Natus Medical Announces Third Quarter 2020 Financial Results

  Q3-2020   Key Results
Revenue (millions) $ 102.8  
  • Revenue increased 21.3% compared to 2nd quarter
  • Generated $7.5 million in operating cash flow
  • Revenue declined 16.8% year over year
  • Reduced debt by $20.0 million during the quarter
GAAP loss per share $ 0.28  
Non-GAAP EPS $ 0.09  
     

PLEASANTON, Calif., Oct. 29, 2020 (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, 2020.

For the third quarter ended September 30, 2020, the Company reported revenue of $102.8 million, a decline of 16.8% compared to $123.5 million reported for the third quarter 2019. GAAP gross margin was 46.2% during the third quarter of 2020 compared to 59.4% in the third quarter 2019. GAAP net loss was $9.3 million, or $0.28 loss per share, compared with GAAP net income of $8.2 million, or $0.24 earnings per diluted share in the third quarter 2019.

Non-GAAP gross margin was 56.2% in the third quarter 2020 compared to 61.5% reported for the third quarter of 2019. Non-GAAP earnings per diluted share was $0.09 for the third quarter 2020, compared to $0.35 in the third quarter 2019. Non-GAAP net income was $3.2 million in the third quarter 2020 compared to $11.9 million in the third quarter 2019.

For the nine months ended September 30, 2020, the Company reported revenue of $297.0 million, a decrease of 18.4% compared to $363.8 million reported for the same period in 2019. GAAP gross margin was 50.8% vs. 58.1% reported for the same period in 2019. GAAP net loss was $21.8 million for the nine months ended September 30, 2020, or $0.65 per share, compared with GAAP net loss of $18.7 million, or $0.55 per share in the same period in 2019.

Non-GAAP gross margin was 56.0% in 2020 vs. 60.1% reported for the same period in 2019. Non-GAAP earnings per diluted share was $0.00 for the nine months ended September 30, 2020, compared to $0.75 in the same period in 2019. The Company reported non-GAAP net income of $0.1 million for the nine months ended September 30, 2020, compared to prior year's non-GAAP net income of $25.2 million.

“We are very encouraged by the rate of business recovery in the third quarter. Our revenue grew by 21% compared to the second quarter of 2020. The revenue increase was led by Neuro and Hearing & Balance, respectively. Our Newborn Care end market continues to be the least impacted by the pandemic compared to last year. Although, revenues remain below historical levels, we generated $7.5 million of cash flows from operations, paid down $20.0 million of debt and returned to a net cash position. Looking ahead, we expect further business recovery in the fourth quarter,” said Jonathan Kennedy, President and Chief Executive Officer of Natus.

“We expect revenues from all three of our end markets to increase sequentially in the fourth quarter. Our supplies revenue increased sequentially 26% during the third quarter, indicating a return toward a more normal pace of hospital activity. Device sales increased from the previous quarter as well, up 21%, highlighting an increase in capital spending. Our backlog and pipeline rose in the fourth quarter compared the third quarter, increasing the confidence in our outlook for the fourth quarter,” Mr. Kennedy continued.

Financial Guidance

For the fourth quarter 2020, the Company's revenue guidance is expected to be between $104.0 million and $114.0 million and non-GAAP earnings per share guidance is expected to be between $0.19 and $0.31.

For the full year 2020, the Company's revenue guidance is expected to be between $401.0 million and $411.0 million and non-GAAP earnings per share guidance is expected to be between $0.20 and $0.31.

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 effect, which the Company expects to be approximately $4.1 million and $26.1 million for the fourth quarter 2020 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.12 and $0.77 for the respective periods.

Guidance for the fourth quarter assumes a steady, but gradual increase in our business and does not consider the potential of a significant COVID-19 resurgence and its impact, if any, on the economy and our customers.

