IRadimed Corporation (NASDAQ:IRMD) Q3 2023 Earnings Call Transcript

Operator: [Operator Instructions] Our next question will come from Frank Takkinen of Lake Street Capital Markets LLC.

Nelson Cox : This is Nelson Cox on for Frank. Congrats on another strong quarter. Jack, you mentioned Q3 being a seasonally slower quarter for orders. I was hoping to hear your expectations for Q4?

Roger Susi : Well, the flip is Q4 is usually a big quarter for us. Yes. Q3 is conventionally light and Q4 is conventionally strong. And last year, I think we also had a pretty strong Q1 because a lot of stuff — even though we had a good Q4 last year, there were still stuff that carried over didn’t get written as far as the orders until Q1. So yes, I mean we don’t expect the seasonality factor to change.

Nelson Cox : Got it. And then in relation to the customer announcement to discontinue service on IV pumps over 7 years old. Can you help us understand your installed base better to try and place context around how many of your pumps could be over 7 years old? And how large could that increase per year going forward?

Roger Susi : Well, I believe — let me think I somehow lost that number.

Jack Glenn : I think we think that it’s somewhere in that 1,500 to 2,000 units out there that are in that category over 7 years.

Roger Susi : Yes. So a large number of pumps. And we’ve had — we’ve quoted, I think, close to 400 already. So that kicks in at the end of December, right? So we see that as being a factor that might bring in some orders certainly in the Q4, but much more so Q1 and 2. Those will be — we start — we’re going to start seeing those turn into orders here very soon. But I think the strength of it being great in Q1.

Operator: [Operator Instructions] Our next question will come from Frank DiLorenzo of Singular Research.

Frank DiLorenzo: Can you expound upon the strength you saw in the ferromagnetic detection systems this past quarter? And can you talk about to what extent you may be able to maintain growth going forward for the fourth quarter and into next year?

Roger Susi : Okay. Yes. Well, the sales have been growing slowly, frankly, with the FMD product. The — it’s a matter of our sales force really learning what the critical call point is. International demand has actually grown quicker than our domestic, but the market is quite huge compared to where we’re at now. So we’ve got a decent number on the backlog but it is not up to our expectations. So I think with the U.S., with the domestic market, it’s a matter of that sale is a little different to our sales folks than it is to sell a pump or a monitor. And they’re learning how to come to grips with that. And as they do, we see different territories starting to sell FMDs as those different reps in those territories really learn who they should be talking to.

And the international seems to be a little bit more quick for them. They’re picking up the ball on that 1 a little quicker. So long runway yet for the FMD, lots of opportunity, and we over the year 2024 in the U.S. gained the keys to how we position that product and to whom we position that product to increase the sales.

Frank DiLorenzo: Okay. One other question regarding your next-generation pump. Can you talk a little bit about your strategy outside the U.S. for that as far as getting approvals and launch kind of the timing on that going forward?