IRadimed Corporation (NASDAQ:IRMD) Q4 2022 Earnings Call Transcript

Roger Susi: Yes. Well, I don’t know how many of you out there on the call had the chance to listen in on the recent Philips’ earnings call that they had I believe Monday or to follow what they do. They don’t break out where we compete with them in this MR monitor space is a rather tiny portion of what they do. But I think if you read what they were describing on their call Monday, you could see that they made it very clear that they’re going to prune various items from their catalog and that they can’t be everything to everyone any longer, and they’re going to shoot for — they’re going to put their resources into high growth, large businesses that are scalable. So when I read those and hear those comments, I’d have to say that this line that we compete with them in, being MR patient monitoring, I don’t think it checks any of those boxes.

So — and we’ve seen them reduce the sales force radically that they one-time had — they had over 40 territories manned and now it’s well under 20, we understand. So all of that, I think are tea leaves that are not too hard to read. And I would just suggest everyone have a glance at Philips’ call.

Scott Henry: Okay. Thank you, Roger, for the color. That’s helpful. Shifting to the income statement, gross margins, they’ve been somewhat variable between — in a range between 76% and 80% or close to 80%. Second and third quarter were higher, first and fourth quarter were lower. I guess the question is, should I think about that as just the average of those numbers is a good number with variability throughout? Or do you think they’re trending in one direction or another direction?

Roger Susi: No, I think you hit it. If you look back many, many quarters, we’ve been just in that range. And I think that range is a fairly tight range, plus or minus 1.5% or 2% around that centroid of that average; I think is a fairly tight grouping. And yes, so I don’t expect that we will be able to break out of the high-end of that significantly and sustain it, but we won’t fall out of that range either. So that’s yes — to answer your question, yes, I believe the average of what you’re seeing in these last many quarters is the fact.

Scott Henry: Okay. Great. Thank you. And final question for Jack. Other income, it was — it’s starting to jump out at a positive 450, is that just higher interest rates for the cash balance or anything else going on there?

Jack Glenn: Yes, yes, exactly right. That’s what that is. Clearly, it’s — yes, with our cash and the higher interest rates that we are now seeing a nice interest income coming in on a quarterly basis.

Scott Henry: Okay. Great. Thank you, you both for taking the questions.

Jack Glenn: Thank you.

Roger Susi: Thanks, Scott. Good to talk to you.

Operator: Thank you. One moment for our next question. And our next question coming from the line of Christopher Sakai with Singular Research. Your line is open.

Unidentified Analyst: Hi, thank you, guys. This is Sean for Chris. I was wondering — first of all congrats on the great results and the dividend announcement, very encouraging. I was wondering if you can give me some color on the trend of gross margins on disposables.