IRMD - Earnings call transcript Q3 2017

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the IRADIMED CORPORATION Third Quarter 2017 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

As a reminder, this conference call is being recorded today, October 30, 2017, and contains time-sensitive information that is accurate only as of today. results third financial XXXX. released IRADIMED for quarter the Earlier, the press is on A IRADIMED.com. this announcing their Company’s at News, copy of heading, release earnings the available website under the release X-K. also press on the of Exchange Commission copy furnished A to Securities and Form was this can be of sec.gov. found X-K Form copy at A This days. the replay on call of Company’s call will live website at website be Internet being the broadcast on for the XX the IRADIMED.com is available over the and a as be follows. agenda for will The call today’s Roger Chief will and Susi, presenting be IRADIMED, President of Officer Executive opening comments. Vice Johnson, IRADIMED’s of Brent Marketing, Then and will customer Executive President Worldwide orders. Sales discuss And financial Chief results, IRADIMED’s to Financial Company’s the opening summarize call up the finally, Chris before questions. Officer, Scott, will

forward-looking Litigation Some the meaning of the Act to Reform furnished information constitute within Private statements of be Securities in XXXX. will of the session today’s

Forward-looking plans, results, of forward-looking results that future from differ statements and Company’s risk on XXXX. materially events, future IRADIMED those are expected the a number the you due to reminds may for include performance, factors. focused results statements and these

Corporation. which the the and the most of affect that recent website Susi, may be the to turn IRADIMED would the business, the Executive you obtained filed Roger section Chief at call may please and see reports with Susi, uncertainties description relevant Risk the for Commission, Company’s risk Exchange Factors For may Mr. Company’s of free Securities now from of SEC’s Officer over I begin. sec.gov. like to President and

Roger Susi

income slightly share our non-GAAP everyone. net net of high-end of share. estimates quarter GAAP of GAAP revenue our estimate. good the non-GAAP income per exceeded Thank with third earnings meaningfully diluted you, diluted X.X per operator, Earlier revenues of and today $X.XX morning reported above we We and $X.XX million, and

indication positive of which business. the a quality of are find our as of All

plus the system. October MRI of announced displayed Achievement received Additionally, patient vital show clearance and the XXth, monitoring new our bookings is out signs compatible XXX(k) our a history clearance on the IV continue four the for has to this event and for as strength over effort Their over this production monitor Company’s have collective XXX(k) past in while to is of tremendous the we pump we FDA integrating people significant now result and possible. of daily hard our these been been past IV quarters. business pump work maintaining years through the developed made work of achievement routine, admirable many our the efforts that device so and the momentum sales guiding our turn and into of

continue of accomplished engineering of integration the demand a to monitor, Regarding Much in of expect. ensuring production past area and this has year. for been smooth we the near-term the to capability hand levels our teams launch, that work U.S. closely

establishing to international demand from As based from expand. customers, our which we satisfy firm a

U.S. team Our to has of demonstrations already potential the customer trained and been numerous October. the carrying sales and performed demo throughout month units

revolutionary our have with switch and We circling monitor. devices choice customers persuade are them those purchase competing back QX for right be new will that orders plan the now for with to to

demos, provide from While will I received Brent on more emerged. that feedback the has say thing customer one color will

monitors excuse already have have a at Many rethinking Customers the out, crossed taken of monitors of a and look monitor but we it marketplace be realized it. me, get customers without get get the reason seen possible limited no sum that had MRI have quarter -- being it. monitor the solid size the device and revolutionary quickly demo that is they our at and To are the quarter competitor with third -- our to purchases several clearance. Company’s and milestone we've oversize that customers for compact They for action. decades. the up, get it. pointed the occupied monitor market history and longer to uses Our for highly of look this They of the transportable in they that solid have our they third

much before turning be now guidance to the monitor over discussion Brent MRI done. our of market, review would and to there fourth is review the bookings However, to I And like the more for call for of quarter. financial

X.X per of share earnings Non-GAAP share of earnings revenue of per expect We $X.XX diluted $X.XX. to million $X.XX. GAAP breakeven to with

