Frank DiLorenzo: Okay. Thanks. And going back up toward the top-line for your gross margins, is the goal of around 80%, is that still a realistic target longer term, say, once you get the launch of the new product assuming sometime in the second half of 2025? But say 2026 and beyond, is an 80% gross doable on your side?
Jack Glenn: Well, I would say that’s pretty optimistic. I mean we certainly have a target than a goal to get there. But I would say that right now, as we’ve said, it’s probably — obviously, we’ve been north of 75% and in that range of 76%, 77% kind of range. I think that maybe — certainly, as we get on some higher volumes, we could always, again, continue to cover more of the fixed overhead. But I think 80% is possible, but probably not in the near future.
Frank DiLorenzo: So, 77% is…
Roger Susi: I might chime in…
Jack Glenn: That varies also just by geographic mix quarter-to-quarter, right, in product mix and — but I would say that our ASPs have certainly stayed very strong. And actually, on the monitoring side, we were able to get some price increases up from an ASP standpoint, and that certainly has helped us overcome some of the material costs that we’ve been seeing as everyone else has been over the last year.
Frank DiLorenzo: Okay. One other question, you said you had a better-than-expected strength with the pump business. Looking into 2024, are you seeing any differences, similarities between 2023 regarding budgeting landscapes for the various hospital systems out there? Is it stable? Is it strengthening? Could you provide maybe a little granularity on that?
Roger Susi: Yes. On the sales side, we aren’t seeing any pullback from hospitals, et cetera, which you’re trying to get at, generally for ordering pumps or monitors or FMDs. But in fact, the pump that’s getting a boost on top of that from the obsolescence that we did in September — back in August or September, we advised our customers we wouldn’t be selling extended maintenance on 7-plus — 7-and-older-year pumps. And that’s resulting in a lot of activity. We started last quarter, and we think it’ll go several quarters yet. And that money is — as I said, we were pleasantly surprised last quarter, that money got broken lose pretty soon, pretty quick. So no, we’re not seeing any pullback.
Frank DiLorenzo: Okay. Thanks. Just one other question. For the ferromagnetic detection systems, can you talk about long term what you think the opportunity is, the total addressable market, US, ex US? Thanks.
Roger Susi: Yeah. Well, it’s a small market still. And it’s getting littered with a lot of players. We see it is a very low barrier to entry, right? It’s not a medical device. And so, we see a lot of players that are small and not that [indiscernible] device makers doing these devices on the one hand. On the other hand, the size of this business is somewhere between $15 million and $17 million, $18 million. It’s sub-$20 million right now. So, it’s not a huge market. But we’re looking to take a sizable piece of this market. What we are learning is a big piece of the business is done through design firms and architectural firms, contractors. These things are put in during the time that rooms, MR rooms are being built. So that’s a pipeline we’re trying to fill.
So obviously, this takes a long way to get that — those things start before they start falling out the other end and resulting in business. But that’s where we feel the best return is for our sales efforts, if you will, but they are rather slow to get that prime the pump, so to say.
Frank DiLorenzo: Thank you. That’s helpful. Thanks.
Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to IRadimed for closing remarks.
Roger Susi: Again, thank you. Again, it’s with great pleasure that we report our year-end and Q4 2023 results. It’s also a great pride that we can guide that we expect strong performance as the new year progresses. And with that, I look forward to reporting our future successes as the year progresses, and thank you all very much.
Operator: Thank you. This concludes the call, and you may now disconnect.
