Merit Medical Systems, Inc. (NASDAQ:MMSI) Q2 2015 Earnings Conference Call - Final Transcript
Jul 23, 2015 • 05:00 pm ET
Good day and welcome to the Merit Medical Systems, Inc. Second Quarter 2015 Conference Call. At this time I would like to turn the conference over to Mr. Fred Lampropoulos, Chairman and CEO. Please go ahead, sir.
Thank you very much and good afternoon, ladies and gentlemen. We are broadcasting from Salt Lake City, on a wonderful and beautiful afternoon -- summer afternoon here. I will start by having Anne-Marie Wright, who will discuss our Safe Harbor policy. Anne-Marie?
Thank you. Thank you, Fred. (Forward-Looking Cautionary Statements)
Anne-Marie, thank you very much. And again, ladies and gentlemen thank you very much for joining us. We are delighted to have you and we're pleased to be able to report our second quarter results.
And overlying all of that of course is I think execution of a plan that we have been preparing and have executed for years in preparation and have shared with you last year and I'm pleased that we're on track on that plan and performing at or above the performance that we had expected.
Let's talk a little bit first of all about our net revenues. Revenues were up just slightly over 7%. When adjusted for constant currency over the last year it's about 10%. So we're pleased generally with the sales numbers. Strong performance once again from the international markets in China. The domestic market, I think has firmed up portion, it is doing quite well. OEM did well and so just kind of across the board we had a quarter that we're all very, very pleased with.
In terms of sequential improvement, I think you saw that first of all revenues and then you take a look at our gross margins. Those have increased and we're pleased with that and we expect that we will have further improvement. I'm going to come to that in a minute as we discuss the balance of this year and very candidly taking a little bit of a peek into 2016.
We take a look at GAAP earnings, even though we talk and we're going to talk mostly about non-GAAP, one of the comments or subjects that we talked about here prior to coming on the call was essentially that our GAAP earnings doubled essentially from last year's second quarter. And on a non-GAAP basis, they were up 70%. I think all of you would agree that that is just great performance.
The people responsible for this performance all 40 or 50 of them are sitting in this room and I've already expressed to them as I disclose the numbers to them, my appreciation for their efforts. I think in terms of expenses, in the budgeting process, I think that we are disciplined. We are running through our budgets or in fact below those budgets and so I think that the process of the visibility and the accountability and responsibility that we have of bringing these numbers back to you as our shareholders and people of interest are -- we're happy