Natus Medical Incorporated (Nasdaq:BABY) today announced that it expects to report revenue for the third quarter of 2011 of approximately $51.5 million, including approximately $1.5 million from Embla Systems, which the Company acquired on September 15, 2011. Revenue for the core business is below the $58 million that the Company projected in its financial results call in July 2011.
“The revenue shortfall in the third quarter was primarily in our neurology business in both domestic and international markets where we experienced delays in orders and in the United States also a reduction in order size,” said Jim Hawkins, Chief Executive Officer of the Company. “Our Medix subsidiary, with newborn care products sold primarily in South America, also experienced a shortfall due to delayed orders.”
“Our other newborn care products, including our newborn hearing screening, newborn brain monitoring, and phototherapy product lines performed to expectations in the third quarter,” said Hawkins. “The integration of Embla Systems is also on track and we expect Embla to contribute $0.08 to non-GAAP earning per share in 2012. As we discussed in our last conference call, we are taking cost out of our core businesses in the fourth quarter and throughout 2012.”
Financial GuidanceNatus updated its 2011 financial guidance. The Company expects to report revenue of approximately $234 million and $65 million for the full year 2011 and fourth quarter 2011, respectively, including approximately $7.5 million from Embla Systems in the fourth quarter. The Company had earlier said that it expected to report revenue of approximately $236 million and $61 million for the respective periods. For the fourth quarter 2011, the Company expects to report non-GAAP earnings per share of approximately $0.15. The Company had earlier said that it expected to report non-GAAP earnings per share of $0.19 to $0.20 for the fourth quarter of 2011.
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