Q1 2025 IRadimed Corp Earnings Call
Operator: All participants are on a listen-only mode, and at the end of the call, we will conduct a question and answer session. This call is being recorded today, Monday, 5 May 2025, and contains time-sensitive, accurate information only today. Earlier, IRadimed released its financial results for Q1 2025. A copy of this press release announcing the company's earnings is available under the heading News on their website at iradimed.com. A copy of the press release was also furnished to the Securities and Exchange Commission on Form 8-K and can be found at sec.gov. This call is being broadcast live over the internet on the company's website at iradimed.com, and a replay will be available on the website for the next 90 days. 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.
At the end of the call we will conduct a question and answer session.
Operator: participants on a listen-only mode.
Operator: And at the end of the call we will conduct a question and answer session.
This call is being recorded today Monday may five 2025 and contains time sensitive accurate information owned today earlier irrelevant released its financial results for the first quarter of 2025.
Operator: This call is being recorded today, Monday, May 5th, 2025, and contains time-sensitive accurate information only today.
Operator: Earlier, IRadimed released its financial results for the first quarter of 2025.
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 was also furnished to the Securities and Exchange Commission on form 8-K, and can be found at SEC Gov.
Operator: A copy of this press release announcing the company's earnings is available under the heading News on their website at iradimed.com.
Operator: 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's website at <unk> Dot com and a replay will be available on the website for the next 90 days.
Operator: This call is being broadcast live over the internet on the company's website at iradimed.com, and a replay will be available on the website for the next 90 days.
The information in today's session will constitute forward looking statements within the meaning of the private Securities litigation.
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. 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.
And reform Act of 1995.
Forward looking statements focused on future performance results plans and events and May include the company's experts expected future results, but rather it reminds you that future results may differ materially from these forward looking statements due to several risk factors for a description of the realm.
Operator: 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 the 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's 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?
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's website at SEC Gov, I would like to turn the call over to Robert <unk>, President and executive.
Operator: 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 reports filed with the Securities and Exchange Commission, which may be obtained free from the SEC's website at sec.gov.
Roger Susi: I would like to turn the call over to Robert Susi, President and Chief Executive Officer of IRadimed Corporation. Mr. Susi?
Excuse me are Chief Executive Officer of Radnet Corporation, Mr. Susi.
Thank you operator, and good morning. Thanks, Thanks, one and all for joining us on today's call.
Roger Susi: Thank you, operator. And good morning. Thanks. Thanks, one and all for joining us on today's call.
Roger Susi: Thank you, operator, good morning. Thanks one and all for joining us on today's call. I am pleased to report another record quarter, making our 15th consecutive quarter of record revenues. For Q1 2025, we achieved revenue of $19.5 million, which is an 11% increase over the same period last year. Gross profit came in at 76.1%, with earnings very strong as well, with GAAP diluted earnings per share increasing 16% from Q1 2024. Performance in the quarter was led by pump shipments, with bookings of our 3860 MRI IV Infusion Pump continuing to excel in Q1. I'm also very happy to report that shipments of our disposables grew well, and the bookings in Q1 indicate that our emphasis on the monitoring sales for 2025 can be expected to achieve our plans with this product line as well.
I am pleased to report another record quarter, making our 15th consecutive quarter of record revenues for the first quarter of 2025, we achieved revenue of 19 and a half million dollars, which is an 11% increase over the same period last year.
Roger Susi: I am pleased to report another record quarter, making our 15th consecutive quarter of record revenues. For the first quarter of 2025, we achieved revenue of $19.5 million, which is an 11% increase over the same period last year. Gross profit came in at 76.1%, with earnings very strong as well with GAAP diluted earnings per share increasing 16% from Q1 of 2024. Performance in the quarter was led by pump shipments, with bookings of our 3860 MRI IV pump continuing to excel in Q1. But I'm also very happy to report that shipments of our disposables grew well, and the bookings in Q1 indicate that our emphasis on the monitoring sales for 2025 can be expected to achieve our plans with this product line as well.
Gross profit came in at 76, 1% with earnings very strong as well with GAAP diluted earnings per share increasing 16% from Q1 of 2024.
Performance in the quarter was led by pump shipments with bookings of our 38 60, MRI IV pump continuing to excel in Q1, but I'm also very happy to report that shipments of our disposables grew well in the bookings in Q1 indicate that our emphasis on the monitoring sales for 2025 can be.
We expected to achieve our plans with this product line as well.
Our CFO Jack Glen will walk you through the financial details in a bit but I'd like to address two other issues.
