 50% of revenue for the first quarter of 2023.
John F. Glenn: On a dollar basis. This increase was primarily due to higher sales and marketing expenses for higher sales commissions sales activity expenses and payroll and benefit expenses.
John F. Glenn: As a result, income from operations grew 18.5% to $4.7 million for the 2024 first quarter. We recognize the tax expense of approximately $1.1 million during the first quarter of 2024 resulted in an effective tax rate of 21.1% for the quarter, which was in line with the effective tax rate of 20.9% in 2023. On a gap basis, net income was $0.32 per diluted share compared to $0.27 for the 2023 quarter. On a non-GAAP basis, adjusted end income was $0.36 per diluted share for the 2024 first quarter compared to $0.30 for the first quarter of 2020.
John F. Glenn: As a result income from operations grew 18, 5% to $4 7 million for the 2020 for first quarter.
John F. Glenn: We recognized tax expense of approximately $1 $1 million during the first quarter of 2024 resulted in an effective tax rate of 21, 1% for the quarter, which was in line with the effective tax rate of 29% in 2023.
John F. Glenn: On a GAAP basis net income was <unk> 32 per diluted share compared to 27 for the 2023 quarter.
John F. Glenn: On a non-GAAP basis adjusted net income was 36 per diluted share for the 2024 first quarter compared to 30 for the first quarter of 2023.
John F. Glenn: Cash from operations was $3.9 million for the three months ending March 31, 2024, down from $4.6 million for the same period in 2023. For the three months ended March 31st, 2024, our free cash flow, a non-gap measure, was $3.4 million. This compares to a negative free cash flow figure of $1.9 million in the first quarter of 2023 when we purchased the land for our future facility for $6.2 million. Our cash and cash equivalents totaled $45.1 million as of March 31st, 2024. And with that, I will now turn the call over to the operator for questions. Thank you.
John F. Glenn: Cash from operations was $3 9 million for the three months ending March 31, 2024 down from $4 6 million for the same period in 2023.
John F. Glenn: For the three months ended March 31, 2024, our free cash flow a non-GAAP measure was $3 4 million. This compares to a negative free cash flow figure of $1 9 million in the first quarter of 2023, when we purchased the land for our future facility for $6 2 million.
John F. Glenn: Our cash and cash equivalents totaled $45 1 million as of March 31, 2024.
Speaker Change: And with that I will now turn the call over to the operator for questions.
Operator: Thank you. At this time, we'll conduct the question and answer session. As a reminder, to ask a question, you'll need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A list. Our first question comes from the line of Jason Witts of Ross Capital Partners. Your line is now open.
John F. Glenn: Yes.
Speaker Change: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wastewater name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.
Operator: Okay.
Jason Hart Wittes: Our first question comes from the line of Jason Wittes of Roth Capital Partners. Your line is now open.
Jason Witts: Hi, thanks for taking the question and a nice quarter. In terms of the monitor business, yes, it did look quite strong, obviously. Have you sent any communications to the field about your monitors and about the competition that may have spurred on some competition?
Jason Hart Wittes: Hi, Thanks for taking my question and nice quarter.
Jason Witts: Terms of the monitor business Jets. It did look quite strong obviously.
Jason Hart Wittes: Have you set any communications.
Jason Witts: To the field about your monitors and about the competition that may have spurred on some growth in this quarter.
Roger E. Susi: Hi Jason. Good. Good to hear from you. I'm not quite sure I understand the question. How about?
Jason Hart Wittes: Hi, Jason let me good to hear from you.
Speaker Change: I'm not quite sure I understand the question now how about that.
Roger E. Susi: Yeah, so I know that you basically sent out a directive to the field or to your customers that you're no longer going to service the pumps after seven years. Have you done anything similar with monitors that might have spurred growth? The growth was surprising this quarter, so I'm just curious what's behind it or what your thoughts are in terms of what's behind it. Oh, no, no, it's a maybe, maybe it was buried a little bit in my comments when I said, you know, it doesn't really show so much strength of one product line pump or monitor over the other.
