The Pleasanton, Calif.-based company posted losses of approximately $24.8 million, or 74¢ per share, on sales of approximately $114.8 million for the three months ended March 31, seeing losses grow 687% while sales shrunk 10.8% when compared to the same period during the previous year.
Adjusted to exclude one-time items, earnings per share were 9¢, ahead of the 5¢ per share consensus on Wall Street where analysts expected to see sales of $113.3 million, which the company also topped.
“Our first quarter results reflect performance at the high end of our expectations. Within our Neuro end market, EEG grew 12.5% year-over-year. Otoscan continued to ramp up in Audiology and our phototherapy products within Newborn care grew significantly with the relaunch of our neoBlue line of products. We have made progress on many fronts with our ‘One Natu’” initiative since its announcement in January. The new organization structure is in place and we have begun to realize financial benefits as well as improved operational efficiency of ‘One Natus’ during the quarter. Our previously announced divestiture of Medix marks another step toward making Natus more streamlined and profitable. This divestiture, along with those announced in January will reduce revenue, but increase our ongoing margins and earnings and allow us to focus on our best opportunities. Year-over-year revenue growth in the first quarter was 2.7% after adjusting for the exited businesses and discontinued products,” prez & CEO Jonathan Kennedy said in a prepared statement.
Natus provided guidance for its upcoming second quarter, expecting to post sales of between $121 million and $125 million with non-GAAP EPS of between 25¢ and 32¢.
The company lowered its guidance slightly for the full year, now expecting to see sales of between $489 million and $505 million, down from between $490 million and $510 million, with non-GAAP EPS of between $1.17 and $1.44, tightened from earlier guidance of between $1.12 and $1.49.
Shares in Natus Medical have risen approximately 1.2% in after hours trading today, at $25.49 as of 4:05 p.m. EDT.
Earlier this month, Natus Medical said that it inked a deal to sell its subsidiary Medix Medical Devices in an employee-led buyout.