Masimo (MASI) 27 Feb 242023 Q4 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Masimo's Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. The company's press release is available at www.masimo.com. [Operator Instructions] I'm pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

Hello, everyone.

Joining me today are Chairman and CEO, Joe Kiani; and Executive Vice President and Chief Financial Officer, Micah Young.

forward-looking our reflect XXXX expectations contain including current financial will of certain regarding call statements, management's which judgment performance. This fiscal year

could and differ filings are actual results could our to they subject periodic from risks with discussed actual uncertainties However, our in materially projections in to cause our SEC. results are Risk materially. that to differ factors forecasts that the and cause detail

website. these find Relations the in our will You section Investor of

of certain accounting this measures will We call a discussion accordance non-GAAP accepted Also, not are generally generally as in principles financial calculated measures. these include that GAAP. financial refer with to or

company the In unless these financial we business. a be additional basis reflect on the results better Please assesses performance litigation management otherwise. non-GAAP results. will the non-GAAP sees these information the of same increase legal Management in to such the measures Apple. as to Therefore, measures uses believes with primarily transparency associated have all and company's non-GAAP with measures covering performance today updated expenses underlying we to measure addition The non-GAAP these be enable ongoing assess indicator will to and GAAP results provide that operating note, budget, an intended investors business our definitions noted financial results, and the financial exclude our performance. ongoing company's company's evaluate financial way measures to non-GAAP to are of the

date most the Reconciliation we of recent the as to with our with again within XX, In supplementary measures business forma referring reports our GAAP our Further, XX-Q and the in should Sound which the all filed information most Form make consider prior website. release order informed include these April included we measures and this non-healthcare historical comparable financial measures SEC, statements financial XXXX. financial acquisition decisions. for our pro today, today, on to United be are our will earnings including to segment. will presentation Investors directly be results XX-K together of to our once referencing also of investment

the In quarterly release pass to Kiani. Investor covering we now we of will the Joe presentation section Relations supplement a have earnings this website within afternoon. posted our the to to addition today, the earnings content issued be call I'll

Eli. you for the and joining for you, Thank momentum strong with We call. XXXX important business, in by for our clearances healthcare contract driven new Good business. thank year-end for innovative in products XXXX our Masimo's exited us wins FDA record and afternoon, earnings growing year hearables growth

contract With operations post and stabilization our healthy markets, of innovations is well census and in positioned cutting-edge for backlog pandemic, growing XXXX. hospital our Masimo

our from more doubled In some of innovation. share. And reduce later. I QX, of of and be products clearances improve which will X FDA engine cost the sensor wins our ago outcomes numerous stabilized, innovative in markets, utilization our meaningful addition for we to has received have growth which care, hospital to discuss continues to than target contract in resulted The market in years within having gains

I'll investing containing we as unique Outside brand launch of realize a consumer which a hearables stream in of about healthcare, are rapid talk and proprietary later. growth we intend the products for wearables and of few technologies, steady to Masimo our

so providing performing are can In visibility how revenue we our growth categories. you hearables these into in and that wearables fact, see starting this quarter, we are strategic

forged and revenues ahead. bright of billion, resilient XXXX, XXXX for billion, with non-healthcare For future our a stronger, segment the revenues we $XXX reaching healthcare consolidated more challenges year. performance $X in a financial exceeded Masimo, exceeded revenues fiscal million have $X.XX the year in have The

and world We healthcare for impact improving long-term positive are the across a position. making Masimo's

many and toured that of we are I our doing past our parts customers we are you team. our tell world, the resoundingly what and X visiting where I love the months, meeting taking can customers In monitoring. noninvasive

Our more efforts. full I'll and that, to financial to team an fourth it year to our quarter Micah proud and to contribute With results review on XXXX detail pass is these and bold update our excited in provide guidance.

good and Joe, you, Thank afternoon, everyone.

fourth the was quarter, For consolidated revenue our $XXX million.

guidance were represent and a basis QX near constant end which currency on Our was revenues upper healthcare million, X% XXXX. range decline $XXX the a of versus our