XX.X reiterate to $X.XX we of million of XX.X the GAAP $X.XX our revenue For to per full earnings and million XXXX, share. year guidance diluted

to estimates XX% XX% we $X.XX $X.XX per to earnings previously to raising However, share our diluted from announced. are non-GAAP

IV XXXX XX.X approximately previously our sales of exclude previously, million and As related pumps, X.X or to revenue services monitors higher than revenue is implies is to million the sales the X% about. million in disposables of X% backlog, which This international. have expected XX.X spoken from from in million we X in we guidance approximately patient discussed of from which estimate included full revenue year our

I’d the Now, call of Brent a our to to for discussion orders. over customer turn like

Brent Johnson

seasonally of sales departments application spoken our was in strength quarter resonating quarter those our challenging the several few with that you, within our I and is handle existing additional exceeding and months view add the last consistent and from approximately about critical six strategy year quarters orders team highly past for which for half We the Roger. strategies first-time discussion continuous hospitals. adopters first the year. positive and today. forecast and for customers. evidence half over this Bookings from The the pump to period is strong critical care our times the the of year coming third other of our exceeding most multiple are I’ve Thank this each our is composition of current third with care coming orders with and techniques that year the system develop were the with booking the

the historic to core in market higher and higher of MRI pumps with targeting department of levels levels our continues along orders for see our strategy traction of the departments multi-pump orders. Our and critical the care gain

changing great to in long pumps those MRI the experiencing to strategy lines rates departments waiting with demand without IV of IV our extending with MRI the room stable for critical are using to enough stimulating until and their go pumps We’re either or of practice conventional success patients care by medication.

higher putting that pressure from critical our IV in order patient of satisfy compatible MRI is Another provides desire and of to demand interest the our sell even department critical positive result departments our changing care care, that pump strategy by MRI critical departments current the care level when don’t the care we the is, critical to the and directly offers. pump the care practice for shown

an year. to before the sales about intent performing vital buying XXXX meeting, take each during the strong the per team of sales compatible of managers the U.S. MRI XXXX end the our of trained discuss targeted that on in the the potential a our of their the clearance believe on to with we've two thoroughly system, after we sales year. advantage opportunity the monitor these began had sales managers As customers purchase demonstration U.S. that the quarter the monitoring MRI signs monitoring October, occurs the for day MRI in fourth and where an with and held patient MRI competition. make based Immediately we we’re and In timing cycle we have monitors Orlando early enthusiastic FDA meeting market

the We’re as very received functionality, extremely customers impressed size design. and happy with getting. with are monitor’s feedback and Customers stated we've lightweight Rogers the are compact

world in MRI into number critical ultimately strategy embraced this will also from the already department, potential the is further departments MRI the targeting. In efficiently pump stack those also as from can that markets. monitors this regard monitor purchased the multiple, our the the Again of many market and this MRI. demand our the expand patient drive safely use world they customers our only size addition our have to in that the multiple monitor transport patient sell scanner come patients of that to which in overall does to will IV is the MRI that care the higher, to in pump one expanded giving the company traditional and can monitor in IRADIMED us the use only nicely This need scenarios monitors of to help with IV MRI we the multiple are transport

discussed, annual revenue we in the XX sales the XX As within expect we that our previously of and million additional an continue monitor months produce from next there. could grow to

it turn I’ll over financial Now, Chris to summarize third quarter to results.

Chris Scott

a on our results as as discussing a be non-GAAP well I’ll Today, basis. GAAP on basis financial

stock-based non-GAAP compensation results tax excludes operating and effects. related Our the

providing more flow our financial non-GAAP statements used less operations, from analysis equipment. of performance. our measures that financial of the is purchases Our cash with believe free helpful property cash for be can in flow GAAP and presentation of these measure We along ongoing thorough cash

measures release. the a measure to press non-GAAP nearest the last reconciliation You can kind of GAAP today’s page these of from

