Masimo (MASI) 8-K Masimo Reports First Quarter 2008 Financial Results

Exhibit 99.1

Masimo Reports First Quarter 2008 Financial Results

Record results mark 19^th consecutive quarter of revenue growth

Q1 2008 Highlights:

• Product revenues increased 30% to a record $59.7 million

• Shipped 28,600 new pulse oximeters

• Rainbow revenues increased 104%

Irvine, California, April 29, 2008– Masimo Corporation (NASDAQ: MASI), the inventor of Pulse CO-Oximetry and Measure-Through-Motion-and-Low-Perfusion pulse oximetry, today announced its financial results for the 2008 first quarter ended March 29, 2008.

For the first quarter of 2008, Masimo reported product revenues of $59.7 million representing a 30% increase over $45.8 million for the first quarter of 2007. Including royalty revenues, Masimo reported total 2008 first quarter revenues of $71.1 million compared to $59.0 million for the first quarter of 2007. Net income for the 2008 first quarter was $8.8 million representing $0.15 per common share compared to $9.1 million or $0.11 per common share for the first quarter of 2007.

Masimo also reported that it shipped 28,600 Masimo SET and Masimo Rainbow SET oximetry units, excluding handheld units, during the first quarter of 2008. This represented an 8% increase from 26,500 units in the comparable prior year period, resulting in a new estimated net worldwide installed base of 491,000 Masimo SET pulse oximeters.

Joe E. Kiani, Chairman and Chief Executive Officer of Masimo, said, “We are happy to report first quarter results that once again exceeded expectations. We believe that these results reflect the increasing momentum for the clinical adoption of our life saving Masimo SET and Masimo Rainbow SET technologies. In fact, in the first quarter of 2008, demand for our new Masimo Rainbow SET technologies, on the strength of our Rad-57 handheld carbon monoxide measuring device, increased over 100% compared to Q1 last year.”

Cash and cash equivalents totaled $86.3 million at March 29, 2008. Masimo also reported that during the 2008 first quarter, it satisfied in full a $26.7 million debt obligation, the majority of which was originally established in early fiscal 2007.

Conference Call

Masimo will hold a conference call today at 2:00 p.m. PT (5:00 p.m. ET) to discuss the results. The dial-in numbers are (866) 831-6247 for domestic callers and (617) 213-8856 for international callers. The reservation number for both dial-in numbers is 82345350. A live web cast of the conference call will be available online from the “Investor Relations” page of the Company’s corporate web site at www.masimo.com.

After the live web cast, the call will remain available on Masimo’s web site through May 29, 2008. In addition, a telephonic replay of the call will be available until May 13, 2008. The replay dial-in numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use reservation code 71776300.

About Masimo

Masimo (NASDAQ: MASI) develops innovative monitoring technologies that significantly improve patient care—helping solve “unsolvable” problems. In 1995, the Company debuted Measure-Through-Motion-and-Low-Perfusion pulse oximetry, known as Masimo SET, and with it virtually eliminated false alarms and increased pulse oximetry’s ability to detect life-threatening events. More than 100 independent and objective studies demonstrate that Masimo SET provides the most trustworthy SpO2 and pulse rate measurements even under the most difficult clinical conditions, including patient motion and low peripheral perfusion. In 2005, Masimo introduced Masimo Rainbow SET, a breakthrough noninvasive blood constituent monitoring platform that can measure many blood constituents that previously required invasive procedures. Rainbow SET continuously and noninvasively measures total hemoglobin (SpHb™) and oxygen content (SpOC^TM) (both pending regulatory clearances), carboxyhemoglobin (SpCO^TM) and methemoglobin (SpMet^TM), pleth variability index (PVI^TM), in addition to oxyhemoglobin (SpO₂), perfusion index (PI) and pulse rate, allowing early detection and treatment of potentially life-threatening conditions. 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 and technologies may be found at www.masimo.com.