Roger Susi: Our CFO, Glenn, will walk you through the financial details in a bit, but I'd like to address two other issues. questions of tariff impact, and the FDA, particularly our 510k clearance and doge impact. Starting with the tariff impact in a word, it's too soon to tell, but a review of the amount of foreign, specifically Chinese materials we utilize, it should provide a background. as you dive into our gross margin, or conversely, our cost of goods. you would see that about 12% of revenue is bomb cost or the parts and stuff we buy to make our product.
Roger Susi: Our CFO, John Glenn, will walk you through the financial details in a bit, but I'd like to address two other issues, questions of tariff impact and the FDA, particularly our 510(k) clearance and DOGE impacts. Starting with the tariff impact, in a word, it's too soon to tell, but a review of the amount of foreign, specifically Chinese, materials we utilize should provide a background. As you dive into our gross margin or conversely, our cost of goods, you would see that about 12% of revenue is BOM cost, or the parts and stuff we buy to make our products. Examining this further, we find that about 3% of revenue, a quarter of this BOM cost, is connected to high tariff sources. If even in a horrible worst case, if Chinese tariffs should remain at 145%, our 3% cost of such high tariff parts goes to 4.35%.
Questions of tariff impact and the FDA, particularly particularly our five 10-K clearance indulge impacts.
Starting with the tariff impact in a word it's too soon to tell but a review of the amount of foreign specifically Chinese materials, we utilize it should provide a background.
As you dive into our gross margin or Conversely, our cost of goods.
You would see that about 12% of revenue is bom cost or the parts and stuff, we buy to make our products.
Examining this further we find that about 3% of revenue a quarter of this bomb.
Roger Susi: Examining this further, we find that about 3% of revenue, a quarter of this bomb, costs is connected to a high tariff source. If even in a horrible worst case, if Chinese tariffs should remain at 145%, our 3% cost of such high tariff parts goes to 4.35%. So we do not see the risk of material cost impacts directly from even this current first shot over the bow high tariff that we put in place against China. Still, there are many other indirect effects of tariffs that are very difficult to predict at this time. For one, there is the threat that we already see with certain suppliers raising their pricing by using tariffs more as an excuse to gouge.
Our cost is connected to a high tariff sources.
If even in a horrible worst case, if Chinese tariffs tariffs should remain a 145%.
Our 3% cost of such high tariff Parch goes to $4 three 5%.
So we do not see the risk of <unk>.
Material cost impacts directly.
Roger Susi: We do not see the risk of material cost impacts directly from even this current first shot over the bow high tariff that we've put in place against China. Still, there are many other indirect effects of tariffs that are very difficult to predict at this time. For one, there is the threat that we already see with certain suppliers raising their pricing by using tariffs more as an excuse to gouge. We watch that carefully, though. We are actively dealing with such tactics and so far are managing those well. The good news thus far is that we do not see our customers reacting or feeling tariff pain. Therefore, we can report that we remain optimistic with the plans and guidance we have given.
Even this current first shot over the bow high Ter.
We've put.
Put in place against China.
Still there are many other indirect effects of tariffs that are very difficult to predict at this time for one there is the threat that we already see with certain suppliers raising their pricing by using tariffs more as an excuse to gouge.
We watch that carefully though.
We are actively dealing with such tactics and so far our managing those well.
Roger Susi: Watch that carefully. We are actively dealing with such tactics and so far are managing those well. The good news thus far is that we do not see our customers reacting or feeling terror of pain.
The good news thus far is that we do not see our customers reacting or feeling tariff pain.
Therefore, we can report that we remain optimistic with our plans and guidance we have given.
Roger Susi: Therefore, we can report that we remain optimistic with the plans and guidance we have given.
As for does impact, particularly with the CVR H and FDA.
Roger Susi: As for those impacts, particularly with the CDRH and FDA.
Roger Susi: As for DOGE impacts, particularly with the CDRH and FDA, it is interesting to note that we understand that some 20,000 jobs in this agency alone have reportedly been cut, yet we have felt nothing. We recently filed responses to the 50 or 60 additional information questions FDA asked us a few months ago regarding the 3870s 510(k) filed back in October. Within a week, we had an FDA response. This sort of engagement appears very quick, certainly as quick as we have seen, and would indicate that work at the FDA continues to get done. Along the lines of FDA and 510(k) clearance, we iterate what I explained in prior calls. This new device, the 3870 MRIv pump, will be a 2026 revenue story. We are on track and remain expectant of clearance in mid-2025.
It's interesting to note that we understand that some 20000 jobs in this agency alone have reportedly been cut yet we have felt murphy.
