Record results mark 19th consecutive quarter of revenue growth
Q1 2008 Highlights:
- Product revenues increased 30% to a record $59.7 million
- Shipped 28,600 new pulse oximeters
- Rainbow revenues increased 104%
IRVINE, Calif., April 29, 2008 /PRNewswire-FirstCall/ -- Masimo
Corporation (Nasdaq: MASI), the inventor of Pulse CO-Oximetry and
Measure-Through-Motion-and-Low-Perfusion pulse oximetry, today announced its
financial results for the 2008 first quarter ended March 29, 2008.
For the first quarter of 2008, Masimo reported product revenues of
$59.7 million representing a 30% increase over $45.8 million for the first
quarter of 2007. Including royalty revenues, Masimo reported total 2008 first
quarter revenues of $71.1 million compared to $59.0 million for the first
quarter of 2007. Net income for the 2008 first quarter was $8.8 million
representing $0.15 per common share compared to $9.1 million or $0.11 per
common share for the first quarter of 2007.
Masimo also reported that it shipped 28,600 Masimo SET and Masimo Rainbow
SET oximetry units, excluding handheld units, during the first quarter of
2008. This represented an 8% increase from 26,500 units in the comparable
prior year period, resulting in a new estimated net worldwide installed base
of 491,000 Masimo SET pulse oximeters.
Joe E. Kiani, Chairman and Chief Executive Officer of Masimo, said, "We
are happy to report first quarter results that once again exceeded
expectations. We believe that these results reflect the increasing momentum
for the clinical adoption of our life saving Masimo SET and Masimo Rainbow SET
technologies. In fact, in the first quarter of 2008, demand for our new
Masimo Rainbow SET technologies, on the strength of our Rad-57 handheld carbon
monoxide measuring device, increased over 100% compared to Q1 last year."
Cash and cash equivalents totaled $86.3 million at March 29, 2008.
Masimo also reported that during the 2008 first quarter, it satisfied in full
a $26.7 million debt obligation, the majority of which was originally
established in early fiscal 2007.
Conference Call
Masimo will hold a conference call today at 2:00 p.m. PT (5:00 p.m. ET) to
discuss the results. The dial-in numbers are (866) 831-6247 for domestic
callers and (617) 213-8856 for international callers. The reservation number
for both dial-in numbers is 82345350. 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 http://www.masimo.com.
After the live web cast, the call will remain available on Masimo's web
site through May 29, 2008. In addition, a telephonic replay of the call will
be available until May 13, 2008. The replay dial-in numbers are (888) 286-8010
for domestic callers and (617) 801-6888 for international callers. Please use
reservation code 71776300.
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, a breakthrough noninvasive blood
constituent monitoring platform that can measure many blood constituents that
previously required invasive procedures. Rainbow SET continuously and
noninvasively measures total hemoglobin (SpHb(TM)) and oxygen content
(SpOC(TM)) (both pending regulatory clearances), carboxyhemoglobin (SpCO(R)),
methemoglobin (SpMet(R)), and PVI(TM), in addition to oxyhemoglobin (SpO2),
pulse rate (PR), and perfusion index (PI), allowing early detection and
treatment of potentially life-threatening conditions. 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
http://www.masimo.com.
Forward-Looking Statements
This press release includes 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; the market acceptance
of our technologies and products; the value of measuring new parameters;
expectations regarding our ability to design and deliver innovative new
noninvasive technologies; and expectations for total revenues, product
revenues, GAAP earnings per share, non-GAAP pro forma earnings per share and
stock based compensation expenses for the full fiscal year 2008. 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 from those described in the
forward-looking statements. These risks include, but are not limited to, those
related to: our reliance on Masimo SET and related 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; the 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 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 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 Annual Report on Form 10-K for
the fiscal year ended December 29, 2007 filed with the Securities and Exchange
Commission on March 4, 2008. Although we believe that the expectations
reflected in our forward-looking statements are reasonable, we do not know
whether our expectations will prove correct. All forward-looking statements
included in this press release are expressly qualified in their entirety by
the foregoing cautionary statements. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. We do not undertake any obligation to update, amend or clarify these
forward-looking statements or the risk factors contained in our Annual Report
on Form 10-K for the fiscal year ended December 29, 2007, whether as a result
of new information, future events or otherwise, except as may be required
under the applicable securities laws.
Masimo Corporation
Investor Contact:
Mark P. de Raad
Executive Vice President and Chief Financial Officer
Masimo Corporation
(949) 297-7080
[email protected]
Media Contact:
Dana Banks
Manager, Public Relations
Masimo Corporation
(949) 297-7348
[email protected]
Masimo, SET, Signal Extraction Technology, Improving Outcomes and Reducing
Cost of Care by Taking Noninvasive Monitoring to New Sites and Applications,
Rainbow, SpHb, SpCO, SpMet, PVI, Pulse CO-Oximetry and Pulse CO-Oximeter are
trademarks or registered trademarks of Masimo Corporation.
