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.
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 52590350. A live web cast 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 web cast, the call will remain available on Masimo’s website through March 16, 2010. In addition, a telephonic replay of the call will be available through March 2, 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 52590350.
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, prospects and business generally; expectations regarding our ability to design and deliver innovative new noninvasive technologies; and expectations for total revenues, including royalty revenues, product revenues and Rainbow revenues, non-cash stock based compensation charges, and GAAP earnings per share for the full fiscal year 2010. 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 Corporation |
|
Investor Contact: |
|
Sheree Aronson |
|
Vice President, Investor Relations |
|
Masimo Corporation |
|
(949) 297-7043 |
|
Media Contact: |
|
Dana Banks |
|
Manager, Public Relations |
|
Masimo Corporation |
|
(949) 297-7348 |
|
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, RRa, 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.
MASIMO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
January 2, January 3,
2010 2009
---- ----
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $132,054 $146,910
Short-term investments 56,989 -
Accounts receivable, net of
allowance for doubtful accounts 38,897 30,715
Royalties receivable 11,500 11,375
Inventories 31,559 27,400
Prepaid expenses 5,447 4,780
Deferred tax assets 11,585 10,511
Other current assets 1,357 551
----- ---
Total current assets 289,388 232,242
Deferred cost of goods sold 28,163 28,431
Property and equipment, net 11,682 12,979
Deferred tax assets 11,500 8,781
Intangible assets, net 9,829 7,410
Other assets 5,783 3,505
----- -----
Total assets $356,345 $293,348
======== ========
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $16,716 $15,914
Accrued compensation 17,793 15,607
Accrued liabilities 9,754 5,566
Income taxes payable 477 10,862
Deferred revenue 14,641 17,233
Current portion of long-
term debt 60 465
--- ---
Total current liabilities 59,441 65,647
Long-term debt, less
current portion 171 157
Other liabilities 7,045 8,046
----- -----
Total liabilities 66,657 73,850
Stockholders’ equity
Common stock 58 57
Treasury stock (1,209) (1,209)
Additional paid-in capital 195,690 179,666
Accumulated other comprehensive
income (loss) 63 (7)
Retained earnings 94,112 40,884
------ ------
Total Masimo Corporation
stockholders’ equity 288,714 219,391
Noncontrolling interest 974 107
--- ---
Total stockholders’ equity 289,688 219,498
------- -------
Total liabilities and
stockholders’ equity $356,345 $293,348
======== ========
MASIMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ -------------------
January 2, January 3, January 2, January 3,
2010 2009 2010 2009
---- ---- ---- ----
Revenue:
Product $80,453 $71,638 $300,143 $259,592
Royalty 12,160 11,428 48,972 47,482
------ ------ ------ ------
Total revenue 92,613 83,066 349,115 307,074
Cost of goods sold 26,796 24,537 100,313 89,454
------ ------ ------- ------
Gross profit 65,817 58,529 248,802 217,620
Operating expenses:
Research and
development 8,940 7,197 31,701 25,495
Selling, general and
administrative 35,455 31,007 134,577 120,069
Antitrust litigation 70 215 298 706
-- --- --- ---
Total operating
expenses 44,465 38,419 166,576 146,270
------ ------ ------- -------
Operating income 21,352 20,110 82,226 71,350
Non-operating income
(expense):
Interest income 17 176 178 2,305
Interest expense (4) (31) (75) (753)
Other (435) (276) (149) (511)
---- ---- ---- ----
Total non-operating
income (expense) (422) (131) (46) 1,041
---- ---- --- -----
Income before
provision for
income taxes 20,930 19,979 82,180 72,391
Provision for income
taxes 6,744 20,509 28,158 40,464
----- ------ ------ ------
Net income (loss)
including
noncontrolling
interest 14,186 (530) 54,022 31,927
Net income
attributable to
noncontrolling
interest (126) - (794) -
---- ------ ---- ------
Net income (loss)
attributable to
Masimo Corporation $14,060 $(530) $53,228 $31,927
======= ===== ======= =======
Net income (loss)
per share
attributable to
Masimo
Corporation
stockholders:
Basic $0.24 $(0.01) $0.92 $0.57
===== ====== ===== =====
Diluted $0.23 $(0.01) $0.88 $0.53
===== ====== ===== =====
The following table presents details of the share-based payment expense
that is included in each functional line item in the condensed
consolidated statements of operations above (in thousands):
Three Months Ended Twelve Months Ended
------------------ -------------------
January 2, January 3, January 2, January 3,
2010 2009 2010 2009
---- ---- ---- ----
Cost of goods sold $140 $98 $413 $257
Research and development 663 609 2,541 2,236
Selling, general and
administrative $1,968 $1,271 $7,720 $5,223
MASIMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Twelve Months Ended
-------------------
January 2, January 3,
2010 2009
---- ----
Cash flows from operating
activities:
Net income including
noncontrolling interest $54,022 $31,927
Adjustments to reconcile net
income including
noncontrolling interest to
net cash provided by
operating activities:
Depreciation and
amortization 5,979 5,745
Share-based payment 10,674 7,716
Loss on disposal of
property and equipment 5 91
Provision for doubtful
accounts 733 108
Provision for obsolete
inventory 232 1,352
Provision for warranty
costs 2,220 1,646
Provision (benefit) for
deferred income taxes (3,566) 447
Income tax benefit from
exercise of stock options
granted prior to January
1, 2006 2,758 17,201
Excess tax benefits from
share-based payment
arrangements (215) (1,889)
Changes in operating
assets and liabilities:
Increase in accounts
receivable (8,982) (3,191)
(Increase) decrease in
royalties receivable (125) 2,491
Increase in inventories (3,929) (5,588)
(Increase) decrease in
deferred cost of goods
sold 309 (2,232)
(Increase) decrease in
prepaid expenses (636) 2,322
(Increase) decrease in other
assets (3,065) 1,163
Increase in accounts
payable 777 1,264
Increase in accrued
compensation 1,926 3,121
Increase (decrease) in
accrued liabilities 1,935 (2,485)
Increase (decrease) in
income taxes payable (10,169) 12,754
Increase (decrease) in
deferred revenue (2,518) 111
Increase (decrease) in other
liabilities (1,244) 4,104
------ -----
Net cash provided by
operating activities 47,121 78,178
------ ------
Cash flows from investing
activities:
Purchases of property and
equipment (3,636) (6,852)
Purchase of short-term
investments (56,989) -
Increase in intangible
assets (1,851) (2,523)
Increase in restricted cash (15) (67)
Cash paid for acquisitions (1,981) -
------ ---
Net cash used in investing
activities (64,472) (9,442)
------- ------
Cash flows from financing
activities:
Repayments on long-
term debt (450) (30,436)
Proceeds from issuance of
common stock 2,575 9,755
Excess tax benefits from
share-based payment
arrangements 215 1,889
Dividends paid - (13)
--- ---
Net cash provided by
(used in) financing
activities 2,340 (18,805)
----- -------
Effect of foreign currency
exchange rates on cash 155 246
--- ---
Net increase (decrease)
in cash and cash
equivalents (14,856) 50,177
Cash and cash equivalents at
beginning of period 146,910 96,733
------- ------
Cash and cash equivalents
at end of period $132,054 $146,910
======== ========
SOURCE Masimo Corporation
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article