Natus Medical Announces 2017 Annual and First Quarter Financial Guidance
January 09 2017 - 7:00AM
Natus Medical Incorporated (NASDAQ:BABY) today
announced its financial guidance for the first quarter and full
year 2017.
For the full year 2017, the Company expects to
report revenue of $505.0 to $510.0 million and non-GAAP earnings
per share of $1.80 to $1.85. For the first quarter of 2017, the
Company expects to report revenue of $122.0 to $124.0 million and
non-GAAP earnings per share of $0.32 to $0.34.
The Company expects to report revenue of
approximately $107.5 to $108.0 million for the fourth quarter of
2016, compared to prior guidance of $107.0 to $109.0 million and
full year 2016 revenue of $381.5 to $382.0 million compared to
prior guidance of $381.2 to $383.2 million.
During the fourth quarter of 2016, the Company
contracted 23 new Peloton Hearing Screening Hospitals.
The Company also announced that it has completed
the previously announced acquisition of Otometrics the business
from GN Store Nord.
"The combination of Natus and Otometrics creates
a global leader in hearing aid fitting, hearing assessment, hearing
screening and balance assessment," said Jim Hawkins, President and
Chief Executive Officer of Natus. "The Otometrics brand will
complement our current portfolio and will further increase our
combined growth potential. In addition, we look forward to
expanding Otometrics' margins as we complete the integration of the
two companies."
The Company will release its 2016 fourth quarter
financial results before the market opens on Wednesday, February 1,
2017.
The Company’s non-GAAP earnings per share
guidance excludes charges for amortization expense associated with
intangible assets from prior acquisitions, which the Company
expects to be approximately $9.8 million and $3.1 million for the
full year and first quarter 2017, respectively, and which the
Company expects will reduce GAAP earnings per share by
approximately $0.25 and $0.07 for the respective periods.
Non-GAAP earnings per share also exclude the direct and transition
costs of the Otometrics acquisition, which are estimated to be
approximately $3 million to $4 million for the full year 2017 as
well as the Otometrics related amortization of acquired intangible
assets, which cannot be estimated at this time.
Use of Non-GAAP Financial
Guidance
This release contains financial guidance that
excludes amortization of acquisition related intangible assets, and
restructuring and acquisition-related charges from completed and
announced acquisitions. The Company’s non-GAAP earnings per share
guidance excludes charges for amortization expense of intangible
assets associated with prior acquisitions. The Company believes
that the presentation of financial guidance excluding these charges
provides meaningful information to both management and investors
that is indicative of the Company's core operating results.
About Natus Medical
Natus is a leading provider of healthcare
products and services used in the screening, detection, treatment,
monitoring and tracking of common medical ailments in newborn care,
hearing impairment, neurological dysfunction, epilepsy, sleep
disorders, and balance and mobility disorders.
Forward Looking Statements
This press release contains forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995, particularly statements regarding the expectations,
beliefs, plans, intentions and strategies of Natus. These
forward-looking statements include statements regarding the
anticipated revenue of the fourth quarter of 2016 and the revenue
and non-GAAP earnings per share for the first quarter and full year
2017 and the impact of amortization expense associated with
acquisition-related intangible assets. These statements relate to
current estimates and assumptions of our management as of the date
of this press release and involve known and unknown risks,
uncertainties and other factors that may cause actual results,
levels of activity, performance, or achievements to differ
materially from those expressed or implied by the forward-looking
statements. Forward-looking statements are only predictions and the
actual events or results may differ materially. Natus cannot
provide any assurance that its future results or the results
implied by the forward-looking statements will meet expectations.
Our future results could differ materially due to a number of
factors, including the effects of competition, the successful
integration of the Otometrics acquisition and achieving our
profitability goals for Otometrics, the demand for our products and
services, the impact of adverse global economic conditions,
including foreign exchange rate changes, on our target markets, our
ability to expand our sales in international markets, our ability
to maintain current sales levels in a mature domestic market, our
ability to control costs, risks associated with bringing new
products to market and integrating acquired businesses, shipments
and revenue associated with our Medix’ subsidiary’s contract with
the Venezuela Ministry of Health and our ability to fulfill product
orders on a timely basis. Natus disclaims any obligation to update
information contained in any forward looking statement.
More information about potential risk factors
that could affect the business and financial results of Natus is
included in Natus' annual report on Form 10-K for the year ended
December 31, 2015, and its subsequent quarterly reports on Form
10-Q, and in other reports filed from time to time by Natus with
the U.S. Securities and Exchange Commission.
Additional information about Natus Medical can
be found at www.natus.com.
COMPANY CONTACT:
Natus Medical Incorporated
Jonathan A. Kennedy
Executive Vice President and Chief Financial Officer
(925) 223-6700
InvestorRelations@Natus.com
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