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Natus Medical Announces 2012 Second Quarter Financial Results

Stock quotes in this article: BABY

Additional information about Natus Medical can be found at www.natus.com.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, particularly statements regarding the expectations, beliefs, plans, intentions and strategies of Natus. These forward-looking statements include statements regarding the contribution of the Nicolet business to profitability, growth in the incubator market, and revenue and non-GAAP profitability in the third and fourth quarters and full year 2012 These statements relate to current estimates and assumptions of our management as of the date of this press release, and future events or Natus' future financial performance or results, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results or the results implied by the forward-looking statements will meet expectations. Our future results could differ materially due to a number of factors, including the effects of competition, the demand for our products and services, the impact of adverse global economic conditions on our target markets, our ability to expand our sales in international markets, our ability to maintain current sales levels in a mature domestic market, our ability to control costs, risks associated with bringing new products to market and integrating acquired businesses, and our ability to fulfill product orders on a timely basis. Natus disclaims any obligation to update information contained in any forward looking statement.

More information about potential risk factors that could affect the business and financial results of Natus is included in Natus' annual report on Form 10-K for the year ended December 31, 2011, and its quarterly reports on Form 10-Q, and in other reports filed from time to time by Natus with the U.S. Securities and Exchange Commission.

       
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
Three Months Ended Six Months Ended
June June June June
2012 2011 2012 2011

 

 

 

 

 
Revenue $ 61,013 $ 58,095 $ 120,522 $ 117,203
Cost of revenue   26,771     25,028     52,812     49,400  

 

Gross profit   34,242     33,067     67,710     67,803  

 

Operating expenses:
Marketing and selling 15,930 15,754 32,954 30,130
Research and development 6,594 6,171 13,349 12,458
General and administrative   10,913     7,986     20,441     17,018  

 

Total operating expenses   33,437     29,911     66,744     59,606  

 

Income from operations   805     3,156     966     8,197

 

Other income/(expense):
Interest income 4 7 9 17
Interest expense (8 ) (64 ) (16 ) (112 )
Other income, net   289     (12 )   461     (119 )

 

Total other income/(expense)   285     (69 )   454     (214 )

 

Income before provision for income tax 1,090 3,087 1,420 7,983
 
Provision for income tax expense   645     726     617     2,518

 

Net income $ 445   $ 2,361   $ 803   $ 5,465  

 

Earnings per share:
Basic $ 0.02 $ 0.08 $ 0.03 $ 0.19
Diluted $ 0.01 $ 0.08 $ 0.03 $ 0.18
 
Weighted-average shares used to compute
Basic earnings per share 28,921 28,439 28,888 28,393
Diluted earnings per share 29,697 29,739 29,610 29,642
 

         
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (UNAUDITED)
(in thousands, except per share amounts)
 
Three Months Ended Six Months Ended
June June June June
2012 2011 2012 2011

 

 

GAAP based results:
 
Income (loss) before provision for income tax (benefit) $ 1,090 $ 3,087 $ 1,420 $ 7,983
 
Non-GAAP adjustments:
 

Amortization expense associated with certain acquired intangible assets reported as a component of:

(a)
 
Cost of revenue 532 530 1,060 1,062
Marketing and selling 538 393 929 825
Research and development 345 370 675 740
 
 

Restructuring charge reported as a component of general and administrative expense

679 630 1,256 793 (b)
 
Direct costs of acquisitions (G&A) 1,992 - 1,992 - (c)
 
Accelerate ERP system depreciation (G&A) 451 - 902 - (d)
 
Embla inventory FMV adjustment (COGS) - - 55 - (e)
       

 

Non-GAAP income before provision for income tax

5,627 5,010 8,289 11,403
 
Provision for income tax expense, as adjusted   2,206     1,234     2,840     3,576  

 

 
Non-GAAP net income $ 3,421   $ 3,776   $ 5,449   $ 7,827  

 

Non-GAAP earnings per share:
Basic $ 0.12 $ 0.13 $ 0.19 $ 0.28
Diluted $ 0.12 $ 0.13 $ 0.18 $ 0.26
 

Weighted-average shares used to compute

Basic non-GAAP earnings per share 28,921 28,439 28,888 28,393
Diluted non-GAAP earnings per share 29,697 29,739 29,610 29,642
 
Memo, Gross profit percentage:
GAAP basis 56.1 % 56.9 % 56.2 % 57.9 %
non-GAAP basis 57.0 % 57.8 % 57.1 % 58.8 %
 




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