) posted a 19.2% rise in adjusted net earnings to 31 cents per
share for the fourth quarter of 2013 from 26 cents for the same
quarter of 2012 and met the Zacks Consensus Estimate. Adjusted
net earnings rose 46.0% to $21.9 million from $15.0 million in
the fourth quarter of 2012.
For full year 2013, adjusted earnings per share rose 11.5% to
$1.16, in line with the Zacks Consensus Estimate. EPS for the
year, in fact, is at the low end of the guidance provided by the
company while announcing the 2013-third quarter results.
Revenues in the quarter (including royalties) scaled up 7.8% to
$142.4 million, missing the Zacks Consensus Estimate of $145.0
Product revenues grew 7.5% to $134.7 million while global direct
product revenue rose 9% in the fourth quarter, representing 86%
of total product revenue. OEM sales, which accounted for 14% of
product revenues, fell 1% in the quarter.
Revenues from sales of MASI rainbow products spiked 34% to $14.8
million in the fourth quarter. Revenues from Royalty went up
12.4% to $7.7 million in the quarter.
MASI shipped about 42,000 SET pulse oximetry and rainbow Pulse
CO-Oximetry units in the quarter (excluding handheld units),
which was flat year-over-year. MASI expects worldwide installed
base of 1,205,000 units as of Dec 28, 2013, up 11% from 1,088,000
units as of Dec 29, 2012.
For the full year, revenues increased 11.0% to $547.2 million,
also lagging the Zacks Consensus Estimate of $550.0 million.
Product revenues grew 11.3% to $517.4 million while Royalty
revenues escalated 5.3% to $29.8 million in the year.
MASI had cash and cash equivalents of $95.5 million as of Dec 28,
2013, up 33.4% from $71.6 million as of Dec 29, 2012. Capital
lease obligations increased nearly threefold to $336 thousand as
of Dec 28, 2013 compared with $115 thousand as of Dec 29, 2012.
In 2013, cash flow from operating activities dipped 28.0% to
$54.3 million from $75.4 million in 2012, mainly due to lower
profits, higher inventories, decrease in deferred cost of goods
sold, increase in prepaid expenses, and increase in prepaid
income taxes. Capital expenditure decreased 16.1% to $9.1 million
compared with $10.8 million a year ago.
For 2014, MASI expects revenues of $578 to $598 million, which
includes Product revenues of $570 million and Royalty revenues
between $8 and $28 million. Product revenue guidance includes
rainbow revenues of $60 million. The current Zacks Consensus
Estimate for 2014 revenues of $584 million lies within the guided
MASI also expects reported earnings in the range of $1.13 and
$1.28 for 2014. This compares with the Zacks Consensus Estimate
MASI develops innovative monitoring technologies that
significantly improve patient care -- helping solve unsolvable
problems. The company sells its products to hospitals, emergency
medical response organizations, and alternate care market through
its direct sales force and distributors, as well as to original
equipment manufacturer partners. Currently, it retains a Zacks
Rank #2 (Buy).
Other players that worth a look in the medical instruments
Natus Medical Inc.
). Both Cynosure and Natus Medical carry a Zacks Rank #1
(Strong Buy), while AngioDynamics carries a Zacks Rank #2
ANGIODYNAMICS (ANGO): Free Stock Analysis
NATUS MEDICAL (BABY): Free Stock Analysis
CYNOSURE INC-A (CYNO): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
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