Natus Medical Cuts Outlook After 1Q Profit Falls

NEW YORK (AP) — Natus Medical Inc., which makes medical devices used in newborn care, lowered its annual forecasts after saying its profit dropped 70 percent in the first quarter.

The company said the global economic decline is hurting its business more than it previously expected. A month ago, Natus said customers were holding off on making major purchases due to the weak economy, a pattern that has hurt many hospital equipment makers.

Late Thursday, Natus reported a profit of $787,000, or 3 cents per share, for the first quarter of the year. Revenue fell 10 percent to $33.4 million. That was in line with the company's estimate from April, and Thomson Reuters says analysts expected 2 cents per share and $32.5 million.

Natus earned $2.6 million, or 11 cents per share, in the first quarter of 2008, on $36.9 million in revenue.

For the full year, the San Carlos, Calif., company called for a profit of 31 cents per share to 34 cents per share and $143 million to $146 million in revenue, down from earlier guidance of 57 cents to 61 cents per share and $166 million to $170 million.