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Natus Medical Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 6, 2011 02:20PM
Natus Medical Inc. (BABY) filed Quarterly Report for the period ended 2011-03-31.
Highlight of Business Operations:
Our revenue increased 20% to $59.1 million in the first quarter of 2011, compared to $49.3 million in the comparable quarter of the previous year. Net income was $3.1 million, or $0.11 per diluted share in the three months ended March 31, 2011, compared with a net loss of $331,000, or $(0.01) per share in the same period in 2010. Medix contributed to $5.8 million of the increase in revenue; in addition, revenue from our existing product lines increased 8% in the 2011 period. The quarter included a significant increase in revenue from our neurology devices, highlighted by strong demand for our Xltek EEG products. Gross profit was 1.8% lower for the first quarter of 2011 compared to the first quarter of 2010, reflecting the lower profit margins from Medix products.
Our consolidated revenue increased 20%, or $9.8 million, to $59.1 million for the three month period ended March 31, 2011 compared to $49.3 million in the comparable 2010 period. Revenue from Medix contributed to $5.8 million of the increase, while revenue from our neurology products increased by $3.7 million and revenue from our existing newborn care products other than Medix increased by $900,000, offset by a $1.0 million decrease in hearing product sales.
Revenue from supplies and services increased 9%, or $1.6 million, to $18.4 million in the first quarter of 2011 compared to $16.9 million in the same period in 2010. Supplies and services revenue from Medix contributed to $500,000 of the increase while revenue from newborn care supplies other then Medix increased by $700,000 and revenue from hearing screening and neurology supplies increased by $400,000. Revenue from supplies and services was 31% of total revenue in the three months ended March 31, 2011 compared to 34% of total revenue for the first quarter of 2010.
As of March 31, 2011, we had cash, cash equivalents, and short-term investments of $33.9 million, stockholders equity of $269.7 million, and working capital of $92.2 million, compared with cash, cash equivalents, and short-term investments of $29.4 million, stockholders equity of $263.3 million, and working capital of $83.9 million as of December 31, 2010.
Cash provided by operations decreased by $4.0 million for the three months ended March 31, 2011 to $3.4 million, compared to $7.4 million for the same period in 2010. The sum of our net income and certain non-cash expense items, such as reserves, depreciation and amortization, and share based compensation was approximately $7.7 million in the 2011 period, compared to $3.1 million in 2010. In the 2010 period we paid approximately $3.0 million of severance benefits associated with a reorganization plan we adopted in January 2010 for which there was no similar expenditure in 2011. The overall impact of changes in certain operating assets and liabilities on total operating cash flows resulted in a cash outflow of $4.2 million in 2011 compared with a cash inflow of $4.3 million in 2010. In particular, our cash flow from operations in the first three months of 2011 was affected by a $3.1 million decrease in accounts payable coupled with a $3.2 million increase in inventories.
Cash provided by financing activities was $1.5 million in the three months ended March 31, 2011, compared to $178,000 in the same period of 2010. We received cash from sales of our stock pursuant to our stock options and our employee stock purchase plan in the amount of $326,000 and $168,000 in the three months ended March 31, 2011 and 2010, respectively. In 2011, a subsidiary has short-term borrowings of $1.2 million and we also realized an excess tax benefit of $75,000 on the exercise of employee stock options that was recorded as an increase to stockholders equity, as compared with an excess tax benefit of $55,000 in the first three months of 2010.
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