Forward-Looking Statements

This press release includes forward-looking statements. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about: our financial condition, results of operations, prospects and business generally; the market acceptance of our technologies and products; the value of measuring new parameters; expectations regarding our ability to design and deliver innovative new noninvasive technologies; and expectations for total revenues, product revenues, GAAP earnings per share, non-GAAP pro forma earnings per share and stock based compensation expenses for the full fiscal year 2008. These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, those related to: our reliance on Masimo SET and related products and technologies for substantially all of our revenue; any failure in protecting our intellectual property-exposure to competitors’ assertions of intellectual property claims; the highly competitive nature of the markets in which we sell our products and technologies; the failure to continue developing innovative products and technologies; the lack of acceptance of any new products and technologies of ours; obtaining regulatory approval of our current and future products and technologies, including the recently announced total hemoglobin measurement; the loss of our customers the failure to retain and recruit senior management; product liability claims exposure; a failure to obtain expected returns from the amount of intangible assets we have recorded; the maintenance of our brand; the amount and type of equity awards that we may grant to employees and service providers in the future; and other factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 29, 2007 filed with the Securities and Exchange Commission on March 4, 2008. Although we believe that the expectations reflected in our

forward-looking statements are reasonable, we do not know whether our expectations will prove correct. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to update, amend or clarify these forward-looking statements or the risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 29, 2007, whether as a result of new information, future events or otherwise, except as may be required under the applicable securities laws.

# # #

Masimo Corporation

Investor Contact:

Mark P. de Raad

Executive Vice President and Chief Financial Officer

Masimo Corporation

(949) 297-7080

mderaad@masimo.com

Media Contact:

Dana Banks

Manager, Public Relations

Masimo Corporation

(949) 297-7348

dbanks@masimo.com

Masimo, SET, Signal Extraction Technology, Improving Outcomes and Reducing Cost of Care by Taking Noninvasive Monitoring to New Sites and Applications, Rainbow, SpHb, SpCO, SpMet, PVI, Pulse CO-Oximetry and Pulse CO-Oximeter are trademarks or registered trademarks of Masimo Corporation.

MASIMO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	December 29, 2007			March 29, 2008
				(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	96,733		$	86,347
Accounts receivable, net of allowance for doubtful accounts		26,970			30,218
Royalties receivable		13,866			11,375
Inventories		23,110			25,984
Prepaid expenses		7,084			4,278
Deferred tax assets		14,334			14,250
Other current assets		1,543			1,689
Total current assets		183,640			174,141
Deferred cost of goods sold		26,249			27,022
Property and equipment, net		11,164			11,133
Deferred tax assets		5,332			5,332
Restricted cash		513			518
Intangible assets, net		5,589			6,011
Goodwill		448			448
Other assets		2,576			2,547
Total assets	$	235,511		$	227,152
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	14,640		$	16,929
Accrued compensation		12,409			10,244
Accrued liabilities		6,211			5,542
Dividends payable		183			183
Deferred revenue		16,827			20,983
Current portion of long-term debt		11,539			900
Total current liabilities		61,809			54,781
Deferred revenue		366			339
Long-term debt, less current portion		19,502			532
Other liabilities		3,768			3,794
Total liabilities		85,445			59,446
Commitments and contingencies
Stockholders’ equity
Common stock		55			56
Treasury stock		(1,209	)		(1,209	)
Additional paid-in capital		143,297			151,723
Accumulated other comprehensive loss		(1,034	)		(612	)
Retained earnings		8,957			17,748
Total stockholders’ equity		150,066			167,706
Total liabilities and stockholders’ equity	$	235,511		$	227,152

MASIMO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share information)

(unaudited)