Speaker Change: Yes, so I mean.
Roger E. Susi: I know that you basically sounded a directive to the to the field are to your customers that you are no longer to service. The pumps. After seven years have you done anything similar with monitors.
Roger E. Susi: It might've spurred on growth or how.
Roger E. Susi: How would you.
Roger E. Susi: The growth the growth is surprising in this quarter. So I'm just curious if there are any what's behind it or whats your thoughts are in terms of what's behind it.
Speaker Change: Oh no no.
Roger E. Susi: Maybe maybe it was buried a little bit in my comments when I said you know.
Roger E. Susi: It doesn't really show so much strength of one product line pump or monitor over the other.
Roger E. Susi: It's a matter of timing more than anything else. So.
Roger E. Susi: It's it's a matter of timing more than anything else. So, but no, we absolutely love the monitor. Actually, we come out with a competitive nature of the monitor, which is that it's quite advanced and it's state-of-the-art as is, so we wouldn't be, absolutely not, you know, putting out any sort of a letter, you know, obsoleting any facet of it, including You know, we haven't even been selling them for five years. So, uh, uh, yeah, that, that, that's just, you know, I just have to say, it's just simply the strength of the team going out and selling monitors.
Roger E. Susi: But no we absolutely.
Roger E. Susi: Monitor actually.
Roger E. Susi: Come out with the <unk>.
Roger E. Susi: <unk> nature of the monitor is that is.
Roger E. Susi: Quite advanced in its state of the art as is so we wouldn't be absolutely not.
Roger E. Susi: Putting out any sort of a letter.
Roger E. Susi: Obsoleting any any facet of it including support.
Roger E. Susi: We haven't even been selling them for five years so.
Roger E. Susi: Yes.
Roger E. Susi: That's just.
Roger E. Susi: Yes, I just have to say, it's just simply the strength of the team going out and selling monitors.
Jason Witts: Sounds good. Yeah, impressive. It was a strong number, much stronger than I was anticipating. And then in terms of what you said about the submission for the 510k for the new pump, I guess that would put it, I think originally it was the last communication, it was sort of expected second quarter, and now I guess you're saying nine to ten weeks. I guess that would...uh, put it into the third quarter in terms of when you would submit that 510k?
Roger E. Susi: Sounds good.
Jason Witts: It was a strong number much higher than I was anticipating.
Jason Witts: And then in terms of what you said about the submission for Pac 10-K for the new comp I guess that would put it.
Jason Witts: I think originally it was last last communication it was sort of as expected second quarter, and I guess, you're saying 97 weeks I guess that would.
Jason Witts: Put it into the third quarter in terms of when you would submit that our 10-K.
Roger E. Susi: Yeah, to put months on it, we'd anticipated getting it out of here by the end of this month. Yeah, that's what we've been focusing on. But, you know, with this curveball here, you know, in it, it's an abundance of caution to redo some of these tests. And of course, then getting them scheduled has been a delay because we rely on third parties and all that. So.
Speaker Change: Hi, Matt.
Roger E. Susi: Yes.
Roger E. Susi: Yes to put months on it we had anticipated getting it out of here by the end of this month, that's what we've been that's what we're focusing on but.
Roger E. Susi: With this curve ball here.
Roger E. Susi: It's an abundance of caution to redo some of these tests and of course, then getting them scheduled has been up a delay because we rely on third parties and all of that so.
Roger E. Susi: Yeah, we think it's going to add about nine, ten weeks to that. So that would put us somewhere very end of July or early August. We think of it more as a month rather than something that's tied to a quarter.
Roger E. Susi: Yes, we think it's going to it's going to add about 910 weeks to that so that would put us that puts us somewhere very end of July or early August.
Roger E. Susi: We think of it more monthly rather than something thats tied to a quarter.
Jason Witts: I appreciate that precision. It's good to hear that. And then, maybe, a final question.
Speaker Change: Alright, well I appreciate that precision that's good to hear that.
