Welcome to the IRadimed Corporation’s First Quarter 2021 Financial Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded today, April 30, 2021, and contains time-sensitive information that is accurate only as of today. Earlier, IRadimed released financial results for the first quarter 2021. 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 was also furnished to 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. 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. Forward-looking statements are those focused on the future performance, results, plans and events and may include the company’s expected future results. 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 the 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, please go ahead.

Thank you. Good morning, everyone. And thank you for joining our call. I have the plus in past to report that in IRadimed case, we feel that the drag of the COVID pandemic is easing further and further passing month and quarter. So clearly there remain a high number of virus cases both in the U.S. and abroad. We can see that many of our customer facilities are beginning to react and purchase with greater confidence. Early today, we reported first quarter revenue of $9.2 million, which is over 6% higher than the first quarter of last year, and nearly 8% higher than fourth quarter of last year. Our adjusted earnings was $0.13 per share, though down from the previous year due to a $900 income tax benefit that we recognized during the first quarter last year. However, please note that on a pre-tax basis, income increased 112% from the first quarter last year and 167% over the fourth quarter, both metrics showing a real strength of our business. With revenue, ASP, gross margin and pre-tax income all up, I am delighted and see this as a great start to the year. The entire team here at IRadimed is performing admirably and though we are still cautious. The business challenges presented by the pandemic do appear to be lessening, showing us a path to a great year. For the past three quarters, we have been able to gain increasingly more access to our U.S.-based customers, which has provided us more opportunities to promote our products. This quarter played out much the same way with our sales team generating bookings in excess of our internal projections, which resulted in higher revenue than we had anticipated. While, Chris will have more details, interestingly, much of the revenue growth came from sales of…

Good morning. Consistent with past calls, 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. 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 we reported earlier this morning, first quarter of 2021 revenue was $9.2 million, an increase of 63% compared to the first quarter last year. We view this as an important milestone, as it represents return to growth when compared to what was largely a pre-COVID time period last year. Revenue from domestic sales increased 15% to $7.3 million during the current quarter, while revenue from international sales decreased 17.2% to $2 million. The increase in domestic revenue and decrease in international revenue was primarily driven by the geographic mix of IV pump sales, which Roger already mentioned. U.S. IV pump unit sales increased 81% over Q1 last year. Overall domestic sales account for nearly 79% of total revenue, for the current quarter compared to approximately 73% for the prior year quarter. Device revenue increased 10% to $6.1 million for the first quarter of 2021. This increase was driven by a 31.5% growth in IV pump revenue, partially offset by nearly 10% decline in revenue from sales of our monitoring system. The average selling price of our MRI compatible IV infusion pump system during the first quarter was approximately $32,700 compared to approximately $29,900 for the first quarter last year. This increase…

Thank you. [Operator Instructions] Our first question will come from the line of Scott Henry from ROTH Capital. You may begin.

Thank you. Good morning and congratulations on the strong results. A couple of questions. When we think about 2Q obviously you’re going to grow off of last year’s 2Q. But do you think you could have sequential growth from Q1 into Q2?

Yes. The short answer is yes. I think, I mean, hopefully it came out in the comments today. We feel very optimistic about how things are going. Bookings have been exceptionally strong being able to grow backlog for the first quarter from where we’ve reported at year end. We – the $9.2 million that we reported in Q1 was above our internal thoughts of where we might come in. And I think the growing backlog and what we’re hearing from the field gives us a level of confidence and that we’ll be able to grow not only in Q2, but we continue to move similar growth patterns for the rest of the year.

So, I mean, it sounds like, from talking to a lot of medical technology companies, they’re growing off 2020, but they’re not quite up to 2019 prior highs. It sounds like you may be reaching new all time highs in revenues. Is that a fair statement? I mean, it’s obviously early, but certainly pointing in that direction?