quarter sales said, total revenue and just or million million current compared revenue in million compared compared XXX million for of of we or X.X compared current of revenue $X to X.X of quarter revenue million Roger revenue third sales sets We’ve million for the million in for total same revenue the revenue XX% of compared or total X.X of this quarter million a third monitoring revenue or year. million our system. total XXXX XXX of total was XXXX XX% quarter. quarter same from pumps Geographically, from included from XX% total of to IV last last Revenue for last the revenue quarter or As MRI Revenue recognized domestic total year. year. XXXX X.X the Revenue quarter third of for to XX% quarter for current $XXX,XXX for approximately to the X.X revenue XX% pumps total revenue services to the International third reported for quarter X signs XX% X.X from vital quarter the million XX% the was patient on was year. IV the the international XX% or sales compatible was the to of last or quarter. current for or $X devices for quarter of X.X compared quarter of revenue

same increase the expenses third to due benefits $X.X franchise to international taxes as pump expenses XXXX of Our quarter to XX% The last the in higher to quarter the of revenue in sales primarily headcount, result gross $XX,XXX quarter a and The period stock of of result total or is by the higher compared revenue quarter. compared due of per was for and approximately ASP expense margin to XXXX payroll on and administrative costs, of $X.X and price percent $XX,XXX pump in to average was compared current offset percent when due million than in quarter higher million our the costs, third charge-related XXXX resulting our from is quarter, XXXX. to rates absorption for amortization employee to lower the overhead the a a expense, output compared quarter the The higher-priced and during in were regulatory XX.X% the lower to same higher unfavorable sales year. margin underwriters’ XXXX approximately paid the a operating selling for current or Gross Operating corporate depreciation partially warrants, when XX% third as increase optional sale higher mix for was the more GPOs. XX% decrease modification favorable of quarter. and average last higher and the compensation production consulting features sold fees quarter XXXX we year. for revenue

rate and the last current to a base due adjustments primarily development the the compared the XX.X% XXXX of to income quarter effective when and The XX.X% to tax to compared on rate credits research of for lower domestic tax Our was for return favorable pre-tax lower production deductions effective activities provision impact is tax year. period. and

tax to effective being rather per provision accounting $X.XX a and On capital basis, the XXXX. the $X.XX was equity recognized is $X.XX shortfalls share per third quarter paid-in quarter On as share for share quarter per compared new GAAP in current standard the current to in for a previous rate diluted now for by are than the the the affected windfalls third awards income was the diluted last for required income compared net diluted quarter related our Additionally, year. the guidance. basis, $X.XX under net non-GAAP additional tax accounting to that by

compared million For customer net for outflows higher payroll. offset ended cash net accounts paid and inventory accrued net cash months receipts nine taxes lower from September to outflows cash purchases, related reduced by $X was to by The on XXXX, accounts period. XX, and primarily result provided cash and payable, for the income the inflows partially receivable, decrease was of the million $X.X lower higher operations XXXX income

measure was flow Our $X.X free for million to million compared on for QX cash non-GAAP $X.X XXXX. QX XXXX

September XXXX, on repurchase ended year. common April pursuant months nine our was announced used we to the XX, stock, million shares XXX,XXX $X During an XX that to $X.X of this of million repurchase approximately authorization

As of XXXX, September and cash had million $XX.X XX, we of investments.

call like briefly to address items initial Before to over few XXXX. questions, thoughts turning related I the our would for for a

We actual with our full our will half during January which is providing for be the year guidance the first historical consistent XXXX timing. of

revenue FDA and of the believe we pump business, trend and are continue monitor traction higher recent clearance XXXX that be seeing patient XXXX. in With in the XXX(k) the that could we our into could meaningfully

internally earnings new pipeline for levels may questions. our continuing and Operator? and in can call certain houses with found R&D including the our new and we and on projects, website. development have commercialization growth, outside over Additionally, investment increasing ultimately spoken working focus And of that development with on that, I'll we to with for toward accelerating presentation be the an efforts, product higher while turn revenue about of is our in publicly make that eye products including