XX% X%, in the partially versus equipment grew capital consumable other year and Our offset prior period. a revenues and reduction service revenues by

seasonal More importantly, volumes. improved our increases healthcare revenues sensor sequentially, driven expected and by increased XX%

in conversions contract hospital our unrecognized the over reach in gives strong confidence to growth outlook us year X% our sequentially healthcare the resulted have This increasing $X.X revenue in XXXX business. for Further, prior and XX% billion.

macroeconomic weighed segment, which our on quarter interest sequentially primarily million, spending. high This due $XXX For non-healthcare to prior constant were basis fourth the down revenues rates conditions, season, currency on XX% including challenging business a year. increased segment declined due but year-on-year to consumer versus holiday

down the P&L. moving Now

For for business of reported business. healthcare the gross and gross XXXX, margin XX% our This margins XX%. for consolidated XX% quarter fourth included non-GAAP of we non-healthcare of our

operating consolidated $XX our million, our non-GAAP non-GAAP profit For and for was fourth share earnings was quarter. our the $X.XX per business,

optimizing for debt. million, of and Finally, pay a down year $XX our was in segments. marked XXXX address as uneven focused cash allowed Overall, through flow, both improvement to environments operating business which working shifting by financial we we cash of significant us performance portion a capital generated

our confidence significant progress us which beyond. and strengthening position, However, we made gives XXXX for market

significant us growth We had contract year. and wins also that positions for a growing healthcare this customer new backlog well in

outlined like pre-announcement year guidance financial on I'd initially XXXX full in to in we that our Now our January. more detail provide

we $X.XXX projecting year billion consolidated range to billion. a XXXX, of For $X.XXX the are revenue full

projecting billion to X% For our revenues are constant $X.XXX segment, healthcare we representing billion, X% currency to $X.XXX growth. of

margins year. We steadily segment, $XXX decline million, constant $XXX gross will at to throughout a in non-healthcare projecting believe representing the the revenues For are midpoint of we million X% improve the currency.

of For to XX%, fiscal gross XX% our healthcare XXXX, consolidated of for XX% and non-GAAP segment. non-healthcare for segment our we comprised are XX% margin projecting

leverage driver us. We for gross margin focused intensely earnings the are improving on as our of largest

of transition our to well lower next sensor we the plan expect over portion and to a to Malaysia few production reap and years. efficiencies underway costs Our increased is the benefits of manufacturing large

profit projecting are of million $XXX to non-GAAP consolidated also We operating $XXX million.

We expect to benefit margin offset gross and the from performance-based the partially improvements levels. of spending, to disciplined return in normalized by compensation

rate to Moving XX projecting range EPS and we projecting we a to outstanding the further $XX are million. expense these nonoperating XX% now P&L., tax down weighted assumptions, XX% average a million, non-GAAP of shares of on of Based $X.XX. of $X.XX are

outlook. quarter first our to briefly Turning

the consolidated to non-GAAP earnings million, $XX on $X.XX. $XXX profit earnings investor operating million website of of details. of $XX million presentation We revenue further share non-GAAP $XXX Please to to per are $X.XX projecting million for our and reference

about segment. summary, our reasons positive In outlook our XXXX year. are to prospects growth revenue for be healthcare There a for many this assumes rebound our in

past patterns X of volumes have Over stabilized. over understanding customer and quarters, confidence the a in that last the -- gained sensor ordering the shift we have better have

with With to turn We to expanding have thanks our Joe. a footprint I'll call customers. converting customers strong for contract back a that, new year backlog, and existing the record

market record we our track post-pandemic to and the foundation our growth our that to innovative provide orders, not Thank sensor understanding and strong how year our and confidence Micah. only for technologies confident the predictability. conversions show delivering of customer in but marketplace the our of business, long-term potential. strong look in you, record consistency for short-term are a reestablishing and guidance start conditions XXXX healthcare into future, deeper commitment With sustains a Besides our to forward the

highlights products. was of to an new ORI-equipped U.S. the of now countries has FDA products of approval oximetry outside to gained years. share will growth monitoring for routine expect traction the to for with and milestone that significant in in XXXX rainbow and rainbow by Oxygen like few gotten the accounts next a contribute add we approval some launch that The have on over growth approximately the U.S. I'd or becoming already pulse Reserve to ORI, ORI XX% few sensors important Index, in sales. October our late we that option the our

gives the more is detect that. changes, ORI to help has oxygen just them as patient important see customers before some our ORI pulse need they determine in is the oxygen in which than been given ability It to when declines the OR. can important know oximetry can and

