Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $17.4 million, representing a robust 17% year-over-year growth, bringing net revenues for the year to $64 million, also a record [6][17] - Operating income reached $3 million in Q4, marking a 30% increase year-over-year, with net income of $2.2 million, a 21% increase compared to the same quarter last year [7][19] - Diluted earnings per share were $0.25, a 24% increase versus the prior year [7] - Gross profit increased to $50 million, or 78.1% of net revenues, up from 76.3% in the previous year [19] Business Line Data and Key Metrics Changes - Home Care segment revenue grew 15% year-over-year to $57.3 million, while Hospital Surge revenue increased by 60% and distributor channel revenue grew by 76% [6][17] - Non-home care business revenue grew 28.8% to $6.7 million, primarily due to increased distributor and hospital revenue [18] Market Data and Key Metrics Changes - The company noted a significant opportunity in the bronchiectasis treatment market, estimating nearly 800,000 patients could benefit from their SmartVest therapy, with over 4 million more potentially undiagnosed [11][12] - The company was recognized as the seventh fastest growing public company in Minnesota, highlighting its competitive position in the medical technology sector [8] Company Strategy and Development Direction - The company is focused on expanding its direct sales team, ending the year with 55 representatives, and plans to increase this number to 61 in fiscal year 2026 [9][18] - A manufacturing optimization plan is underway to add new capacity, expected to be completed in early fiscal year 2026 [14][35] - The company is actively working on a campaign to raise awareness about bronchiectasis and the role of HFCWO therapy in treatment [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, expecting to leverage investments made to drive double-digit top-line growth and strong operating cash flows [21] - The company is well insulated from tariff-related issues due to its domestic manufacturing operations [13] Other Important Information - The company completed a $5 million stock repurchase program in Q4, demonstrating confidence in its future [7] - The implementation of a new CRM system is expected to enhance sales productivity and provide better market insights [14][44] Q&A Session Summary Question: Can you provide more color on the strong margins in the quarter? - Management indicated that strong growth in home care revenue, a high-margin channel, contributed to favorable mix and margins [24] Question: What caused the hospital channel to be so strong? - Management noted investments in hospital-focused sales reps and the potential for hospitals to serve as gateways for home care prescriptions [26] Question: Are new entrants in the market increasing awareness around bronchiectasis? - Management believes that new drug approvals are raising awareness, which could be a tailwind for the market [29] Question: How will the manufacturing optimization plan impact capacity and margins? - Management stated that the plan is aimed at expanding growth opportunities rather than directly impacting margins [35] Question: Will there be further expansion of the hospital-focused team? - Management confirmed plans to expand the team cautiously, ensuring a successful algorithm for growth [41] Question: How is the new CRM system performing? - Management reported positive feedback from the sales team regarding the new CRM system, which is expected to enhance productivity [44] Question: What response has been seen from VA-specific marketing efforts? - Management indicated that over a million dollars of hospital revenue was generated from VA calls, highlighting the potential in that market segment [54]

Financial Data and Key Metrics Changes - The company reported record revenues of $16.3 million for Q2 FY 2025, an increase of 18.7% from $13.7 million in Q2 FY 2024 [5][13] - Net income reached $2 million, or $0.22 per fully diluted share, compared to $1.8 million in the same quarter last year [5][15] - Gross profit increased to $12.6 million, representing 77.7% of net revenues, up from 77% in the previous year [14] Business Line Data and Key Metrics Changes - Direct Home Care revenue grew by 15.2% to $14.6 million from $12.7 million year over year [13] - Hospital segment revenue increased by 16.8% to $723,000, driven by higher demand for capital and disposable products [13] - Durable Medical Equipment (DME) distributor revenue surged by 188% to $807,000, reflecting strong demand from DME partners [13][7] Market Data and Key Metrics Changes - The company is diversifying its customer base beyond the core Home Care segment, with significant growth in the hospital and DME segments [7] - The annualized home care revenue per weighted average direct sales representative was $1,077,000, slightly above the target range of $900,000 to $1,000,000 [13] Company Strategy and Development Direction - The company aims to enhance shareholder value through operational improvements and revenue diversification [6][12] - Investments in personnel, technology, and process improvements are ongoing to support growth and efficiency [9][10] - The "Triple Down on Bronchiectasis" campaign is focused on raising awareness and increasing prescriptions for SmartVest Clearway technology [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining operational momentum and achieving double-digit top-line growth for the full year [16] - The company remains focused on improving execution and penetrating new revenue sources while investing in infrastructure [12] Other Important Information - As of December 31, 2024, the company had $16.2 million in cash and no debt, achieving a working capital of $35.5 million [16] - The company has seen a significant appreciation in stock value over the past six and twelve months [6] Q&A Session Summary Question: Competitive response to SmartVest marketing - Management noted that while competitors have upgraded their products, it has not significantly impacted their business [20][21] Question: Developments in drugs for bronchiectasis - Management indicated that new drugs are being developed but emphasized that airway clearance remains essential for patient care [24][23] Question: Revenue per sales representative outlook - Management expressed optimism about maintaining or improving revenue per sales rep, attributing recent success to better performance management and onboarding processes [25][26]