Natus Medical Announces Third Quarter 2019 Financial Results

  • Third quarter revenue of $123.5 million
  • Third quarter GAAP earnings per diluted share of $0.25
  • Third quarter non-GAAP earnings per diluted share of $0.36

PLEASANTON, Calif., Oct. 24, 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 nine months ended September 30, 2019.

Key Results During the Quarter

  • Achieved organic revenue growth of 2% after divestitures
  • Reduced inventory by $1.6 million during the quarter
  • Reduced days sales outstanding by six days year-over-year
  • Generated $23.9 million in operating cash flow
  • Reduced debt by $10.0 million

For the third quarter ended September 30, 2019, the Company reported revenue of $123.5 million, a decrease of 5.4% compared to $130.6 million reported for the third quarter 2018. GAAP gross profit margin was 59.1% during the third quarter of 2019 compared to 59.0% in the third quarter 2018. GAAP net income was $8.5 million, or $0.25 per diluted share, compared with GAAP net loss of $5.6 million, or $0.17 per share in the third quarter 2018.

Non-GAAP earnings per diluted share was $0.36 for the third quarter 2019, compared to $0.40 in the third quarter 2018. Non-GAAP net income was $12.1 million for the third quarter 2019 compared to $13.4 million in the third quarter 2018. Non-GAAP gross profit margin was 61.3% in the third quarter 2019 compared to 60.6% reported for the third quarter of 2018.

For the nine months ended September 30, 2019, the Company reported revenue of $363.8 million, a decrease of 6.7% compared to $389.9 million reported for the same period in 2018. GAAP gross profit margin was 58.1% vs. 57.4% reported for the same period in 2018. GAAP net loss was $17.4 million, or $0.52 per share, compared with GAAP net loss of $11.3 million, or $0.34 per share in the same period in 2018.

Non-GAAP earnings per diluted share was $0.79 for the nine months in 2019, compared to $0.99 in the same period in 2018. The Company reported non-GAAP net income of $26.5 million for the nine months ended September 30, 2019, compared to the prior year's non-GAAP net income of $33.0 million.

“Our third quarter results represent continued improvement in our business. Our performance in the quarter drove significant cash flow from operations of $23.9 million. Revenue from our neuro end market grew 8% adjusted for divestitures for the second consecutive quarter. Our newborn care and hearing & balance markets were down year-over-year, but showed growth in phototherapy, vision screening and hearing fitting devices. Overall, we achieved revenue growth of 2%, adjusted for divestitures and discontinued products,” said Jonathan Kennedy, President and Chief Executive Officer of Natus. “During the quarter, we continued to execute our strategic plan of focusing our efforts in the central nervous systems and sensory markets and believe we have achieved significant improvements in our operational efficiency.”

Financial Guidance

For the fourth quarter of 2019, the Company's revenue guidance is expected to be between $128.0 million and $132.0 million and non-GAAP earnings per share guidance is expected to be between $0.44 and $0.50.

For the full year 2019, the Company updated its expected revenue guidance to be between $492.0 million and $496.0 million and non-GAAP expected earnings per share guidance to be between $1.23 and $1.29.

