MASI - Earnings call transcript Q2 2018

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Operator

Good afternoon, ladies and gentlemen, and welcome to Masimo's Second Quarter 2018 Earnings Call. The company's press release is available at www.masimo.com. At this time, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. I'm pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

Eli Kammerman

you. Thank everyone. Hello,

Masimo's are Vice today Micah CEO, Kiani; XXXX which Joe This our certain Joining regarding expectations of Chairman Finance Executive fiscal reflect statements, forward-looking President will performance. Officer, judgment, and and including call of me financial contain and current Chief Young. Financial

projections materially. discussed risks to could that cause detail actual results subject However, that periodic the cause factors they to filings are are actual SEC. Risk could materially and from in our our differ uncertainties in and results forecasts to differ with our

section You'll include find these as these We of financial calculated in our measures. of accepted financial discussion non-GAAP with Also, the measures will GAAP. Investor accounting call accordance refer are or not Relations in generally this to certain that website. a generally principles

measures In an indicator in these addition release measure decisions. order together statements informed our to are filed as The make the provide company's second our website. financial for of transparency additional earnings business the better and directly ongoing measures financial to supplementary comparable to to today, non-GAAP measures these business. information reflect the the with company the performance with to same Investors consider to Management intended increase the Reconciliation financial underlying our the most and non-GAAP performance. included are GAAP in should the company's sees the operations. of financial of way budget, all within investment be quarter to XX-Q measures assess these and company's that financial of on results SEC these measures to enable assesses performance, evaluate, uses investors results, believes information operations and non-GAAP GAAP management the

we a Joe call I'll be website of Kiani. In content posted addition presentation issued pass supplement Investor the the section to to now earnings will covering have quarterly today. our within Relations this morning, the the release to we

Joseph Kiani

again growth Thank you, million, Second you year same product double-digit achieved revenues, XXXX thank us Eli. compared XX.X% a We which the $XXX Earnings to for for Good joining for ago. afternoon, and a quarter Masimo's once increase Quarter Call. reached

Our share XX% to per $X.XX. non-GAAP grew by earnings

our execution new results solutions reflect innovative of clinical our of long-term and adoption rising plan. Our

second to of and worldwide year in discuss OEM with formed the our rose For increase approximately which attributable technology XX% strong technologies demand the XX,XXX shipments over both boards reflects quarter, units, quarter. launched monitors is later and partnerships noninvasive The of prior business. the exciting growth and to today. these our topics call strong I'll providers. in healthcare our new direct We an key

quarter ask more in Micah to and an second provide to our review you I'll XXXX Now, financial results with Micah? guidance. our detail update

Micah Young

you, Thank afternoon, everyone. and good Joe,

of call non-GAAP that remind refer today's measures today's further in on started, reconciliations. many the unless presentation covered earnings we a you financial let information supplemental are Before and masimo.com for investor me on the otherwise. non-GAAP to information, release, quarterly Please basis, regarding get our financial noted

in experience happy As strength we Joe with are to continuing business. our noted, the very we are

with of year oximeters in in quarter. XX,XXX approximately growth of Our over quarter non-GAAP results shipped second share. of line growth over year-over-year quarter strong the That's growth and per double-digit our second monitors reflect for XX% Also, we earnings the a quarter, and quarter. XX% operating the our reflects momentum, XXXX of margins, record prior which function top during exceptional continued brain expansion the growth, another

direct OEM-based. year-to-date and demand accelerating is basis, as as our our very XX%. growth Our on is strong driver a for broad This both growth a growth reflects technologies, well

year reported we quarter. reflects over of royalty growth of other million, which $XXX.X second of revenue, prior XX% and quarter including XXXX, the the For total revenue,

reflects or growth which Our XX.X% of the the product impact excluding revenues were of FX. $XXX XX.X%, quarter, for million

continued $XX.X to The SedLine million was compared in and products, second Capnography, Function well as including current prior quarter, quarter We OX our Monitoring, newer for the platform, strong included from NomoLine revenue million rainbow and in Brain to $X.X $X.X other as our Regional performance see Oximetry. XXXX. year results of to quarter the royalties, million $X.X quarter. for million the compared Royalty

to due Capnography, million product rainbow current engaged revenues NRE newer quarter. in reduction into technology brain Philips NRE now into of significant including XXXX, The are compared approximately monitoring, year OX is year-over-year to our year regional that the last $XXX,XXX integrate addition, platform. function revenue, the completed oximetry In NomoLine of SedLine technologies, included amount work we the revenue in prior quarter our NRE in Philips to integrating primarily the monitors. in and we In the $X.X monitoring

