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Natus Medical Announces Second Quarter 2019 Financial Results


  • Second quarter revenue of $125.5 million exceeded expectations
  • Second quarter GAAP earnings per share of $0.12
  • Second quarter non-GAAP earnings per share of $0.34 exceeded expectations
  • NASDAQ ticker symbol change to “NTUS,” effective July 26, 2019

PLEASANTON, Calif., July 25, 2019 (GLOBE NEWSWIRE) -- Natus Medical Incorporated (NASDAQ:NTUS) (the “Company” or “Natus”), a leading provider of medical device solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages, today announced financial results for the three and six months ended June 30, 2019.

Key Results During the Quarter

  • Achieved organic revenue growth after divestitures of 5%
  • Reduced inventory by $2.5 million during the quarter
  • Reduced days sales outstanding by 11 days year over year
  • Generated $17.6 million in operating cash flow
  • Reduced debt by $20.0 million

For the second quarter ended June 30, 2019, the Company reported revenue of $125.5 million, a decrease of 4.0% compared to $130.7 million reported for the second quarter 2018. GAAP gross profit margin was 57.1% during the second quarter of 2019 compared to 57.4% in the second quarter 2018. GAAP net income was $4.2 million, or $0.12 per diluted share, compared with GAAP net loss of $2.6 million, or $0.08 per share in the second quarter 2018.

Non-GAAP earnings per diluted share was $0.34 for the second quarter 2019, compared to $0.35 in the second quarter 2018. Non-GAAP net income was $11.3 million for the second quarter 2019 compared to the prior year's second quarter non-GAAP net income of $11.6 million. Non-GAAP gross profit margin was 59.3% in the second quarter 2019 compared to 62.1% reported for the second quarter of 2018.

For the six months ended June 30, 2019, the Company reported revenue of $240.3 million, a decrease of 7.3% compared to $259.3 million reported for the same period in 2018. GAAP gross profit margin was 57.5% vs. 56.6% reported for the same period in 2018. GAAP net loss was $25.8 million, or $0.77 per share, compared with GAAP net loss of $5.7 million, or $0.17 per share in the same period in 2018.

Non-GAAP earnings per diluted share was $0.43 for the first six months in 2019, compared to $0.59 in the same period in 2018. The Company reported non-GAAP net income of $14.4 million for the six months ended June 30, 2019, compared to the prior year's non-GAAP net income of $19.6 million.

“Second quarter results exceeded the high end of our expectations. Revenue from our neuro end market, grew 7% adjusted for the divested GND business. Sales of our Otoscan digital ear scanner and hearing aid fitting products drove growth in our audiology market. Sales of our Neoblue® phototherapy devices and Algo® hearing screening devices and supplies grew within newborn care market,” said Jonathan Kennedy, President and Chief Executive Officer of Natus. “Completing the divestitures of GND, Neurocom® and Medix in the first half of the year, enhances our ability to grow our core businesses, drive operational efficiency and increase cash flows.”

“Our One Natus initiatives are progressing according to plan, allowing us to now look forward beyond the reorganization. Natus has a rich portfolio of solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages. With our customer focused organization and strategic direction now in place, we are in a solid position to expand and grow within our markets.” Kennedy continued. “Today, we also announced the change of our ticker symbol to NTUS, better reflecting the identity and diversity of our business.”

Financial Guidance

For the third quarter of 2019, the Company's revenue guidance is expected to be between $122.0 million and $126.0 million and non-GAAP earnings per share guidance is expected to be between $0.32 and $0.39.

For the full year 2019, the Company narrowed its expected revenue guidance to be between $492.0 million and $500.0 million from $489.0 million to $505.0 million and non-GAAP expected earnings per share guidance to be between $1.19 and $1.32 from $1.17 to $1.44.

The Company's non-GAAP earnings per share guidance excludes charges for amortization expense associated with intangible assets from prior acquisitions, certain other expenses, and related tax effects, which the Company expects to be approximately $4.9 million and $49.8 million for the third quarter 2019 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.13 and $1.45 for the respective periods.