Roger Susi: It's interesting to note that we understand that some 20,000 jobs in this agency alone have reportedly been cut, yet we have felt nothing. We recently filed responses to the 50 or 60 additional information questions FDA asked us a few months ago regarding the 3870s 510K filed back in October. And within a week, we had an FDA response. This sort of engagement appears appears very quick, certainly as quick as we have seen, and would indicate that work at the FDA continues to get done.
We recently filed responses to the 50 or 60 additional information questions FDA asked US a few months ago regarding the 38 7500 10-K filed back in October and within a week, we had an FDA response.
Sort of engagement appear appears very quick certainly as quick as we have seen it would indicate that work at the FDA continues to get done.
Along the lines of FDA and 500 10-K clearance, we iterate what I explained in prior calls.
Roger Susi: Along the lines of FDA and 510K clearance, we iterate what I explained in prior calls. This new device, the 3870 MRIV pump, will be a 2026 revenue story. We are on track and remain expectant of clearance in mid-2025. However, we expect only slight revenue from this new device in queue for 2025. as the sale and shipment cycle is measured in months, even for an exciting and anticipated new offer. Morrow, as witnessed by the strong and continuing sales through customer replacement of the older 3860 IV pump, driven by discontinuing offering our extended maintenance on pumps seven years and older, the new 3870 pump sales are expected to dwarf sales of this older model as the quarters progress through 2026 and into 2027.
This new device to 30, 870, MRI IV pump will be a 2026 revenue story.
We are on track and remain expectant of clearance in mid 2025, However, we expect only.
Revenue from this new device in Q4.
Roger Susi: However, we expect only light revenue from this new device in Q4 of 2025 as the sell and shipment cycle is measured in months, even for an exciting and anticipated new offering. As witnessed by the strong and continuing sales through customer replacement of the older 3860 IV Pump, driven by discontinuing offering our extended maintenance on pumps 7 years and older, the new 3870 Pump sales are expected to dwarf sales of this older model as the quarters progress through 2026 and into 2027, certainly. With regard to our new facility under construction, I'm pleased to report that we are at the finish stage, with only minor material supply disturbances, which the GC has managed to mitigate well. At this point, we are far enough that potential surprise material cost impacts are well behind us.
2025.
Is the sell in shipment cycle is measured in months important exciting and anticipated new offering.
Moreover, as witnessed by the strong and continuing sales through customer replacement of the older 38, 60, IV pump driven by.
By discontinuing offering our extended maintenance on pumps seven years and older. The new 30, 870 pump sales are expected to dwarf sales of this older model as the quarters progress through 2026 and into 2027 certainly.
Finally, with regard to our new facility under construction I am pleased to report that we are at the finished stage with only minor material supply disturbances, which the GC has managed to mitigate well at this point, we are far enough that potential surprise material cost impacts are well behind us.
Roger Susi: Finally, with regard to our new facility under construction, I'm pleased to report that we are at the finish stage, with only minor material supply disturbances, which the GC has managed to mitigate well. At this point, we are far enough that potential surprise material cost impacts are well behind us. We are confident in a June-July final certificate of occupancy with plans to begin moving as early as the 4th of July weekend, with full operations in the new building by the end of July.
We are confident in a June July final certificate of occupancy with plans to begin moving as early as the fourth of July weekend with full operations in the new building by the end of July.
Roger Susi: We are confident in a June, July final certificate of occupancy, with plans to begin moving as early as the Fourth of July weekend, with full operations in the new building by the end of July. I'd like to outline what we expect to see in Q2 2025. As the Q2 2025 financial guidance, we expect revenue of $19.7 to $19.9 million, with GAAP diluted earnings per share of $0.37 to $0.40, and non-GAAP diluted earnings per share of $0.41 to $0.44. We reiterate our 2025 revenue guidance of $78 to $82 million for the full year, GAAP diluted earnings per share of $1.55 to $1.65, and non-GAAP diluted earnings per share of $1.71 to $1.81. I'll turn the call over to John Glenn, our CFO, to review the quarter's financial results.
Now I'd like to outline what we expect to see in Q2 2025 as a second the second quarter 2025 financial guidance, we expect revenue of $19 seven to $19 9 million with GAAP diluted earnings per share of <unk> 37 to 40.
Roger Susi: Now I'd like to outline what we expect to see in Q2 2025. As the second quarter 2025 financial guidance, we expect revenue of $19.7 to $19.9 million, with gap to looted earnings per share of 37 to 40 cents. and Nongap diluted earnings per share of 41 to 44.