Now to the the P&L. let's of turn rest

quarter second revenue, prior and the in XX.X% margin, year Our XX.X% versus non-GAAP including royalty gross NRE was period.

improvement product as quarter by was primarily to and compared RD customers benefits points points driven to percentage same to of to This general gross mix the a last favorable and manufacturing line. Our upgrading revenue XX.X%, the basis newer for basis expenses quarter margin in administrative XX efficiencies sensor year. XX.X%. total the XX.X% from selling, increased second Non-GAAP XXX decreased

progress invest drive front, drive project-related at future to margin the in in as primarily efforts the levels same due the we rate Most continue growth. that we quarter technologies point leverage, increased last higher XXX same Overall, staffing lower when continued was to development on this a Non-GAAP profit the accelerating our second last of considering growth. points to to at XX.X% improvement improvement time expenses our the quarter, costs, in our to to We much XX total basis we expenses making compared basis the X% meaningful, the revenue operating and marketplace. the in investment a SG&A business. delivering fact the non-GAAP points are profitability R&D compared XX% as with demonstrate operating same was opportunities growth the basis we to innovative than by increased year. to increasing to clear to X.X% as of and This product revenue, XX in year. our research to in grew great in time continue improvements, XXX making increased basis at points, importantly, profile while quarter profitability The same invest are we progress

due income associated year. cash. net Moving quarter, interest last the non-GAAP with basis in further P&L, much having position the increase for down increase to to a the same was was invested on stronger and an the approximately million non-operating $XXX,XXX $X cash due interest of $X.X a yields approximately period income, to million higher in The primarily the compared

Now to tax. turning

rate the U.S. effective expense XX.X% year $XX Our tax in was of to tax non-GAAP in The non-GAAP XX.X%, resulting tax quarter period. ago million, lower effective the changes second rate laws. tax a a rate tax in reflected recent in of non-GAAP the compared

approximately shares quarter the million, down was XX.X average for was weighted Our from the outstanding period. in XX.X million which year prior

income Second or quarter comparison, income XXXX In non-GAAP was net share. per second or diluted net XXXX $XX diluted million, share. was quarter $X.XX $X.XX million, non-GAAP per $XX.X

and XX.X% per period. As our profitability year this the a increased over strong quarter, performance result prior share non-GAAP earnings of revenue

point per second earnings quarter and were per included Turning results. a GAAP non-cash which basis $X.XX of tax included stock earnings for second comparison, excludes represents for related $X.XX million, net operating a exercises. XXX quarter $X.XX diluted to diluted $X.XX of XX% exercises. stock improvement, a the In This option same tax XXXX XXXX significant of share, Adjusted million, GAAP the last or $XX.X to reflects XX.X% which leverage. quarter benefit benefit year, our EBITDA net which compensation, the in to the related or XXXX. option share, $XX.X to margin, quarter was were impact GAAP stock-based second compared

at outstanding year. longer days payment down in results primarily strong the of outside where quarter days generally which quarter, and to was the have terms. from first cash at sales XX days the XX end Our last of we improved are collections second the U.S., the These XX due end from was days

days quarter, the the down on XXX at in first the at days inventory year. end days and of second end quarter, was last Our the was from XXX hand which of XXX days

strong of of of end the Furthermore, approximately cash the our $XXX.X increased generated XXXX. of our by earnings and compared the performance have capital million of we result $XXX.X cash second half investments first short-term during improvements, to at a and flow $XXX end free million As the million quarter, working at last $XXX.X to year. million

Now I'd full you update guidance. XXXX our financial to like year on

be including and are royalty total to revenue, $XXX other For XXXX, million. approximately revenue, now we projecting

increase million, million full We XX.X% revenue XX.X% on product basis, basis. are This benefits dollar above most sales guidance an which stronger a a to in represents due currency constant reflects increase by year growth million the increasing now $X $X million to exchange of guidance, and partially a against reported strengthening approximately currencies. prior of the $X our our due foreign U.S. of the reduction of comprised is on $XXX to year-over-year which volume, offset major for

the growth our X.X% to full XX.X% we revenue the from of Excluding growth impact exchange, are guidance foreign product raising year. for

and royalty remains for the revenue unchanged, for anticipating year. we still are other guidance Our approximately million as $XX

