Masimo – MASI – Continued to significantly outpace market growth

Masimo (NASDAQ: MASI) announced its financial results for the second quarter ended June 30, 2012.

Q2 2012 Highlights (compared to Q2 2011):

• Product revenue rose 12% to $115.3 million
• Masimo rainbow revenue rose 7% to $9.7 million, including 48% increase in SpHb revenue
• Shipped 37,300 Masimo SET® and Masimo rainbow® SET units
• Net income rose to $17.7 million, with EPS of $0.30

MASI’s total second quarter revenue, including royalties, rose 12% to $122.8 million, compared to $109.6 million for the second quarter of 2011.  Second quarter 2012 product revenue rose 12% to $115.3 million, compared to $102.6 million for the second quarter of 2011.  The company’s worldwide end-user business grew 16% in the second quarter of 2012 and represented 85% of product revenue.  OEM sales, which accounted for 15% of total product revenue, declined 5% compared to the same period in 2011.  Revenue from sales of Masimo rainbow products rose 7% to $9.7 million in the second quarter, compared to $9.1 million for the second quarter of 2011.  Second quarter 2012 rainbow revenue included a 48% increase in total hemoglobin (SpHb) sales, compared to the second quarter of 2011.

Net income for the second quarter was $17.7 million, or $0.30 per diluted share, compared to net income of $17.0 million, or $0.28 per diluted share, in the second quarter of 2011.  Net income for the second quarter of 2012 included an income tax benefit resulting from the conclusion of a prior year tax audit, which increased the company’s diluted earnings per share by $0.03.

Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, “With 12% growth in our product revenue and worldwide installed base, Masimo continued to significantly outpace market growth.  Our end-user, or direct, business delivered even stronger growth at 16% versus the second quarter of 2011, fueled by increased consumable sales in the U.S., Europe, Asia and other regions. This performance is a testament to the superiority of our gold standard Masimo SET pulse oximetry technology and the growing appeal of our breakthrough Masimo rainbow SET platform, which is the first and only platform to provide continuous, noninvasive monitoring of carbon monoxide, total hemoglobin, methemoglobin, fluid responsiveness and respiration rate.”

About Masimo – MASI

Masimo (MASI) is the global leader in innovative noninvasive 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 and objective 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.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.