XX% For not a but rainbow or to LED is clear business, with differentiator, rainbow ORI depending another deployed least rainbow sensor ORI our whether sensor adds our ORI LED on ] with per sensor only XX oximeter our X premium sensors. or yet X at sensor every of conversion coop a price customers [ pulse

with We November. medical the WX health surgery us to for cleared care of long-term year our before important for Another can after monitoring WX in was for clearance for watch, and patients last now institutions FDA as use conditions. version U.S. chronic which of promote as well was

As see indications shared past, applications in hospitals. received potential interest we've for the multiple these of market have great and we from

We safely Hospital-at-home technologies health large deliver care unique to remote to see systems, opportunities and as reduce traction initiatives which these improve efficiently. our and for continue gain programs view to with key costs care outcomes. monitoring enablers

for in is SpOX, clearance and to alerts based parents healthy functions on monitor received the with and physician's basis. for product prescription. also be and alarms only sick baby rate We to STORK December STORK our the temperature activated FDA help monitor pulse

camera already helps detect stomach who on with applications roll AI-based In their to babies addition, optional many come. the over more

signal we Outside wearables. the that care will deliver core differentiated share hearables growing leveraging profitably and are for processing and health take markets our technologies in products to large and of healthcare, capabilities

category new combination and hearables focused launch grew Our of to due of investment the year XXX% last products. the

customization fall, spectrum Masimo PerL a individual's of listening optimized unique sound AAT, profile and provides we launched Denon AAT experience. enables with adaptive hearing acoustic For example, earbuds technology. truly an the a for last

As we strategic and categories Hospital-to-Home mentioned growth Masimo for hearables our initiative. are undertake wearables I earlier, as

WX million. revenues products than for XX% to in XXXX, beyond. XXXX OTC significant reach product more along with AAT, by we $XX with increased Pearl other and this these in new With clearance, pending In our introductions, category such growth products FDA as STORK see expect and we to

We HX have product celebrate our planned Freedom, and X platform. of version XXth launches connectivity XXXX anniversary, our Root next-generation to the for

for our improving health the do enhancement for as hospital hearing the will HX what well consumer Root finances. Freedom about platform as and excited terms watch are biosensing what patient device care We of health. in care will And next-generation do

providers competencies products With that ability better engine for to technologies In closing, our to businesses. across Operator? translate into and the long-term our call we'll core that, outcomes growth consumers, open the our and all questions. be patients continue to deliver for

Thibault on [Operator with of first BTIG. Instructions] question Our from line Marindustrial

both for guidance. us the cadence and help And and on QX throughout ranges start cadence, you low year, what's just that to can. healthcare want on the of on particularly the non-healthcare if if standard Wanted would non-healthcare. to the high I here, you think, understand one the understand, can end I on quarterly included about think side, the me the help guidance

Absolutely. Yes.

So $X.XXX Marie, business, -- healthcare the the start with the billion. $X.XXX billion to for

start us at be we'll others. We're capital seeing as difficult from as weak X% environment And as If that has range, end low strength good a assumes the capital admissions. also there, the the in but products, that continued as inpatient you our seeing. the assumes contribution look well to of for any census environment it very consumables far we're

see high higher range, from we we range. X% improvement census to of new installations assumes capital have coming it assumes gain the the that to improvement as the more at look And lot it customers. also also customers you environment to of that a a of we in and of win -- in the growth. And throughout some closer that that end the If the new going the we're expect continue at year assumes end

year. growth last the to least this probably have That guidance any off a the XX% best We If of after upside so out at out stripped to hearables non-healthcare expect the be business, orders, of I describe the this way we those This year. continue. growth was to very to that be also growth year turn would to that completely range. stripped large expect is strong for we

would So end in the the imply to of $XXX that that range it and would end $XXX decline the the mid-single-digit teens the implies imply million low audio that end decline business at upper the range. in upper a of range, range, it of of high core million the

over grow, become in the to again, that's the offsetting for non-healthcare strength So in revenues hearable that now business XX% quarter. the softness continues of

maybe on that Okay. it that, looking then help bit than a That is kind hearable for little softness us follow-up we the a some in of you the business the Can strength as understand you're cadence seasonality disguising bit of of consumer, were a QX consumer. as today? expecting for. you And lighter understand

Yes.