Use of Non-GAAP Financial Measures

The Company presents in this release its non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin and non-GAAP operating margin results which exclude amortization expense associated with certain acquisition-related intangibles, restructuring charges, certain discrete items, direct costs of acquisitions, and the related tax effects. A reconciliation between non-GAAP and GAAP financial measures is included in this press release.

The Company believes that the presentation of results excluding these charges or gains provides meaningful supplemental information to both management and investors that is indicative of the Company's core operating results and better reflects the ongoing economics of the Company's operations. The Company believes these non-GAAP financial measures facilitate comparison of operating results across reporting periods.

Specifically, the Company excludes the following charges, gains, and their related tax effects in the calculation of non-GAAP net income, non-GAAP earnings per share and non-GAAP operating expense: 1) Non-cash amortization expense associated with certain acquisition-related intangibles. The charges reflect an estimate of the cost of acquired intangible assets over their estimated useful lives. 2) Restructuring and other non-recurring charges. The Company has over time completed multiple acquisitions of other companies and businesses. Following an acquisition the Company will, as it determines appropriate, initiate restructuring events to eliminate redundant costs. Restructuring expenses, which are excluded in the non-GAAP items, are exclusively related to permanent reductions in our workforce and redundant facility closures. Other non-recurring costs are associated with the transition of the executive management team. These costs can include stock compensation from accelerated vesting of stock, severance payouts and related payroll expenses.  3) Certain discrete items. These items represent significant infrequent charges or gains that management believes should be viewed outside of normal operating results, and each significant discrete transaction is evaluated to determine whether it should be excluded from non-GAAP reporting. These items are specifically identified when they occur. 4) Direct costs of acquisitions.  These are direct acquisition-related costs that occur when the Company makes an acquisition, such as professional fees, due diligence costs, and earn-out adjustments.

The Company applies GAAP methodologies in computing its non-GAAP tax provision by determining the annual expected effective tax rate after taking into account items excluded for non-GAAP financial reporting purposes.  The Company’s non-GAAP tax expense and its non-GAAP effective tax rate are generally higher than its GAAP tax expense and GAAP effective tax rate because the income subject to taxes would be higher due to the effect of the expenses excluded from non-GAAP financial reporting. The nature of each quarterly discrete transaction will be evaluated to determine whether it should be excluded from non-GAAP reporting.

The Company's management uses these non-GAAP financial measures in assessing the Company's performance and when planning, forecasting, and analyzing future periods and the Company believes that investors also benefit from being able to refer to these non-GAAP financial measures along with the GAAP operating results. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for or superior to financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated.

Conference Call

Natus has scheduled a conference call to discuss this announcement beginning at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) today, July 25, 2019. Individuals interested in listening to the conference call may do so by dialing 1-844-634-1441 for domestic callers, or 1-508-637-5658 for international callers, and entering reservation code 1776809. A telephone replay will be available for 48 hours following the conclusion of the call by dialing 1-855-859-2056 for domestic callers, or 1-404-537-3406 for international callers, and entering reservation code 1776809. The conference call also will be available real-time via the Internet at http://investor.natus.com, and a recording of the call will be available on the Company’s Web site for 90 days following the completion of the call.

About Natus Medical Incorporated

Natus is a leading provider of medical device solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages.

Additional information about Natus Medical can be found at www.natus.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are generally statements that are not historical facts. Forward-looking statements can be identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “will”, “outlook” and similar expressions. Forward-looking statements are based on management's current plans, estimates, assumptions and projections, and speak only as of the date they are made. These forward-looking statements include, without limitation, statements regarding creating a more efficient operating model, creating a stronger and more profitable company, enhancing focus on operational excellence, positioning the company for growth and driving long-term value for stakeholders. These statements relate to current estimates and assumptions of our management as of the date of this press release and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results or the results implied by the forward-looking statements will meet expectations. The Company's future results could differ materially due to a number of factors, including the ability of the Company to realize the anticipated benefits from its new structure or from its consolidation strategy, effects of competition, the Company's ability to successfully integrate and achieve its profitability goals from recent acquisitions, the demand for Natus products and services, the impact of adverse global economic conditions and changing governmental regulations, including foreign exchange rate changes, on the Company's target markets, the Company's ability to expand its sales in international markets, the Company's ability to maintain current sales levels in a mature domestic market, the Company's ability to control costs, risks associated with bringing new products to market, and the Company's ability to fulfill product orders on a timely basis, as well as those factors identified under the heading Item 1A “Risk Factors” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Natus disclaims any obligation to update information contained in any forward looking statement, except as required by law.