Operator

you. Thank

question-and-answer the begin now Solow with CJS will first We comes question Larry Our [Operator session. Securities. Instructions] from

now line Your open. is

Larry Solow

before one I ask main question. quick a follow-up my Just

outsourced point? for more of outsource follow comp is thing some R&D that JV-type sort this to you the at the the a how Or say On 'XX on preview the CROs? Would to higher spending expected Or that and be on of including side. levels expect? that to

Roger Susi

It just R&D would be [indiscernible]

Larry Solow

the Okay. a on for you that target it is number, Brent say did number. was part two sounds what just higher the And within is clarify, said? to the this sales $XX Because years monitors, million

Brent Johnson

was million basis -- said years. that annual that with at on within $XX business what be two could believe Basically, we an we're

Larry Solow

prior an part that given? just the like $XX annual XX two wasn't okay, years, million on had number you within and basis It's it. got that

Roger Susi

It's in prior call.

Brent Johnson

XX talked doesn't include expanded that we've market the before. about

Larry Solow

Okay, fair enough.

-- as couple ones. in a quick just Okay, of

know somewhere numbers, maybe later On the trends quarter at? the way quarter nice work October? to the we is -- year-over-year? of their of look And is slowly improving it sounds I at in slower you could part it that like pump growth continued orders the don't into when up. actual in but time the Any sequentially year maybe give to September

Brent Johnson

is was stronger the July than September much August situation. typical which Yes, and

So, much again, it were follows we what pretty for. looking

Larry Solow

does approval a for these. have more maybe MRI market, of that are every to our the guess up will around open one you? do who And it for pumps just monitor should of and the that is pump actually customers because replacement so a one potential suite said obviously putting at doors maybe instead Or increase methods on talk point the monitor almost I Does actually that work the suite? into

Brent Johnson

absolutely our great opportunity those doors with the gives to monitor to it bundle patient mean, going IV those us monitors. patient sure. pump knock with but anyway, I we're on Yes, not a

open patient they in monitor. does new institutions, it's a of is places haven't I doors every considering it the sale or been maybe kind a it sedations pump that having to where any we're So, monitor. MRI have does really been opportunity some patient that tougher mean going of

been we've doors it knocking to as And opportunity of even with us basic So, going give those Pumps diligently to follow. we're bundle monitor. on us it for though IV our some open an doors does those does

Operator

Roth next comes Henry question with Scott Capital. Your from

open. Your line is now

Scott Henry

questions. of couple A

international, with for get how thought signs expectations for should in First for what have delta the to The we booking about product that sounds what congratulations start QX? heard question $XXX of you the monitors? QX? there And that? vital openly we be signs what million I I monitor. like kind to million It in $X.X should a is should remained revenues model is, we thinking trying sense on vital steps Just

Brent Johnson

Yes, this is Brent again.

expect quote first we and done on we your week. thing booking of fact Thursday Friday and the guess to question of had the us We lot this to system -- is I quote and couldn’t the only could really that pretty last seems kept we is that have quotes orders it part XXX(NYSE:K) really answer first them from a

business there a got of identified we have have as working we all we've been lot toward some that this We time. out know for

lot to We have there QX been a a those we have have we sales that of anticipated launch quotations. -- have customers quarter business, and and so speaking people are out the waiting for fourth identifying been customers,

So, the really And, reactions that the us business based are only market the on now. set think the so… upside and that some from has hold in involved modest seen we booking in that yes, customers right very yes, on. have to goal is actually there we been place, that some we And we

Roger Susi

number or And full the about the Roger year. spoke clarify rather, that I want wanted number. from $XXX,XXX the to monitor $X related sales million million markets monitor in just million quarter fourth for year to a clear Scott We that just but $X anywhere about to full when be $X that estimated the that was to was

Scott Henry

year? that this year of get quarter in as think following in far mean just do about how purchasing, benefits the that purchase quarter see but what's we purchasing think obviously ability to and clearly we product year to out I And with new next trends a should trying quarter, there fourth the is and seasonality launching about quarter? sense in beginning then going like the end a first a we it less of second how up, into those the lot should the of as year the seasonality strong has over customers' new for a product