And non-GAAP diluted earnings per share of <unk> 41 to 44.
We reiterate our 2025 revenue guidance of $78 million to $82 million for the full year.
Roger Susi: We reiterate our 2025 revenue guidance of 78 to 82 million for the full year, gap diluted earnings per share of $1.55 to $1.65, and non-gap diluted earnings per share of $1.71 to $1.81.
GAAP diluted earnings per share with $1 55 to $1 65, and non-GAAP diluted earnings per share of <unk> dollars 71 to $1 81.
Now I'll turn the call over to Jack Glenn our CFO to review the quarter's financial results.
Jack Glenn: Now I'll turn the call over to Jack Glenn, our CFO, to review the quarter's financial results. Thank you, Roger, and good morning, everyone. As in the past, our results are reported on a gap basis and non-gap. 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 measures on the last page of For the first quarter of 2025, we reported revenue of $19.5 million, an 11% increase compared to $17.6 million in Q1 of 2020. This growth was driven by sustained demand for IV infusion pump systems, which grew 16% to $6 million, and disposable revenue, which increased at 23% to $4.9 million.
Thank you Roger and good morning, everyone.
John Glenn: Thank you, Roger, and good morning, everyone. As in the past, our results are reported on a GAAP basis and 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 measures on the last page of today's release. For Q1 2025, we reported revenue of $19.5 million, an 11% increase compared to $17.6 million in Q1 2024. This growth was driven by sustained demand for our IV infusion pump systems, which grew 16% to $6 million, and disposables revenue, which increased to 23% to $4.9 million. patient vital signs monitoring systems revenue remained steady at $6.5 million. Domestic sales accounted for 82% of total revenue in Q1 2025, up from 76% in Q1 2024.
As in the past our results are reported on a GAAP basis and 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 measures on the last page of today's release.
For the first quarter of 2025, we reported revenue of $19 5 million, an 11% increase compared to $17 6 million in Q1 of 2024.
This growth was driven by sustained demand for IV infusion pump systems, which grew 16% to $6 million and disposable revenue, which increased to 23% to $4 9 million.
Patient vital signs monitoring system revenue remained steady at $6 5 million.
Jack Glenn: Patient Vital Signs Monitoring Systems revenue remains steady at $6.5 million. Domestic sales accounted for 82% of total revenue in Q1 2025, up from 76% in Q1 of 2024. Domestic revenue increased 19% to $16 million, while international sales declined 15% to $3.5 Device revenue increased 9% to $13 million in the first quarter, driven by the increase in pump revenue and FMD systems. Revenue from disposables increased 23% in the quarter, reflecting higher pump utilization, and service revenue remained stable at $1 million. The gross margin was 76.1% for Q1 2025, consistent with Q1 of 2024, as we continue to manage our production cost effectively and maintain our ASPs for both products.
Domestic sales accounted for 82% of total revenue in Q1 2025 up from 76% in Q1 of 2024.
Domestic revenue increased 19% to $16 million, while international sales declined 15% to $3 5 million.
John Glenn: Domestic revenue increased 19% to $16 million, while international sales declined 15% to $3.5 million. Device revenue increased 9% to $13 million in Q1, driven by the increase in pump revenue and FMD systems. Revenue from disposables increased 23% in the quarter, reflecting higher pump utilization, and service revenue remained stable at $1 million. The gross margin was 76.1% for Q1 2025, consistent with Q1 2024, as we continued to manage our production cost effectively and maintain our ASPs for both products. Operating expenses were $9.4 million, or 48% of revenue, compared to $8.6 million, or 49% of revenue in Q1 2024.
Device revenue increased 9% to $13 million in the first quarter driven by the increase in pump revenue in FMT systems.
Revenue from disposables increased 23% in the quarter, reflecting higher pump utilization and service revenue remained stable at $1 million.
The gross margin was 76, 1% for Q1 2025, consistent with Q1 of 2024 as we continued to manage our production cost effectively and maintain our asp's for both products.
Operating expenses were $9 4 million or 48% of revenue compared to $8 6 million or 49% of revenue in Q1 of 2024.
Jack Glenn: Operating expenses were $9.4 million, or 48% of revenue, compared to $8.6 million, or 49% of revenue, in Q1 of 2020. The dollar increase was primarily driven by higher general and administrative expenses of 16% to $4.6 million due to a rise in legal and professional costs tied to the regulatory effort for the new pump and increased personnel and benefit costs. Sales and marketing expenses increased 9% to $4.2 million, reflecting all domestic sales territories being filled and higher commissions from strong domestic bookings. Research and development expenses decreased 24% to 0.6 million as we finalized key development pages for the 3870 pump.
