iRadimed(US:IRMD)2019-02-06 20:58Financial Data and Key Metrics Changes - The company reported fourth quarter 2018 revenue of $8.3 million, a 24.4% increase compared to the same quarter last year, and a 9.5% increase sequentially [7][21] - GAAP net income for the fourth quarter was $0.14 per diluted share, compared to $0.02 for the same quarter last year, while non-GAAP income was $0.16 per diluted share, up from $0.10 [25] - For the full year 2018, revenue increased by 31.9%, with approximately 65% of growth from patient monitoring systems and 12.4% from IV pumps [7] Business Line Data and Key Metrics Changes - Revenue from devices in Q4 2018 was $5.9 million, up from $4.7 million in Q4 2017, with $2.1 million from MRI compatible patient vital signs monitors, compared to $0.9 million in the prior year [21] - Revenue from disposables and services was $2 million in Q4 2018, compared to $1.7 million in Q4 2017 [21] - The average selling price (ASP) of IV pumps was approximately $35,000 in Q4 2018, up from $33,900 in Q4 2017, while the ASP for patient vital signs monitoring systems was approximately $34,900, compared to $29,400 in the previous year [22][23] Market Data and Key Metrics Changes - Domestic revenue for Q4 2018 was $6.7 million, compared to $5.3 million in Q4 2017, while international sales were $1.6 million, up from $1.4 million [21] - The international team achieved record bookings, particularly strong in patient monitoring orders, indicating market recognition of the product's advantages [14] Company Strategy and Development Direction - The company aims to achieve a $100 million revenue goal over five years, with expectations for growth in both the pump and monitor businesses [34] - The strategy includes bundling the new patient monitor with IV pumps to differentiate the product offering and enhance workflow for hospitals [15] - The company plans to expand its sales team to penetrate the market more effectively, adding new sales managers and clinical applications specialists [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, despite a temporary setback due to CE Mark issues affecting European sales [11][36] - The company expects revenue for 2019 to be between $38.5 million and $39.5 million, with GAAP earnings per share guidance of $0.60 to $0.64 [11] Other Important Information - The company is on track to release a next-generation IV pump in early 2021 and a magnetic detection device in late 2019 [10] - The effective tax rate for Q4 2018 was 9%, significantly lower than the previous year's rate of 82.2%, primarily due to tax reforms [25] Q&A Session Summary Question: Can you provide more details on the growth expectations for the pump and monitor? - Management indicated strong growth in both product lines, with expectations for continued improvement in sales performance [32][34] Question: Why does the outlook appear back-end loaded? - The back-end loading is primarily due to the impact of the CE Mark issue, which is expected to resolve in Q2 [36] Question: What is the outlook for gross margins? - Management expects some efficiencies to improve gross margins as production increases [37] Question: How is competition reacting in terms of pricing? - The company is tracking to expected average selling prices, with no significant changes in competitor pricing noted [39] Question: What features will the next-generation pump have? - The new pump will feature an interactive display designed to be more user-friendly, addressing usability issues with current models [49] Question: What is the revenue potential for the magnetic detection device? - The addressable market for the magnetic detection device is significant, with potential sales to all MRI facilities worldwide [55][57]