Natus Medical Incorporated
Drew Davies
Executive Vice President and Chief Financial Officer
(925) 223-6700
InvestorRelations@Natus.com               

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
(in thousands, except per share amounts)
               
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Revenue $ 125,539     $ 130,653     $ 240,296     $ 259,261  
Cost of revenue 52,164     52,897     98,534     108,266  
Intangibles amortization 1,746     2,717     3,502     4,305  
Gross profit 71,629     75,039     138,260     146,690  
Gross profit margin 57.1 %   57.4 %   57.5 %   56.6 %
Operating expenses:              
Marketing and selling 32,236     33,401     65,966     69,273  
Research and development 12,769     15,616     25,827     31,059  
General and administrative 12,691     23,721     28,995     41,169  
Intangibles amortization 3,763     4,151     7,549     8,957  
Restructuring 2,668     1,938     40,040     2,750  
Total operating expenses 64,127     78,827     168,377     153,208  
Income (loss) from operations 7,502     (3,788 )   (30,117 )   (6,518 )
Interest expense (1,388 )   (1,647 )   (2,894 )   (3,596 )
Other income (expense) 188     (751 )   (418 )   (622 )
Income (loss) before tax 6,302     (6,186 )   (33,429 )   (10,736 )
Provision for income tax expense (benefit) 2,114     (3,609 )   (7,616 )   (5,009 )
Net income (loss) $ 4,188     $ (2,577 )   $ (25,813 )   $ (5,727 )
Earnings (loss) per share:              
Basic $ 0.12     $ (0.08 )   $ (0.77 )   $ (0.17 )
Diluted $ 0.12     $ (0.08 )   $ (0.77 )   $ (0.17 )
Weighted-average shares:              
Basic 33,639     32,859     33,630     32,809  
Diluted 33,690     32,859     33,630     32,809  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
           
  June 30,   March 31,   December 31,
  2019   2019   2018
ASSETS          
           
Current assets:          
Cash and investments $ 52,009     $ 53,423     $ 56,373  
Accounts receivable 106,934     110,900     127,041  
Inventories 78,275     82,866     79,736  
Other current assets 28,022     26,793     22,625  
Total current assets 265,240     273,982     285,775  
           
Property and equipment 26,547     26,280     22,913  
Operating lease right-of-use assets 17,217     18,982      
Goodwill and intangible assets 274,725     279,595     287,097  
Deferred income tax 19,187     19,165     22,639  
Other assets 25,084     20,559     19,716  
Total assets $ 628,000     $ 638,563     $ 638,140  
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities:          
Accounts payable $ 25,235     $ 25,103     $ 28,805  
Current portion of long-term debt 35,000     35,000     35,000  
Accrued liabilities 51,605     51,157     52,568  
Deferred revenue 19,861     19,017     17,073  
Current portion of operating lease liabilities 5,960     6,251      
Liabilities and accrued impairment held for sale     24,786      
Total current liabilities 137,661     161,314     133,446  
           
Long-term liabilities:          
Long-term debt 44,570     64,522     69,474  
Deferred income tax 8,649     8,467     16,931  
Operating lease liabilities 14,326     15,234      
Other long-term liabilities 21,237     21,325     19,845  
Total liabilities 226,443     270,862     239,696  
Total stockholders’ equity 401,557     367,701     398,444  
Total liabilities and stockholders’ equity $ 628,000     $ 638,563     $ 638,140  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
(in thousands)
           