The dollar increase was primarily driven by higher general and administrative expenses of 16% to $4 6 million due to horizon legal and professional cost tied to the regulatory effort for the new pump and increased personnel and benefit costs.
John Glenn: The dollar increase was primarily driven by higher general and administrative expenses, up 16% to $4.6 million, due to a rise in legal and professional costs tied to the regulatory effort for the new pump and increased personnel and benefit costs. Sales and marketing expenses increased 9% to $4.2 million, reflecting all domestic sales territories being filled and higher commissions from strong domestic bookings in Q1. Research and development expenses decreased 24% to $0.6 million, as we finalized key development phases for the 3870 pump. Operating income was $5.4 million, or a 14% increase from $4.7 million in Q1 of 2024, maintaining a solid operating margin of 28%. We recognized a tax expense of $1.3 million, resulting in an effective tax rate of 21.2% for Q1 2025, compared to 21.1% in Q1 of 2024.
Sales and marketing expenses increased 9% to $4 $2 million, reflecting all domestic sales territories being filled and higher commissions from <unk>.
Bookings in Q1.
Research and development expenses decreased 24% to $6 million as we finalized key development pages for the 38 70 pump.
Operating income was $5 4 million or <unk> 44.
Jack Glenn: Operating income was $5.4 million or a 14% increase from $4.7 million in Q1 of 2024, maintaining a solid operating margin of 28%. We recognize the tax expense of $1.3 million, resulting in an effective tax rate of 21.2% for Q1 2025 compared to 21.1% in Q1 of 2025. gap net income was $4.7 million or $0.37 per diluted share, a 16% increase from $4.1 million or $0.32 per diluted share in Q1 2024. On a non-GAAP basis, adjusted net income was $5.3 million, or $0.42 per diluted share, up 17% from $4.6 million, or $36 million. cents per diluted share in Q1 2024.
14% increase from $4 $7 million in Q1 of 2020 for maintaining solid operating margin of 28%.
We recognized tax expense of $1 3 million, resulting in an effective tax rate of 21, 2% for Q1 2025 compared to 21, 1% in Q1 of 2024.
GAAP net income was $4 7 million or <unk> 37 per diluted share a 16% increase from $4 1 million or <unk> 32 per diluted share in Q1 2024.
John Glenn: GAAP net income was $4.7 million, or $0.37 per diluted share, a 16% increase from $4.1 million, or $0.32 per diluted share in Q1 2024. On a non-GAAP basis, adjusted net income was $5.3 million, or $0.42 per diluted share, up 17% from $4.6 million, or $0.36 per diluted share in Q1 2024. Cash flow from operations was $4.3 million in Q1 2025, up 10% from $3.9 million in Q1 2024. Free cash flow, a non-GAAP measure, was $0.4 million, down from $3.4 million in Q1 2024 due to $3.9 million in capital expenditures in the quarter, of which $3.5 million was for the new facility. We expect to spend approximately $3 million more on the facility through its completion in July of 2025.
On a non-GAAP basis, adjusted net income was $5 3 million or <unk> 42 per diluted share up 17% from $4 6 million or <unk> 36.
<unk> per diluted share in Q1 2024.
Cash flow from operations was $4 3 million in Q1, 2025 up 10% from $3 9 million in Q1 2024.
Jack Glenn: Cash flow from operations was $4.3 million in Q1 2025, up 10% from $3.9 million in Q1 2024. Free cash flow, a non-gap measure, was $0.4 million, down from $3.4 million in Q1 2024 due to $3.9 million in capital expenditures in the quarter, of which $3.5 million was for the new facility.
Free cash flow a non-GAAP measure was <unk> $4 million down from $3 4 million in Q1, 2024, due to $3 9 million in capital expenditures in the quarter of which $3 5 million for the new facility.
We expect to spend approximately $3 million more on the facility through its completion in July of 2025.
Jack Glenn: We expect to spend approximately $3 million more on the facility through its completion in July of 2025.
And with that I will turn the call over for questions operator.
Operator: And with that, I will turn this call over for questions. Operator. Thank you.
John Glenn: With that, I will turn the call over for questions. Operator.
Thank you if you would like to ask a question. Please press star one on your telephone you will then hear an automated message advising your hand is raised.
Operator: Thank you. The first question that we have today will be coming from the line of Frank Takkinen.
Operator: If you would like to ask a question, please press star 11 on your telephone. You will then hear an automated message advising your hand is ready.
I would like to remove yourself from the queue Press star one again.
