MASI
#Sure.
Yes, we saw an 18% increase in rainbow revenues without this Middle East large order and that strength came from both hemoglobin sales around the world as well as carbon monoxide and methemoglobin sales through two of our OEMs both in the US and Europe.
Well, the recurring revenue side is there, and where also .
for the increase that you see is from both recurring revenues, from customers we had before, as well as new customers that are coming online.
Thank you, <UNK>.
Yes, <UNK>.
First of all, I think US and Europe probably are most close together in terms of cost-containment measures and cost worries.
So for these two regions, despite very successful hemoglobin evaluations clinically, where the clinicians saw great differences in their ability to do the care that they give, they've been having difficult time getting administrations buy-in to do large-scale implementations.
You have certain regions of the world like the Middle East where the cost-containment pressures are not there.
So what we are seeing in certain parts of the world where you don't have the same cost pressures, the technology seems to be going from clinical evaluation wins to purchase, as you would expect, and sort of the constant delays we have been getting in both US and Europe.
Well, I can't obviously get too deep into the legal stuff because now we are in the middle of one.
But what I can say to you, I have good reasons to believe that nothing is going to change immediately.
By the February earnings call that we have, we should be prepared to give you better color on the future.
We do believe that the filings are not well thought through, given that once the patents in the case that they have filed inter partes re-exam have ---+ were in front of the Patent Office and Patent Board twice and in front of an appellate court twice.
This is a patent that we had filed interference against Medtronic, which used to be Covidien/Nellcor, and Medtronic had fought hard to win this patent.
So now for them to come out and say that the patent's no good, they should be stopped from doing that.
And I think also there is a little bit of a wishful thinking on the part of new people in this giant Goliath that has not met David yet not thinking through what our actions might be.
So stay tuned; in February we will give you more color.
Thank you.
Thanks, <UNK>.
Well, typically when we get the order it takes about three months for the deployment into the field and consumption of sensors and then the rate of sensor consumption has a lot to do with census.
So if there is an increase in census, whether it's due to the flu season or people taking advantage of their deductibles and co-pays and so forth before the year-end, we might see a bigger boost.
And if there isn't, then we might not see as big of a boost.
So I think within Q4 we should start seeing the impact of what happened for us as far as driver shipments in Q3.
But just to remind you, I think this is now the ninth quarter that we have shipped over 40,000 oximeters, excluding the handheld devices.
And we see that trend continuing.
Yes.
I think rainbow, because of the size of where we are revenue-wise and installed base-wise, will remain lumpy.
I think that hopefully will get less and less as they move forward.
The good news is with this large Middle East order, it's not supposed to be a one-time order.
So we do expect it to continue hopefully for years and it might end up being just half of what ultimately it will be.
And this is just one of several large businesses we're after with our technologies, including rainbow.
Sure, <UNK>.
In general when we started this year we had provided GAAP revenue rainbow guidance about $57 million or so.
I think based upon the strength that we saw in the third quarter, right now we're predicting that number to be in about the $60 million range for the full year.
So we'll see about $3 million higher partly due to the Middle East order that <UNK> was just alluding.
So about $60 million is the range of where we expect our full-year rainbow revenues to come in at.
Thank you.
I think we have one more question.
I think they just added one other.
Okay.
All right.
Next question, please.
Sure, <UNK>.
We expect that the next phase of trial, which will be additional patent litigation as well as anti-trust and patent misuse litigation, to happen in Q1 2017.
We recently had a hearing that we felt that went well.
We should get a ruling from that soon.
And based on some of the things that are going on at both the Supreme Court and other items that we may have to go the long course or we may not.
But next thing is Q1 2017.
Yes, unless there is some settlement between now and then, yes, because until we go through the next phase, both the jury verdict and the judge's ruling is not considered final, so we can't go to the Court of Appeals nor can they I guess; we would not have much to appeal.
But they would not go to Court of Appeals until the final ruling, which is expected to happen after the Q1 2017 trial.
Thank you, <UNK>.
I think we are done.
So I want to thank you all for joining us for this call.
And we hope you enjoy the rest of your year and look forward to our call in February.
Thank you, bye-bye.
