Natus Medical 3Q Profit Falls On Higher Expenses

SAN CARLOS, Calif. (AP) — Natus Medical Inc. said Monday that its profit slipped in the third quarter on increased operating expenses and acquisition-related costs.

The maker of medical devices used for newborn care earned $3.7 million, or 13 cents per share, for the three months ended Sept. 30. That's down 23 percent from $4.8 million, or 17 cents per share, a year earlier.

Quarterly results included acquisition costs of $460,000 related to the purchases of Hawaii Medical LLC in July and Alpine Biomed in September. Removing these costs, Natus earned 14 cents per share for the quarter.

Revenue increased 6 percent to $44.3 million from $41.7 million on improved product demand.

The performance beat the 11 cents-per-share estimate on revenue of $38.5 million of analysts polled by Thomson Reuters. Analysts' estimates normally exclude one-time items.

The company's results were pulled down by higher operating expenses of $21.6 million. The company reported expenses of $18.9 million last year.