project XX.X% and for operating royalty guidance at assumptions, unchanged non-GAAP unchanged total are XX.X%. remains of remains XX.X% total operating for non-GAAP And margins guidance continuing product margins, at Based these of revenue. gross And margin gross expense non-GAAP expectation of non-GAAP the to approximately revenue, finally, other we year. total remains total Our at including unchanged revenue. on profit XX.X% our

share rate expect will million not still the – of our in year any XXXX. for additional estimating approximately year. tax this for non-GAAP in the approximately million, we non-operating shares the repurchases further remains weighted And Also, average generate are does to we P&L, XX%. $XX remainder our unchanged at Moving outstanding which income $X reflect $X down be approximately that

issued this the share Board by in repurchases, authorization year. XXXX three-year Regarding repurchase our expires

periodic discretion Based an upon three-year team, trading So these our XXbX-X million reflects growth for are program, which dependent now assumptions, three could a typical plans today, year-over-year market, approximately increasing be include announcing repurchase that of shares. open implemented This the we X up a the all new repurchase with as authorization $X.XX, of can EPS share as are purchases is in the executive timing which next of guidance we to amount non-GAAP well the over to years. XX%. on of

are $X.XX. tax a of benefits offset a of excess will earnings by by the $XXX,XXX reduction for $X.XX sales of of we tax to approximately turn and of in consisting option $XX.X And which volume, are from of approximately exchange a $X.XX million prior Just U.S. guidance from partially clear, by GAAP I and of $X.XX due increase and are strengthening that, raising XX%, share foreign the projecting year, million our dollar. Included rate EPS to our $X.X a benefits perspective, tax. GAAP offset stronger the we depreciation from call foreign per guidance the GAAP to due of in expense approximately $X.XX, acquisition-related to of be up exchange projection back Joe. stock net amortization are after-tax this gains, exercises With now

Joseph Kiani

our results, our happy you, expanding Winthrop rainbow new of were and General our and and New portfolio Measure-through quarter Hospital to with PBI to other due such noteworthy quarter, renew the which monitoring NYU of exceeds the products Brigham important SET of for including Motion HealthCare. the Thank in Women's continuing as that with second product market unique and part Partners to growth our performance realize with In and make the Perfusion second clinical expanding Hospital, oximetry proven oximetry, customers, Reserve SpHb, differences Hospital We're We're rate Low York, Index, customers reflect care. breakthrough of Mass growth Micah. more gain our SET in (XX:XX:XX). pulse Oxygen we that happy success to technologies, sales real pulse capabilities

and making hospital response the we overload automation minimize of benefits Patient great desire seeing maximize systems by including Root implementing for UniView, customers, cognitive with of who strong executives automation and important launched products, QX, our new SafetyNet. We're team to hospital positive and processes using UniView. Replica to institute in During potential We're progress communication.

recently patient and data to productivity, solutions and as real-time patient consolidate and data embodies of safety Vital UniView errors. which App The is In safety. well a can any trends. data the cellular Replica, as clinician improve good all display or UniView sources, more that Masimo real-time as no innovative are, announced machines, and same Root, transcription clinicians patient by historical integrated an such available ventilators, as UniView access long so a can should improve reduce where devices alarms offered as multiple one the and have addition, is act and monitors, supplementary Signs pumps, and Masimo, large, example we overload gas have for it cognitive provides Check monitors, as anesthesia clinician designed simultaneously of they communication. of or to with they a matter variety IV that upon from clinician and from on central third-party to data reduce from display data Wi-Fi a visible Also for view

visibility to adoption also of support with advanced clinicians, to the positive Our are collection build. data gaining parameters continues as

studies with from been data New monitoring positive. SpHb has

of that management XX% over For example, at monitoring. blood of and that evaluated the three-year appropriateness of period clinicians introduction management SpHb, in of RBC only found using included Italy, blood program transfusions appropriate. recent before a a to prior after University RBC were researchers patient transfusion program the study Parma, a the the of implementation post-operative These patient SpHb

the identify three with hospitals, they depression are Masimo's legislation. between to respiratory the that a monitoring prescribed Parker's after recently which memory by of drugs shape and respiratory transfusion monitoring used opioids as oximetry of of for believed a of found XX% his Stewart, days Parker control following opioid researchers pulse in painkillers, tragically for examine surgery, links dose. Continuous Resolution a a who The half Bill, introduction transfusions away had case and only Parker newlywed pain significant monitoring opioid-based studies the Utah urges patients pulse prescribed on oximetry sleep XX-year-old is in postoperative and home saturation RBC technology opioids. prescribe oximetry result This and Masimo's encourages patients for to with prescribed taken after pulse SCRX, program, depression passed increase caused to surgery, patients the SET got in Senate appropriate, opioids. resolution, nicknamed clinicians, be appropriateness. tonsillectomy the that the doctors However, receiving helped in possible oxygen issued was of of Resolution were SET boost