Roger Susi

might The second seasonal. up. first jump to finish is this and Roger. found on now is second line and next our Brent quarter strongest weakest you know as business quarter I quarter that, have third -- second, Well, that The fourth in this somewhere is in middling. quarters generally we the

However where to are starting monitor about coming we split talking when you from are and about than are the zero, from you thinking hairs seasonality.

out, domestic we be many than with be to customer business we in to think being many, whole out we rather stepping reordered selling there. starting quarter-by-quarter new and going a from that As the cases will initially in up renewed cycle customers just are already that’s blade

in So initial at and seasonality come this that. as with ahead point, Brent I to of expect might on quarters, monitor. we go few out wouldn't to these much able guide be the add And some

Brent Johnson

it arrives the we're mean because seeing echo really MRI patient Yes, of there I zero. it's that we're be associated that monitor that. right won't from purchases starting seasonality with

So, there're at if their the quarter, flow, -- affect in Again, of first quarter next that opportunities ours. looked year. to it's not going happening affect if really the are that you our of but third plenty competition looking at quarter, of might incumbent second

Scott Henry

monitor for very Okay, the do you thank That's there? as early How the feel in far you manufacturing or are capacity? an color. as Is the launch side at all you issue helpful. on that question. Last pretty comfortable

Roger Susi

of Manufacturing year. made as how the ropes build to capacity the XX been we these XX We've past year. of we've all north said for things already on learning the units over or is these

at we're fairly where doing the manufacturing stable So, on point is it.

on is itself high a that the the get manufacturing hope the to trading while with even and not Now side capacity we volumes problem.

pretty of so we such we -- lead of the get huge influx a won't here. materials of would deliveries than on reason, they amount surprise for -- so times, that a as coming because bottleneck our of but materials manufacturing that them the positive people times course business up a it be because are space long are and could good stretch in. lead the on of orders if take still what a But certain thought, of bigger are Some of

Scott Henry

when saw mirror. events been on mean the and have they organic should growth negatively number you lot we rearview pullout a think backlog. I positively heard impacted XX% around How think just we How growth - then about quickly that in of And there? pump I business. a kind the should of there's

get that rate of the sense Just you where trying growth is? organic a to think business currently in

Roger Susi

certainly we achievable. is of in Well, think that XX% the neighborhood

XX% you we maintain I any rate ASP would -- the If five us get more at you look is we see doing don't the something quantities if just mean we pumps results growth consistent unit we're that quarter at see at look that level, what now, a to. a now, which the on the risk

the primarily year or feel not and long maybe monitor opportunity little business also but a for to certainly growth of pretty on see -- their sequential challenge the not on next would another -- of opportunity that a good and their -- not, next traction targeting X% Brent mean into with customers quarters that off and those monitor. them that the front get certainly use provides wouldn't a have the pretty their any really that, gained is push we setting customers, feel use think after having really use in those year mentioned, I are devices our in up, we're see them the with pumps any about And bit, I going having the coming that's lines strategy you things then getting we and of quarters and patients, several So new of about challenge good talking some pump this like opportunity monitor here there. as

for good pump think achieving as the growth range somewhere I all we see XX% IV So, side? those in as favor in of up things our pretty the stacking on

Brent Johnson

a focus patient critical drive If with will transport strong which issue it that that pumps IV really I it whole patients care add And the is on to along going the MRI. that down to really, could just monitor transporting add we whole helps us believe it. with that

complementary strategy IV that that growth. additional there should a see we pump produce as So, very

Roger Susi

quarters. just some past a given maybe here and monitor reflecting still we we those passed fourth statement, actually the we’ve MEDRAD, us into think we’re of just the and our look through people’s of four year, it’s you you past strong to keep Yes, done look when will business once be It’s still will quarter. going perspective -- hard and the all outside swallowing new that’s it we probably pleased pump growing comp tell hard seeing times my corner with in diameter. it in revenue past us like a at sales mouse that we I have have when opening and those we seeing backlog of this huge quarters, when from the with pump its last snake turn and MEDRAD by book as this quarter, from bit are of a year establishing system business, comp it’s we'll and foothold do. at still well. had done Anyway, the continue in XXXX But selling a fourth that to do could fairly That these we business the that a our they business, as pretty that drops growing out what business

Operator

Our Haimovitch Larry next comes with HMTC. question from

line now is Your open.

