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Natus Medical Inc. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Natus Medical Inc. (BABY) filed Quarterly Report for the period ended 2010-09-30.

Natus Medical Inc. has a market cap of $372.7 million; its shares were traded at around $13.45 with a P/E ratio of 24.3 and P/S ratio of 2.3. BABY is in the portfolios of David Nierenberg of D3 Family of Funds.

Highlight of Business Operations:

Our revenue increased 20%, or $9.0 million, to $53.3 million for the three month period ended September 30, 2010 compared to $44.3 million in the comparable 2009 period. Revenue of Alpine Biomed contributed to $5.8 million of the increase, while revenue from our newborn care products increased by $2.6 million to $9.4 million, and revenue from our newborn hearing products increased $1.1 million to $18.3 million.

Revenue from devices and systems increased $6.9 million, or 29%, to $30.6 million in the three months ended September 30, 2010, compared to $23.8 million in the same period in 2009. Revenue from Alpine Biomed contributed to $3.8 million of the increase, while revenue from our other neurology products contributed to $1.8 million of the increase and revenue from newborn hearing screening and newborn care contributed to $2.5 million of the increase, offset by a $1.2 million decrease in sleep diagnostics and balance monitoring products. Revenue from devices and systems was 57% of total revenue in the three months ended September 30, 2010 compared to 54% of total revenue for the third quarter of 2009.

Revenue increased $40.3 million, or 35%, to $155.1 million for the nine month period ended September 30, 2010 compared to $114.9 million in the comparable 2009 period. Revenue of Alpine Biomed and Hawaii Medical contributed to $23.9 million of the increase, while revenue from our hearing and newborn care products increased by $7.7 million to $78.6 million, and revenue from our neurology products other than from Alpine Biomed increased $8.6 million to $70.5 million.

Device and systems revenue increased $30.7 million, or 48%, to $94.3 million in the nine months ended September 30, 2010 compared to $63.6 million in the same period in 2009. Revenue from Alpine Biomed contributed to $14.5 million of the increase, while revenue from our hearing and newborn care products contributed to $9.6 million of the increase, and revenue from our other neurology products, exclusive of sleep diagnostics and balance monitoring products, contributed to $8.7 million of the increase, offset by a $2.1 million decrease in sleep diagnostics and balance monitoring products. Revenue from devices and systems was 61% of consolidated revenue in the nine months ended September 30, 2010 compared to 55% of consolidated revenue for the first nine months of 2009.

Cash provided by operations decreased by $11.3 million for the nine months ended September 30, 2010 to $9.6 million, compared to $20.9 million for the same period in 2009. The sum of our net income and certain non-cash expense items, such as reserves, depreciation and amortization, and share based compensation was approximately $17.1 million in the 2010 period, compared to $17.9 million in 2009. In addition, in the 2010 period we paid approximately $3.1 million of severance benefits associated with a reorganization plan we adopted in January 2010 for which there was no similar expenditure in 2009. The overall impact of changes in certain operating assets and liabilities on total operating cash flows resulted in a cash outflow of $7.5 million in 2010 compared with a cash inflow of $3.0 million in 2009. In particular, our cash flow from operations in the first nine months of 2010 was affected by a $3.1 million decrease in accounts payable, accrued expenses and other liabilities coupled with a $6.0 million increase in inventories.

Cash used in investing activities was $2.8 million for the nine months ended September 30, 2010, compared to $50.6 million for the same period in 2009. In the 2009 period, we acquired Hawaii Medical and Alpine Biomed at a cost of $46.5 million for which there were no similar expenditures in 2010. We used $2.6 million and $1.9 million of cash to acquire property and equipment during the nine months ended September 30, 2010 and 2009, respectively, and capitalized $215,000 of internal use software development costs in 2010 compared to $637,000 in 2009.

Read the The complete Report

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