Masimo Corporation (MASI) reported third quarter fiscal 2009 results. Earnings per share were 22 cents, beating the Zacks Consensus Estimate of 21 cents. However, earnings were flat year over year.  Total revenues in the reported quarter increased roughly 12% year over year to $87.4 million. Product revenues increased 14% year over year to $75.1 million. Royalty revenues increased roughly 2% year over year to $12.3 million. Growth in product revenue can be attributed to higher demand for Masimo SET and Masimo Rainbow SET monitors.  Masimo SET revenues increased approximately 10% year over year to $69.1 million as a result of an expansion in the company’s client base of hospitals. Masimo Rainbow SET revenues doubled year over year to $6.0 million. Growth can be primarily attributed to strong demand for Rainbow licensed parameters, especially SpCO and SpHb, and higher sale of Rainbow consumables.  Gross margin in ...

Haemonetics Corporation (HAE) reported strong results for the second quarter of fiscal 2010. Earnings per share were 69 cents, beating the Zacks Consensus Estimate of 65 cents and the year-ago earnings of 58 cents. Sales Total revenues in the reported quarter were $157 million, increasing 8% year over year. Excluding a favorable foreign currency translation (FX), revenues increased 6% year over year. On a geographic basis, U.S. sales represented roughly 48% of total sales and increased 12.5% year over year. International sales increased 3.5% year over year. Plasma disposables revenues increased 19% year over year to $59 million. Growth can be attributed to higher global demand for plasma collections, higher pricing and implementation of several long-term contracts with customers in the reported quarter. Platelet disposables revenues increased 3% year over year to $37 million due to the company’s strong distribution network in different key markets....

The global medical devices industry is fairly large and is valued at roughly $223 billion, with the U.S. accounting for approximately 41%. The industry is divided into different categories such as Cardiology, Oncology, Neuro, Orthopedic, Aesthetic Devices and Healthcare IT. In the medical devices space, we recommend that investors focus on companies providing life-sustaining products. These companies provide a strong recurring stream of revenues as patients are unable to forego these products. Furthermore, investors should allocate funds to companies with high-earnings-quality profiles. Large companies with a wide portfolio of products are also better poised for good returns. These companies are capable of withstanding the current economic recession. Another area which is interestingly poised for growth these days is Healthcare IT. The landscape has changed since the Obama Administration passed a health care stimulus package to encourage hospitals and physicians practices to modernize their health record keeping. ...

Haemonetics Corporation (HAE) has recently acquired the blood collection and processing business of Engineering and Research Associates Inc., commonly known as SEBRA. The transaction is worth $12.5 million in cash and is expected to be completed in a few months time.  The SEBRA acquisition expands the vista of Haemonetics’ product offerings and increases its top-line. Furthermore, it strengthens the company’s position in the whole blood collection market. Haemonetics is developing an automated whole blood collection system and expects to launch it in late fiscal 2011.  The SEBRA acquisition is expected to be neutral to Haemonetics’ earnings per share in fiscal 2010 and accretive thereafter.  SEBRA markets a suite of products such as radio-frequency (RF) tube sealers, whole blood collection devices known as shakers, and mobile collection & ancillary equipment. These products are used in blood collection and processing. The company’s blood collection and processing business ...

Masimo Corporation (MASI) announced that it has signed a new worldwide technology licensing agreement with GS Elektromedizinische Gerate G. Stemple GmbH that will enable the latter to integrate Masimo’s Rainbow SET Pulse CO-Oximetry into its corpuls patient monitoring modules. GS Elektromedizinische Gerate G. Stemple GmbH is a leading German company that develops and manufactures innovative medical equipment for Emergency Medical Services (EMS) and intensive care. The company is a market leader in providing innovative EMS solutions throughout Europe. The company’s corpuls patient monitoring modules and defibrillators are used in the first aid treatment of patients suffering from sudden cardiac arrest. Masimo’s Rainbow SET Pulse CO-Oximetry allows for continuous monitoring of hemoglobin, carbon monoxide, methemoglobin, PVI for fluid responsiveness, perfusion index and measure-through motion pulse oximetry. The integration of the Rainbow SET Pulse CO-Oximetry will enhance the efficiency of GS GmbH’s defibrillators and patient monitoring systems ...