The Irvine device maker reported total revenue of $193.7 million, including $12.4 million in royalties and other revenue, up more than 15% from the same period a year ago.
Chief Executive Joe Kiani said the double-digit growth was driven by strong international sales and increased performance of the company’s newer technologies.
“We had the best contract booking quarter in our history,” said Kiani, referring to the company’s flagship technology pulse oximetry. Masimo won major contracts with two new customers—NYU Langone Medical Center and St. Luke’s Hospital in Bethlehem, Pa.—and renewed its contract with Kaiser Permanente.
Kiani said combined with strong international sales—up 36% to $62 million and 34% of total sales—the company has increased its full year guidance to $774 million from $769 million.
The maker of patient-monitoring equipment also launched new products this quarter, including its compact Rad-95 monitor into the U.S. market, RAS-45 acoustic respiration sensor for pediatric and adults patients, and Trace Software that is used to chart and analyze oxygen saturation in blood and other data.
Kiani reiterated investment in research and development remains core to Masimo—“we’re not going to slow down for R&D going forward.”
The founder said his company is looking at acquisitions over the long term that strengthen its sensor business and are also “disruptive technologies in our current space” that diversify the company’s portfolio. The technology needs to be “a little bit of a fixer upper so we can afford to buy it without having to dilute our company for it,” Kiani said.
Masimo also announced its new chief financial officer Micah Young. Young, who previously served as vice president of finance at NuVasive in San Diego. Young replaces Mark de Raad who is retiring.
Masimo shares (Nasdaq: Masi) spiked to $90 on Wednesday following the strong earnings and positive guidance, but have since sold off about 5% and closed Thursday at $84.49 per share and a $4.5 billion market cap.