MASIMO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 29, 2007 March 29, 2008
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $96,733 $86,347
Accounts receivable, net of allowance
for doubtful accounts 26,970 30,218
Royalties receivable 13,866 11,375
Inventories 23,110 25,984
Prepaid expenses 7,084 4,278
Deferred tax assets 14,334 14,250
Other current assets 1,543 1,689
Total current assets 183,640 174,141
Deferred cost of goods sold 26,249 27,022
Property and equipment, net 11,164 11,133
Deferred tax assets 5,332 5,332
Restricted cash 513 518
Intangible assets, net 5,589 6,011
Goodwill 448 448
Other assets 2,576 2,547
Total assets $235,511 $227,152
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $14,640 $16,929
Accrued compensation 12,409 10,244
Accrued liabilities 6,211 5,542
Dividends payable 183 183
Deferred revenue 16,827 20,983
Current portion of long-term debt 11,539 900
Total current liabilities 61,809 54,781
Deferred revenue 366 339
Long-term debt, less current portion 19,502 532
Other liabilities 3,768 3,794
Total liabilities 85,445 59,446
Commitments and contingencies
Stockholders' equity
Common stock 55 56
Treasury stock (1,209) (1,209)
Additional paid-in capital 143,297 151,723
Accumulated other comprehensive loss (1,034) (612)
Retained earnings 8,957 17,748
Total stockholders' equity 150,066 167,706
Total liabilities and stockholders'
equity $235,511 $227,152
MASIMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share information)
(unaudited)
Three Months Ended
March 31, 2007 March 29, 2008
Revenue:
Product $45,764 $59,673
Royalty and license fee 13,190 11,437
Total revenue 58,954 71,110
Cost of goods sold 16,901 21,121
Gross profit 42,053 49,989
Operating expenses:
Research and development 5,454 6,298
Selling, general and administrative 21,402 29,529
Antitrust litigation 10 168
Total operating expenses 26,866 35,995
Operating income 15,187 13,994
Non-operating income (expense):
Interest income 355 959
Interest expense (427) (643)
Other 41 103
Total non-operating income (expense) (31) 419
Income before provision for income taxes 15,156 14,413
Provision for income taxes 6,059 5,622
Net income 9,097 8,791
Accretion of preferred stock (1,956) -
Undistributed income attributable to
preferred stockholders (4,828) -
Net income attributable to common
stockholders $2,313 $8,791
Net income per common share:
Basic $0.14 $0.16
Diluted $0.11 $0.15
The following table presents details of the stock-based compensation
expense that is included in each functional line item in the condensed
consolidated statements of income above (in thousands):
Three Months Ended
March 31, 2007 March 29, 2008
Cost of goods sold $34 $29
Research and development 111 412
Selling, general and administrative 446 1,137
MASIMO CORPORATION
Reconciliation of GAAP to Non-GAAP Diluted Earnings per Share
(unaudited)
The following tables provide a comparison of our earnings per share
calculated under Emerging Issues Task Force Issue No. 03-6, "Participating
Securities and the Two-Class Method under FASB Statement No. 128", or EITF
03-6, and Statement of Financial Accounting Standards No. 128 "Earnings
per Share", or SFAS No. 128, in accordance with GAAP and the non-GAAP
if-converted method based upon SFAS No. 128. The non-GAAP if-converted
method assumes conversion of all shares of our preferred stock into common
stock as of December 31, 2006.
Upon closing of the Company's initial public offering on August 13, 2007,
all of the outstanding convertible preferred shares were converted into
common shares. Therefore, subsequent to this stock conversion the Company
uses the if-converted method under SFAS No. 128 to calculate earnings per
share. Accordingly, for the three months ended March 29, 2008, the Company
calculated net income per share using the if-converted method for the
entire period while the two-class method was used for the entire period
ended March 31, 2007.
We believe that the following non-GAAP earnings per share information is
relevant and useful information that can be used by analysts, investors
and other interested parties to assess our performance on a comparable
basis to future reported earnings per share. Accordingly, we are
disclosing this information to permit additional analysis of our
performance (in thousands, except share data):
As Reported Non-GAAP
Three Three Three Three
months months months months
ended ended ended ended
March 31, March 29, March 31, March 29,
2007 2008 2007 2008
Net income attributable
to common stockholders:
Net income - two class
method $9,097 NA
Accretion of preferred
stock (1,956) NA
Income attributable to
preferred stockholders (4,828) NA
Net income attributable to
common stockholders $2,313 NA
Basic net income per
common share:
Weighted average common
shares outstanding - two
class method 16,592,163 NA
Basic earnings per share
for period during which
two classes of equity
securities were outstanding $0.14 NA
Net income for period
during which single class
of equity securities was
outstanding NA $8,791 $9,097 $8,791
Weighted average common
shares outstanding -
single class NA 5,109,018 51,204,665 55,109,018
Basic net income per share
for period during which
single class of equity
securities was
outstanding NA $0.16
Basic net income per
common share $0.14 $0.16 $0.18 $0.16
Diluted net income per
common share:
Weighted average common
shares outstanding - two
class method 16,592,163 NA
Diluted common share
equivalent: stock options 4,070,367 NA
20,662,530 NA
Diluted earnings per share
for period during which
two classes of equity
securities were
outstanding $0.11 NA
Net income for period
during which single class
of equity securities was
outstanding NA $8,791 $9,097 $8,791
Weighted average common
shares outstanding -
single class NA 55,109,018 51,204,665 55,109,018
Diluted common share
equivalent: stock options NA 4,815,323 4,070,368 4,815,323
NA 59,924,341 55,275,033 59,924,341
Diluted net income per
share for period during
which single class of
equity securities was
outstanding NA $0.15
Diluted net income per
common share $0.11 $0.15 $0.16 $0.15
SOURCE Masimo Corporation
CONTACT: investors, Mark P. de Raad, Executive Vice President and Chief
Financial Officer, +1-949-297-7080, [email protected], or media, Dana Banks,
Manager, Public Relations, +1-949-297-7348, [email protected], both of Masimo
Corporation
Web site: http://www.masimo.com