It tried prior So we kind XX%. and acquisition understand back with normalized team to looked and to the the guidance of historically can QX the went for a and stronger revenue between full revenues is in the hover about of XX% in year. kind XX% with seasonality QX. and that holiday is zone just and years of back X/X in And coming of season. typically, for is more their That seasonality that

in year getting new that's us So guidance getting about growing channels, new in gives growth going to and back that non-healthcare. thinking that's of the we're onto seasonality that confidence into businesses again, the how to continue throughout for more markets normal the so hearables we're be we're that both range kind -- with

on really That's seeing on ask want I detail discussed of you've healthcare the impacted in I the What the you're some to you're can latest past, like of on are seeing know those that of If more census, on question some year? the to the we sensors. reusing surgical helpful, a trends last what side. ambulatory kind Micah. and that dynamics centers for results Okay. the understand patients hospital shift here today

Yes.

that now, I hovering market out I what's trends kind that being and around that there we're inpatient seen in seeing to broader and X% the think trends probably are is what X%, that's census those in of zone. think

XXXX. in the then back of that inventory is that and the the to direction in We of the heading January terms see be came a us trends and for for utilization we year. behind half see if think us that that us any positive early the will guidance business, sensor just And we that continues, out So stabilized. destocking we in that in as start in why provide gives It's those confidence. second to right --

line Research. the from comes of Mike Wolfe question Polark with next Our

monitoring I know, want -- choppy this they what's to competitor? decided mentioned still one capital just you your there to of this here, through obviously, had assessment position on something way and you little competitive else? business a key high maybe I'll Is as guess for a that coming Mike you competitors, drill of commentary, and placements with as change Joe, do called And seen its reason your for you behavior Is down kind that. and the of kind on going lead this I of soft. during to you time there's and out the Have their you choosing different competitors Is working we're probably through? sugar just out a off in exceptional landscape? keep the any of COVID here? that And capital about your agree key work

Yes.

Let that me if address then level Micah, maybe try add. to to maybe have high anything you

we're The yes, all, of of good first think COVID. would high So thing, business during because it purchases be over rough. getting a I not really the capital we're sugar capital

switching really it. their conversions, and much to system our us keep our only by time Masimo were when exclusively competitor's any a lost almost purchased for customers, was larger companies, getting for from the is new stopped you've hospitals new so But good is we're For all to them us, seen tracks. and from account. of news because we've that our they of It's some growth the

the those outlook reasons, for capital. regardless our is positive very of So

markets magnitude far really saying in targeting, as we more monitoring the order that They're it's are we than lose. then because well heard competing winning. that our And That's I leftovers probably strongly of as competitive. in we're they're keeping because they're competitor, a the

normal. those focusing end on. low share the And Xx our where are Korea, markets Japan, the we are kind afford that that there yes, rate in can't the countries markets U.S., and technologies we're Middle taking Canada, of market just Americas, are performance in the and of East, we But not Europe, So have. about

they're leftovers. what they're I doing, on So full while know I'm don't glad our

Do feel see is at reset you benefit. 'XX part the algorithm factor as here? that? of XX%. of comp And of quantification out a the margin a for the specifically of Helpful. kind there. margin? and is of What's to kind it? guide about core how limiting in expansion direction Follow-up lot incentive on a kind margin. takes Malaysia, of smooth is The question -- of of kind like the Mexico year-on-year. that timing Nice here beyond you The is do growth impactful restart you on puts Obviously, I'm curious to and how any feel

overall the us side margin healthcare still well on question. Thanks, the leverage just to I'll operating a and for is as key years. want over Gross margin Great Yes. really as -- We Mike. drive leverage coming hit here. area

margin focus Our We've things get the with now to up in is efforts back got a some key reduction and that high and we're doing up XXs very with the we're right the teams. our to path product -- in the to cost of good again. manufacturing Malaysia, by undertaking just focus get mid-XXs engineering

also We that due see in of equipment that -- our we now leverage a have where heavy to these we equipment will over placements conversions we're leverage placements customer right time. that have all will amount

just feel in high So the up business that up continue leverage about the and got path good years. next and to things, few over into between back margin then mid-XXs those getting XXs. that get we the we And

earnings really lever we deliver for and us So growth going move additional as that's in as a to be forward great well.