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 $6.7 million and $50.5 million for the fourth quarter 2019 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.19 and $1.49 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, October 24, 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 8582045. 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 8582045. 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 the Company's ability to achieve improvements in operational efficiency and to execute its strategic plans. 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   Nine Months Ended
  September 30,
2019
  September 30,
2018
  September 30,
2019
  September 30,
2018
Revenue $ 123,463     $ 130,638     $ 363,759     $ 389,900  
Cost of revenue 48,706     51,583     147,240     159,849  
Intangibles amortization 1,736     1,930     5,237     6,235  
  Gross profit 73,021     77,125     211,282     223,816  
Gross profit margin 59.1 %   59.0 %   58.1 %   57.4 %
Operating expenses:              
  Marketing and selling 30,848     33,200     96,813     102,474  
  Research and development 14,114     15,127     39,941     46,186  
  General and administrative 15,113     15,799     44,108     56,966  
  Intangibles amortization 3,751     4,477     11,300     13,434  
  Restructuring 1,106     11,432     41,147     14,182  
  Total operating expenses 64,932     80,035     233,309     233,242  
Income (loss) from operations 8,089     (2,910 )   (22,027 )   (9,426 )
Interest expense (1,165 )   (1,644 )   (4,059 )   (5,240 )
Other income (expense) (444 )   918     (862 )   296  
Income (loss) before tax 6,480     (3,636 )   (26,948 )   (14,370 )
Provision for income tax expense (benefit) (1,981 )   1,940     (9,596 )   (3,069 )
Net income (loss) $ 8,461     $ (5,576 )   $ (17,352 )   $ (11,301 )
Earnings (loss) per share:              
  Basic $ 0.25     $ (0.17 )   $ (0.52 )   $ (0.34 )
  Diluted $ 0.25     $ (0.17 )   $ (0.52 )   $ (0.34 )
Weighted-average shares:              
  Basic 33,655     33,321     33,666     32,982  
  Diluted 33,738     33,321     33,666     32,982  


 
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
           
  September 30,   June 30,   December 31,
  2019   2019   2018
ASSETS          
           
Current assets:          
Cash and investments $ 63,062     $ 52,009     $ 56,373  
Accounts receivable 108,964     106,934     127,041  
Inventories 75,107     78,275     79,736  
Other current assets 27,735     28,022     22,625  
Total current assets 274,868     265,240     285,775  
           
Property and equipment 25,095     26,547     22,913  
Operating lease right-of-use assets 16,059     17,217      
Goodwill and intangible assets 265,152     274,725     287,097  
Deferred income tax 21,955     19,187     22,639  
Other assets 25,984     25,084     19,716  
Total assets $ 629,113     $ 628,000     $ 638,140  
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities:          
Accounts payable $ 30,096     $ 25,235     $ 28,805  
Current portion of long-term debt 35,000     35,000     35,000  
Accrued liabilities 56,657     51,605     52,568  
Deferred revenue 19,242     19,861     17,073  
Current portion of operating lease liabilities 5,901     5,960      
Liabilities and accrued impairment held for sale          
Total current liabilities 146,896     137,661     133,446  
           
Long-term liabilities:          
Long-term debt 34,618     44,570     69,474  
Deferred income tax 8,129     8,649     16,931  
Operating lease liabilities 13,112     14,326      
Other long-term liabilities 20,200     21,237     19,845  
Total liabilities 222,955     226,443     239,696  
Total stockholders’ equity 406,158     401,557     398,444  
Total liabilities and stockholders’ equity $ 629,113     $ 628,000     $ 638,140  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)
           
