Welcome to IRadimed Corporation's Second Quarter 2020 Financial Results Conference Call. [Operator instructions] As a reminder, this call is being recorded today, July 30, 2020, and contains time-sensitive information that is accurate only as of today. Earlier, IRadimed released financial results for the Second Quarter 2020. A copy of this press release announcing the company's earnings is available under the heading News on their website at iradimed.com. A copy of the press release will also be furnished through the Securities and Exchange Commission on Form 8-K and can be found at sec.gov. This call is being broadcast live over the Internet on the company's website at iradimed.com, and a replay of the call will be available on the website for the next 90 days. The agenda for today's call will be as follows: Roger Susi, President and Chief Executive Officer of IRadimed, will present opening comments; then Chris Scott, IRadimed's Chief Financial Officer, will summarize the company's financial results before opening the call up to questions. Some of the information to be furnished in today's session will constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are those focused on the future performance or results, plans and events may include the company's expected results for 2020. IRadimed reminds you that future results may differ materially from these forward-looking statements due to a number of risk factors. For a description of the relevant risks and uncertainties that may affect the company's business, please see the Risk Factors section of the company's most recent reports filed with Securities and Exchange Commission, which again may be obtained for free from the SEC's website at sec.gov. I would now like to turn the call over to Roger Susi, President and Chief Executive Officer of IRadimed Corporation. Mr. Susi?

Thank you, and good morning. And let me say that the outset that I am very happy and indeed energized now that I've returned to the Chief Executive position. This is not an interim solution, but one which I look forward to maintaining for some time to come. Having stepped back for nearly a year, provided time to focus on engineering developments as well as time to see and ponder IRadimed's operations from a rather fresh perspective. The future to me is as rich with opportunity as ever, and I relish helping us -- helping to lead us forward. It's good to be back. So now for a review of our second quarter. Earlier today, we announced second quarter revenue of $6.8 million, representing a 26.3% decrease compared with the second quarter last year. We also reported a loss of $0.17 per share on a GAAP basis, with a non-GAAP net income of $0.05 per diluted share. These results were significantly impacted not only by the COVID-19 pandemic, but also a one-time charge to G&A expense of approximately $2.7 million related to the separation of our former CEO. The COVID-19 pandemic has certainly upset the orderly functions of governments, economies, markets, families and life generally, and most certainly, nearly all aspects of health care worldwide. It should come as no surprise to anyone to learn that our customers are straining under the various demands and limitations COVID-19 has created. We salute those frontline caregivers dealing with the uncertainty and danger on a daily basis, bless them all. Of course, there are some locales harder hit than others as we see ICUs and hotspots can be vastly overloaded, while other areas experienced more manageable patient levels. However, it is not an exaggeration to say that most every U.S. facility in preparing…

Thank you, and good morning, everyone. As always, I'll be discussing our financial results on a GAAP basis as well as on a non-GAAP basis. Our non-GAAP operating results exclude stock-based compensation expense and other operating expenses that we believe are not indicative of our ongoing core performance. In free tax items are considered based on their nature and excluded from the provision for income taxes. These items are not taken of our normal provision for income tax. Free cash flow is cash flow from operations, less cash used for purchases of property and equipment. We believe the presentation of these non-GAAP measures, along with our GAAP financial statements, can be helpful in providing a more thorough analysis of our ongoing financial performance. You can find a reconciliation of these non-GAAP measures to the nearest GAAP measure on the last page of today's press release. As stated this morning, second quarter revenue decreased 26.3% compared to the second quarter last year. Revenue from domestic sales decreased 38.6% to $4.6 million during the current quarter. This decrease was primarily driven by lower device revenue, which we believe is tied directly to the COVID impact that Roger spoke about a moment ago. Revenue from international sales increased 29.3% to $2.2 million for the current quarter. The increase in international sales was driven by higher monitor revenue. Revenue from sales of our devices decreased 41% to $3.8 million for the second quarter of 2020. This decrease was driven by a 58.8% decline in IV pump revenue that was partially offset by a 1.9% increase in revenue from our monitoring systems. The average selling price of our MRI compatible IV infusion pump system during the 2020 quarter was approximately $30,200 compared to approximately $35,300 for the same period in 2019. This decrease in ASP…

[Operator Instructions]. Your first question comes from the line of Lisa Springer with Singular Research.

Do you expect this trend that the sales to be more heavily weighted towards international to hold for the second half of the year?

I think it's a reasonable expectation, just given the diversity of the rest of the world and how the pandemic is impacting different parts of the world at different points in time and how different governments are responding differently compared to just -- just inside the United States. So I think it's a reasonable expectation that we will continue to see international or strength in the international channel.

Okay. And during the second quarter, the device revenues were nearly 50-50 split of pumps versus monitors. What are you seeing in the September quarter? Are you seeing a similar kind of split?

Yes. I think it goes to the comment I just made about recent bookings trends. And so far, as of yesterday, the booking trends that we're seeing in July are pretty consistent with the comments about the 6 month periods.

Okay. And then 1 final question. You're very close to filing your 510(k) for the next-generation pump. Could you remind us what are the advantages of that pump versus the current model?

Yes. Be happy to. So the 510(k), of course, to see clearance for our device. And as we've said in the past, the one thing that we find, let's say, is a weakness is that our pumps are relatively few in number being only associated with MRI imaging within a given hospital versus the larger number of general-purpose pumps, which they often have the ratio is sometimes skewed more than 101. So we find that people tend to -- as a whole in the hospital, some user will shy away from using this more unfamiliar pump. And so to make that problem diminished, the primary design objective of the new pump was to make it, let's just in order, say, easier to use, more attractive, intuitive. This is the objective of this new pump. And so what I mentioned earlier is that especially when we have to do these human factors studies, as part of turning in their submissions to the FDA, that's where you gather a good number of clinicians together, and they use the product in a lab setting. Not on patients, but in a controlled laboratory setting, but there, we scrutinize deeply how they engage with the device. And that, as I said was exceedingly positive. I think we're all very pumped to see that this aspect, which is the key aspect of why we set sale I'm making this new pump is coming true.

We're very pumped.

Yes.

[Operator Instructions] There are no questions at this time. Mr. Roger Susi, you may go ahead.

Thank you. Thank you, and thanks, Chris, for the financial information. Since as we have seen, this pandemic exhibits wave like cycles, which likely will continue, providing guidance is not possible, unfortunately. Unexpected positive versus negative twist and turns and their severity cannot be foretold, however, we are making and changing plans and methods to deal with the COVID-19 landscape and strive to show improving revenue and earnings in these next quarters. We feel that since our products are not strongly tied to medical procedure, which can be postponed, for example, electric procedures and with recent findings that some COVID patients experience neurological issues. The use of our devices in support of MRI imaging will remain a useful clinical tool. Plus with the safety offer and VR remote control capability, we expect to be able to maneuver the COVID-induced crisis and see increasingly positive sales trends. Of course, we look forward to seeing the positive effects of successful vaccine and return to life and business is normal without the schedule is pandemic. So thank you all for participating in the call today.

Thank you. This concludes the call. You may now disconnect.