Natus Medical Cuts 1Q Profit And Sales Outlooks

SAN CARLOS, Calif. (AP) — Natus Medical Inc. slashed its first-quarter expectations Friday, saying hospitals held off on buying the company's newborn care devices amid the recession.

Medical device and equipment makers have seen demand and sales fall in recent months as their customers have looked for ways to cut costs, and borrowing money to buy equipment has become more difficult. Natus said several large orders that were expected to ship in the first quarter were not placed.

"We believe that they have been pushed out to later in the year and not lost," said President and Chief Executive Jim Hawkins in a statement. "The exact timing of these orders, however, remains uncertain."

Natus now expects a profit of a penny to 2 cents per share in the first quarter, and $32.5 million to $33.5 million in revenue. Previously the company forecast a profit of 6 cents to 8 cents per share and sales of $37 million to $38 million.

Analysts polled by Thomson Reuters predict profit of 8 cents per share and $37.4 million in revenue.

Natus earned 11 cents per share on $36.9 million in revenue in the first quarter of 2008.