Natus Medical Incorporated (Nasdaq:BABY) today announced its financial guidance for the first quarter and full year 2012. For the full year 2012, the Company expects to report revenue of approximately $260 million and non-GAAP earnings per share of approximately $0.60. For the first quarter of 2012, the Company expects to report revenue of approximately $60 million and non-GAAP earnings per share of approximately $0.07. In commenting on the Company’s financial guidance for 2012, Jim Hawkins, Chief Executive Officer of Natus said, “Our strong first quarter in 2011 presents a challenging comparison for this year’s first quarter. However, for our full year 2012 we look for solid earnings growth as we continue to execute on our strategy of organic growth and accretive acquisitions. We expect our profitability to improve throughout the year as we benefit from continued cost cutting measures and the integration of Embla into our operations. As we have communicated recently, we are focused on driving profitability and operating margins to historic levels.” The Company’s non-GAAP earnings per share guidance excludes the following charges:
- Amortization expense associated with acquisition-related intangible assets, which the Company expects to be approximately $5.2 million and $1.3 million for the full year and first quarter 2012, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.11 and $0.03 for the respective periods.
- A charge of approximately $1.0 million in the second half of 2012 to write off the cost of previously capitalized internally developed software costs due to the Company’s implementation of a world-wide enterprise resource planning platform in 2012. The Company expects this charge will reduce GAAP earnings per share by approximately $0.02.
The Company’s non-GAAP guidance includes the impact of expensing employee share based compensation. All earnings per share amounts are on a diluted basis.Use of Non-GAAP Financial Guidance This release contains financial guidance that excludes amortization of acquisition related intangible assets, write off of capitalized internally developed software costs, restructuring charges, and the impact that future acquisitions may have on results of operations. The Company believes that the presentation of financial guidance excluding these factors provides meaningful information to both management and investors that is indicative of the Company's core operating results. Therefore, the Company believes its non-GAAP financial guidance facilitates comparison of operating results across reporting periods. About Natus Medical Incorporated Natus is a leading provider of healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and balance and mobility disorders. Product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn's environment, and software systems for managing and tracking disorders and diseases for public health laboratories. 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 anticipated revenue and non-GAAP earnings per share for the first quarter and full year 2012, the impact of amortization expense associated with acquisition-related intangible assets and write off of previously capitalized internally developed software, the potential for future restructuring charges, the potential for future acquisitions, and a focus on driving profitability and operating margins to historic levels. 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, and risks associated with bringing new products to market, 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, 2010, 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.