Matson of & Needham from Our the Company. Mike comes with next question line

Yes.

of an that's haven't wanted specifics mentioned products but ask launching year of interested in, around [indiscernible] indirectly timing. or you HX kind Joe, you and I about sort the [ this So you area were mentioned much know one. talk really being to ] I product

interesting kind me. sounds it of So to

I just opportunity any So you of could kind if detail more maybe around and was so wondering that, provide market forth. the

before, I we moderate think Sound of planning Sure. Thank hearing engineers mentioned to their get the I've low audio for reasons acquired into for aid you. loss. was to Yes, hearing market the as we one as United were

what So year. and HX but and as final are sale with that for the Australia here Irvine, name, for will HX help of might be hearing help team available of team team, think revolutionary in hope neuro engineering aid in developing call I our this we own that we stick the a the that should be now, the I

for TAM at pricing like or any point? anything you Okay. And do the have or feel that this

understanding, roughly. billion My is to Yes. going be TAM area. $XX the around $X,XXX planning. in probably what That's our And is we're pricing that

now get Now we with which FDA regulatory to to counter, the sell been new the still that we have -- have we that over can changed, guidelines clearance.

[ going in CE for ] the to for submit the will approval many HX U.S. have we're sell to but to mark. able FDA sale under countries our it be So

Got just contract positive. Okay. on it. obviously then wins the all the are And --

Just what uncertainty has you to customer wondering your of retention think kind willingness of do now separation degree contributed of the business. Masimo and primary their that switch to to competitor, -- that Is around kind monitoring Medtronic, of or... to kind

I don't so. think

share what market think our gains really changed I COVID. was

them really well, for system pulse the that lot, wearable monitor think things. using change We Radius its created remotely and oximetry top I monitoring a tetherless why the at hospital. we not of I started And the created patients PPG that, at people meant Masimo. home, on when am which is thinking, COVID a accuracy

All of to really us oximetry. made for just the go company pulse that to

one that's think I reason. the of

TI incremental, $XXX were about in $XXX If you at doing million. doing through and XXXX, we're we [ now about look ] million

we think think spinoff just anything don't the it's are really with finally people it. We had do or resisting we not. why make yes, So it to think

possible Masimo during other because know we other because [ on during from before to the has [ enter a dark with fact introduced, motion has you pulse light-pigmented incredible and detection general surgeries. they newborns. been dropped, opioids oximetry patients dying the And is positive it became low are the of that CCHD ICU not it have challenges, with their as have clinical ] already, has since in perfusion, market. well overdose on people blindness been the ever As the works neonatal no studies as outcome accurately despite shown ubiquitous works ] on not even floors But been after [indiscernible]

by a save oximeter the on $X to calculate irrelevant So that that, and hospital average, year way, reduced $X cost of more, can makes a We really all million still to the Masimo, million showing be prices with charge hospital. XXX-bed pulse we to comes Xx that about by we'd and because switching savings our could sensor costs.

is So take the to competitive And I advantage customers decided this. big. really COVID advantage we during have think of finally

There's to for and the I huge similar want long Sorry the continuously, even X isn't become And we're in winning that's just competing but difference. it's you past a answer, why companies bigger few understand, just this technologies. years. with

comes the Bednar of question Jason Our line next ahead. go from with Please Sandler. Piper

Joe, driver Mike, our lighter number, definitely start with I that model. than to wanted

