- Updates Fourth Quarter 2016 Revenue
- Announces Fourth Quarter 2016 Financial Results Conference Call Date
PLEASANTON, Calif., Jan. 09, 2017 (GLOBE NEWSWIRE) -- Natus Medical Incorporated (NASDAQ:BABY) today announced its financial guidance for the first quarter and full year 2017.
For the full year 2017, the Company expects to report revenue of $505.0 to $510.0 million and non-GAAP earnings per share of $1.80 to $1.85. For the first quarter of 2017, the Company expects to report revenue of $122.0 to $124.0 million and non-GAAP earnings per share of $0.32 to $0.34.
The Company expects to report revenue of approximately $107.5 to $108.0 million for the fourth quarter of 2016, compared to prior guidance of $107.0 to $109.0 million and full year 2016 revenue of $381.5 to $382.0 million compared to prior guidance of $381.2 to $383.2 million.
During the fourth quarter of 2016, the Company contracted 23 new Peloton Hearing Screening Hospitals.
The Company also announced that it has completed the previously announced acquisition of Otometrics the business from GN Store Nord.
"The combination of Natus and Otometrics creates a global leader in hearing aid fitting, hearing assessment, hearing screening and balance assessment," said Jim Hawkins, President and Chief Executive Officer of Natus. "The Otometrics brand will complement our current portfolio and will further increase our combined growth potential. In addition, we look forward to expanding Otometrics' margins as we complete the integration of the two companies."
The Company will release its 2016 fourth quarter financial results before the market opens on Wednesday, February 1, 2017.
The Company’s non-GAAP earnings per share guidance excludes charges for amortization expense associated with intangible assets from prior acquisitions, which the Company expects to be approximately $9.8 million and $3.1 million for the full year and first quarter 2017, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.25 and $0.07 for the respective periods. Non-GAAP earnings per share also exclude the direct and transition costs of the Otometrics acquisition, which are estimated to be approximately $3 million to $4 million for the full year 2017 as well as the Otometrics related amortization of acquired intangible assets, which cannot be estimated at this time.
Use of Non-GAAP Financial Guidance
This release contains financial guidance that excludes amortization of acquisition related intangible assets, and restructuring and acquisition-related charges from completed and announced acquisitions. The Company’s non-GAAP earnings per share guidance excludes charges for amortization expense of intangible assets associated with prior acquisitions. The Company believes that the presentation of financial guidance excluding these charges provides meaningful information to both management and investors that is indicative of the Company's core operating results.
About Natus Medical
Natus is a leading provider of healthcare products and services used in the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and balance and mobility disorders.
Forward Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, particularly statements regarding the expectations, beliefs, plans, intentions and strategies of Natus. These forward-looking statements include statements regarding the anticipated revenue of the fourth quarter of 2016 and the revenue and non-GAAP earnings per share for the first quarter and full year 2017 and the impact of amortization expense associated with acquisition-related intangible assets. These statements relate to current estimates and assumptions of our management as of the date of this press release and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results or the results implied by the forward-looking statements will meet expectations. Our future results could differ materially due to a number of factors, including the effects of competition, the successful integration of the Otometrics acquisition and achieving our profitability goals for Otometrics, the demand for our products and services, the impact of adverse global economic conditions, including foreign exchange rate changes, on our target markets, our ability to expand our sales in international markets, our ability to maintain current sales levels in a mature domestic market, our ability to control costs, risks associated with bringing new products to market and integrating acquired businesses, shipments and revenue associated with our Medix’ subsidiary’s contract with the Venezuela Ministry of Health and our ability to fulfill product orders on a timely basis. Natus disclaims any obligation to update information contained in any forward looking statement.
More information about potential risk factors that could affect the business and financial results of Natus is included in Natus' annual report on Form 10-K for the year ended December 31, 2015, and its subsequent quarterly reports on Form 10-Q, and in other reports filed from time to time by Natus with the U.S. Securities and Exchange Commission.
Additional information about Natus Medical can be found at www.natus.com.