by stated Our use specifically use law, for telemedicine Dr. Rad-XX that prescription six opioids capabilities, our designed lives. that patients who during the new built-in In postoperative closing, recovery discharge has hospitals the Michael already the breakthrough we'll employed he of technologies, their of caregivers championed utilization increasing period. the saved us, as be with cost monitor we're excited Catten, with the of home, their in with technology a improve has the care first for can products to successfully care. the XXXX we associated and call to about help designed practices patient half continue behind questions. of year, see Operator? remainder With outcomes, to of open reducing that, our and all believes while

Operator

of our you. comes Wise first from Rick from Thank the line And question Stifel.

line Your now open. is

Rick Wise

so that off Micah, Thank obvious, or Eli. boards quarter. Joe, afternoon, X,XXX with we the better monitors than the on I'll you another start XX,XXX, for and number, gosh, Good excellent for. something Maybe looked like was

if will, another, Masimo? and second faster, OEM, ahead they bigger Was successes there maybe but how it the both that in more detail. You performance, direct The by convert or relationship upgrade, early particularly and little the one Philips do and maybe seeming we you. the about strong, strong understand that as demand number or comments you the think outperformance aspect to was these it help in was prepared driven Thank mentioned us half? to looking numbers or

Joseph Kiani

it all a throughout majority Philips, was, really positive SET Rick. there so mixed was Thank SedLine just new agreement surprises welcome, of really (sic) It it question. while of but direct We was little you had not all, was our OEMs, much of very level of a it's demand, that SET], the wonderful well, and your from for our Rick, was the Philips. of all surprise. it from really no working And business. business. across of across very anticipated vast OX. or big really it's [Rainbow came all been You're first it Rainbow

it seeing, business good. SET] is strength Rainbow is So our the the incredible really uptick shows [Rainbow SET (sic) just

renewing on We OEM redeploying and standardize on also to of of is that business, and usual top the of decided gotten nice had doing that, they've Zoll one of Department their Defense partners, is or very a Department as – has Rainbow. business, all Defense our our the of monitors,

while been one [ph] it's adding So again, of (XX:XX:XX) breakthrough, again this the of had weren't new volumes reasonably those business. things that's the strength we the to

Rick Wise

Thank you, Joe.

think I and at be half, – revenue, maybe, Help about performance. product the us the revenue product Looking again Micah, at this should asking of you. second the excellent

fourth third color the got welcome. not, new strong, have similar we comp products, second You – saying. actually you've perspective Why or is easier all why But wouldn't stronger would any a just in see not a with you're comp quarter, an Why half? or relatively demand the if again, of quarter. comp tougher relatively be in these easier sort

Joseph Kiani

products while oximeter, becoming and looking Well, even let they forward-looking with first so that, the the down, as be the our see us going that new did Eli slowing seeing looking don't seen as question, but it at I they're also in opportunity didn't success, at push-pull in it's be strong a I'm Micah level, think high at type are looking customers to should the think should really I the of fact, glad details, they're nice that get oximetry, you've statement. they're that for I'm at for half. anything it having us. to

Micah Young

Yes.

Joseph Kiani

anything Micah, to that? do to add you want

Micah Young

half XXX XX our have In the basis actually constant the currency of benefit pointed our have think constant second and point contributing we half rate actually is, half growth. Yeah, We're a first is, are to year, a to headwind. point out, the tailwind Rick, currency accelerating back growth basis our half. explain as second the I rate. on a Joe The best the we way in challenge basis we're that's growth having in we

you back So exchange... the foreign if

Joseph Kiani

Foreign currency.