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Operating activities:              
Net income (loss) $ 4,188     $ (2,577 )   $ (25,813 )   $ (5,727 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:              
Provision for losses on accounts receivable 360     3,171     960     4,089  
Depreciation and amortization 7,716     8,779     15,427     16,694  
(Gain) loss on disposal of property and equipment 303     108     482     160  
Warranty reserve 1,323     2,100     1,677     975  
Share-based compensation 1,908     3,270     4,462     5,632  
Impairment of intangible assets held for sale              
Impairment charge for held for sale assets         24,571      
Changes in operating assets and liabilities:              
Accounts receivable 3,615     4,306     19,170     2,064  
Inventories 2,141     (5,368 )   (2,475 )   (2,483 )
Prepaid expenses and other assets (3,357 )   (9,753 )   (11,060 )   (15,141 )
Accounts payable (81 )   258     (3,517 )   (364 )
Accrued liabilities (1,301 )   95     (2,620 )   3,414  
Deferred revenue 757     373     2,739     1,687  
Deferred income tax (18 )   239     44     326  
Net cash provided by operating activities 17,554     5,001     24,047     11,326  
Investing activities:              
Acquisition of businesses, net of cash acquired     151         151  
Purchases of property and equipment (458 )   (914 )   (2,919 )   (3,387 )
Purchase of intangible assets (13 )   (298 )   (13 )   (298 )
Net cash used in investing activities (471 )   (1,061 )   (2,932 )   (3,534 )
Financing activities:              
Proceeds from stock option exercises and ESPP 1,406     4,515     1,674     5,092  
Repurchase of common stock     (894 )       (5,630 )
Taxes paid related to settlement of equity awards (6 )   (307 )   (1,573 )   (326 )
Principal payments of financing lease liability (100 )       (265 )    
Contingent consideration earn-out             (147 )
Payments on borrowings (20,000 )   (10,000 )   (25,000 )   (35,000 )
Net cash used in financing activities (18,700 )   (6,686 )   (25,164 )   (36,011 )
Exchange rate changes effect on cash and cash equivalents 203     (6,817 )   (315 )   (5,823 )
Net decrease in cash and cash equivalents (1,414 )   (9,563 )   (4,364 )   (34,042 )
Cash and cash equivalents, beginning of period 53,423     64,471     56,373     88,950  
Cash and cash equivalents, end of period $ 52,009     $ 54,908     $ 52,009     $ 54,908  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)
(in thousands, except per share amounts)
               
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
GAAP based results:              
Income (loss) before provision for income tax $ 6,302     $ (6,186 )   $ (33,429 )   $ (10,736 )
               
Non-GAAP adjustments:              
Intangibles amortization (COGS) 1,746     2,717     3,502     4,305  
Recall accrual and remediation efforts (COGS) 322     2,305     67     2,573  
Restructuring and other non-recurring costs (COGS) 738     27     989     27  
Direct costs of acquisitions (COGS) 40     1,072     123     3,480  
Intangibles amortization (OPEX) 3,763     4,151     7,549     8,957  
Direct costs of acquisitions (M&S) 15     387     33     409  
Recall accrual and remediation efforts (R&D)     1,741         3,587  
Direct costs of acquisitions (R&D) 46     138     91     184  
Restructuring and other non-recurring costs (OPEX) 2,594     4,239     40,258     5,206  
Direct costs of acquisitions (G&A) 90     789     134     3,180  
Restructuring and other non-recurring costs (OI&E)     (2 )       366  
Extraordinary annual meeting expenses     2,214         2,214  
Litigation (OPEX) 10     754     697     996  
Non-GAAP income before provision for income tax 15,666     14,346     20,014     24,748  
               
Income tax expense, as adjusted $ 4,350     $ 2,755     $ 5,591     $ 5,130  
               
Non-GAAP net income $ 11,316     $ 11,591     $ 14,423     $ 19,618  
Non-GAAP earnings per share:              
Basic $ 0.34     $ 0.35     $ 0.43     $ 0.60  
Diluted $ 0.34     $ 0.35     $ 0.43     $ 0.59  
               