  Three Months Ended   Nine Months Ended
  September
30, 2019
  September
30, 2018
  September
30, 2019
  September
30, 2018
Operating activities:              
Net income (loss) $ 8,461     $ (5,576 )   $ (17,352 )   $ (11,301 )
Adjustments to reconcile net loss to net cash provided by operating activities:              
Provision for losses on accounts receivable 534     1,782     1,494     5,871  
Depreciation and amortization 7,519     8,958     22,946     25,652  
(Gain) loss on disposal of property and equipment     250     482     410  
Warranty reserve 911     (902 )   2,588     73  
Share-based compensation 1,915     9,814     6,377     15,446  
Impairment charge for held for sale assets         24,571      
Changes in operating assets and liabilities:              
Accounts receivable (1,880 )   891     17,290     2,955  
Inventories 401     (2,700 )   (2,074 )   (5,183 )
Prepaid expenses and other assets 417     743     (10,643 )   (14,398 )
Accounts payable 5,124     (3,435 )   1,607     (3,799 )
Accrued liabilities 3,693     (2,446 )   1,073     968  
Deferred revenue (368 )   58     2,371     1,745  
Deferred income tax (2,861 )   191     (2,817 )   517  
Net cash provided by operating activities 23,866     7,628     47,913     18,956  
Investing activities:              
Acquisition of businesses, net of cash acquired             151  
Purchases of property and equipment (953 )   (1,740 )   (3,872 )   (5,127 )
Purchase of intangible assets     (339 )   (13 )   (637 )
Net cash used in investing activities (953 )   (2,079 )   (3,885 )   (5,613 )
Financing activities:              
Proceeds from stock option exercises and ESPP 519     5,423     2,193     10,515  
Repurchase of common stock             (5,629 )
Taxes paid related to settlement of equity awards (23 )   (4,847 )   (1,596 )   (5,173 )
Principal payments of financing lease liability (139 )       (404 )    
Contingent consideration earn-out             (147 )
Payments on borrowings (10,000 )   (5,000 )   (35,000 )   (40,000 )
Net cash used in financing activities (9,643 )   (4,424 )   (34,807 )   (40,434 )
Exchange rate changes effect on cash and cash equivalents (2,217 )   (1,593 )   (2,532 )   (7,419 )
Net decrease in cash and cash equivalents 11,053     (468 )   6,689     (34,510 )
Cash and cash equivalents, beginning of period 52,009     54,908     56,373     88,950  
Cash and cash equivalents, end of period $ 63,062     $ 54,440     $ 63,062     $ 54,440  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)
(in thousands, except per share amounts)
               
  Three Months Ended   Nine Months Ended
  September
30, 2019
  September
30, 2018
  September
30, 2019
  September
30, 2018
GAAP based results:              
Income (loss) before provision for income tax $ 6,480     $ (3,636 )   $ (26,948 )   $ (14,370 )
               
Non-GAAP adjustments:              
Intangibles amortization (COGS) 1,736     1,930     5,237     6,235  
Recall accrual and remediation efforts (COGS)     (1,198 )   67     1,375  
Restructuring and other non-recurring costs (COGS)     846     989     873  
Direct costs of acquisitions (COGS) 917     402     1,040     3,882  
Intangibles amortization (OPEX) 3,751     4,483     11,300     13,439  
Direct costs of acquisitions (M&S) 7     14     40     423  
Recall accrual and remediation efforts (R&D)     1,288         4,875  
Direct costs of acquisitions (R&D) 61     50     152     235  
Restructuring and other non-recurring costs (OPEX) 1,855     12,904     42,112     18,108  
Direct costs of acquisitions (G&A) 630     502     764     3,682  
Direct costs of acquisitions (OI&E)             366  
Extraordinary annual meeting expenses     15         2,230  
Litigation (OPEX) 5         702     996  
Non-GAAP income before provision for income tax 15,442     17,600     35,455     42,349  
               
Income tax expense, as adjusted $ 3,331     $ 4,227     $ 8,922     $ 9,357  
               
Non-GAAP net income $ 12,111     $ 13,373     $ 26,533     $ 32,992  
 Non-GAAP earnings per share:              
  Basic $ 0.36     $ 0.40     $ 0.79     $ 1.00  
  Diluted $ 0.36     $ 0.40     $ 0.79     $ 0.99  
               
 Weighted-average shares used to compute              
  Basic non-GAAP earnings per share 33,655     33,321     33,666     32,982  
  Diluted non-GAAP earnings per share 33,738     33,551     33,772     33,388  


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP ADJUSTMENTS (unaudited)
(in thousands, except per share amounts)
               
  Three Months Ended   Nine Months Ended
  September 30,
2019
  September 30,
2018
  September 30,
2019
  September 30,
2018
GAAP Gross Profit $ 73,021     $ 77,125     $ 211,282     $ 223,816  
Amortization of intangibles 1,736     1,930     5,237     6,235  
Direct cost of acquisitions 917     402     1,040     3,882  
Recall accrual and remediation efforts     (1,198 )   67     1,375  
Restructuring and other non-recurring costs     846     989     873  
Non-GAAP Gross Profit $ 75,674     $ 79,105     $ 218,615     $ 236,181  
Non-GAAP Gross Margin 61.3 %   60.6 %   60.1 %   60.6 %
               