Use of Non-GAAP Financial Measures

The Company presents in this release its non-GAAP net income, non-GAAP earnings per diluted 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 diluted share and non-GAAP operating profit: 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 29, 2020. 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 7889667. 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 7889667. 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 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 business, social and economic impact of the COVID-19 pandemic on the Company's business and results of operations, 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, 2019, Quarterly Report on Form 10-Q for the period ended March 31, 2020, and Quarterly Report on Form 10-Q for the period ended June 30, 2020. 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, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Revenue $ 102,803        $ 123,463        $ 296,966        $ 363,759     
Cost of revenue 47,160        48,389        134,665        147,291     
Intangibles amortization 8,117        1,736        11,440        5,237     
  Gross profit 47,526        73,338        150,861        211,231     
Gross profit margin 46.2    %   59.4    %   50.8    %   58.1    %
Operating expenses:              
  Marketing and selling 26,035        30,787        79,567        96,841     
  Research and development 14,670        14,447        46,574        41,166     
  General and administrative 12,384        15,394        36,754        44,390     
  Intangibles amortization 4,025        3,751        11,330        11,300     
  Restructuring 350        1,106        1,842        41,147     
    Total operating expenses 57,464        65,485        176,067        234,844     
Income (loss) from operations (9,938 )     7,853        (25,206 )     (23,613 )  
Interest expense (1,107 )     (1,165 )     (2,800 )     (4,059 )  
Other income (expense), net 160        (444 )     (398 )     (862 )  
Income (loss) before provision for (benefit from) income tax (10,885 )     6,244        (28,404 )     (28,534 )  
Benefit from income tax (1,569 )     (1,987 )     (6,588 )     (9,852 )  
Net income (loss) $ (9,316 )     $ 8,231        $ (21,816 )     $ (18,682 )  
Net income (loss) per share:              
  Basic $ (0.28 )     $ 0.24        $ (0.65 )     $ (0.55 )  
  Diluted $ (0.28 )     $ 0.24        $ (0.65 )     $ (0.55 )  
Weighted-average shares:              
  Basic 33,828        33,655        33,577        33,666     
  Diluted 33,828        33,738        33,577        33,666     

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
       
  September 30,   December 31,
  2020   2019
ASSETS      
       
Current assets:      
Cash and investments $ 74,536      $ 63,297   
Accounts receivable 84,107      115,889   
Inventories 80,135      71,368   
Other current assets 27,740      19,195   
Total current assets 266,518      269,749   
       
Property and equipment 24,245      24,702   
Operating lease right-of-use assets 11,960      15,046   
Goodwill and intangible assets 241,746      261,166   
Deferred income tax 28,749      30,355   
Other assets 23,672      21,509   
Total assets $ 596,890      $ 622,527   
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
       
Current liabilities:      
Accounts payable $ 27,597      $ 27,253   
Current portion of long-term debt 40,000      35,000   
Accrued liabilities 39,034      54,451   
Deferred revenue 20,034      20,246   
Current portion of operating lease liabilities 5,343      5,871   
Total current liabilities 132,008      142,821   
       
Long-term debt 25,697      19,665   
Deferred income tax 14,786      14,251   
Operating lease liabilities 9,358      12,051   
Other long-term liabilities 19,574      17,616   
Total liabilities 201,423      206,404   
Total stockholders’ equity 395,467      416,123   
Total liabilities and stockholders’ equity $ 596,890      $ 622,527   

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)
           
  Three Months Ended   Nine Months Ended
  September 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Operating activities:              
Net income (loss) $ (9,316 )     $ 8,230        $ (21,816 )     $ (18,682 )  
Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
Provision for losses on accounts receivable 209        711        1,158        3,934     
Impairment of intangible assets 6,678        —        6,678        —     
Depreciation and amortization 7,312        7,519        20,989        22,946     
Loss on disposal of property and equipment 127        —        149        482     
Warranty reserve (151 )     911        1,129        2,588     
Share-based compensation 2,395        1,915        7,059        6,377     
Loss on commencement of sales-type leases 766        —        1,861        —     
Impairment charge for held for sale assets —        —        —        24,571     
Changes in operating assets and liabilities:              
Accounts receivable 3,120        (2,057 )     30,367        14,850     
Inventories 4,777        32        (6,417 )     (2,074 )  
Prepaid expenses and other assets (7,012 )     856        (11,078 )     (9,527 )  
Accounts payable (4,343 )     5,291        (19 )     2,076     
Accrued liabilities 2,499        3,693        (13,844 )     1,073     
Deferred revenue (1,243 )     (368 )     (941 )     2,371     
Deferred income tax 1,671        (2,867 )     1,826        (3,072 )  
Net cash provided by operating activities 7,489        23,866        17,101        47,913     
Investing activities:              
Purchase of property and equipment (690 )     (953 )     (7,617 )     (3,872 )  
Purchase of intangible assets —        —        —        (13 )  
Net cash used in investing activities (690 )     (953 )     (7,617 )     (3,885 )  
Financing activities:              
Proceeds from stock option exercises and ESPP —        519        658        2,193     
Repurchase of common stock     —        (10,495 )     —     
Taxes paid related to settlement of equity awards (10 )     (23 )     (1,936 )     (1,596 )  
Deferred debt issuance costs (1,175 )     —        (1,175 )     —     
Principal payments of financing lease liability (173 )     (139 )     (415 )     (404 )  
Proceeds from long-term borrowings —        —        60,000        —     
Payments on borrowings (20,000 )     (10,000 )     (48,000 )     (35,000 )  
Net cash used in financing activities (21,358 )     (9,643 )     (1,363 )     (34,807 )  
Exchange rate changes effect on cash and cash equivalents 4,217        (2,217 )     3,118        (2,532 )  
Net increase (decrease) in cash and cash equivalents (10,342 )     11,053        11,239        6,689     
Cash and cash equivalents, beginning of period 84,878        52,009        63,297        56,373     
Cash and cash equivalents, end of period $ 74,536        $ 63,062        $ 74,536        $ 63,062     

