Masimo (NSDQ:MASI) posted fourth-quarter sales of $92.6 million for the three months ended Jan. 2, up 11.5 percent compared with $83.1 million during the same period last year. Net income was $14.1 million, compared with net losses of $530,000 during Q4 2008:
Press Release
Masimo Reports Fourth Quarter and Full Year 2009 Financial Results
IRVINE, Calif., Feb. 16 /PRNewswire-FirstCall/ — Masimo (Nasdaq: MASI), the inventor of Pulse CO-Oximetry and Measure-Through Motion and Low Perfusion pulse oximetry, today announced its financial results for the fourth quarter and year ended January 2, 2010.
Fourth Quarter 2009 Highlights:
- Product revenues of $80.5 million, up 12% compared to the fourth quarter last year
- Rainbow revenues of $5.8 million, up 23% compared to the fourth quarter last year
- Shipped 30,400 Masimo SET and Masimo Rainbow SET pulse oximeter units
- Diluted EPS of $0.23
Full Year 2009 Highlights:
- Product revenues of $300.1 million, up 16% compared to 2008
- Rainbow revenues of $19.5 million, up 46% compared to 2008
- Shipped over 111,000 Masimo SET and Masimo Rainbow SET pulse oximeter units in 2009
- Diluted EPS of $0.88
Masimo’s fourth quarter product revenues rose 12% to $80.5 million, compared to $71.6 million for the fourth quarter of 2008. Revenues from Masimo Rainbow SET products rose 23% to $5.8 million in the fourth quarter. Including royalty revenues, Masimo’s total revenues for the fourth quarter were $92.6 million, up 11% from $83.1 million for the fourth quarter of 2008.
Net income for the fourth quarter was $14.1 million, or $0.23 per diluted share, compared to a net loss of approximately $530,000, or $0.01 per share in the same period last year, which included a $14.9 million, or $0.25 per share, tax charge related primarily to the prepayment of licensing rights to utilize pre-existing intangibles as part of the implementation of a new international business organization and structure.
For 2009, Masimo product revenues rose 16% to $300.1 million, compared to $259.6 million in 2008. Revenues from Masimo Rainbow SET products rose 46% to $19.5 million in 2009. Including royalty revenues, 2009 total revenues were $349.1 million, up 14% from $307.1 million in 2008. Total 2009 direct and distribution revenues were $241.7 million, up 20% from $201.1 million in 2008 while OEM revenues were unchanged at $58.4 million.
Masimo reported 2009 net income of $53.2 million, or $0.88 per diluted share, compared to $31.9 million, or $0.53 per diluted share in 2008, which included the $0.25 per share tax charge related to the prepayment of licensing rights to utilize pre-existing intangibles as part of the implementation of its new international business organization and structure.
During the fourth quarter, the company shipped 30,400 Masimo SET pulse oximetry and Masimo Rainbow SET Pulse CO-Oximetry units, excluding handheld units, compared to 31,700 in the same period last year. Based on a 10-year average useful life assumption, the company estimates its worldwide installed base as of January 2, 2010 to be approximately 724,000 units, compared to approximately 625,000 for the same period last year.
Joe E. Kiani, Chairman and Chief Executive Officer of Masimo, said, “We focus on inventing and delivering breakthrough noninvasive vital signs monitors that help clinicians make better and faster decisions in order to improve the quality and efficiency of patient care. Our fourth quarter and full year 2009 financial results show the fundamental strength of our innovation engine and business model. We attribute our sustained growth to the power of our core Masimo SET pulse oximetry platform, combined with our Masimo Rainbow Pulse CO-Oximetry offering, which is extending use of noninvasive measurements to new applications such as carboxyhemoglobin, methemoglobin, hemoglobin and beyond.”
As of January 2, 2010, cash, cash equivalents and short-term investments totaled $189.0 million, up 29% from $146.9 million at January 3, 2009.
Financial Guidance
Masimo expects fiscal 2010 total revenues to be between $390 million and $405 million, including product revenues between $345 million and $360 million, and royalty revenues between $44 million and $46 million. The company expects fiscal 2010 earnings per share to be between $1.12 and $1.18, including approximately $0.15 from a one-time gain related to resolution of an anticompetitive legal matter with Covidien in the first quarter of 2010, offset by expected incremental one-time spending associated with this recovery. The company’s guidance also includes an increase in 2010 non-cash stock-based compensation expense to $14.7 million from $10.7 million in 2009. The components of Masimo’s guidance set forth above are estimates only and actual performance could differ.