GAAP Operating Income (Loss) $ 8,089     $ (2,910 )   $ (22,027 )   $ (9,426 )
Amortization of intangibles 5,487     6,413     16,537     19,674  
Recall accrual and remediation efforts     90     67     6,250  
Litigation 5         702     996  
Restructuring and other non-recurring costs 1,855     13,750     43,101     18,981  
Direct cost of acquisitions 1,615     968     1,996     8,222  
Extraordinary annual meeting expenses     15         2,230  
Non-GAAP Operating Profit $ 17,051     $ 18,326     $ 40,376     $ 46,927  
Non-GAAP Operating Margin 13.8 %   14.0 %   11.1 %   12.0 %
               
GAAP Income Tax Benefit (Expense) $ (1,981 )   $ 1,940     $ (9,596 )   $ (3,069 )
Effect of accumulated change of pretax income 3,141     (15,493 )   8,847     (4,701 )
Effect of change in annual expected tax rate (1,135 )   15,704     (1,740 )   14,120  
Repatriation tax adjustment         (177 )   101  
Stock-based compensation adjustment     791         1,621  
Valuation allowance for GAAP purposes     1,285         1,285  
Restructuring and other expenses 3,306         11,588      
Non-GAAP Income Tax Expense $ 3,331     $ 4,227     $ 8,922     $ 9,357  
               
  Three Months Ended   Year Ended        
  December 31, 2019   December 31, 2019        
GAAP EPS Guidance $0.24 - $0.30   ($0.27) - ($0.21)        
Amortization of intangibles 0.16   0.65          
Restructuring and other non-recurring costs   1.28          
Litigation   0.02          
Direct cost of acquisitions   0.06          
Tax effect 0.03   (0.52 )        
Non-GAAP EPS Guidance $0.44 - $0.50   $1.23 - $1.29        


 
NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GROSS MARGIN BY END MARKETS (unaudited)
(in thousands)
       
  Three Months Ended   Nine Months Ended
  September 30,
2019
  September 30,
2018
  September 30,
2019
  September 30,
2018
Neuro:              
Revenue $ 72,192     $ 69,762     $ 206,179     $ 206,124  
Cost of revenue 25,571     25,251     75,785     79,511  
Intangibles amortization 938     1,042     2,819     3,507  
  Gross profit $ 45,683     $ 43,469     $ 127,575     $ 123,106  
Gross profit margin 63.3 %   62.3 %   61.9 %   59.7 %
               
Newborn care:              
Revenue $ 27,005     $ 34,220     $ 83,105     $ 98,697  
Cost of revenue 11,058     13,912     35,238     40,050  
Intangibles amortization 64     119     193     358  
  Gross profit $ 15,883     $ 20,189     $ 47,674     $ 58,289  
Gross profit margin 58.8 %   59.0 %   57.4 %   59.1 %
               
Hearing & balance:              
Revenue $ 24,266     $ 26,656     $ 74,475     $ 85,079  
Cost of revenue 12,077     12,420     36,217     40,288  
Intangibles amortization 734     769     2,225     2,370  
  Gross profit $ 11,455     $ 13,467     $ 36,033     $ 42,421  
Gross profit margin 47.2 %   50.5 %   48.4 %   49.9 %
               
Consolidated:              
Revenue $ 123,463     $ 130,638     $ 363,759     $ 389,900  
Cost of revenue 48,706     51,583     147,240     159,849  
Intangibles amortization 1,736     1,930     5,237     6,235  
  Gross profit $ 73,021     $ 77,125     $ 211,282     $ 223,816  
Gross profit margin 59.1 %   59.0 %   58.1 %   57.4 %
               
Note: The revenue and gross margin for our AccuScreen® newborn hearing screening product has been reclassified from Hearing & Balance to Newborn Care for both the current and prior periods. Hearing & Balance was formerly name Audiology.


