“I am very pleased with our fourth quarter results as we achieved record revenues and earnings. Both our neurodiagnostic and newborn care businesses performed well in the quarter led by outstanding performance in our domestic neurology business,” says Jim Hawkins, Natus Medical president and CEO, in a release. “Our non-GAAP fourth quarter gross margin of 62.9% and our non-GAAP full year operating margin of 16.1% for 2014 were most satisfying as improving margins was a major goal for Natus in 2014. We look for continued margin improvement in 2015.”

For the fourth quarter ended December 31, 2014, Natus reported revenue of $94.0 million, an increase of 4% compared to $90.6 million reported for the fourth quarter 2013. For the full year ended December 31, 2014, the company reported revenue of $355.8 million, an increase of 3% compared to $344.1 million reported for 2013. Cash and cash equivalents increased by $8.9 million to $66.7 million during the quarter. Total debt was reduced by $8.0 million, as the company repaid in full its long term debt. Natus also repurchased $1.2 million of company stock during the fourth quarter.

“Our recent acquisitions of NicView and Global Neuro-Diagnostics (GND) along with the continued development of our Peloton hearing screening service business are expanding our served markets and driving growth as we enter 2015,” Hawkins says. “NicView expands our offering with an innovative solution for streaming video to families with NICU babies, from any device—from anywhere in the world. GND brings Natus the leadership position in neurodiagnostic video EEG testing services that can be performed at the patient’s home, hospital, or physician’s office. These new offerings are the beginning of an expanding service business and position Natus for accelerating revenue growth and record earnings in 2015.”