Financial Data and Key Metrics Changes - For Q2 2025, the company achieved revenue of $20.4 million, a 14% increase from $17.9 million in Q2 2024 [3][11] - Gross profit margin was reported at 78%, consistent with the prior year, with net income increasing 18% to $5.8 million or $0.45 per diluted share [12][13] - For Q3 2025, the company expects revenue between $20.5 million and $20.9 million, representing 12%-14% growth over Q3 2024 [9] - Full-year 2025 revenue guidance has been raised to $80 million-$82.5 million, up from the previous range of $78 million-$82 million, indicating 9%-13% growth over 2024 [9] 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% [11] - Disposables revenue grew 14% to $4.2 million, reflecting increased utilization of devices [11] Market Data and Key Metrics Changes - 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 [12] - The company anticipates a significant demand for replacing older 3860 model pumps, with over 6,200 units in the U.S. market alone that are over five years old [6] Company Strategy and Development Direction - The company aims to achieve a revenue run rate exceeding $100 million by 2026, driven by the introduction of the new 3870 IV pump and increased replacement sales [5][8] - 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 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing a record backlog and strong performance in existing product lines [16][18] - The company plans to introduce the new 3870 pump in Q4 2025, with initial sales aimed at gathering user feedback rather than generating significant revenue [20][21] 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 the previous year [13] 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 a strong monitoring backlog, providing good visibility into the second half of the year [16][18] Question: How do you expect 3860 sales to trend in front of the 3870 launching? - Management indicated that orders for the older pump would remain strong until the new pump is actively marketed, expected around December [18] Question: What is the expected ramp-up to the $50 million of pump revenue? - Management expects initial sales of the new pump to be insignificant in Q4, with a stronger ramp-up in bookings anticipated in Q2 2026 [21][22] Question: Is there an ASP increase for the new pump? - Management confirmed that the ASP for the new pump is expected to be around 12% higher than the existing pump [30] Question: How long is it taking to fulfill the backlog? - The monitor backlog is running about four to five weeks, while the pump backlog is approximately five to six months [33]