Natus Medical Inc on Jan 27 announced financial results for the three months and full year ended December 31, 2015.
For the fourth quarter ended December 31, 2015, Natus reported revenue of $100.0 million, an increase of 6.4% compared to $94.0 million reported for the fourth quarter 2014. On a constant currency basis, revenue would have increased 7.6% to $101.2 million. GAAP net income was $8.5 million, or $0.26 per diluted share, compared with GAAP net income of $10.4 million, or $0.32 per diluted share in the fourth quarter 2014.
The company reported non-GAAP net income of $17.0 million for the fourth quarter ended December 31, 2015, an increase of 29.8% over the prior year of $13.1 million. Non-GAAP earnings per diluted share increased 27.5% to $0.51 for the fourth quarter 2015, compared to $0.40 in the fourth quarter 2014.
For the twelve months ended December 31, 2015, Natus reported revenue of $375.9 million, an increase of 5.6% compared to $355.8 million reported for the same period in 2014. On a constant currency basis, year-to-date revenue would have increased 7.2% to $381.6 million. GAAP net income was $37.9 million, or $1.14 per diluted share, compared with net income of $32.5 million, or $1.00 per diluted share in the fourth quarter of 2014.
The company reported non-GAAP net income of $51.4 million for the 12 months ended December 31, 2015, an increase of 25.7% over the prior year of $40.9 million. Non-GAAP earnings per diluted share increased 23.0% to $1.55 for the full year 2015 from $1.26 per diluted share reported for the previous year.
The company recorded a one-time charge of approximately $5 million during the fourth quarter relating to the recall of a certain phototherapy product that was marketed and sold between 2004 and 2008. The recall is expected to be completed during the second half of 2016.
Excluding share repurchases and acquisitions, cash and cash equivalents increased by $4.9 million to $82.5 million during the quarter. The company repurchased $2.2 million of its stock during the fourth quarter.
“2015 was truly a great year for Natus. Fourth quarter revenues hit $100 million for the first time in our history, and our annual non-GAAP earnings per share grew 23%. Our profit margins set record levels during the quarter and the full year as we achieved non-GAAP gross margins of 63.9% for the quarter and 62.6% for the year. Our non-GAAP operating margin was 20.3% during the quarter and 19.0% for the year, clearly exceeding our 2015 annual goal of 18%. As previously announced, the revenue shortfall in the quarter versus our guidance was due to a delay in our Venezuela order,” says Jim Hawkins, Natus president and CEO, in a release. “As we enter 2016, I remain extremely optimistic about our new service initiatives: Peloton, GND, and NicView. They all have tremendous revenue and profitability growth potential over the coming years. We also expect organic growth in both our core neurology and newborn care business units giving 2016 the potential to be another exciting year at Natus.”