I here. think lighter estimates they're where probably were most than sitting

had since base, lowest I 'XX. ways. those we at into utilization. guess being large of you results this think you've of tapping can X driving mean figure I put really spite I sales that lower, in good better up driver absolute the you're first installed look the quarter

means we today historically the hard continue that I for record reconciling I figure guess but drivers has less time the contract consecutive quarters. X driver to is And that a have having I'm against than just what it alternative maybe like So hear guess fallen about. here the this

help as would So this decel to be great. I this there investors line look concerned what's and need drivers grow be 'XX? Does with here ahead, is driver then decline further? outlook the we the question guess whether need Any to in the for

outlook. contract Jason. really the and what's I for The nature. think that in is us our internally we wins. numbers. us business confidence Thanks, what more incremental am We And short concerned the giving on is this about the -- with is less focus and Yes, focus driver new that's term Yes.

of of put We the where by replacement that expectation a it QX our and believe up think levels those normalized will trough that years back then trough from -- it the have to equipment cycles slowed lot exit in as this starts there's off to we bedside. improve existing more kind And We coming we is temporarily. a of year. are monitoring, transition the

it's the start based internal heading estimates, on that's of our for to right going think direction and a less concern we So us.

concern revenues converting in after really Masimo for year. the that new there and and that's is sensor equipment outlook to continue those business, Our customers going this recurring getting technologies to return placing in to for grow provided the help we've us

which Michael, and guess, the which that translating consume I contracting, and they better disconnect Why number seeing into what's customers, number record isn't drivers theoretically driver decel? a between -- need sensors. this new we're the driver to

take me Let maybe this.

XX replacing us, that years see. new new not sensor business. Today, have driver was every and a a is for we driver the driver It's growing driver a new given you -- So significant socket. was every existing an ago, it that share, our market Masimo new

important. is that not So why that's as

the of get secure sockets Now question it [ the put sensor ], your as take they it's of drivers replaced contract. us to them of number worth doesn't part second because to Well, TIs basically, we that the disconnect? have that need these million big to many that $XXX for be is what's

one-for-one a not it's with driver doubling why that's of see a doubling volumes. a our to wins of contract So our

Okay.

ask X with definitely here I more some just maybe here, on interest of tough I on this. Okay. of the this just But lot a to so here, latest I'll upfront. maybe probably maybe want with apologize a But bit developments Board. up the topic X there's little did follow

whether those gently. during your committee Maybe room, shareholder commentary year's been there's of us from of progress still like between any comment, the to you'll announced put and on fill respect currently through investors vacated looking difficulties Board Board Board that last here recently were regarding departure made would Board didn't of elected position I think year, to that latest if that lot a the member, there's your maybe upcoming hear in then vote positions that sounds to some what any finding with we're last ground you have the your of members with public been maybe ahead Joe, stands. business were the cycle. common with members discussions the help all kind vote And where elected to strategy summer. interested thoughts The this your be shareholder a [indiscernible]

the I lot suited he a new that all, but born. had won't Board of getting all position. But that here. find a finding along including to of someone Adam But personal for the to we're going see attend things been is well. intend ground rough fun well just yes, sorry to recently replace lie. served twins were well, managing. better. getting had Mikkelson to, with better. going that we're Adam miss It's him common He's first Well, have we to and exceptionally wish We're start but hopefully leave, members. we're are We We're to Adam, Things but he more

the Chapek many on from comp, Rolf that governance, Quentin committees committees, the sit ones the Board also new the new in, members our do audit, the And and they Bob members, Michelle, who and activists, Board on which now. voted are sit but Classon, shareholders

we So Board look, with a before have years. XX only the I members for think has me, that of guess, member maybe XX Board I year. now years X had election, have left But we X tenure than X more that here to been

few to just from the them few for have of here now a weeks So a been months. rest

Jason James. from line comes of from question next Raymond Our the Bedford

today. This Eric Jason for is on

under and be segment STORK. I'm non-healthcare? trying where be And to the Just I STORK WX to a couple does of will and fit out, wearables that? about in just reported clarifying and wearables questions. thinking the When figure is going you're healthcare revenue guess hearables

our segment. you that sure glad want Well, how we understand I'm you make definitions because to asked on I

there's a yes, all, segment. consumer a healthcare of segment First and

like So STORK wearable. not something certainly mean considered going with a prescription is it But that to healthcare. doesn't under it's be

cable off a VSM, to all to sensors then Radius continuous definition monitoring. So T. started that connection and It is body PPG, and our our attach wearable X Radius have WX, not Radius the Radius with of it for do

definition are STORK, way, those and is So a by of wearable. the the wearables

hearables, the category, other As will that our it other then hearables ear, measurement but whole on include both we on and enter we're modalities. far hopefully the there's for in-ear And outer will as hearing the it's that working just products wearables be it a headphones wearable and of will the host the aid as Freedom Freedom have and well. today, not And regular band.

