Masimo Corporation (Nasdaq: MASI), today announced its financial results for the second quarter of 2010.
Masimo's total revenue for the second quarter rose 19.8% to $100.1 million, compared to $83.6 million for the second quarter of 2009. Masimo's second quarter product revenue rose 25.6% to $88.0 million, compared to $70.0 million for the second quarter of 2009. Revenue from Masimo Rainbow SET products rose 59.5% to $7.2 million in the second quarter, compared to $4.5 million for the second quarter of 2009.
Net income for the second quarter was $14.3 million, or $0.24 per diluted share, including $0.01 per diluted share in one-time marketing-related expenses that Masimo had previously planned and announced after receiving $30.1 million in proceeds from an antitrust lawsuit against Covidien in the first quarter of 2010. Excluding these one-time expenses, adjusted net income for the second quarter was $15.2 million, or $0.25 per diluted share, compared to net income of $13.1 million, or $0.22 per diluted share, in the second quarter of 2009.
During the second quarter, the company shipped 36,700 Masimo SET pulse oximetry and Masimo Rainbow SET Pulse CO-Oximetry units, excluding handheld units, up 35.4% compared to 27,100 in the same period last year. Masimo estimates its worldwide installed base as of July 3, 2010 to be 789,000 units, up 16.9% from 675,000 as of July 4, 2009.
Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, "Masimo's second quarter results reveal momentum across virtually all parts of our business, demonstrating the underlying strength and value of our technology to clinicians and patients. Our core SET franchise grew by double digits again this quarter and revenue from Rainbow SET products achieved a new high, allowing Masimo to deliver our first-ever $100 million revenue quarter. Our second quarter performance reflects strong domestic and international customer demand from both our direct and OEM sales channels. The quarter was also highlighted by the launch of two new Masimo innovations: Rainbow Acoustic Monitoring for continuous and noninvasive respiration rate monitoring, and Pronto-7, a palm-sized device for noninvasive spot-check hemoglobin testing."
As of July 3, 2010, cash, cash equivalents and short-term investments totaled $111.0 million, compared to $189.0 million as of January 2, 2010. The decline was due primarily to the March 31, 2010 dividend payment of $117.5 million, partially offset by the net proceeds from the antitrust lawsuit and operating cash flow in the first six months of 2010.