Larry Haimovitch

get product. couple labeling the long approval. way you’re got labeled comfortable? is of I number you one was wanted? get the the a a in struggle for it know questions. you So you new Is it Question everything Did completely that to

Roger Susi

certainly, But would needing. bring I’m yes, we everything got question? not it’s that What sure.

Larry Haimovitch

in tracking just Or get you checking FDA approvals just sometimes general. not and but you, Okay. relevant because maybe for

in some clarify to whatever. wanted is there restrictions That’s that? just Sometimes come FDA on approvals and

Roger Susi

maybe want most, yes. than yes, to you know say, I’d

think think, that penny all. nothing sales with give reason nothing so situations, Let’s in would any process a at even meaningful a us

Larry Haimovitch

Okay. And question Brent. the then for probably

got a You’ve product. got a hot force sales now new there's

waiting for product. You’ve been this

it. a at in I've others. seen mind seen product least have clearly my superior You competitively. I've

from say that I my own eyes. So can

got today new candy product, Salesmen probably now migrate be the don’t do product, legacy your and a eye new will to accounts which of the You’ve the products. focus business? is a some obviously bulk many sales you ball which that with of hot very Obviously, on quarters for hot and for your the product. much so continue to product force Brent, sales a very business still off how new manage the force business. of the tend just legacy the of for take they attractive their to

Brent Johnson

that. no pumps told and about Thursday that has here, way given extremely of And it, it great an and forward important down something and we've down IV right is. when really that they’re the count focus continue a are levers my on what the our to compensated That's team Yes, call comes going it’s to plan of the to they to be on way will where a conference part compensation focus the on that thought to comes last had again people sure be that or that and and tried they key over comes I make few is question, can than talk that key sales view the lot difference sales going it that months. we again that I past really designing to to it a give down them

about focusing that’s customers talking to here on alone. going MRI, also I they’re be their products either don’t is that but not our because strategy patient patient market products, are the whole product we’ve and transport, of MRI critical that think again, they’re be So with best got monitor, care that they’re to the way. exclusive talking mutually -- like again it's the this going the about Also and two

XX They makes As one is that's other out do the I Roger Every market monitor you talked that XX monitor comments, pounds. no his can to there up. is that. about know mean in pounds. XXX

hospital. new we’ve product and a we’re a So on entirely department. sending same got the department not it’s again, the new to about same believe that them on call talking calling I They're They’re like products. really in off the

think again, So new very are products I compatible. that's

Larry Haimovitch

comps or made you raised? adjustments in assuming have the very from adjustments so that I’m problem that you that answer don’t have will So your Brett make I

Brent Johnson

Yes.

Roger Susi

for as early we Yes, that we with fourth Larry, in the would of year let talked sitting pretty anticipated -- we beginning me in the about we follow-up. the We earlier, year, of would X be the strongly the become program quarter rolled part And the put this had felt this knowing in compensation here sales -- already million for approval. this to we us. year we've monitor that XXXX monitor the in in at

been this. keen So, yes, on we’ve

Larry Haimovitch

And a Brent. follow-up to

force, sales said in now sales have to may rep the -- the field, call. the reps? this earlier you going the new of You are have sales adding in number you be On reps

And I to Brett, add already made. on to me, changes kind you've had you of Forgive over issues up of force us Bring new if territory force, know covered. sales you going Are issues date reps? some broadly? there felt the me was turnover sort then with going to the rate? some I’m What’s sales

Brent Johnson

advantage sales sales at very with our we’ve year, of we’ve increased I’m We increase opportunity of size mean increasing been to team sales the plans. level, the for the team that pleased in people up right the done of we’ve that plan where now. in grow we’ve it in We net got to sales moving people. our level the a that past staying way we’ve market next we’ve XX number through there. got year grow some to out as and year. I again business taking we're of expansion plans Again, the place to the with that By beginning got and got overtime, the smart

right we’ve I’m sales in now. the expanding are got and with pleased very So, yes, place it we team