Operator: If you would like to remove yourself from the queue, press star one one again. We also ask that you please wait for your name and company to be announced before proceeding with your One moment while we compile the Q&A roster.
We also ask that you. Please wait for your name and company to be announced before proceeding with your question one moment, while we compile the Q&A roster.
Okay.
The first question that we have today will be coming from the line of Frank.
Frank Takkinen: The first question that we have today will be coming from the line of Frank. Takkinen. Great. Thanks for taking the questions.
Tac of Tecogen.
Alright, thanks for taking the questions.
Frank Takkinen: Great. Thanks for taking the questions. I was hoping to start with a question on disposables. Obviously, that was a really great number in Q1. I was curious if there were any anomalies in that number. Was there a catch-up in kind of burning down some of the backlog? Is this a new run rate in the disposable line item? Any color around that would be helpful. Thank you.
Was hoping to start with a question on disposables, obviously that was a really great number in the first quarter was curious if there was any anomalies in that number or was there a catch up in kind of burning down some of the backlog is this a new run rate and the disposable line item any color around that would be helpful. Thank you.
Frank Takkinen: I was hoping to start with a question on disposables. Obviously, that was a really great number in the first quarter. I was curious if there was any anomalies in that number. Was there a catch-up in kind of burning down some of the backlog? Is this a new run rate in the disposable line item? Any color around that would be helpful.
Sure Frank.
Roger Susi: Thank you.
Can address that when I think from the disposable standpoint, what we've said in the past typically we would expect the disposables to broke commensurate with the capital growth and.
Roger Susi: Sure, Frank. I can address that one. I think from the disposable standpoint, what we've said in the past, typically, we would expect the disposables to, you know, grow commensurate with the capital growth. And, you know, certainly tied to the pump utilization, most of that. The quarter, there was some working down to the backlog as we strive to decrease our backlog, our lead time on the disposables, you know, due to making sure we're meeting customer demand. So we have, we did some of that in Q1, so that played a part in that. But going forward, certainly, I think, you know, it's always a little bit hard to, because of the lead times are shorter for the visibility for us, but I would expect it to be sort of in line with kind of the growth overall on the capital side.
John Glenn: Sure, Frank. I can address that one. I think from the disposable standpoint, what we've said in the past, typically, we would expect the disposables to grow commensurate with the capital growth and certainly tied to the pump utilization, most of that. The quarter, there was some working down of the backlog as we strive to decrease our backlog or lead time on the disposables, due to making sure we're meeting customer demand. We did some of that in Q1, so that played a part in that. Going forward, certainly, I think, it's always a little bit hard to, because the lead times are shorter for the visibility for us, but I would expect it to be sort of in line with kind of the growth overall on the capital side.
Certainly tied to the pump utilization most of that.
The quarter there was some working down the backlog as we strive to decrease our backlog our lead time on these disposable due to making sure. We're meeting customer demand. So we have we did some of that in Q1. So that played a part in that but going forward certainly I think.
We have a little bit hard to because of the lead times are shorter for the visibility for us but.
We expect it to be sort of in line with kind of the growth overall of the capital side.
Okay.
And then Roger you made a comment around the composition of bookings we're indicating.
Frank Takkinen: Okay, that's helpful.
Frank Takkinen: Okay. That's helpful. Roger, you made a comment around the composition of bookings were indicating monitoring sales being in line with your expectations for this year, which I think was implied for that to re-accelerate a little bit as you adjusted some of the incentive compensation around that product. Can you maybe go a little bit deeper into the composition of the backlog and why you feel pretty confident that monitors is going to recover through the year?
Frank Takkinen: And then Roger, you you made a comment around the composition of bookings were indicating monitoring sales being in line with your expectations for this year, which I think was implied for that reaccelerate a little bit as you adjusted some of the incentive compensation around that product.
Monitoring sales being in line with your expectations for this year, which I think was implied for that.
Accelerated a little bit as you adjusted some of the incentive compensation around their products can you maybe go a little bit deeper into the composition of the backlog and why.
Frank Takkinen: Can you maybe go a little bit deeper into the composition of the backlog and why you feel pretty confident that monitors is going to recover through the year? I have.
You feel pretty confident that monitors is going to recover through the year.
Thanks.
Thanks, Frank good to hear from you yes.
