), a leader in non-invasive monitoring technology for patient care,
reported first quarter fiscal 2012 earnings per share of 27 cents,
in line with the Zacks Consensus Estimate. Reported profit dipped
12.2% year over year to $15.8 million.
Sales for the quarter rose 6% year over year to $119.2 million,
surpassing the Zacks Consensus Estimate of $118 million.
Product revenues were up 11% to $112.2 million in the reported
quarter. Masimo's global end-user business (85% of product revenue)
increased 12% year over year, but revenues from Original Equipment
Manufacturer ("OEM") (15% of product revenue) were flat.
Sales of Rainbow products increased 14% year over year to $8.5
During the quarter, Masimo shipped about 33,300 Masimo SET pulse
oximetry and Masimo Rainbow SET pulse co-oximetry units, excluding
hand-held sets. Sales declined 22.7% year over year. The company's
worldwide installed base grew 13% year over year to about 1,005,000
units at the end of the first quarter.
Gross margin fell to 66.5% from 68% in the year-ago quarter due
to higher cost of sales and lower royalty revenues. Operating
margin declined to 18.7% from 22.5% a year ago.
The company exited the quarter with cash and cash equivalents of
$128.8 million, up 22% year over year. Masimo completed its buyback
of 3 million shares in the reported quarter.
Masimo is a market leader in the pulse oximetry monitoring
equipment industry. The company's prospects are encouraging, given
the sizeable global market opportunity, adoption of pulse oximetry
in non-critical areas of the hospital and growing barriers to entry
due to additional non-invasive parameters.
Shipments have been growing at a steady rate fueled by new
contracts. However, the renewal of the royalty agreement with
) provides little or no benefit due to lower rates. Further,
competition is intense and Masimo partly depends upon its OEM
partners for sales as well as royalty.
On June 2011, Masimo announced a non-exclusive, long-term
), under which Philips will utilize Masimo's Rainbow SET know-how.
Philips products are expected to integrate Masimo's Rainbow SET
COVIDIEN PLC (COV): Free Stock Analysis Report
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