Natus Medical announces a revenue of $44.3M for the third quarter of 2009

Natus Medical IncorporatedNov 2 2009

Natus Medical Incorporated (Nasdaq:BABY) today announced financial results for the three and nine months ended September 30, 2009.

For the third quarter ended September 30, 2009, Natus reported revenue of $44.3 million, compared to $41.7 million reported in the comparable quarter of the previous year. Net income was $3.7 million, or $0.13 per diluted share, for the third quarter of 2009, compared with net income of $4.8 million, or $0.17 per diluted share, for the third quarter of 2008.

For the nine months ended September 30, 2009, the Company reported net income of $6.8 million, or $0.24 per diluted share, compared to net income of $11.2 million, or $0.43 per diluted share, for the comparable period in 2008.

The results for the third quarter of 2009 included $460,000 of direct acquisition costs associated with the Company’s acquisitions of Hawaii Medical and Alpine Biomed in July and September 2009, respectively. Excluding these direct costs, which were reported as a component of general and administrative expense, non-GAAP earnings were $4.0 million, or $0.14 per diluted share.

"We are pleased with our third quarter results as they exceeded our expectations,” said Jim Hawkins, President and Chief Executive Officer of the Company. “Demand for our products, which stabilized in our second quarter, improved among all our product lines throughout the third quarter, which is extremely satisfying since we believe hospitals continue to limit spending on capital equipment. I am also happy to report that we again generated cash during the quarter, adding more than $6 million through operations.”

"We believe the acquisitions of Hawaii Medical and Alpine Biomed signify that our business model is on track. This, coupled with improved business conditions in our markets, gives us the opportunity to return to the growth rates we achieved in the years leading up to the 2008 recession, through a combination of organic growth, cost reduction, and accretive acquisitions," added Hawkins.

"We are currently working through the integration of Alpine Biomed and expect the contribution of Alpine to be accretive to our 2010 results," stated Hawkins.

As of September 30, 2009 the Company had cash, cash equivalents, and short-term investments of $29.6 million, stockholders' equity of approximately $238 million, and working capital of approximately $76 million.