Roger Susi: Thanks, Frank Takkinen. Good to hear from you. Yes. As we spoke before, previous quarter, right? That we were going to push hard on bringing up the monitor sales in 2025, basically, expecting that there'll be a droop in the pump revenues later in the year. Certainly, once this new pump is cleared, this huge run rate that we've experienced in the last, oh, 5, 6 quarters for the old 3860+ MRI IV Infusion Pump, it will come to an end. As we mentioned at least a quarter ago, for 2025, we really did re-emphasize the monitor with the sales force, vis-a-vis commission structure and just highlighting it at our meeting in January, et cetera. That is showing fruit. We did well. Bookings were strong in Q1. Usually, Q1's kind of weak generally after a good big Q4 finish.
Roger Susi: Thanks, Frank.
Yes, as we spoke.
Roger Susi: Good to hear from you. Yes, as we spoke, you know, before previous quarter, right, that we were, we were going to push hard on bringing up the monitor sales in 2025, basically expecting that there'll be a droop in the pump revenues later in the year. Certainly, once this new pump is cleared, this huge, you know, run rate that we've experienced in the last, oh, five, six quarters for the old 3860 pump, then it will come to an end. And so, as we mentioned, you know, at least a quarter ago for 2025, we really did reemphasize the monitor with the sales force vis-a-vis, you know, commission structure and just, you know, highlighting it at our meeting in January, et cetera.
Before previous quarter right that we were we were at.
Going to push hard on bringing up the monitor sales in 2025, basically expecting that there'll be a droop and the pump revenues later in the year certainly wants this new pump is cleared.
This huge run rate that we experienced in the last five six quarters for the all 38 60 pump.
I'll come to an end and.
And so as we mentioned.
At least a quarter ago for 2025, we really did reemphasize the monitor with the Salesforce.
<unk> Commission.
Structure and.
Highlighting it.
At our Nash at our meeting in January et cetera.
And that.
That is.
It's showing fruit.
Roger Susi: And that is showing fruit. We did well. Bookings were strong in Q1. Usually, Q1's kind of weak, generally, after a good big Q4 finish. But monitor bookings in Q1 held up the rate that they had ended Q4 at. And thus far, we're only not even five weeks into this Q2, I can tell you that the bookings for the monitor have been very strong already for the start of Q2.
We did well bookings, where we're were strong in Q1, usually Q1 is kind of weak generally after the big Q4 finished but.
Monitor monitor bookings in Q1.
Roger Susi: Monitor bookings in Q1 held up the rate that they had ended Q4 at. Thus far, though we're only not even 5 weeks into this Q2, I can tell you that the bookings for the monitor have been very strong already for the start of Q2. That's why I mentioned it looks like our plans are firming up as we expected along the lines of increasing the monitor bookings.
<unk> held up.
The rate that they had ended Q4 at and thus far that were only.
We're only Netflix not even five weeks into this Q2 I can tell you that.
The bookings for the monitor have have been very strong already for the start of Q2.
That's why I mentioned, it looks like our our plans.
Roger Susi: So, you know, that's why I mentioned it looks like our plans are firming up as we expected along the lines of increasing the monitor books.
Are firming up as we expected along the lines of increasing the monitor books bookings.
Great great.
Great. That's great color and then just one last one I wanted to follow up on some of the FDA interactions I heard your comment that you submitted the file and then you had heard back are submitted the file to answering the questions and then you had heard back from the FDA Whats left now where we stand today until we should see the clearance occurred.
Frank Takkinen: Great.
Frank Takkinen: Great. That's great color. Then, just one last one. Wanted to follow up on some of the FDA interactions. I heard your comment that you submitted the file, and then you had heard back, or submitted the file to answering the questions, and then you had heard back from the FDA. What's left now where we stand today until we should see the clearance occur?
Frank Takkinen: That's great color.
Frank Takkinen: And then just one last one, I wanted to follow up on some of the FDA interactions. I heard your comment that you submitted the file and then you had heard back or submitted the file to answering the questions and then you had heard back from the FDA.
Roger Susi: What's left now where we stand today until we should see the clearance occur? Well, that's, that's a, that's a, you know, if I could read it, I'll have to read tea leaves, but it's more or less a guess. So just to refresh, right? We, we refiled the 3875-10-K. back in October. And we got an AI letter. relatively quickly after that, I think it's four or five weeks or so after we submitted, we got a letter with, like I said, 50 plus questions in it. And we worked, you know, basically for five months coming up with responses to all those questions.
Well.
That's it.
Roger Susi: Well, if I could read it, I'll have to read tea leaves. It's more or less a guess. Just to refresh, right, we refiled the 3870 510(k) back in October, and we got an AI letter relatively quickly after that. I think it's 4 or 5 weeks or so after we submitted, we got a letter with, like I said, 50-plus questions in it. We worked basically for 5 months, coming up with responses to all those questions. That was returned, I believe, about 2 weeks ago. Last week, we started hearing from the FDA interactively. Quickie emails, Hey, could you find us this in the filing? Hey, did you answer this? You used a different phrase than we like to see for this. Work helping them finalize and clarify some questions that are open in their mind.