It’s early. And it is pointing out direction. I think as we said in the prepared remarks, the $9.2 million represents the growth over the first quarter last year, which once again, it was largely a non- or a pre-COVID time period. We didn’t – we weren’t really understanding COVID until or we won’t really reacting to COVID until maybe the middle of March last year, it’s – last two or three weeks of the quarter. So and we showed some very healthy growth over that timeframe. So we expect that, we’ll be able to show that growth over the pre-COVID timeframes.

Okay. That’s great. It’s great to see. A couple other questions, first, with the next generation pump, how long does it take from kind of final approval to launch? What kind of lead time is between those steps? Should we expect?

Well, Scott, it’s Roger here. Let me take that one given that we spent about 18 months in these FDA, cycles with an IV pump and anticipate, as I said, that will be cleared into this year, January next year. We’ll – this pump will be ready to launch in that first quarter. So it’s a matter of – it’s a matter of a few weeks after we get the clearance letter not months or quarters.

Okay, great. Thanks for that color, Roger. And then when we think about the FMD, just getting out into the sales team right now, should we look for any revenues into 2Q or should revenues really materialize in the second half of the year?

I think I indicated in a previous call, we have a couple of initial let’s call them beta sites, those first adopters and we’re going to have orders, we are going to get revenue for those, but yes, they’re basically partnered pricing. So pretty discounted. So there’ll be a little bit of revenue to answer your question in Q2, but it won’t move anybody’s needle. The revenue won’t really be it’s something you’ll recognize and appreciate until Q3 and 4.

Okay, great. And then final question, just on sales and marketing trends, as the sales force starts to open up as COVID starts to decline, should we expect to see modest increases there or more significant increases.

As a modest, did you say?

Perhaps modest or perhaps even more than that, just trying to get a sense of the magnitude of how to think about that kind of $2.4 million number in Q1 going forward?

I don’t want to say that there’s going to be significant increases in sales and marketing. I think the types of activities that are going to come back, we’ll start to see more travel related costs and expenses and things like come into play. I think that for right now is really the only missing piece from that cost structure over there. And of course, those additional costs are going to be paid off or offset by the higher revenues, higher bookings that we’ll experience during those time periods too. So I would say, there’s going to be – I would call it modest increases with really the only piece being those travel related expenses that are not fully baked in right now.

Okay. Great. Thanks for that color, Chris. And thank you guys for taking the questions.

Thanks a lot, Scott.

Welcome.

[Operator Instructions] our next question is from the line of Lisa Springer from Singular Research. You may begin.

Good morning and congratulations on the strong quarter. Appreciate it.

Good morning, Lisa. Thank you.

My question concerns the international markets. Could you give us a little more around there? Are they kind of universally weak or some international markets better than others? Do you expect the sales mix – the geographic sales mix to remain kind of consistent with what has been in the first quarter?

Yes. So Europe is pretty weak. In Europe, our number one market is Germany, and from the Germans to the Italians, we see weakness. UK, we’re getting some orders, but they’re weak. On the other hand the Middle East continues to come on pretty strong. We just shipped a rather large order here the other day to Saudi Arabia. And so Middle East is relatively on a good baseline. The Japanese market is a big market for us in Asia. And I’d say dip down a little weak and Japan, if you read the papers, they still feel that they’re very challenged by COVID, even though the number – the absolute number of cases seems very tiny compared to what we deal with in the U.S. They take it rather serious. And I think that keeps the Japanese business a little bit held the underwater yet for another a quarter or two. I hope that as we get past the summer that’ll turn around for the Japanese market as well. But yes, it’s a slower and picking up, certainly which is I think common knowledge, rather splashed all over the newspapers are how wealthy and how fast are U.S. economy is recovering compared to the others. And our sales prospects are somewhat in that same vein.

Okay. Thank you. That’s it for me.

All right. Thank you, Lisa. Good. Well, as I stated a moment ago, I am very pleased with these results and have growing confidence in the rest of the year. IRadimed is entering an exciting time with trending growth in our current product set what appears to be the weakening affects of a pandemic and being on the cusp of introducing new products. While there are uncertainties, we are increasingly optimistic about our future. So thank you all. And speak to you again after Q2.

This concludes today’s conference call. Thank you for participating. You may now disconnect.