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

Unidentified Analyst: Wonderful. And any color on in terms of further interactions you guys have had recently or over last six months with the providers in terms of their capital spending outlook. Things have changed a lot in the last two years or three years. So I was wondering, any color you can provide?

Roger Susi: Well, to us — I mean, to us, it looks like I mean it looks pretty good. As you can see, we’ve been increasing our revenues at quite a fantastic rate. So I think in the lines we are in, in this niche market, maybe we’re seeing CapEx expenditures are still quite healthy and enjoyable to us versus other markets that we don’t play in. Maybe where I’ve heard things can be more snug as far as the expenditures of various facilities. So — but I think you can see from what we do in our niche, we’re still enjoying a pretty good look from our customers.

Unidentified Analyst: Absolutely. So maybe one way to think for us is that things might look a little bit difficult or different for an average medical device provider, but considering your niche market, whatever capital constraints providers might or might not have, you guys are pretty much unaffected, right? Maybe that — would you agree with that?

Roger Susi: Oh, yes. I would say that in our little pocket — our little corner of the medical device universe, yes, we’re a little immune to — we haven’t been impacted by the other areas that you may see being a bit more dampened by CapEx allocation. Yes. We’re kind of under the radar there.

Unidentified Analyst: Yes, right. Good place to be on that. And finally, right, finally, it also looks like you guys have been maybe under the radar is not the right word, but sort of unaffected by the supply chain issues and generally, the device industry has been facing, especially offshore and all looks like that also has not affected you guys or maybe not as much as some of the other players. Any comments on that or any color on that?

Roger Susi: Well, it might look that way. But I can tell you, we’ve had a lot of sweat and we’ve had some near misses. It hasn’t been fun. That has been an everyday consideration at some point during really literally each day. But I’d say that with our size, and our margin, that helps, right? So we have seen components that we’ve just had to get I mean, we’ve gotten robbed on them. We’ve had I could think of hands full of components that were a $0.50 or $1 that we paid $20 for to get them. So we’ll do it. We’ll do it to keep ourselves moving. And we’re very agile at also substitution of components. So the design is all done here. All the expertise is here. It’s not scattered around the world, but larger companies tend to get as they grow and so it slows them down.

They’re not very agile at seeking alternative solutions as we can be. So you put all that together and yes, as I said earlier, thanks to materials — our purchasing people and our manufacturing people and to a good extent, thanks to having a nice backlog where we can shift between different things throughout the quarter as we solve one problem and another one pops up in another product line. So yes, there’s a lot of juggling going on, but we have managed to dodge it. And I will say, as you can probably read in the papers these days, supply chain issues are starting to fade back away. They’re not increasing. And we’ve seen it — we’ve seen ourselves starting to get deliveries of parts at the right price again where we’ve been in a waiting line for in some cases over a year.

Unidentified Analyst: Great.

Roger Susi: Hope that answers your question.