Weighted-average shares used to compute              
Basic non-GAAP earnings per share 33,639     32,859     33,630     32,809  
Diluted non-GAAP earnings per share 33,690     33,241     33,733     33,196  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)
(in thousands, except per share amounts)
               
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
GAAP Gross Profit $ 71,629     $ 75,039     $ 138,260     $ 146,690  
Amortization of intangibles 1,746     2,717     3,502     4,305  
Direct cost of acquisitions 40     1,072     123     3,480  
Recall accrual and remediation efforts 322     2,305     67     2,573  
Restructuring and other non-recurring costs 738     27     989     27  
Non-GAAP Gross Profit $ 74,475     $ 81,160     $ 142,941     $ 157,075  
Non-GAAP Gross Margin 59.3 %   62.1 %   59.5 %   60.6 %
               
GAAP Operating Income (Loss) $ 7,502     $ (3,788 )   $ (30,117 )   $ (6,518 )
Amortization of intangibles 5,509     6,868     11,051     13,262  
Recall accrual and remediation efforts 322     4,046     67     6,160  
Litigation 10     754     697     996  
Restructuring and other non-recurring costs 3,332     4,266     41,247     5,233  
Direct cost of acquisitions 191     2,386     381     7,253  
Extraordinary annual meeting expenses     2,214         2,214  
Non-GAAP Operating Profit $ 16,866     $ 16,746     $ 23,326     $ 28,600  
Non-GAAP Operating Margin 13.4 %   12.8 %   9.7 %   11.0 %
               
GAAP Income Tax Benefit (Expense) $ 2,114     $ (3,609 )   $ (7,616 )   $ (5,009 )
Effect of accumulated change of pretax income 2,662     7,072     5,707     10,791  
Effect of change in annual expected tax rate (503 )   (1,531 )   (606 )   (1,584 )
Repatriation tax adjustment     (88 )   (177 )   101  
Stock-based compensation adjustment     911         831  
Restructuring expenses 77         8,283      
Non-GAAP Income Tax Expense $ 4,350     $ 2,755     $ 5,591     $ 5,130  
               
  Three Months
Ended
  Year
Ended
       
  September 30,
2019
  December 31,
2019
       
GAAP EPS Guidance $0.19 - $0.26   ($0.26) - ($0.13)        
Amortization of intangibles 0.17    0.66         
Restructuring and other non-recurring costs 0.01    1.24         
Litigation —    0.02         
Direct cost of acquisitions —    0.01         
Tax effect (0.05)   (0.48)        
Non-GAAP EPS Guidance $0.32 - $0.39   $1.19 - $1.32        




NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GROSS MARGIN BY END MARKETS (unaudited)
(in thousands)
       
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Neuro:              
Revenue $ 71,598     $ 70,375     $ 133,988     $ 136,244  
Cost of revenue 27,906     26,381     50,579     54,232  
Intangibles amortization 940     1,814     1,882     2,464  
Gross profit $ 42,752     $ 42,180     $ 81,527     $ 79,548  
Gross profit margin 59.7 %   59.9 %   60.8 %   58.4 %
               
Newborn care:              
Revenue $ 26,563     $ 30,573     $ 56,099     $ 64,477  
Cost of revenue 11,424     13,644     23,822     26,135  
Intangibles amortization 64     119     129     239  
Gross profit $ 15,075     $ 16,810     $ 32,148     $ 38,103  
Gross profit margin 56.8 %   55.0 %   57.3 %   59.1 %
               
Audiology:              
Revenue $ 27,378     $ 29,705     $ 50,209     $ 58,540  
Cost of revenue 12,834     12,872     24,133     27,899  
Intangibles amortization 742     784     1,491     1,602  
Gross profit $ 13,802     $ 16,049     $ 24,585     $ 29,039  
Gross profit margin 50.4 %   54.0 %   49.0 %   49.6 %
               
Consolidated:              
Revenue $ 125,539     $ 130,653     $ 240,296     $ 259,261  
Cost of revenue 52,164     52,897     98,534     108,266  
Intangibles amortization 1,746     2,717     3,502     4,305  
Gross profit $ 71,629     $ 75,039     $ 138,260     $ 146,690  
Gross profit margin 57.1 %   57.4 %   57.5 %   56.6 %
               
Note: The revenue and gross margin for our AccuScreen® newborn hearing screening product has been reclassified from Audiology to Newborn Care for both the current and prior periods.