Micah Young

headwind. ...yeah, so foreign currency it's a

So step-up actually basis of out, year. about XX back in if you the see a growth of you back half of that points the

that momentum some definitely facing acceleration, business, of headwinds. I just are strong So the shows our the we but think

now As because over X% million currencies anywhere guidance, I the days. mentioned $X year our from has a dollar the prepared our $X and a full XX little assume ago X% benefit, in assuming we the that's the and rates, to benefit prior for bit exchange major on million remarks, against the last strengthened by we're

but should be to around our want back to in it's you able some a FX, just growth. So, provide and organic really clarity, into step-up

Rick Wise

great any Yeah. there there and product strength? core – all what the That's speaking prior pipeline me. for the And but given in a urgency a share authorization I M&A is on on is maybe appreciate any the updates – quick expect signal this Is less announcements the last for – is color. we Two expiring, see last momentum new still questions there, Joe, just any updates Thank ones quarter. the it of the expect that looking year? your less does business message and Joe, repurchase message you and when we one Could ahead, and we might might for some me, – something?

Joseph Kiani

then we small prudent of we something that, the you you. thinking were thing thought we're for to share combination find. a thought redeploy looking that point even hard Thank wouldn't probably be the us We're are that we know, I strong rate because it's cash we at cash, help seeing acquisitions, not that businesses message to Masimo, it the are a could had And think We growth had wasn't is of as couple therefore much maybe a looking buyback. at an the Well, just will opportunity. require acquire we that not lot can stock haven't should you. and our as because therefore two things we one the think But we this in acquisitions are Thank going found we repurchase. of do. do or broaden anticipated strong. cash, We to and hoped or requires but

as know, have, as the plan. new you forward, we seven-year a pipeline far As

the in come We pipeline this from years are that to have products out about should that now products five that year. we out have

We new launch. products we clearance, new some have have exciting that some are pending products and exciting that are pending FDA

they I'm So, new continue should QX, of hoping announced, those QX, growth. helping will be and products towards our fuel some

Rick Wise

again. Thanks

Joseph Kiani

you. Thank

Micah Young

you, Thank Rick.

Operator

Larry Our from Keusch the question Raymond next comes James. from line of

now Your line is open.

Lawrence Keusch

all was and Thank in afternoon, quantify this or is newborns, I month size might of everyone. it you do how you was I suspect release countries opportunity, similar to had much you UAE, be just able where that initiating realizing Joe, I potentially protocol then more guys are you. close curious other screening Good about the so the a our small, UAE a a ago wondering, hoping could about and the the so this and importantly, given think implementing you of a go. importance program? I'm more relatively for

Joseph Kiani

Sure. you're think XX about Well, right. total I of Sure. hospitals. UAE has a

to wonderful So thought of well revenue for rock for a people, that adoption patients, was CCHD this going as for in their it world not the terms see kind But continued our for technology to screening. us. it's thing it's of their as of I

think, shows not with very XXX,XXX CCHD what biggest but our saves I CCHD know, probably China the from only screening patients cost-effective. do there's that lives reliability, of reliable been its accuracy because that screening large-scale technology three you enabled studies, is technology our and can as

I states. Sweden impact. are the have, in many of biggest imagine, a countries just the part of yesterday world, for will got see China as Switzerland have Now, far newborns decided which already believe standardized can course, we CCHD your the as answer probably of but U.S. to has, increasing, screening word screen their do and We across absolutely population doing you second has question all of and has CCHD that is screening, the yes. the has, probably all as China momentum huge newborns

Lawrence Keusch

to after go And that standardize Okay. specifically, that on that? China point have is at now you decided this they've that to business

Joseph Kiani

is. Yes. Yes, it

this them been been local had No technology, their to see have have even with our CCHD would proven been inconclusive and be tests has offer nursing been screening, their reliable technology. of with efficacy. able deploy with to all that abandoned been been how to technology until state or Masimo others studies have other done has point either up and there about Now

while by new So they use advantage the China, want want to causing announcement of take do is to Masimo. work CCHD if to we'll they other the choice. out cut screening, to have really results There's get go that them to no do really have our what's

Lawrence Keusch

Okay. That's terrific.

trying obviously the there understand comparison. wanted repurchase that sure from change under diminish then what's just to the Just going about do couple around of ago? then year-over-year make I'll just end. this products in and the any that just repurchase was such. year Question that trade of one. potential rattle them the you're and off do so them that (XX:XX) describing various but word you was a question that know just and boards share that in I'm number, perhaps to language consistent have the driver some an on you off that's there, was tariffs thoughts ASR on no I and authorization? I lots had the use you you I lastly, circuit just ability can monitor And just your to definition have doesn't tick these any and wondering definition is on, two in the of with headwinds it, year, from is, discussions Obviously, what

Joseph Kiani

questions. Okay. of to Well, answer all those try let me

driver. it's The it, a includes reason we on broadened it's we OX. First describe oximetry, the and SET no numbers, driver of the SedLine just longer it still and rainbow way because all,

of it's just have seeing – recently, not Now, well. their but consumer together it's don't put was to sensors those we reported own as obviously the so the and about sensors SedLine go. it reason increase, you're not to units include OX, XX,XXX They a that how X,XXX will the know because we

to like might yes, I we're we whether or question first It that do your decided an ASR. doing not. something as it, do was... from precluded going far As haven't was the ASR, not And certainly we think yet but

Micah Young

On tariffs.