Roger E. Susi: I mean, the communique you put out definitely seems to be spurring growth and pumps. If you look at, I don't know if you can give any color in terms of, if you look at who's been upgrading or who's been replacing, have there been many of those? I mean, I don't know if you can give us any parameters that can kind of show how many of those pumps that are going to be replaced now are the ones that have to communicate that they're no longer going to resurface after seven years.
Speaker Change: And then maybe a final question.
Roger E. Susi: I mean, the communicated you put out definitely seems to be spurring on growth in pumps. If you look at.
Roger E. Susi: I don't know if you can give any color in terms of if you look at who has been upgrading our who has been replacing.
Roger E. Susi: Has it been many of those.
Roger E. Susi: If you can give us any parameters that can kind of show how many of those pumps that are going to replace now are the ones that got the communicated theyre no longer to resurface after seven years.
Roger E. Susi: Well, we were anticipating that very question just before the call hit. So we don't have any definitive metrics to give you, but we will shortly, we'll pass that along. But generally, it's a substantial part of the bookings that I mentioned, this big, rather large booking uptick in Q1. And it's pretty substantial from that, but like I say, we'll get some numbers, and we'll have some numbers to share with you very shortly. Okay, great. I'll jump in.
Roger E. Susi: Yeah.
Speaker Change: We were anticipating that very question just before.
Roger E. Susi: Yes.
Speaker Change: So we didnt, we don't have some.
Roger E. Susi: Definitive metric to give you, but we will shortly.
Speaker Change: We'll pass that along but.
Speaker Change: Generally it's a substantial part of the bookings that I mentioned this this big rather lockhart booking uptick in in Q1 and in.
Roger E. Susi: It's pretty substantially from that but like I say, we'll get some we'll have some numbers to share with you.
Jason Witts: Okay, great. I'll jump back in the queue. Thanks a lot.
Speaker Change: Very shortly.
Speaker Change: Okay, great I'll jump back in queue. Thanks, a lot.
Jason Witts: Malcolm.
Operator: Thank you one moment for the next question. Our next question comes from the line of Frank Takkinen of Lake Street Capitals. Your line is now open. Great, thanks.
Speaker Change: Thank you <unk> for next question.
Operator: Okay.
Frank James Takkinen: Our next question comes from the line of Frank <unk> of Lake Street Capital. Your line is now open.
Frank James Takkinen: Great, thanks for taking the questions. Roger, Jack, congratulations on a good start to the year.
Frank James Takkinen: Great. Thanks for taking the questions Roger Jack Congrats on a good start to the year.
Frank James Takkinen: Hoping to ask one on the guidance, obviously, you had a nice outperformance versus your Q1 expectations and then I think you kind of hinted at the expectation for pumps to be strong next quarter from some of the Q1 ordering was curious kind of the thought process you went through when thinking about slightly increasing the guidance versus.
Frank James Takkinen: I was hoping to ask you one on the guidance. Obviously, you had a nice outperformance versus your Q1 expectations. And then I think you kind of hinted at the expectation for pumps to be strong next quarter from some of the Q1 ordering. I was curious, what was the thought process you went through when thinking about slightly increasing the guidance versus reiterating it? Was it just a function of conservatism, or was there something else baked into that thought process?
Frank James Takkinen: <unk> was it just a function of conservatism or was there anything else baked into that thought process.
Frank James Takkinen: Alright.
Roger E. Susi: Well, I think, Frank, from our past experience here, I think we've tried to be, you know, somewhat conservative in the guidance we give. And I think, you know, that still is the second half of the year certainly some much bigger numbers in order to hit that. So, we feel, you know, confident and, you know, certainly as we progress throughout the year, we'll, you know, certainly, maybe, you know, provide updates on that. But for right now, we think that's the best position for us to reiterate our guidance for the year as is.
Speaker Change: Well I think break that yes, I think if you've.
Roger E. Susi: From our past experience here I think we've tried to be somewhat conservative in the guidance. We gave and I think that's still is the second half of the year is certainly some much bigger numbers in order to hit that so, but we feel confident and.
Roger E. Susi: Certainly as we progress throughout the year will certainly may be provide updates on that but for right. Now we think thats the best position for us to reiterate our guidance for the year. It is.
