Financial Data and Key Metrics Changes - The company achieved record revenue of $18.9 million, representing a robust 16.3% year-over-year growth compared to $16.3 million in the same period last year [4][13] - Operating income increased by 42.4% year-over-year to $3.6 million, with operating income as a percentage of sales reaching 19% [5][14] - Net income rose by 40.3% to $2.8 million, or $0.32 per diluted share, compared to $2 million, or $0.22 per diluted share in the previous year [15] Business Line Data and Key Metrics Changes - Revenue in the direct home care business increased by 18.4% to $17.3 million, driven by an increase in direct sales representatives and higher net revenues per representative [13] - Home care distributor revenue grew 12.1% to $0.9 million, while hospital revenue decreased by 9.4% to $0.7 million due to strategic prioritization of shipments [4][14] Market Data and Key Metrics Changes - The company executed 25 payer contracts in the first half of the fiscal year, adding 2.9 million covered lives to the existing 270 million [9] - Approximately 923,000 patients in the U.S. are diagnosed with bronchiectasis, with only 16% currently benefiting from high-frequency chest wall oscillation therapy, indicating a significant market opportunity [7] Company Strategy and Development Direction - The primary strategic opportunity lies in addressing the underserved bronchiectasis market, with a focus on raising awareness and educating healthcare providers [7][9] - The company launched the "Triple Down on Bronchiectasis" campaign to promote a comprehensive treatment approach, which includes airway clearance, antibiotic treatment, and inflammation reduction [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, highlighting the 13th consecutive quarter of revenue and profit growth [4][42] - The company remains vigilant about potential challenges related to tariffs but believes its U.S.-centric operations provide a competitive advantage [11] Other Important Information - The company has a strong balance sheet with $13.8 million in cash and no debt, reflecting a commitment to shareholder value through a $10 million stock repurchase authorization [6][15] Q&A Session Summary Question: What contributed to the strong performance in the home care Medicare segment? - Management attributed the success to improved sales force execution and increased awareness of bronchiectasis among prescribing physicians [18][19] Question: How is the launch of Brinsupri impacting the business? - Management views Brinsupri as complementary to airway clearance, enhancing awareness of bronchiectasis and contributing to their strong performance [20][21] Question: What is the expected productivity trend for sales representatives? - Management anticipates that productivity per representative will stabilize within the $1 million-$1.1 million range as new hires are trained [25][26] Question: Are there any significant trends in payer mix growth? - Management noted that there are no significant trends favoring one payer type over another, with both government and commercial payers showing volatility [33][34] Question: How often does the board revisit share buyback sizing? - Management indicated that the board continuously monitors cash position and share pricing to optimize shareholder value through share repurchases [36][38]