Masimo Corporation

Good afternoon, ladies and gentlemen, and welcome to Massimo's second quarter 2021 earnings conference call. The company's press release is available at www.massimo.com. As of this time, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. I am pleased to introduce Eli Kamerman, Massimo's Vice President of Business Development and Investor Relations.

Thank you, and hello, everyone. Joining me today are Chairman and CEO Joe Chiani and Executive Vice President and Chief Financial Officer Micah Young. This call will contain forward-looking statements which reflect management's current judgment, including certain of our expectations regarding fiscal year 2021 financial performance. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Risk factors that could cause our actual results to differ materially from our projections and forecasts are discussed in detail in our periodic filings with the SEC. You will find these in the investor relations section of our website. Also, this call will include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. We generally refer to these as non-GAAP financial measures. In addition to GAAP results, these non-GAAP financial measures are intended to provide additional information to enable investors to assess the company's operating results in the same way management assesses such results. Management uses non-GAAP measures to budget, evaluate, and measure the company's performance and sees these results as an indicator of the company's ongoing business performance. The company believes that these non-GAAP financial measures increase transparency and better reflect the underlying financial performance of the business. Reconciliation of these measures to the most directly comparable GAAP financial measures are included within the earnings release and supplementary financial information on our website. Investors should consider all of our statements today together with our reports filed with the SEC, including our most recent form 10-K and 10-Q, in order to make informed investment decisions. In addition to the earnings release issued today, we have posted a quarterly earnings presentation within the investor relations section of our website to supplement the content we will be covering this afternoon. I'll now pass the call to Joe Chiani.

Thank you, Alex. Good afternoon, everyone, and thank you for joining us for Massimo's second quarter 2021 earnings call. We're happy to report strong second quarter results. While we expect the driver and capital orders in 2021 to be lower than what we achieved in 2020 due to unprecedented high demand during the height of COVID, and expect the sensor volumes to rebound as elective surgeries recover of COVID hospitalizations received, we did not anticipate the very strong increase in single patient use sensors that we realized this quarter. This produced higher than expected revenues, leading to an 11% increase in our non-GAAP EPS. Based on our observations and discussions in the field, we believe that not only are elective surgery volumes steadily returning to pre-COVID levels, but more hospital beds are monitored beds now. As you'll hear soon from Micah, we realized a substantial increase in monitor installations during the quarter from record new hospital contracts in 2020 and record new hospital contracts the first half of 2021. These installations strengthen our foundation for long-term sustainable growth for sales of our sensors and help hospitals take better care of their patients. I'll discuss more later in the call. Now I'll ask Micah to review our second quarter results in more detail and provide you with an update on our 2021 financial guidance.