Frank James Takkinen: Perfect. Perfect.
Speaker Change: Perfect perfect. So then on the.
Speaker Change: Maybe as a follow up on.
Speaker Change: Backlog generally speaking, obviously, a little plus or minus here. So I think if I heard correctly, you burned down some of the disposable backlog, but perhaps the pump commentary resulted in.
Frank James Takkinen: Hump backlog, increasing can you just net out.
Frank James Takkinen: Total backlog, how much visibility you have and how.
Frank James Takkinen: That gives you confidence going through the rest of the year.
Frank James Takkinen: So then, maybe as a follow-up on backlog, generally speaking, obviously a little plus and minus here. So I think, if I heard correctly, you burned down some of the disposable backlog, but perhaps the pump commentary resulted in pump backlog increasing. Can you just net out the total backlog, how much visibility you have, and how that gives you confidence going through the rest of the year?
Frank James Takkinen: Well.
Speaker Change: Of course, we don't give the exact numbers as you know, but again its probably very much in line with where the backlog was as we came into the end of the year. So remains strong.
John F. Glenn: Well, of course, we don't give the exact numbers, as you know, but again, it's probably very much in line with where the backlog was, you know, as we came into the end of the year. So, remaining strong gives us good visibility, at least for at least a quarter out, for sure, but a very strong and stable backlog. And especially again, a lot of that too, due to the pump backlog going into this Q2.
John F. Glenn: It gives us good visibility at least for at least a quarter out for sure but.
John F. Glenn: Strong and stable backlog and especially again.
John F. Glenn: A lot of that to do to the pump backlog going into this Q2.
John F. Glenn: Yeah, maybe to add a little more color. Frank, good to talk to you. Though we are trying to shave that lead time and associated backlog on the disposable side, which we're making progress on, as I said, yeah, due to the orders on the hardware side, what Jack's saying is the backlog remains pretty consistent as it has been the last half a dozen quarters.
Speaker Change: Yes, maybe to.
John F. Glenn: That's a little more color Frank good to talk to you yes.
John F. Glenn: Though we are trying to shave that lead time and associated backlog with the with the disposable side, which we're making progress as I said.
John F. Glenn: Yes, due to the orders on the hardware side.
John F. Glenn: What Jack saying as the backlog remains.
John F. Glenn: Pretty consistent as it's been in the last half a dozen quarters.
Frank James Takkinen: Got it. That's helpful. And then maybe just one more for me on the monitor side. Roger, as we have talked about in the past, the day-to-day business or quarter-to-quarter business, you talk about the active systems being replaced on the monitor side, and your share of that market, and then the broader 10,000 or so pieces of equipment installed. Maybe just give us an update on how you feel you're penetrated into those, how you feel about the low-hanging fruit opportunities still existing within those, and just anything else you could talk about in those monitoring markets.
Speaker Change: Got it that's helpful. And then maybe just one more for me on the monitor side I think Roger we've talked about in the past.
Frank James Takkinen: The day to day business are quarter to quarter business, you talk about the active systems being replaced on the monitor side and your share of that market and then the broader 10000 or so pieces of equipment install maybe just give us an update how you feel youre penetrated into those how you feel.
Frank James Takkinen: About the low hanging fruit opportunities still existing within those so just anything else you could talk about those monitoring markets.
Roger E. Susi: Yeah, well, good question. So we still don't have the lion's share of the market. We're still the underdog. So, that means there's still quite a bit to go. We estimate we're just nudging close to 30 ish percent of this business, right? So there's still plenty more for us to go. Having said that, of course, with every incremental percentage gain still against a well-entrenched competitor, you know, the low hanging fruit's a little higher on the tree. So, you know, that's life.
Speaker Change: Yes, yes.
Roger E. Susi: Good question so.
Roger E. Susi: We still don't have the lion's share of the market.
Roger E. Susi: We're still the underdog. So so that means theres still quite a bit to go we estimate we're just nudging close to 30 ish percent.
