ICU Medical, Inc. (NASDAQ:ICUI) Q2 2023 Earnings Call Transcript

Brian Bonnell: Yes. I guess, Larry, on your 2 questions there, taking the last one first. Yes, I think just the math works out such that it’s around 35% gross margins in the back half of the year to get to our — the full year of 37%. And then as it relates to the improvement, why we didn’t see a decline in the second quarter, we did take action, I would say, consistent with what we had planned to do around the slowdown. It’s just that the P&L impact of that, there is a bit of a delay because that lower absorption as it occurs, gets capitalized on the balance sheet as inventory and then rolls out over our inventory turns, which these days are a little bit longer in the kind of 4- to 5-month range. So that’s the reason why you’re not seeing it in the second quarter, but we’ll see it in the back half of the year.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Vivek Jain for any closing remarks.

Vivek Jain: Thanks, everyone, for participating in IT’s Q2 call. We’re making progress on a lot of fronts. There are a few negatives that we need to flip to positive. And we look forward to talking about it more. over the balance of the year. Thanks very much.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.