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, 2020   September 30, 2019   September 30, 2020   September 30, 2019
GAAP based results:              
Income (loss) before provision for income tax $ (10,885 )     $ 6,244      $ (28,404 )     $ (28,534 )  
               
Non-GAAP adjustments:              
Intangibles amortization (COGS) 8,117        1,736      11,440        5,237     
Recall accrual and remediation efforts (COGS) (366 )     —      (366 )     67     
Restructuring and other non-recurring costs (COGS) 2,457        —      4,233        989     
Direct costs of acquisitions (COGS) —        917      —        1,040     
Intangibles amortization (OPEX) 4,025        3,751      11,330        11,300     
Direct costs of acquisitions (OPEX) —        698      —        956     
Restructuring and other non-recurring costs (OPEX) 353        1,855      1,760        42,112     
Litigation (OPEX) —            —        702     
Non-GAAP income (loss) before provision for (benefit from) income tax 3,701        15,206      (7 )     33,869     
               
Income tax expense (benefit), as adjusted $ 505        $ 3,325      $ (95 )     $ 8,666     
               
Non-GAAP net income $ 3,196        $ 11,881      $ 88        $ 25,203     
 Non-GAAP earnings per share:              
  Basic $ 0.09        $ 0.35      $ 0.00        $ 0.75     
  Diluted $ 0.09        $ 0.35      $ 0.00        $ 0.75     
               
 Weighted-average shares used to compute              
   Basic non-GAAP earnings per share 33,828        33,655      33,577        33,666     
   Diluted non-GAAP earnings per share 33,841        33,738      33,637        33,772     
               

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, 2020   September 30, 2019   September 30, 2020   September 30, 2019
GAAP Gross Profit $ 47,526        $ 73,338        $ 150,861        $ 211,231     
Amortization of intangibles 8,117        1,736        11,440        5,237     
Direct cost of acquisitions —        917        —        1,040     
Recall accrual and remediation efforts (366 )     —        (366 )     67     
Restructuring and other non-recurring costs 2,457        —        4,233        989     
Non-GAAP Gross Profit $ 57,734        $ 75,991        $ 166,168        $ 218,564     
Non-GAAP Gross Margin 56.2    %   61.5    %   56.0    %   60.1    %
               
GAAP Operating Income (Loss) $ (9,938 )     $ 7,853        $ (25,206 )     $ (23,613 )  
Amortization of intangibles 12,142        5,487        22,770        16,537     
Recall accrual and remediation efforts (366 )     —        (366 )     67     
Litigation —              —        702     
Restructuring and other non-recurring costs 2,810        1,855        5,993        43,101     
Direct cost of acquisitions —        1,615        —        1,996     
Non-GAAP Operating Income $ 4,648        $ 16,815        $ 3,191        $ 38,790     
Non-GAAP Operating Margin 4.5    %   13.6    %   1.1    %   10.7    %
               
GAAP Income Tax Expense (Benefit) $ (1,569 )     $ (1,987 )     $ (6,588 )     $ (9,852 )  
Effect of accumulated change of pretax income 2,402        3,140        6,493        8,847     
Effect of change in annual expected tax rate (328 )     (1,134 )     —        (1,740 )  
Repatriation tax adjustment —        —        —        (177 )  
Restructuring and other expenses —        3,306        —        11,588     
Non-GAAP Income Tax Expense (Benefit) $ 505        $ 3,325        $ (95 )     $ 8,666     
               
               
  Three Months Ended   Year Ended        
  December 31, 2020   December 31, 2020        
GAAP EPS Guidance $0.07 - $0.19   ($0.57) - ($0.46)        
Amortization of intangibles 0.16     0.83          
Restructuring and other non-recurring costs     0.17          
Tax effect (0.04)     (0.23)          
Non-GAAP EPS Guidance $0.19 - $0.31   $0.20 - $0.31        

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GROSS MARGIN BY END MARKETS (unaudited)
(in thousands)
       
  Three Months Ended   Nine Months Ended
  September 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Neuro:              
Revenue $ 58,735      $ 72,192      $ 167,681      $ 206,179   
Cost of revenue 27,157      25,207      73,765      75,749   
Intangibles amortization 7,163      938      8,869      2,819   
  Gross profit $ 24,415      $ 46,047      $ 85,047      $ 127,611   
Gross profit margin 41.6  %   63.8  %   50.7  %   61.9  %
               
