The 5-year deal calls for Irvine, Calif.-based Masimo to provide the devices to the U.S. Army, Navy, Air Force, Marine Corps and federal civilian agencies.
Masimo won out over 84 other bidders for the contract, the Defense Dept. said.
The company soundly beat expectations last week with its 1st-quarter earnings, posting profits of $27.6 million, or 53¢ per share, on sales of $171.2 million for the 3 months ended April 2, representing a bottom-line gain of 34.4% on sales growth of 10.8% compared with Q1 2015.
“We are happy to report results for the 1st quarter exceeded our expectations. Our strong revenue growth is the result of increasing demand for both our Set pulse oximetry and rainbow Set pulse CO-oximetry technologies, as well as increasing demand from our new products. Given the strong Q1 results and our continued optimism about the rest of the year, we are happy to be in a position to raise our full-year 2016 financial guidance,” founder, chairman & CEO Joe Kiani said in prepared remarks.
Masimo said it now expects to report 2016 earnings of $1.83 per share, up from prior guidance for $1.69, on sales of $677 million, compared with $670 million previously.
MASI shares have gained nearly 10% since the company’s May 5 earnings release. The stock was trading at $46.66 per share today in mid-morning activity, up 1.2%.