Natus Medical (BABY), a provider of newborn care and neurology healthcare products, has recorded a 92.59 percent surge in profit for the quarter ended Jun. 30, 2014, helped by sharp reduction in expenses.
The company earned $7.74 million or $0.24 a share in the second-quarter compared with $4.02 million or $0.13 a share a year ago. Non-GAAP earnings per share came in at $0.28, when analysts expected $0.26.
Revenue during the second-quarter grew 4.95 percent to $86.32 million from $82.25 million in the last year period.
Gross margin expanded by 28 basis points over the previous year period to 59.11 percent. Total expenses as a percentage of revenues decreased to 88.06 percent from 92.51 percent in the same period last year. That has resulted in improvement of 445 basis points in operating margins to 11.94 percent.
The company disclosed operating income of $10.31 million, compared with operating income of $6.16 million in the last year period.
As on Jun. 30, 2014, the company's cash balance stood at $56.02 million, up 93.77 percent or $27.11 million from Jun. 30, 2013.
For the third quarter of 2014, the company expects revenue of $86 million to $89 million and non-GAAP earnings per share of $0.28 to $0.32.
The company raised guidance for full-year non-GAAP earnings per share of $1.20 to $1.23, from previous guidance of $1.18 to $1.21. It also raised full year 2014 revenue guidance to $347.5 million to $352.5 million compared to previous guidance of $345.0 million to $350.0 million.
Working Capital
Natus Medical has witnessed an increase in the working capital over the last one year. The company's working capital stood at $119.63 million as at Jun. 30, 2014, up $21.61 million or 22.04 percent from $98.03 million on Jun. 30, 2013. It registered an increase in current ratio to 2.70 as at Jun. 30, 2014 from 2.36 on Jun. 30, 2013.
Debt Position
Natus Medical has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $16.41 million, down 67.55 percent or $34.15 million, from Jun. 30, 2013. The company's total debt was 3.91 percent of total assets as on Jun. 30, 2014, compared with 12.49 percent on Jun. 30, 2013.
Shares of Natus Medical gained $1.03 or 4.05 percent to settle at $26.47 on Tuesday.
