Masimo Reports First Quarter 2010 Financial Results

IRVINE, Calif., May 4 /PRNewswire-FirstCall/ --

Q1 2010 Highlights:

• Total revenues rose 15.5% to $98.8 million, compared to the first quarter 2009
• Product revenues rose 15.3% to $85.9 million, compared to the first quarter 2009
• Shipments of Masimo SET and Masimo Rainbow SET units rose 34% to 37,100 units, compared to the first quarter 2009
• Rainbow revenues rose 71.3% to $5.3 million, compared to the first quarter 2009
• GAAP EPS of $0.44 included a $0.20 net gain related to antitrust lawsuit victory.  Adjusted EPS of $0.24, compared to $0.22 in the first quarter of 2009

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 first quarter of 2010.

Masimo’s total revenues for the first quarter were $98.8 million, up 15.5% from $85.5 million for the first quarter of 2009.  Masimo’s first quarter product revenues rose 15.3% to $85.9 million, compared to $74.5 million for the first quarter of 2009.  Revenues from Masimo Rainbow SET products rose 71.3% to $5.3 million in the first quarter, compared to $3.1 million for the first quarter of 2009.  

Net income for the first quarter was $26.7 million, or $0.44 per diluted share, including the after-tax impact of $30.1 million in proceeds from the antitrust lawsuit victory against Covidien, partially offset by $10.9 million in related, incremental one-time SG&A expenses.  Excluding this net one-time pre-tax gain of $19.2 million, net income for the first quarter was $14.3 million, or $0.24 per diluted share, compared to net income of $13.0 million, or $0.22 per diluted share, in the first quarter of 2009.  

During the first quarter, the company shipped 37,100 Masimo SET pulse oximetry and Masimo Rainbow SET Pulse CO-Oximetry units, excluding handheld units, compared to 27,700 in the same period last year.  Masimo estimates its worldwide installed base as of April 3, 2010 to be approximately 757,000 units, up 16% from approximately 651,000 for the same period last year.

Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, “Masimo’s mission is to improve patient outcomes and reduce the cost of care by taking noninvasive monitoring to new sites and new applications.  Toward this mission, we made solid progress through double-digit growth in our core Masimo SET pulse oximetry and a 71% increase in sales of Masimo Rainbow Pulse CO-Oximetry, which includes the first-ever continuous and noninvasive hemoglobin measurement.  The 34% year-over-year growth in unit shipments of Masimo SET and Masimo Rainbow monitors and OEM boards reflects strong sales to OEMs and growing demand for both our Rainbow platform, and Patient SafetyNet system for the general floor.”

As of April 3, 2010, cash, cash equivalents and short-term investments totaled $112.1 million, compared to $189.0 million as of January 2, 2010.  The decline is due to the March 31, 2010 dividend payment of $117.5 million, partially offset by operating cash flow and the net proceeds from the antitrust lawsuit.  

Conference Call

Masimo will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to discuss the results.  The dial-in numbers are (888) 520-7182 for domestic callers and +1 (706) 679-9937 for international callers. The reservation code for both dial-in numbers is 69324525. A live webcast of the conference call will be available online from the investor relations page of the company's corporate web site at www.masimo.com. After the live webcast, the call will be available on Masimo's website through June 4, 2010. In addition, a telephonic replay of the call will be available through May 18, 2010. The replay dial-in numbers are (800) 642-1687 for domestic callers and +1 (706) 645-9291 for international callers. Please use reservation code 69324525.

About Masimo

Masimo (Nasdaq: MASI) develops innovative monitoring technologies that significantly improve patient care—helping solve "unsolvable" problems.  In 1995, the company debuted Measure-Through Motion and Low Perfusion pulse oximetry, known as Masimo SET®, which virtually eliminated false alarms and increased pulse oximetry's ability to detect life-threatening events.  More than 100 independent and objective studies demonstrate Masimo SET provides the most reliable SpO2 and pulse rate measurements even under the most challenging clinical conditions, including patient motion and low peripheral perfusion.  In 2005, Masimo introduced Masimo Rainbow SET® Pulse CO-Oximetry™, allowing noninvasive and continuous monitoring of blood constituents that previously required invasive procedures, including total hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), and PVI®, in addition to SpO2, pulse rate, and perfusion index (PI).  In 2009, Masimo introduced Masimo Rainbow SET® Acoustic Monitoring™, the first-ever noninvasive and continuous monitoring of acoustic respiration rate (RRa™).  Masimo’s Rainbow platform offers a breakthrough in patient safety by helping clinicians detect life-threatening conditions and helping guide treatment options.  Founded in 1989, Masimo has the mission of "Improving Patient Outcomes and Reducing Cost of Care by Taking Noninvasive Monitoring to New Sites and Applications." Additional information about Masimo and its products may be found at www.masimo.com.

Forward-Looking Statements

All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our financial condition, results of operations and business generally.  These forward-looking statements are based on management's current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to: our dependence on Masimo SET and Masimo Rainbow SET products and technologies for substantially all of our revenue; any failure in protecting our intellectual property exposure to competitors' assertions of intellectual property claims; the highly competitive nature of the markets in which we sell our products and technologies; any failure to continue developing innovative products and technologies; the lack of acceptance of any new products and technologies of ours; obtaining regulatory approval of our current and future products and technologies, including the recently announced total hemoglobin measurement; the risk that the implementation of our international realignment, will not produce the anticipated operational and financial benefits, including a continued lower effective tax rate; the loss of our customers the failure to retain and recruit senior management; product liability claims exposure; a failure to obtain expected returns from the amount of intangible assets we have recorded; the maintenance of our brand; the impact of the decline in the worldwide credit markets on us and our customers; the amount and type of equity awards that we may grant to employees and service providers in the future; and other factors discussed in the "Risk Factors" section of our most recent periodic reports filed with the Securities and Exchange Commission ("SEC"), which you may obtain for free on the SEC's website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Masimo, SET, Signal Extraction Technology, Improving Outcomes and Reducing Cost of Care by Taking Noninvasive Monitoring to New Sites and Applications, Rainbow, SpHb, SpOC, SpCO, SpMet, PVI, Radical-7, Rad-87, Rad-57,Rad-9, Rad-8, Rad-5, Pulse CO-Oximetry and Pulse CO-Oximeter are trademarks or registered trademarks of Masimo Corporation.

SOURCE Masimo Corporation