Larry Haimovitch

Any go that on force Could add how a might big is possibility? XX, year? or you X another specific guidance next to sales the

Brent Johnson

working we’re That’s at. definitely the range

Larry Haimovitch

And mentioned good. turnover, Okay, sales with the force. a you’re happy then you

force, a conference I Of my hate call and call course but… on you my sales a can I imagine on oh say, get god

Brent Johnson

probably, I my listening. of know some my it's -- on probably not They’re

Larry Haimovitch

am I sure. Oh,

say you there and well. but some expect So, turnover, wouldn’t has normal force that I I sales to day don't you mean the as the night, there turnover, normal been as issue much but But last months? has sales over you turnover in force attrition, about what privately did -- every several

Brent Johnson

sales by surprise. We But, been on caught little through we’ve kind one cleaning little very so a was which positions very had expect we of One, with really And year, and we’ve I and team. results. one experience If we’ve people year, grown grown last of less than the am pleased we two really Yes, sales the like yes, turnover, I those team with talk and sales us bit had us focusing here. half low year a us had -- had said, of over turnover. I turnover. you their our this experience

Operator

Instructions]. [Operator

comes Solow Larry with from question next CJS Securities. Our

line Your open. now is

Larry Solow

Great. the Thanks follow-up. for

XX, think XXX,XXX. think the close Just sales you I further I to guys maybe monitor up competing XX is

And to that of similar of level terms there ramp in is then margin? at the sort sort a inefficiencies sort profitability we're Thanks. be pumps of [indiscernible] to XX be spoken sort that change I is in Is out. about in of where XX it's similar where that that of ASP Is our You’ve sort beginning? even bit that product targeting? discount of gross be question already of the some quote period would little guess to range. -- will beginning? a where would And

Roger Susi

take Sure, this that. will I is Roger. Maybe

yes, well that numbers what remember and So, those doing. are we is you

is high that is thing. out. mid XXs top the priced top market XXs, to compete competitor said. the is primarily the mid So, -- quotes That the are as upper the you the one in one of is U.S., that model this we super the with And recall models to XX,XXX what you of several and discount biggest selling that there the upper that model units, monitor that’s are mean popular going we as price. that that most But ASPs, in in the indicated competing and far

not have as our before. just like us And a with we’re gross it gives as that figure gross we a we'd any indicated far margin margin lower So, pump. goes, no, than pushing

Larry Solow

still beginning that the -- have like? would the it volume real low levels when production where are in Even Okay. for guess on I than I improvement guess the looks

Roger Susi

material end to beginning next or XXX with think a the that up gross more margin we in meaning In that any no, few hours impact units, But, settle XX out. I the might that labor don’t estimates. will

Larry Solow

even guys expense Okay, there that expense or SG&A or Brent to XX whatever -- X XX be maybe. the and more where sales to -- you side. much maybe or we get increases should expect moderate acceleration Will the may in then where over you it in some to growth be or that SG&A other should that get of expect do leverage line whatever you be will line months sort on on what have mentioned don’t just expenses on may XX operating XX an maybe as months leverage grow?

Brent Johnson

equals expect expect to higher on be leverage. get paid to would if our No, that higher administration we certainly, GPOs. it dampened fees some have bit, little a we we sales get would to leverage, didn't And

sales. of So to you expect don't monitor the out that the absolutely, also. of got we kind leverage into incremental to some But get equation factor

Operator

This Roger concludes would remarks. back to today's turn to Q&A like Susi the further session. Mr. for I now call

Roger Susi

are brings. today's you we and the the delighted Thank for soon. with more the in strong our clearance the with the we call. look it growth Again, again and our is you about pump monitor Coupled in IRADIMED future. XXX(k) future and pleasing finishing with you. patient IV announcements we the traction in poised business, participating making all Thank opportunities for for with We're speaking to year anticipate excited forward

Operator

This call. you. the Thank concludes

You may disconnect.

IRadimed (IRMD) 30 Oct 172017 Q3 Earnings call transcript