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.
Still, Natus boosted its full-year and fourth-quarter profit outlook. The company now expects 2009 earnings of 39 cents to 40 cents per share on revenue of $164 million to $165 million. Its prior forecast called for a profit of 35 cents to 37 cents per share on revenue of $149 million to $151 million. Natus now anticipates fourth-quarter earnings of 15 cents to 16 cents per share on revenue of $49 million to $50 million. It previously predicted a profit of 14 cents to 15 cents per share on revenue of $40.3 million to $41.3 million. Analysts expect full-year earnings of 37 cents per share on revenue of $157.8 million and a fourth-quarter profit of 16 cents per share on revenue of $49.8 million. For 2010, Natus predicts a profit of 49 cents to 51 cents per share on revenue of about $196 million. Analysts forecast 2010 earnings of 63 cents per share on revenue of $203.2 million.