Natus Medical Incorporated (Nasdaq:BABY) today announced financial
results for the three months and year ended December 31, 2007. For
the fourth quarter ended December 31, 2007, Natus reported revenue
of $34.2 million, representing a 19% increase from $28.8 million in
the comparable quarter of the previous year. The Company reported
net income of $2.8 million, or $0.12 per diluted share, for the
fourth quarter of 2007, compared with net income of $512,000, or
$0.02 per diluted share, for the fourth quarter of 2006. The
Company completed the acquisition of Xltek on November 29, 2007.
The acquisition contributed to revenue growth in 2007; however, the
results of Xltek reduced fourth quarter and annual earnings by
$0.01 per share. The Company expects the results of Xltek to be
accretive to earnings throughout 2008. Non-GAAP income before tax
for the fourth quarter of 2007 was $6.6 million, representing an
increase of 37% from $4.8 million reported in the fourth quarter of
2006. Non-GAAP net income for the fourth quarter of 2007 was $3.8
million, or $0.17 per diluted share. The non-GAAP results exclude
acquisition-related charges. For the year ended December 31, 2007,
the Company reported record revenue of $118.4 million, an increase
of 32% from $89.9 million for the year ended December 31, 2006. The
Company reported net income of $9.8 million, or $0.43 per share,
for the full year 2007, compared with a net loss of $927,000, or a
loss of ($0.05) per share, for the year ended December 31, 2006.
Non-GAAP income before tax for 2007 was $17.4 million, representing
an increase of 35% over $12.9 million reported in 2006. Non-GAAP
net income for 2007 was $10.8 million, or $0.47 per share, compared
to $7.3 million, or $0.35 per share, reported in 2006. Jim Hawkins,
President and Chief Executive Officer of the Company said, �We are
pleased with our financial results for the fourth quarter and
full-year 2007. As we have stated throughout the year, one of our
objectives for 2007 was to position Natus for continued revenue and
earnings growth. We accomplished this objective by investing in
infrastructure, initiating a restructuring of our operating
divisions, and realigning our sales organization. We were able to
do this and still achieve record sales and earning results
throughout the year. Natus is now positioned for a successful 2008
in which our goal is to achieve earnings growth of approximately
50%.� �Many of our accomplishments occurred during the fourth
quarter led by the acquisition of Xltek and subsequent integration
activities. We also submitted a PMA supplement on the Cool-Cap that
was approved by the FDA in early February. And as I mentioned
earlier, we realigned our direct sales force in the United States
into two distinct organizations, Newborn Care and Neurology,� added
Hawkins. �While these and other actions, including the voluntary
shutdown at our Olympic facility in November, had a temporary
disruptive effect in our fourth quarter, we were still able to
achieve record revenue and report quarterly earnings growth of
36%.� �The restructuring plan we recently announced to consolidate
product development in our North American business units will
result in even more streamlined and efficient operations and an
additional $2.4 million annual cost reduction in 2009 and forward,�
stated Hawkins. �With these events now behind us, I am very
satisfied with our current organization and confident we will meet
our goals for the year. We believe Natus is now positioned to
continue our record as one of the fastest-growing, profitable
medical device companies in the country.� The Company�s results for
the three months and year ended December 31 2007 include employee
equity-based compensation expense of $637,000 and $2.1 million,
respectively, and depreciation and amortization expense of $1.6
million and $5.0 million, respectively. For the same periods in
2006 the Company recorded equity-based compensation expense of
$442,000 and $1.4 million, and depreciation and amortization
expense of $1.0 million and $3.9 million. As of December 31, 2007
the Company had cash, cash equivalents, and short-term investments
of $11.9 million, revolving and term debt totaling $37.0 million,
stockholders' equity of $115.7 million, and working capital of
$19.9 million. During 2007 the Company�s backlog increased by
approximately $4.8 million, including $1.4 million of backlog from
Xltek. Financial Guidance On December 18, 2007, the Company
communicated its financial guidance for the full year and first
quarter 2008. The Company reiterated that guidance today. For the
first quarter ending March 31, 2008, the Company expects revenue to
range from $34.5 million to $36.0 million and earnings per share to
range from $0.09 to $0.10. For the full year, the Company expects
to report revenue of approximately $160 million and earnings per
share of $0.68 to $0.70. On February 11, 2008, the Company
announced that it adopted an integration and restructuring plan
that is designed to eliminate redundant costs resulting from prior
acquisitions and to improve efficiencies in operations. In light of
the nominal cost benefit of the plan in 2008, the Company did not
change its 2008 guidance. The Company�s 2008 guidance is on a GAAP
basis, including the impact of expensing employee equity-based
compensation. All earnings per share amounts are on a diluted
basis. Use of Non-GAAP Financial Measures In addition to disclosing
financial results calculated in accordance with GAAP, this release
contains non-GAAP financial measures that exclude the effects of
costs associated with the November 29, 2007 acquisition of Xltek,
including hedging losses associated with funding the acquisition
and a charge for in-process research and development, as well as
employee-severance charges incurred the fourth quarter of 2007. The
Company believes that the presentation of results excluding these
acquisition-related and severance charges provides meaningful
supplemental information to both management and investors that is
indicative of the Company's core operating results. The Company
also believes the in-process research and development charge is not
indicative of resources devoted to ongoing research and development
efforts. Therefore, the Company believes the non-GAAP financial
measures facilitate comparison of operating results across
reporting periods. A reconciliation between the Company's results
of operations on a GAAP and non-GAAP basis for the periods reported
is included as part of the condensed consolidated statements of
operations at the end of the Company's financial results release.