	Three Months Ended
	March 31, 2007			March 29, 2008
Revenue:
Product	$	45,764		$	59,673
Royalty and license fee		13,190			11,437
Total revenue		58,954			71,110
Cost of goods sold		16,901			21,121
Gross profit		42,053			49,989
Operating expenses:
Research and development		5,454			6,298
Selling, general and administrative		21,402			29,529
Antitrust litigation		10			168
Total operating expenses		26,866			35,995
Operating income		15,187			13,994
Non-operating income (expense):
Interest income		355			959
Interest expense		(427	)		(643	)
Other		41			103
Total non-operating income (expense)		(31	)		419
Income before provision for income taxes		15,156			14,413
Provision for income taxes		6,059			5,622
Net income		9,097			8,791
Accretion of preferred stock		(1,956	)		—
Undistributed income attributable to preferred stockholders		(4,828	)		—
Net income attributable to common stockholders	$	2,313		$	8,791
Net income per common share:
Basic	$	0.14		$	0.16
Diluted	$	0.11		$	0.15

The following table presents details of the stock-based compensation expense that is included in each functional line item in the condensed consolidated statements of income above (in thousands):

	Three Months Ended
	March 31, 2007		March 29, 2008
Cost of goods sold	$	34	$	29
Research and development		111		412
Selling, general and administrative		446		1,137

MASIMO CORPORATION

Reconciliation of GAAP to Non-GAAP Diluted Earnings per Share

(unaudited)

The following tables provide a comparison of our earnings per share calculated under Emerging Issues Task Force Issue No. 03-6, “Participating Securities and the Two-Class Method under FASB Statement No. 128”, or EITF 03-6, and Statement of Financial Accounting Standards No. 128 “Earnings per Share”, or SFAS No. 128, in accordance with GAAP and the non-GAAP if-converted method based upon SFAS No. 128. The non-GAAP if-converted method assumes conversion of all shares of our preferred stock into common stock as of December 31, 2006.

Upon closing of the Company’s initial public offering on August 13, 2007, all of the outstanding convertible preferred shares were converted into common shares. Therefore, subsequent to this stock conversion the Company uses the if-converted method under SFAS No. 128 to calculate earnings per share. Accordingly, for the three months ended March 29, 2008, the Company calculated net income per share using the if-converted method for the entire period while the two-class method was used for the entire period ended March 31, 2007.

We believe that the following non-GAAP earnings per share information is relevant and useful information that can be used by analysts, investors and other interested parties to assess our performance on a comparable basis to future reported earnings per share. Accordingly, we are disclosing this information to permit additional analysis of our performance (in thousands, except share data):

	As Reported					Non-GAAP
	Three months ended March 31, 2007			Three months ended March 29, 2008		Three months ended March 31, 2007		Three months ended March 29, 2008
Net income attributable to common stockholders:
Net income - two class method	$	9,097			NA
Accretion of preferred stock		(1,956	)		NA
Income attributable to preferred stockholders		(4,828	)		NA
Net income attributable to common stockholders	$	2,313			NA
Basic net income per common share:
Weighted average common shares outstanding – two class method		16,592,163			NA
Basic earnings per share for period during which two classes of equity securities were outstanding	$	0.14			NA
Net income for period during which single class of equity securities was outstanding		NA		$	8,791	$	9,097	$	8,791
Weighted average common shares outstanding – single class		NA			55,109,018		51,204,665		55,109,018
Basic net income per share for period during which single class of equity securities was outstanding		NA		$	0.16
Basic net income per common share	$	0.14		$	0.16	$	0.18	$	0.16

	As Reported				Non-GAAP
	Three months ended March 31, 2007		Three months ended March 29, 2008		Three months ended March 31, 2007		Three months ended March 29, 2008
Diluted net income per common share:
Weighted average common shares outstanding – two class method		16,592,163		NA
Diluted common share equivalent: stock options		4,070,367		NA
		20,662,530		NA
Diluted earnings per share for period during which two classes of equity securities were outstanding	$	0.11		NA
Net income for period during which single class of equity securities was outstanding		NA	$	8,791	$	9,097	$	8,791
Weighted average common shares outstanding – single class		NA		55,109,018		51,204,665		55,109,018
Diluted common share equivalent: stock options		NA		4,815,323		4,070,368		4,815,323
		NA		59,924,341		55,275,033		59,924,341
Diluted net income per share for period during which single class of equity securities was outstanding		NA	$	0.15
Diluted net income per common share	$	0.11	$	0.15	$	0.16	$	0.15