If I can read it out to read tea leaves, but.
It's more or less a guess so just to refresh right.
We re filed the 3800 7500 10-K.
Back in October and we got an AI letter.
Relatively quickly after that I think it's four or five weeks.
Our shallow after we submitted and we got a letter with like I said 50 50.
<unk> plus <unk>.
<unk> in it.
And.
We work basic.
Basically for five months.
Coming up with responses to all those questions.
That was returned I believe about two weeks ago.
Roger Susi: That was returned, I believe, about two weeks ago. And last week, we started hearing from the FDA interactively, you know, quick e-mails, hey, could you find us this in the filing? Hey, did you answer this, you know, use a different phrase than we like to see for this and, you know, or helping them, you know, finalize and clarify some questions that are open in their mind.
And lash.
Last week.
We started hearing from the FDA interactively quicker.
E mails.
Hey could you find us niche in the filing Hey did you answer this.
You use a different phrase that we like to see physician.
Pork helping them.
Finalize and clarify some questions or opened neuroma.
We will see how that continues we had.
Roger Susi: So. We'll see how that continues. We had we had two such email questions last week and we returned those late Friday. We'll take it week by week, but there's two ways that can go. These interactive questions can be a good sign. They get things done quickly without the formalities of a formal AI letter. That's generally a good sign, but, you know, it could be that they get off the rails again as we go with too many of these sorts of questions. Too soon to tell, Frank. If all goes well, though, this shouldn't go on for more than three or four weeks.
Roger Susi: We'll see how that continues. We had two such email questions last week, and we returned those late Friday. We'll take it week by week, but there's two ways that can go. These interactive questions can be a good sign. They get things done quickly without the formalities of a formal AI letter, and that's generally a good sign. It could be that they get off the rails again as we go with too many of these sorts of questions. Too soon to tell, Frank. If all goes well, though, this shouldn't go on for more than three or four weeks. At that point, we'll know where we stand much better.
We had two such email questions last week.
And we returned those late Friday.
We will take it week by week, but.
There is two ways that can go.
These interactive questions can be a good site they get things done quickly without perform formalities of formal AI letter.
And.
That's generally a good sign but it could be that they get off the rails again as we go.
But to many of these sorts of questions too soon to tell Frank.
Yes.
If all goes well, though.
This shouldn't go on for more than three or four weeks at that point.
We will know where we stand much better.
Frank Takkinen: At that point, you know, we'll know where we stand much better. Got it. Okay. That's helpful. Appreciate the color.
Got it Okay. That's helpful. I appreciate the color thanks, and congrats on the solid start to the year.
Frank Takkinen: Got it. Okay. That's helpful. Appreciate the color. Thanks. Congrats on a solid start to the year.
Frank Takkinen: Thanks and congrats on the solid start to the year. Thanks. Thank you.
Thanks.
Thank you and that does conclude today's Q&A session I would like to turn the call back over to Roger for closing remarks.
Roger Susi: Thanks
Operator: Thank you. That does conclude today's Q&A session. I would like to turn the call back over to Roger for closing remarks.
Operator: And that does conclude today's Q&A session.
Roger Susi: I would like to turn the call back over to Roger for closing remarks. Well, thank you, operator. Once again, it's been my pleasure to report IRadimed's performance for this opening quarter of 2025. The company's business foundation is strong, we look forward to attaining our plan for the year as guided. At this point, the execution of those plans is the order of business. And I will look forward to reporting our continued positive momentum with the next call. Until then, thank you all. Thank you.
Okay.
Well. Thank you operator once again, it's been my pleasure to report around <unk> performance for this opening quarter of 2025, the company's business Foundation is strong and we look forward to attaining our plan for the year is guided.
Roger Susi: Well, thank you, operator. Once again, it's been my pleasure to report IRadimed's performance for this Q1 of 2025. The company's business foundation is strong, and we look forward to attaining our plan for the year as guided. At this point, the execution of those plans is the order of business, and I look forward to reporting our continued positive momentum with the next call. Until then, thank you all.
At this point the execution of those plans is the order of business and I'll look forward to reporting our continued positive momentum with the next call until then thank you all.
Thank you and this concludes today's call and you may now disconnect.
Operator: Thank you. This concludes today's call. You may now disconnect.
Operator: This concludes today's call and you may now disconnect.