I wearables, to is just that's for healthcare the know, hearables non-healthcare want revenue and sorry, at that's revenue? in sure Anything the [indiscernible]. then understand. just to make And looking Just the

No, healthcare, Radius hearables, PPG aid wearables. of of be the it's part be the part but healthcare it but is hearing the like product, will the will considered just

didn't all And approval towards? other you number, -- XXXX. but you but little a there that contribution at X just XXXX bit number I WX. we is hoped expectation that to in a that X% and delay for, assume STORK the for year, about, I had was than last about hit revenue of I'm specifically a an more know earlier Is looking that look mentioned follow-up. Okay. FDA talked in getting obviously, had

year. parents still that, rate have but it what really did, I And don't know for wasn't to last year, and FDA we did by clearance long business also, got wearables that and for is pulse it we until STORK advantage our enough clearance don't the impact alarms SpOX I for take STORK will all a but FDA can't $X Well, alert without because last get OTC we of we prescription. to revenue it about million That our of think Rx. year-end, while of great

get dangers. SpOX OTC a parents we be rate clearance, for prescription even then the to and So alert able once we'll pulse without

can on we now, Right them dangers for get the STORK, only gotten and they those rate alert as temperature, who've for for SpOX, can pulse alerted well. prescription

I X think for time about question. more

from Vik question Wells last line our of Fargo. Chopra from And comes the

Chopra. ] This Vik is Weinstock for [ Dena on

opportunity? your over-the-counter of how you Could recently pulse plans a received the address So MightySat, might an for XXX(k) talk oximeter. you fingertip about market approval launch for MightySat version the

QX. on people in just fingertip yes, oximeter it. of because can't. wasn't we're That's they really why my differentiate statements it can Yes. now, that Thanks We But clearance that excited a rely that for for year. last right ones about and between can't that pulse asking part they got

$XXX at a tag. with we're $XX competing So products price

well, a of $XXX lot product. think, why I the people buy should So

product buy have be that pharmacies. Now major a medical all but the the FDA now it you will clearance can real, the across hopefully to as think, online have it obviously, online, right I we we push pharmacies. make OTC, for And available MightySat in plans

system were clearance it. we FDA So at we was there wanted one than I got when a sooner major that point, expecting it, pharmacy to know to provide

deploy And to just and conversation so that the all we're major XXXX, again hopefully, successfully picking we MightySat will in up pharmacies.

any That's then you update of the helpful. Apple there litigation, status could And provide? is on the

to broaden for hope were happy get the in injunction owner are we beyond products as just in Well, makes what that injunction, U.S. beyond that That's that the well we a damages our as that infringement. our competing we future the our SpOX a We as and patent space. hopefully wanted. ultimately hopefully got company and

them ruled here lost assuming hopefully, we year-end. So before they're California in California year. and to patent they and secret try have a mary court with which hope this hear over those what have trade case a still trade patent case the the we'll that will, are hail California together because case lose a to they our cases that, pausing they The pending in patent in is cases the think just federal have Apple doing we court here in to and secret California

great Delaware, very federal magistrate the that has a faster have case. has We judge become in making do new in She expected. progress. lot judge, we And gone a busy a than It's are we schedule.

we might So while we're not certain We XXXX. this for sure, might, point. be we thought in to that we're trial XXXX, not, at it in of might in Delaware to going push but

looking We're great so soon. you We it. so you we're much. you appreciate to We year. Thank to your our And feel be to forward going reporting much, everyone, it's a Thank time. hopefully, back. results for QX like

This call. concludes today's conference

now may You disconnect.