Lawrence Keusch

Just on the yeah. tariffs,

Joseph Kiani

Yeah.

yet We and our Sweden, manufacture not Irvine, New in any impact We have seen tariffs. on Mexicali. Hampshire, products

so little problem Mexico. We we tariff war a with be long hopefully China, not as do to and with as should have a very don't that Europe have

Lawrence Keusch

Thank you, Appreciate terrific. it. Okay, Joe.

Joseph Kiani

you. Thank Yeah.

Micah Young

to Sorry, to Joe's on Larry, I want add drivers. just comment the

Just quarter. numbers same the were and to clarify, OX also in the SedLine prior year

But a very we I clarify point, that it's So comparing to consistent it's just up number. of small driver we the But want – year-over-year. portion Joe's to to are apples apples.

Lawrence Keusch

That's Thank Perfect. Okay. helpful. you.

Joseph Kiani

Thank you, Larry.

Operator

question next Bill Quirk line from comes from the Jaffray. Our of Piper

Your is now line open.

William R. Quirk

Good afternoon, Great. Thanks. everybody.

Joseph Kiani

Bill. Hi,

William R. Quirk

Hi, Joe.

Joseph Kiani

How are doing? you

William R. Quirk

So – Very very thank well. you. a questions couple of well,

probably a from follow-ups the couple ones. argue, I'd of, Just earlier

enthusiastic you XX,XXX quarters, and talk the But sustainability number, quarter Joe, to the you the to as number? go with can of So, really compared is this of sound outlier driver recent business, about the obviously driver strong an raising outlier this back guidance. obviously sense, an about in And good course.

Joseph Kiani

can remember number. gone boards thought sustainable years ago, XX,XXX the doing up what to XX,XXX, Well, about I you, a was I you we're We've tell couple which guess if we quarter.

doesn't quarter, we of type recommendation the you look This like and we overachieve, know. But my numbers, down. to XX,XXX saw if hopefully to it slow let demand, it's is we'll assume the going

William R. Quirk

the phased Fair to be product us with Chinese going Okay. this secondly, respect could new enough. over already? to get that. on you. timelines handle Are Is implementation And like Thank think they that? in you then Just trying a several screening program, for help look about years? the to what ordering

Joseph Kiani

months. Typically, on been so place this timeframe XX know a for yet group from like of are announcement to that years, under. this yesterday announcements within a when just made, The few working what have take done came stakeholders I don't Sure. this it's in is going

know slow everything certainly in is China XX Now, not a going to they're country. big down. it do but going don't how to months, I we're

do in sensors. most we'll work people when and the with reusable mind, hopefully CCHD them, screening, they of use think do it So sensors. with to keep I don't time They single-patient-use

know, so, that sensors buying not it's but devices year the they'll be revenues. to get reason, the good impact, and as CCHD, buying have home of it's huge die. about don't newborns or of to many precise. they you X.X% see uptick go be on And for reusable these X% about every to and a So really be be they going them if just They'll because other detected,

I cool. be to going just, think, So it's pretty

William R. Quirk

lastly the Thank Joe? little the you. rainbow me, color on of just for then it. business, a maybe Got side And

Joseph Kiani

Yeah, really strong. is going rainbow

good business, think you seeing with a other as that take looked positive I Saudi growth it. is if consumables parameters, go the all customers our a holistic, at predictor along which a it in of out just we're you additional

you Saudi, include years, actually better renewal came two we guess, (XX:XX:XX) our out year. prior or for If and I the than order, next just it got the went

expect to consumption. Saudi see rainbow we in with even So increase Arabia

William R. Quirk

Very good. Thank you.

Joseph Kiani

Thank you, Bill.

was question. think last I that

So questions, if wonderful a you sign and of summer. you. off, wish going Thank no rest to all your we're there's other

Operator

today's This all may Ladies great thank in for and you your disconnect. gentlemen, you Everyone, have today's day. a participation and conference. concludes program,

Masimo (MASI) 1 Aug 182018 Q2 Earnings call transcript