For the second quarter ended June 30, 2014, Natus Medical Inc reported revenue of $86.3 million, an increase of 5% compared to $82.3 million reported for the second quarter of 2013. Net income was $7.7 million compared with net income of $4.0 million. The company reduced total debt by $16.5 million and repurchased $1.2 million of company stock during the second quarter. Cash and cash equivalents decreased by $3.6 million to $56.0 million during the quarter.
“I am very pleased with our second quarter results as our record revenues and earnings exceeded our guidance. I am most satisfied with our 5% organic revenue growth in the quarter as reestablishing consistent organic revenue growth is a goal for Natus in 2014. Our non-GAAP operating margin increased to 13% up from 11% last year in the quarter. We continue to make progress toward our long term full year non-GAAP operating margin goal of 20%,” the company said in a statement. “Both Neurology and Newborn Care again performed well in all geographies. Our recently launched Hearing Screening Service grew rapidly during the quarter and we ended the quarter with 22 hospitals under contract. We continue to be very excited about this opportunity.”
Financial Guidance
The Company provided revenue and earnings guidance for the third quarter and increased its non-GAAP EPS guidance for the full year 2014.
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 updated its non-GAAP earnings guidance for the full year 2014 and now expects to report non-GAAP earnings per share of $1.20 to $1.23, an increase from previous guidance of $1.18 to $1.21. Full year 2014 revenue was increased to $347.5 million to $352.5 million compared to previous guidance of $345.0 million to $350.0 million.
