Irvine-based noninvasive patient monitoring technology device maker Masimo Corp. reported strong performance in the fourth quarter and the calendar year.
Total revenue, including royalties, came in at $183.2 million, up 9.5% year-over-year and $694.6 million for the total year, up 10.2% over 2015. Net income was $215.3 million for the quarter and $300.7 million for the year.
A recent legal settlement helped explain the fourth quarter’s sizeable share of the total.
Masimo received $300 million from Koninklijke Philips N.V. in November to end their patent disputes. A jury verdict in October 2014 found that the Amsterdam, Netherlands-based Philips infringed Masimo patents related to pulse oximetry, which noninvasively measures oxygen saturation in the blood.
“2016 was a significant year for Masimo, with one important achievement being the Q4 formation of a new partnership agreement with Philips that settled all litigations and, more importantly, created a new partnership,” Chief Executive Joe Kiani said. “We anticipate measurable impact over the coming years … [with Philip’s] adoption of our innovative technology.”
Kiani noted that Masimo’s product revenue increased on a year-to-year basis in the fourth quarter even without the one-time gain from the settlement with Philips.
“2016 was a good year [with] major hospitals converting to Masimo SET,” said Kiani, naming Cedars-Sinai Medical Center in Los Angeles, Stanford Health Care in Palo Alto and Walter Reed National Military Medical Center in Washington, D.C.
“2017 represents the last year for our 10-year [growth plan that we first outlined] since the IPO in 2007,” he said, adding that the company will release a new 5-year plan at Investor Day on May 9 at its corporate headquarters.
Irvine-based Smile Brands Group Inc. acquired A+ Dental Care and OneSmile Silicon Valley this month, adding to its existing 350 practices under brands Bright Now Dental, Monarch Dental and Castle Dental. Terms were undisclosed.
Smile Brands provides services to dental offices. San Francisco-based private equity firm Gryphon Investors acquired the company last summer.
A+ Dental comprises of nine general dentists and three specialists, providing dental care in Northern California, including in Roseville, Lincoln, and Rocklin.
Smile Brands brought some extra familiarity to the deal—it started providing business support to A+ Dental nearly a year ago.
OneSmile consists of a group of three dental practices in Mountain View and Los Gatos.
Auxilio to NYSE
Mission Viejo-based Auxilio Inc.’s common stock has been approved for listing on the NYSE MKT, effective Feb. 14. The small-cap companies exchange is part of the New York Stock Exchange.
Auxilio no longer trades on the OTCQB, a venture-stage marketplace for smaller and early-stage companies.
The company manages health records for hospitals, including paper document workflow management and cyber security.
“It opens up an opportunity for all different types of institutional investors, [whereas before] our investors were mostly retail, individual investors,” said Chief Executive Joe Flynn. “We’ve been wanting to uplist [our stock] for a couple of years, but in order for us to do a split of our stock … we needed a major event.”
That event was Auxilio’s $34.3 million buy––with $26.8 million upfront and up to $7.5 million in milestone payments––of CynergisTek in Austin in January. CynergisTek works in health information privacy, compliance and cybersecurity consulting.
Flynn said the two companies are about 80% integrated at this point.
New COO at UCI Health
UC Irvine Health named Richard Gannotta chief operating officer of UC Irvine Medical Center, effective in March. He’s currently senior vice president for hospitals at NYC Health and Hospitals Corp. in New York City.
Gannotta replaces Larry Anstine, who has served as interim chief operating officer since November 2015, according to a university spokesperson.
UCI Health is an academic hospital that consists of clinical, medical education and research. UCI Medical Center is a 417-bed acute care hospital in Orange.
Bits & Pieces
The pending Dialysis Patient Safety Act, introduced to address understaffing at more than 550 dialysis clinics in California, would affect 45 dialysis clinics in Orange County, according to healthcare worker union SEIU-United Healthcare Workers West. Dialysis is necessary for people with kidney failure.