IRVINE, CA -- (Marketwired) -- 02/13/14 -- Masimo (NASDAQ: MASI) today announced its financial results for the fourth quarter and year ended December 28, 2013.
Q4 2013 Highlights (compared to Q4 2012):
- Total revenue, including royalties, rose 8% to $142.4 million
- Product revenue rose 8% to $134.7 million
- Masimo rainbow revenue rose 34% to $14.8 million
- SET™ and rainbow™ SET™ unit shipments were 42,000
- GAAP earnings per share was $0.16 including charges of $0.15 per share
Full Year 2013 Highlights (compared to 2012):
- Total revenue, including royalties, rose 11% to $547.2 million
- Product revenue rose 11% to $517.4 million
- Masimo rainbow revenue rose 21% to $48.8 million
- Shipped 168K Masimo SET™ and rainbow™ SET™ units
- GAAP earnings per share was $1.02, including Q4 charges of $0.15 per share
Masimo's total fourth quarter revenue, including royalties, rose 8% to $142.4 million, compared to $132.2 million for the fourth quarter of 2012. Fourth quarter 2013 product revenue rose 8% to $134.7 million, compared to $125.3 million for the fourth quarter of 2012. The company's worldwide direct product revenue grew 9% in the fourth quarter of 2013 and represented 86% of product revenue. OEM sales, which accounted for 14% of product revenue, declined by 1% compared to the same period in 2012. Revenue from sales of Masimo rainbow products rose 34% to $14.8 million in the fourth quarter, compared to $11.1 million in the year-ago period.
Net income for the fourth quarter of 2013 was $9.3 million, or $0.16 per diluted share, compared to net income of $15.0 million, or $0.26 per diluted share, in the fourth quarter of 2012. Net income for the fourth quarter of 2013 included pre-tax charges of $4.6 million related to selected inventory and equipment related write-downs related to accelerated technology transitions and $8.0 million in various charges related to the previously announced arbitration award ruling. Together, these combined charges reduced fourth quarter GAAP earnings per share by $0.15.
During the fourth quarter of 2013, the company shipped approximately 42,000 SET™ pulse oximetry and rainbow™ Pulse CO-Oximetry™ units, excluding handheld units, approximately level with the same prior-year period. Masimo estimates its worldwide installed base as of December 28, 2013 to be 1,205,000 units, up 11% from 1,088,000 units as of December 29, 2012.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, "Masimo achieved many important objectives in 2013, including an 11% increase in our global installed base, increased adoption of pulse oximetry across the U.S. which helps clinicians screen for congenital heart disease in newborns, and the launch of Root™, which includes open architecture monitoring and connectivity features in CE Mark countries. We have begun 2014 with the CE Mark for O3™, our new tissue and cerebral oximetry device, and expect to announce other new products this year. In addition, we are confident that value engineering initiatives that we have put in place since 2012 will begin to result in increased product margin and improved product performance throughout 2014 and beyond."
As of December 28, 2013, Masimo's cash and cash equivalents were $95.5 million, compared to $71.6 million as of December 29, 2012. The change reflects primarily net cash generated from operations, offset by $19.8 million in cash used to repurchase one million shares of Masimo common stock in 2013.
2014 Financial Guidance
Masimo today is providing 2014 financial guidance. Masimo expects fiscal 2014 total revenues to be approximately $578 million to $598 million, including product revenues of $570 million and royalty revenues ranging betw