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In a release on November 2, the Company noted that for the third quarter ended September 30, Natus reported revenue of $44.3 million, compared to $41.7 million reported in the comparable quarter of the previous year. Net income was $3.7 million, or $0.13 per diluted share, for the third quarter of 2009, compared with net income of $4.8 million, or $0.17 per diluted share, for the third quarter of 2008.
For the nine months ended September 30, the Company reported net income of $6.8 million, or $0.24 per diluted share, compared to net income of $11.2 million, or $0.43 per diluted share, for the comparable period in 2008.
The results for the third quarter of 2009 included $460,000 of direct acquisition costs associated with the Company's acquisitions of Hawaii Medical and Alpine Biomed in July and September 2009, respectively. Excluding these direct costs, which were reported as a component of general and administrative expense, non-GAAP earnings were $4.0 million, or $0.14 per diluted share.
"We are pleased with our third quarter results as they exceeded our expectations," said Jim Hawkins, President and Chief Executive Officer of the Company. "Demand for our products, which stabilized in our second quarter, improved among all our product lines throughout the third quarter, which is extremely satisfying since we believe hospitals continue to limit spending on capital equipment. I am also happy to report that we again generated cash during the quarter, adding more than $6 million through operations."
"We believe the acquisitions of Hawaii Medical and Alpine Biomed signify that our business model is on track. This, coupled with improved business conditions in our markets, gives us the opportunity to return to the growth rates we achieved in the years leading up to the 2008 recession, through a combination of organic growth, cost reduction, and accretive acquisitions," added Hawkins.
"We are currently working through the integration of Alpine Biomed and expect the contribution of Alpine to be accretive to our 2010 results," said Hawkins.
As of September 30, the Company had cash, cash equivalents, and short-term investments of $29.6 million, stockholders' equity of approximately $238 million, and working capital of approximately $76 million.
Financial Guidance
Natus increased its financial guidance for the full year and fourth quarter 2009. For the full year 2009 the Company now expects revenue to range from $164 million to $165 million and earnings per share to range from $0.39 to $0.40. The Company had previously said it expected that revenue would range from $149 million to $151 million and earnings per share would range from $0.35 to $0.37.
For the fourth quarter of 2009, the Company now expects revenue to range from $49 million to $50 million and earnings per share to range from $0.15 to $0.16. The Company had previously said it expected that revenue would range from $40.3 million to $41.3 million and earnings per share would range from $0.14 to $0.15. This compares to revenue of $43.4 million and earnings of per share of $0.22 reported in the fourth quarter of 2008.
Natus also provided financial guidance for the full year 2010. The Company said it expects revenue to be approximately $196 million and earnings per share to range from $0.49 to $0.51.
The Company's fourth quarter 2009 and full year 2010 guidance is on a GAAP basis, including the impact of expensing employee equity based compensation. However, the Company's guidance does not include the impact of any future acquisition-related charges associated with the Hawaii Medical or Alpine Biomed acquisitions, other acquisition or restructuring related charges that may be incurred, and the impact any future potential acquisitions might have on the Company's results of operations. All earnings per share amounts are on a diluted basis.
Natus is a provider of healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments such as hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and newborn care.
((Comments on this story may be sent to health@closeupmedia.com))
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