Roger E. Susi: Right. So there's still plenty more for us to go haven't.
Roger E. Susi: Having said that of course with every incremental.
Roger E. Susi: Percentage gain scale against a well entrenched competitor, yes, the low hanging fruit a little higher on the tree. So.
Roger E. Susi: Yeah.
Roger E. Susi: It's life, that's the way it works.
Roger E. Susi: That's the way it works. So, you know, the team is jumping, getting the ladders, and trying to reach up a little bit more than they had to do the quarter before and the quarter before that, certainly, but we still are scratching away at that existing open share of what's the monitor business, which is, by and large, one-to-one with Magnus. And that's still where we're operating at, have had a little luck, you know, we're starting to, you know, the real upside, as we mentioned and presented in the past is to have this multiplier effect for the transport strategy, like we developed with the pumps and will happen with the monitor.
Roger E. Susi: So the team is jump in getting their ladders and trying to reach out.
Roger E. Susi: A little bit more than they had to do the quarter before and the quarter before that certainly but.
Roger E. Susi: We still are scratching away at that.
Roger E. Susi: Existing open share of whats the monitor business, which is by and large.
Roger E. Susi: One to one with Magnus and that's still where we're operating at.
Roger E. Susi: We have had a little luck, we are starting to do.
Roger E. Susi: The real upside as we've mentioned.
Roger E. Susi: And presented in the past is to have this multiplier effect for the transport strategy likely.
Roger E. Susi: Like we developed with the pumps happened with the market.
Roger E. Susi: And we need to put maybe one or two more little features onto the pump to really make that very smooth, but we're already starting to get some nibbles there. And a few of these monitors each quarter that we bring in are related to, let's say, more than one per magnet, an extra one. And there are leanings towards starting to adopt this transport theory, which is yet to be rolled out over the coming quarters.
Roger E. Susi: And.
Roger E. Susi: We need to put maybe one or two more little features under the pump to really make that very smooth, but we're already starting to get some nibbles Darrin a few few of these monitors each core does that we that we bring in are related to let's say more than one per Meg and extra one.
Roger E. Susi: And there is leaning towards starting to adopt this transport theory, that's yet to be rolled out over.
Roger E. Susi: As I said, we still have our hands full just nipping away at the existing placements of monitors. So we'll eat pretty well for a number of quarters doing what we've been doing, and then we hope to roll out this transport strategy and really get the multiplier effect on top of these monitors so that they're not just one monitor per each MRI.
Roger E. Susi: In the coming quarters as I said, we still got our hands full just nipping away at the existing <unk>.
Roger E. Susi: <unk> monitors so.
Roger E. Susi: Pretty well, we are still a number of quarters doing what we've been doing and then we hope to rollout this transport strategy and really get the multiplier.
Roger E. Susi: Effect on top of these monitors to where they are not just one monitor per each MRI.
Frank James Takkinen: Got it. That's helpful. I appreciate all the color and congrats again on a strong start. Thanks.
Speaker Change: Got it that's helpful. I appreciate all the color and congrats again on a strong start.
Roger E. Susi: You bet. Thanks. Good to talk to you, Frank.
Speaker Change: You bet. Thanks, it's good to talk to you Frank.
Operator: Thank you. This concludes the question and answer session. I would now like to turn it back to Roger Susi for closing remarks.
Roger E. Susi: Thank you. This concludes our question and answer session I would now like to turn it back to Roger Susi for closing remarks.
Roger E. Susi: Oh, thank you, operator. Good. Again, we're pleased with our Q1 2024 results as stated, and we also say, as guided, that we expect continued strong performance as the new year progresses. So we look forward to reporting our future successes to you. And thank you all.
Roger E. Susi: Well. Thank you operator, good again, we're pleased with our Q1 2024 results as stated and we also say as guided that we expect continued strong performance as the new year progresses. So we look forward to reporting our future successes to you and thank you all.
Operator: Thank you. This concludes the call. You may now disconnect.
Roger E. Susi: Okay.
Speaker Change: Thank you. This concludes the call you may now disconnect.
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