The Company believes that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
the Company's performance and when planning, forecasting, and
analyzing future periods. The non-GAAP financial measures also
facilitate management's internal comparisons to the Company's
historical performance. The non-GAAP financial measures disclosed
by the Company should not be considered a substitute for or
superior to financial measures calculated in accordance with GAAP,
and the financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully
evaluated. Conference Call Natus has scheduled an
investment-community conference call to discuss this announcement
beginning at 11:00 a.m. Eastern Time today (8:00 a.m. Pacific
Time). Individuals interested in listening to the conference call
may do so by dialing (800) 798-2884 for domestic callers, or (617)
614-6207 for international callers, and entering reservation code
34366508. A telephone replay will be available for 48 hours
following the conclusion of the call by dialing (888) 286-8010 for
domestic callers, or (617) 801-6888 for international callers, and
entering reservation code 16728526. The conference call also will
be available real-time via the Internet at
http://investor.natus.com, and a recording of the call will be
available on the Company�s Web site for 90 days following the
completion of the call. About Natus Medical Incorporated Natus is a
leading 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. Product offerings
include computerized neurodiagnostic systems for audiology,
neurology, polysomnography, and neonatology, as well as newborn
care products such as hearing screening systems, phototherapy
devices for the treatment of newborn jaundice, head-cooling
products for the treatment of brain injury in newborns, and
software systems for managing and tracking disorders and diseases
for public health laboratories. Additional information about Natus
Medical can be found at www.natus.com. 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, but are not
limited to, statements regarding anticipated revenue and
profitability for the full year and first quarter of 2008, earnings
growth in 2008, and the benefits of restructuring activities. These
statements relate to future events or Natus' future financial
performance or results, 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 demand for our
products and services, 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, and
risks associated with bringing new products to market and
integrating acquired businesses. 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, 2006,
and its 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. NATUS MEDICAL INCORPORATED AND SUBSIDIARIES UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share amounts) � � � � Three Months Ended Twelve Months
Ended December December December December 2007 2006 2007 2006 �
Revenue $ 34,234 $ 28,760 $ 118,374 $ 89,915 Cost of revenue �
12,646 � � 10,857 � � 43,100 � � 33,665 � � � � � Gross profit �
21,588 � � 17,903 � � 75,274 � � 56,250 � � � � � Operating
expenses: Marketing and selling 8,056 6,979 28,202 21,944 Research
and development 3,569 3,217 15,645 10,604 General and
administrative 3,854 3,076 15,214 11,004 Acquired IPR&D � 300 �
� 3,900 � � 300 � � 9,800 � � � � � Total operating expenses �
15,779 � � 17,172 � � 59,361 � � 53,352 � � � � � Income from
operations � 5,809 � � 731 � � 15,913 � � 2,898 � � � � � Other
income/(expense): Interest income 143 260 695 750 Interest expense
(235 ) (91 ) (235 ) (589 ) Other income, net � (496 ) � 41 � � (359
) � 64 � � � � � Total other income/(expense) � (588 ) � 210 � �
101 � � 225 � � � � � Income before provision for income tax 5,221
941 16,014 3,123 � Provision for income tax � 2,442 � � 429 � �
6,234 � � 4,050 � � � � � Net income (loss) $ 2,779 � $ 512 � $
9,780 � $ (927 ) � � � � Earnings (loss) per share: Basic $ 0.13 $
0.02 $ 0.45 $ (0.05 ) Diluted $ 0.12 $ 0.02 $ 0.43 $ (0.05 ) �
Weighted-average shares used to compute Basic earnings per share
21,687 21,329 21,600 19,548 Diluted earnings per share 22,908
22,671 22,815 19,548 NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (UNAUDITED) (in thousands,
except per share amounts) � � � � � Three Months Ended Twelve
Months Ended December December December December 2007 2006 2007
2006 � � � � GAAP based results: � Income before provision for
income tax $ 5,221 $ 941 $ 16,014 $ 3,123 � Non-GAAP adjustments: �
Acquired in-process research and development 300 3,900 300 9,800
(a) � Loss on hedging activities associated with funding the
purchase of Xltek 732 - 732 - (b) � Employee-severance costs � 361
� - � 361 � - (c) � � � � � Non-GAAP income before provision for
income tax 6,614 4,841 17,407 12,923 � Provision for income tax, as
adjusted � 2,824 � 1,963 � 6,615 � 5,584 � Non-GAAP net income $
3,790 $ 2,878 $ 10,792 $ 7,339 � � � � Earnings per share: Basic $
0.17 $ 0.13 $ 0.50 $ 0.38 Diluted $ 0.17 $ 0.13 $ 0.47 $ 0.35 �
Weighted-average shares used to compute Basic earnings per share
21,687 21,329 21,600 19,548 Diluted earnings per share 22,908
22,671 22,815 20,896 � � � (a) Charges for acquired in-process
research and development expense of $300 related to the acquisition
of Xltek on November 29, 2007, $3,900 related to the acquisition of
Olympic Medical on October 16, 2006, and $5,900 related to the
acquisition of Bio-logic Systems Corp. on January 5, 2006.
Management believes that excluding these charges facilitates
comparisons of Natus' core operating results across multiple
reporting periods. � (b) Loss from hedging activities to fund the
purchase of Xltek in Canadian dollars resulting from execution of
CAD forward contracts and pre-acquisition changes in the USD/CAD
exchange rate. � (c) Employee-severance costs associated with
restructuring activities initiated in the fourth quarter 2007.
PishPosh (NASDAQ:BABY)
Historical Stock Chart
From Jun 2024 to Jul 2024
PishPosh (NASDAQ:BABY)
Historical Stock Chart
From Jul 2023 to Jul 2024