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP GROSS MARGIN BY END MARKETS (unaudited)
(in thousands)
               
  Three Months Ended   Nine Months Ended
  September 30, 2019   September 30, 2018   September 30, 2019   September 30, 2018
Neuro:              
GAAP Gross Profit $ 45,683     $ 43,469     $ 127,575     $ 123,106  
Amortization of intangibles 938     1,042     2,819     3,507  
Acquisition charges 917     402     1,040     3,832  
Non-GAAP Gross Profit $ 47,538     $ 44,913     $ 131,434     $ 130,445  
Non-GAAP Gross Margin 65.8 %   64.4 %   63.7 %   63.3 %
               
Newborn care:              
GAAP Gross Profit $ 15,883     $ 20,189     $ 47,674     $ 58,289  
Amortization of intangibles 64     119     193     358  
Recall accrual and remediation efforts     (1,198 )   (571 )   1,375  
Restructuring and other non-recurring costs     846     814     848  
Non-GAAP Gross Profit $ 15,947     $ 19,956     $ 48,110     $ 60,870  
Non-GAAP Gross Margin 59.1 %   58.3 %   57.9 %   61.7 %
               
Hearing & balance:              
GAAP Gross Profit $ 11,455     $ 13,467     $ 36,033     $ 42,421  
Amortization of intangibles 734     769     2,225     2,370  
Acquisition charges             50  
Recall accrual and remediation efforts         638      
Restructuring and other non-recurring costs         175     25  
Non-GAAP Gross Profit $ 12,189     $ 14,236     $ 39,071     $ 44,866  
Non-GAAP Gross Margin 50.2 %   53.4 %   52.5 %   52.7 %
               
Consolidated:              
GAAP Gross Profit $ 73,021     $ 77,125     $ 211,282     $ 223,816  
Amortization of intangibles 1,736     1,930     5,237     6,235  
Acquisition charges 917     402     1,040     3,882  
Recall accrual and remediation efforts     (1,198 )   67     1,375  
Restructuring and other non-recurring costs     846     989     873  
Non-GAAP Gross Profit $ 75,674     $ 79,105     $ 218,615     $ 236,181  
Non-GAAP Gross Margin 61.3 %   60.6 %   60.1 %   60.6 %


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GEOGRAPHIC REVENUE (unaudited)
(in thousands)
               
  Three Months Ended   Nine Months Ended
  September 30,
2019
  September 30,
2018
  September 30,
2019
  September 30,
2018
Consolidated Revenue:              
United States $ 73,553     $ 77,980     $ 213,055     $ 222,135  
International 49,910     52,658     150,704     167,765  
Totals $ 123,463     $ 130,638     $ 363,759     $ 389,900  
               
United States 60 %   60 %   59 %   57 %
International 40 %   40 %   41 %   43 %
Totals 100 %   100 %   100 %   100 %


NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
REVENUE AFTER EXITED PRODUCTS (unaudited)
(in thousands)
                       
  Three Months Ended   Nine Months Ended   Year Ended
  September 30,
2019
  September 30,
2018
  September 30, 2
019
  September 30,
2018
  December 31,
2018**
  December 31,
2017
Revenue $ 123.5     $ 130.6     $ 363.8     $ 389.9     $ 530.9     $ 501.0  
Newborn care* (0.4 )   (5.2 )   (4.1 )   (15.4 )   (20.6 )   (35.0 )
Neuro* (0.2 )   (3.2 )   (1.2 )   (10.9 )   (14.3 )   (14.6 )
Hearing & balance*     (1.5 )       (9.8 )   (7.9 )   (6.9 )
Revenue after exited products/ship holds $ 122.9     $ 120.7     $ 358.5     $ 353.8     $ 488.1     $ 444.5  
                       
*Newborn care, Neuro, and Hearing & balance include exited businesses (GND, Neurocom, Medix) and other end of sales products.
**Year ended December 31, 2018 included $30.6M of Neurosurgery which did not exist before November 2017.

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Source: Natus Medical Incorporated