Masimo Corporation reported its financial results for the three and nine months ended September 28, 2024, highlighting a mixed performance across its healthcare and non-healthcare segments. Total revenue for the third quarter reached $504.6 million, a 5.4% increase from $478.9 million in the same period last year. The healthcare segment contributed $343.3 million, up 11.5% from $307.8 million, driven by increased sales of consumables and monitoring solutions. However, non-healthcare revenue declined by 5.7% to $162.2 million, attributed to challenging consumer spending conditions.
For the nine months ended September 28, 2024, total revenue slightly decreased to $1,493.7 million from $1,499.2 million in the prior year. The healthcare segment's revenue increased by 9.7% to $1,026.9 million, while non-healthcare revenue fell by 17.2% to $466.9 million, reflecting a tough macroeconomic environment.
Gross profit for the third quarter was $263.2 million, up from $234.8 million, with a gross margin improvement to 52.2% from 49.0%. Operating income also rose to $30.1 million from $25.2 million, despite total operating expenses increasing to $233.1 million from $209.6 million. Net income for the quarter was $9.8 million, down from $10.6 million, with basic net income per share decreasing to $0.18 from $0.20.
The company’s balance sheet showed total current assets of $1,279.9 million, up from $1,231.9 million, while total current liabilities increased to $637.6 million from $563.8 million. Long-term debt decreased to $733.2 million from $871.7 million, reflecting improved financial leverage.
Strategically, Masimo has been focusing on cost reduction measures initiated in early 2023, which included workforce reductions and streamlining operations. The company also made significant investments in research and development, with expenses rising to $48.3 million for the third quarter, reflecting a commitment to innovation despite the economic headwinds.
In terms of leadership changes, Joe Kiani was terminated as Chairman and CEO on October 24, 2024, following a vote by stockholders not to reelect him to the Board. Michelle Brennan was appointed as interim CEO. The company is currently engaged in litigation against Kiani regarding his employment agreement and related claims.
Overall, while Masimo experienced growth in its healthcare segment, challenges in the non-healthcare sector and leadership transitions have marked this fiscal period.
About MASIMO CORP
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