Exhibit 99.1
Masimo Reports First Quarter 2009 Financial Results
Q1 2009 Highlights:
| • | Earnings per share increased by 47% to $0.22 per share from $0.15 in prior year |
| • | Product revenues increased approximately 25% to $74.5 million from $59.7 million in prior year |
Irvine, California, May 5, 2009– 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 first quarter of 2009.
For the first quarter of 2009, Masimo reported product revenues of $74.5 million representing a 24.7% increase over $59.7 million for the first quarter of 2008. Including royalty revenues, Masimo reported total 2009 first quarter revenues of $85.5 million compared to $71.1 million for the first quarter of 2008. For the first quarter of 2009, Masimo reported earnings per share of $0.22 compared to $0.15 per common share for the first quarter of 2008.
Masimo reported that it shipped 27,700 Masimo SET and Masimo Rainbow SET oximetry units, excluding handheld units, during the first quarter of 2009, resulting in at least 587,000 of Masimo SET and Masimo Rainbow SET pulse oximeters in use worldwide. In the first quarter of 2009, revenues from Masimo Rainbow SET products increased to $3.1 million from $2.7 million in the same prior year quarter.
Joe E. Kiani, Chairman and Chief Executive Officer of Masimo, said, “Despite the continuing difficult economic environment, we are happy that our revenues and earning were better than we had expected in Q1. We believe that this performance is largely due to our gold standard Masimo SET pulse oximetry technology and our expanding Masimo Rainbow SET Pulse CO-Oximetry platform, including the March 23, 2009 commercial release of total hemoglobin, the world’s first continuous non-invasive total hemoglobin monitor.”
Masimo also reported that as of April 4, 2009, cash and cash equivalents totaled $152.2 million, up from $146.9 million at January 3, 2009.
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 (888) 520-7182 for domestic callers and +1 (706) 679-9937 for international callers. The reservation number for both dial-in numbers is 95073118. 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 website through June 5, 2009. In addition, a telephonic replay of the call will be available until May 19, 2009. The replay dial-in numbers are (800) 642-1687 for domestic callers and +1 (706) 645-9291 for international callers. Please use reservation code 95073118.
About Masimo
Masimo (NASDAQ: MASI) develops, manufactures and markets 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, which virtually eliminated false alarms and increased pulse oximetry’s ability to detect life-threatening events. More than 100 independent clinical and laboratory 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 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®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®) and plethysmograph variability index (PVI®), in addition to oxyhemoglobin (SpO2), pulse rate (PR), and perfusion index (PI), 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 may be found at www.masimo.com. Any information contained in, or that can be accessed through, our website is not incorporated by reference into, nor is it in any way a part of, this release.
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; and expectations regarding our ability to design and deliver innovative new noninvasive technologies. 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 and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to: our dependence on Masimo SET and Masimo Rainbow SET 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; any 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 risk that the implementation of our international realignment, even if timely implemented, will not produce the anticipated operational and financial benefits, including a lower effective tax rate; 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 impact of the decline in the worldwide credit markets on us and our customers; 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 most recent reports filed with the Securities and Exchange Commission (“SEC”), which you may obtain for free on the SEC’s website, at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under 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)
| April 4, 2009 | January 3, 2009 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 152,247 | $ | 146,910 | ||||
Accounts receivable, net of allowance for doubtful accounts | 35,627 | 30,715 | ||||||
Royalties receivable | 10,828 | 11,375 | ||||||
Inventories | 29,788 | 27,400 | ||||||
Prepaid expenses | 3,688 | 4,780 | ||||||
Deferred tax assets | 10,511 | 10,511 | ||||||
Other current assets | 522 | 551 | ||||||
Total current assets | 243,211 | 232,242 | ||||||
Deferred cost of goods sold | 28,649 | 28,431 | ||||||
Property and equipment, net | 12,331 | 12,979 | ||||||
Deferred tax assets | 8,777 | 8,781 | ||||||
Intangible assets, net | 7,524 | 7,410 | ||||||
Other assets | 4,409 | 3,505 | ||||||
Total assets | $ | 304,901 | $ | 293,348 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 15,963 | $ | 15,914 | ||||
Accrued compensation | 13,215 | 15,607 | ||||||
Accrued liabilities | 6,354 | 5,566 | ||||||
Income taxes payable | 4,666 | 10,862 | ||||||
Deferred revenue | 19,939 | 17,233 | ||||||
Current portion of long-term debt | 403 | 465 | ||||||
Total current liabilities | 60,540 | 65,647 | ||||||
Long-term debt, less current portion | 140 | 157 | ||||||
Other liabilities | 8,125 | 8,046 | ||||||
Total liabilities | 68,805 | 73,850 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Common stock | 57 | 57 | ||||||
Treasury stock | (1,209 | ) | (1,209 | ) | ||||
Additional paid-in capital | 183,474 | 179,666 | ||||||
Accumulated other comprehensive loss | (498 | ) | (7 | ) | ||||
Retained earnings | 53,905 | 40,884 | ||||||
Total Masimo Corporation’s stockholders’ equity | 235,729 | 219,391 | ||||||
Noncontrolling interest | 367 | 107 | ||||||
Total stockholders’ equity | 236,096 | 219,498 | ||||||
Total liabilities and stockholders’ equity | $ | 304,901 | $ | 293,348 | ||||
MASIMO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share information)
(unaudited)
| Three Months Ended | ||||||||
| April 4, 2009 | March 29, 2008 | |||||||
Revenue: | ||||||||
Product | $ | 74,497 | $ | 59,735 | ||||
Royalty | 10,995 | 11,375 | ||||||
Total revenue | 85,492 | 71,110 | ||||||
Cost of goods sold | 24,745 | 21,121 | ||||||
Gross profit | 60,747 | 49,989 | ||||||
Operating expenses: | ||||||||
Research and development | 7,767 | 6,298 | ||||||
Selling, general and administrative | 32,880 | 29,529 | ||||||
Antitrust litigation | 14 | 168 | ||||||
Total operating expenses | 40,661 | 35,995 | ||||||
Operating income | 20,086 | 13,994 | ||||||
Non-operating income (expense): | ||||||||
Interest income | 45 | 959 | ||||||
Interest expense | (10 | ) | (643 | ) | ||||
Other | (322 | ) | 103 | |||||
Total non-operating income (expense) | (287 | ) | 419 | |||||
Income before provision for income taxes | 19,799 | 14,413 | ||||||
Provision for income taxes | 6,535 | 5,622 | ||||||
Net income including noncontrolling interest | 13,264 | 8,791 | ||||||
Net income attributable to the noncontrolling interest | (243 | ) | — | |||||
Net income attributable to Masimo Corporation | $ | 13,021 | $ | 8,791 | ||||
Net income per common share attributable to Masimo Corporation stockholders: | ||||||||
Basic | $ | 0.23 | $ | 0.16 | ||||
Diluted | $ | 0.22 | $ | 0.15 | ||||
The following table presents details of the share based compensation expense that is included in each functional line item in the condensed consolidated statements of income above (in thousands):
| Three Months Ended | ||||||
| April 4, 2009 | March 29, 2008 | |||||
Cost of goods sold | $ | 74 | $ | 29 | ||
Research and development | 613 | 412 | ||||
Selling, general and administrative | 1,953 | 1,137 | ||||