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP GROSS MARGIN BY END MARKETS (unaudited)
(in thousands)
               
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Neuro:              
GAAP Gross Profit $ 42,752     $ 42,180     $ 81,527     $ 79,548  
Amortization of intangibles 940     1,814     1,882     2,464  
Acquisition charges 40     1,022     123     3,430  
Non-GAAP Gross Profit $ 43,732     $ 45,016     $ 83,532     $ 85,442  
Non-GAAP Gross Margin 61.1 %   64.0 %   62.3 %   62.7 %
               
Newborn care:              
GAAP Gross Profit $ 15,075     $ 16,810     $ 32,148     $ 38,103  
Amortization of intangibles 64     119     129     239  
Recall accrual and remediation efforts (316 )   2,305     (571 )   2,573  
Restructuring and other non-recurring costs 738     2     814     2  
Non-GAAP Gross Profit $ 15,561     $ 19,236     $ 32,520     $ 40,917  
Non-GAAP Gross Margin 58.6 %   62.9 %   58.0 %   63.5 %
               
Audiology:              
GAAP Gross Profit $ 13,802     $ 16,049     $ 24,585     $ 29,039  
Amortization of intangibles 742     784     1,491     1,602  
Acquisition charges     50         50  
Recall accrual and remediation efforts 638         638      
Restructuring and other non-recurring costs     25     175     25  
Non-GAAP Gross Profit $ 15,182     $ 16,908     $ 26,889     $ 30,716  
Non-GAAP Gross Margin 55.5 %   56.9 %   53.6 %   52.5 %
               
Consolidated:              
GAAP Gross Profit $ 71,629     $ 75,039     $ 138,260     $ 146,690  
Amortization of intangibles 1,746     2,717     3,502     4,305  
Acquisition charges 40     1,072     123     3,480  
Recall accrual and remediation efforts 322     2,305     67     2,573  
Restructuring and other non-recurring costs 738     27     989     27  
Non-GAAP Gross Profit $ 74,475     $ 81,160     $ 142,941     $ 157,075  
Non-GAAP Gross Margin 59.3 %   62.1 %   59.5 %   60.6 %


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GEOGRAPHIC REVENUE (unaudited)
(in thousands)
               
  Three Months Ended   Six Months Ended
  June 30, 2019   June 30, 2018   June 30, 2019   June 30, 2018
Consolidated Revenue:              
United States $ 73,531     $ 75,467     $ 139,598     $ 144,154  
International 52,008     55,186     100,698     115,107  
Totals $ 125,539     $ 130,653     $ 240,296     $ 259,261  
               
United States 59 %   58 %   58 %   56 %
International 41 %   42 %   42 %   44 %
Totals 100 %   100 %   100 %   100 %


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
REVENUE AFTER EXITED PRODUCTS (unaudited)
(in thousands)
                       
  Three Months Ended   Six Months Ended   Year Ended
  June 30,
2019
  June 30,
2018
  June 30,
2019
  June 30,
2018
  December 31,
2018
  December 31,
2017
Revenue $ 125.5     $ 130.7     $ 240.3     $ 259.3     $ 530.9     $ 501.0  
Newborn care (1.4 )   (4.1 )   (3.7 )   (10.2 )   (20.6 )   (35.0 )
Neuro (0.1 )   (4.4 )   (1.0 )   (7.7 )   (14.3 )   (14.6 )
Audiology     (1.8 )       (8.3 )   (7.9 )   (6.9 )
Impact of ship holds 2.8         6.6              
Revenue after exited products/ship holds $ 126.8     $ 120.4     $ 242.2     $ 233.1     $ 488.1     $ 444.5  
                       
Note: Newborn care, Neuro, and Audiology include exited businesses (GND, Neurocom, Medix) and other end of sales products.