IRVINE, Calif., Aug. 1, 2012 /PRNewswire/ -- Masimo (NASDAQ: MASI) today announced its financial results for the second quarter ended June 30, 2012.
Masimo’s total second quarter revenue, including royalties, rose 12% to $122.8 million, compared to $109.6 million for the second quarter of 2011. Second quarter 2012 product revenue rose 12% to $115.3 million, compared to $102.6 million for the second quarter of 2011. The company’s worldwide end-user business grew 16% in the second quarter of 2012 and represented 85% of product revenue. OEM sales, which accounted for 15% of total product revenue, declined 5% compared to the same period in 2011. Revenue from sales of Masimo rainbow products rose 7% to $9.7 million in the second quarter, compared to $9.1 million for the second quarter of 2011. Second quarter 2012 rainbow revenue included a 48% increase in total hemoglobin (SpHb) sales, compared to the second quarter of 2011.
Net income for the second quarter was $17.7 million, or $0.30 per diluted share, compared to net income of $17.0 million, or $0.28 per diluted share, in the second quarter of 2011. Net income for the second quarter of 2012 included an income tax benefit resulting from the conclusion of a prior year tax audit, which increased the company’s diluted earnings per share by $0.03.
During the second quarter, the company shipped approximately 37,300 Masimo SET pulse oximetry and Masimo rainbow SET Pulse CO-Oximetry units, excluding handheld units, unchanged from the same prior-year period. Masimo estimates its worldwide installed base as of June 30, 2012 to be 1,033,000 units, up 12% from 922,000 units as of July 2, 2011.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, “With 12% growth in our product revenue and worldwide installed base, Masimo continued to significantly outpace market growth. Our end-user, or direct, business delivered even stronger growth at 16% versus the second quarter of 2011, fueled by increased consumable sales in the U.S., Europe, Asia and other regions. This performance is a testament to the superiority of our gold standard Masimo SET pulse oximetry technology and the growing appeal of our breakthrough Masimo rainbow SET platform, which is the first and only platform to provide continuous, noninvasive monitoring of carbon monoxide, total hemoglobin, methemoglobin, fluid responsiveness and respiration rate.”
As of June 30, 2012, cash and cash equivalents were $121.5 million, compared to $129.9 million as of December 31, 2011. The change reflects primarily net cash generated from operations, offset by $7.2 million in cash used to purchase the assets of Spire Semiconductor in March 2012 and $26.3 million in cash used to repurchase shares of Masimo common stock. In the second quarter of 2012, the company completed its full three million share repurchase program authorized by the Board of Directors in August 2011.
Financial Guidance
Masimo today announced the acquisition of PHASEIN, AB and, as a result, is providing updated 2012 financial guidance. Masimo now expects total revenue of approximately $494 million, including $466 million in product revenue and $28 million in royalty revenue. This compares to prior guidance of $458 million in product revenue and $28 million in royalty revenue. As a result of the acquisition, Masimo estimates a $0.04 dilutive impact on its previous 2012 EPS guidance of approximately $1.15. In addition, Masimo is also updating its guidance for the remainder of 2012 to reflect slightly lower product gross profit margin expectations, a slightly higher effective tax rate and the inclusion of first half 2012 foreign exchange losses. The impact of these revisions to guidance is offset by the $0.03 tax benefit the company recognized in the second quarter of 2012. As a result of the acquisition and the other assumptions noted above, the company now expects 2012 GAAP earnings per share to be approximately $1.11, compared to prior guidance of approximately $1.15.
Conference Call
Masimo will hold a conference call today at 1:30 p.m. PT (4:30 p.m. ET) to discuss the results. A live webcast of the conference call will be available online from the investor relations page of the company’s corporate website at www.masimo.com. The dial-in numbers are (888) 520-7182 for domestic callers and +1 (706) 758-3929 for international callers. The reservation code for both dial-in numbers is 10077057. After the live webcast, the call will be available on Masimo’s website through September 1, 2012. In addition, a telephonic replay of the call will be available through August 15, 2012. The replay dial-in numbers are (800) 585-8367 for domestic callers and +1 (855) 859-2056 for international callers. Please use reservation code 10077057.
About Masimo
Masimo (NASDAQ: MASI) is the global leader in innovative noninvasive monitoring technologies that significantly improve patient carehelping 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 rainbow® SET Pulse CO-OximetryTM technology, allowing noninvasive and continuous monitoring of blood constituents that previously required invasive procedures, including total hemoglobin (SpHb®), oxygen content (SpOCTM), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), and Pleth Variability Index (PVI®), in addition to SpO2, pulse rate, and perfusion index (PI). In 2008, the company introduced Masimo Patient SafetyNet, a remote monitoring and wireless clinician notification system designed to help hospitals avoid preventable deaths and injuries associated with failure to rescue events. In 2009, Masimo introduced rainbow Acoustic MonitoringTM, the first-ever noninvasive and continuous monitoring of acoustic respiration rate (RRa). Masimo’s rainbow SET technology platform offers a breakthrough in patient safety by helping clinicians detect life-threatening conditions and helping guide treatment options. In 2010, Masimo acquired SEDLine®, a pioneer in the development of innovative brain function monitoring technology and devices. Masimo SET and Masimo rainbow SET technologies can also be found in over 100 multiparameter patient monitors from over 50 medical device manufacturers around the world. 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.
