Masimo (NASDAQ: MASI) today announced its financial results for the third quarter ended October 1, 2016. Third quarter 2016 product revenues rose 10.8% to $160.3 million, compared to $144.6 million for the third quarter of fiscal year 2015, and total revenue, including royalties, rose 9.9% to $167.6 million, up from $152.6 million for the third quarter of fiscal year 2015. The company's worldwide direct product revenue in the third quarter of 2016 rose by 14.3% compared to the same period in 2015 and represented 85.7% of product revenue. OEM sales, which accounted for 14.3% of product revenue, declined by 6.1% to $22.9 million in the third quarter of 2016 compared to the same period in 2015. Revenue from sales of Masimo rainbow ® products rose by 5.0% to $18.0 million in the third quarter of 2016, compared to the same period in 2015. GAAP net income for the third quarter of 2016 was $27.8 million, or $0.52 per diluted share, compared to GAAP net income of $19.3 million, or $0.36 per diluted share, in the third quarter of 2015. Included in the third quarter 2016 earnings per share was $0.05 per diluted share related to the impact of the new stock option gain accounting rule, ASU 2016-09. During the third quarter of 2016, the company shipped approximately 45,800 SET ® Pulse Oximeters and rainbow SET ™ Pulse CO-Oximeters, excluding handheld units. Masimo estimates its worldwide installed base as of October 1, 2016 to be 1,482,000 units, up 6.6% from 1,390,000 units as of October 3, 2015. Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, "We are happy to report third quarter product revenues and earnings per share that exceeded our projections. Product revenues benefited from continued strength in our consumable business and new product sales. We continue to believe that these results are due to both our superior technologies and the increasing awareness of both hospitals and clinicians who recognize that our technologies can improve patient care and reduce the cost of delivering that care. Because of our strong Q3 results and the increased demand we continue to see for our products, I am happy that we will be able to once again increase our financial guidance for the year."