Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $20.4 million, a 14% increase from $17.9 million in Q2 2024 [12] - Gross profit margin remained strong at 78%, with net income increasing 18% to $5.8 million or $0.45 per diluted share compared to $4.9 million or $0.38 per diluted share in 2024 [14] - The company raised its full-year revenue guidance to $80 million to $82.5 million, reflecting a 9% to 13% growth over 2024's $73.2 million [10] Business Line Data and Key Metrics Changes - MRI compatible IV infusion pump systems contributed $8.2 million, up 19% year over year, while patient vital signs monitoring systems contributed $5.9 million, up 9% [12] - Disposables revenue grew 14% to $4.2 million, indicating increased utilization of devices [13] - Domestic sales increased 18% to $18.2 million, while international sales decreased 9% to $2.2 million, with domestic revenue accounting for 89% of total revenue [13] Market Data and Key Metrics Changes - The company anticipates a significant demand for replacing older 3,860 model pumps, with over 6,200 units in the U.S. market alone that are over five years old [8] - The company expects to increase annual sales from 1,000 to 2,000 channels for pump replacements starting in 2026 [9] Company Strategy and Development Direction - The company aims to achieve a revenue run rate exceeding $100 million by 2026, driven by the new 3,870 pump and increased replacement sales [7] - The new pump is expected to have a higher average selling price (ASP) of approximately 12% more than the existing pump, which may positively impact gross margins [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong backlog and anticipated continued growth, particularly with the introduction of the new 3,870 pump [18] - The company acknowledged potential operational inefficiencies during the transition to a new facility but remains optimistic about future performance [10] Other Important Information - The company declared a quarterly dividend of $0.17 per share for Q3, payable on August 28, 2025 [10] - Cash flow from operations was reported at $7.7 million for the quarter, up 17% from $6.6 million in 2024 [15] Q&A Session Summary Question: Can you talk about the composition of the current backlog? - Management confirmed a record backlog as of June 30, composed of both pumps and monitoring systems, providing good visibility into the second half of the year [17] Question: How do you expect 3860 sales to trend in front of 3,870 launching? - Management indicated that orders for the older pump would remain strong until the new pump is actively marketed, expected around December [20] Question: What is the expected ramp-up to the $50 million of pump revenue? - Management expects a gradual increase in bookings for the new pump, with Q1 anticipated to be weak but strong growth expected in subsequent quarters [25] Question: How long does it take to fulfill the backlog? - The backlog for monitors is about four to five weeks, while the pump backlog is approximately five to six months [35] Question: Will there be upgrades from the backlog? - Management stated that only a limited number of new pumps would be delivered this year for feedback purposes, with no significant upgrades expected from the backlog [36]