Newborn care:              
Revenue $ 25,711      $ 27,005      $ 76,744      $ 83,105   
Cost of revenue 12,610      11,359      37,105      35,238   
Intangibles amortization 66      64      193      193   
  Gross profit $ 13,035      $ 15,582      $ 39,446      $ 47,674   
Gross profit margin 50.7  %   57.7  %   51.4  %   57.4  %
               
Hearing & balance:              
Revenue $ 18,357      $ 24,266      $ 52,541      $ 74,475   
Cost of revenue 7,393      11,823      23,795      36,304   
Intangibles amortization 888      734      2,378      2,225   
  Gross profit $ 10,076      $ 11,709      $ 26,368      $ 35,946   
Gross profit margin 54.9  %   48.3  %   50.2  %   48.3  %
               
Consolidated:              
Revenue $ 102,803      $ 123,463      $ 296,966      $ 363,759   
Cost of revenue 47,160      48,389      134,665      147,291   
Intangibles amortization 8,117      1,736      11,440      5,237   
  Gross profit $ 47,526      $ 73,338      $ 150,861      $ 211,231   
Gross profit margin 46.2  %   59.4  %   50.8  %   58.1  %
               
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 named 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, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Neuro:              
GAAP Gross Profit $ 24,415        $ 46,047      $ 85,047        $ 127,611     
Amortization of intangibles 7,163        938      8,869        2,819     
Direct costs of acquisitions —        917      —        1,040     
Restructuring and other non-recurring costs 1,588        —      2,292        —     
Non-GAAP Gross Profit $ 33,166        $ 47,902      $ 96,208        $ 131,470     
Non-GAAP Gross Margin 56.5    %   66.4  %   57.4    %   63.8    %
               
Newborn care:              
GAAP Gross Profit $ 13,035        $ 15,582      $ 39,446        $ 47,674     
Amortization of intangibles 66        64      193        193     
Recall accrual and remediation efforts (366 )     —      (366 )     (571 )  
Restructuring and other non-recurring costs 322        —      322        814     
Non-GAAP Gross Profit $ 13,057        $ 15,646      $ 39,595        $ 48,110     
Non-GAAP Gross Margin 50.8    %   57.9  %   51.6    %   57.9    %
               
Hearing & balance:              
GAAP Gross Profit $ 10,076        $ 11,709      $ 26,368        $ 35,946     
Amortization of intangibles 888        734      2,378        2,225     
Recall accrual and remediation efforts —        —      —        638     
Restructuring and other non-recurring costs 547        —      1,619        175     
Non-GAAP Gross Profit $ 11,511        $ 12,443      $ 30,365        $ 38,984     
Non-GAAP Gross Margin 62.7    %   51.3  %   57.8    %   52.3    %
               
Consolidated:              
GAAP Gross Profit $ 47,526        $ 73,338      $ 150,861        $ 211,231     
Amortization of intangibles 8,117        1,736      11,440        5,237     
Direct costs of acquisitions —        917      —        1,040     
Recall accrual and remediation efforts (366 )     —      (366 )     67     
Restructuring and other non-recurring costs 2,457        —      4,233        989     
Non-GAAP Gross Profit $ 57,734        $ 75,991      $ 166,168        $ 218,564     
Non-GAAP Gross Margin 56.2    %   61.5  %   56.0    %   60.1    %

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
GEOGRAPHIC REVENUE (unaudited)
(in thousands)
               
  Three Months Ended   Nine Months Ended
  September 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019
Consolidated Revenue:              
United States $ 63,553      $ 73,553      $ 183,181      $ 213,055   
International 39,250      49,910      113,785      150,704   
Totals $ 102,803      $ 123,463      $ 296,966      $ 363,759   
               
United States 62  %   60  %   62  %   59  %
International 38  %   40  %   38  %   41  %
Totals 100  %   100  %   100  %   100  %

NATUS MEDICAL INCORPORATED AND SUBSIDIARIES
REVENUE AFTER EXITED PRODUCTS (unaudited)
(in millions)
                       
  Three Months Ended   Nine Months Ended   Year Ended
  September 30, 2020   September 30, 2019   September 30, 2020   September 30, 2019   December 31, 2019   December 31, 2018
Revenue $ 102.8      $ 123.5        $ 297.0      $ 363.8        $ 495.1        $ 530.9     
Newborn care* —      (0.6 )     —      (4.6 )     (4.5 )     (20.6 )  
Neuro* —      (0.2 )     —      (1.2 )     (1.2 )     (14.3 )  
Hearing & balance* —      —        —      (0.1 )     (0.1 )     (11.3 )  
Revenue after exited products $ 102.8      $ 122.7        $ 297.0      $ 357.9        $ 489.3        $ 484.7     
                       
*Newborn care, Neuro, and Hearing & balance include exited businesses (GND, Neurocom, Medix) and other end of sales products.


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Source: Natus Medical Incorporated