Natus Medical logs 1st $20m payment in $121m contract with Venezuela

Natus Medical (NSDQ:BABY) said today it received an initial $20 million payment as part of a $120.7 million supply agreement between the Ministry of Health of Venezuela and its Buenos Aires, Argentina-based subsidiary Medix I.C.S.A.

Through the deal, Natus Medical will provide medical equipment, supplies and services over 3 years, including certain 3rd party products.

The Pleasanton, Calif.-based company said that Venezuala’s Ministry of Health still has the right o cancel the supply agreement and amendment at any time, and that the payment will not guarantee future payments made, according to an SEC filing.

Natus medical said its Medix subsidiary “continues to partner with a local distributor to provide distribution and technical service support to hospitals in Venezuela.”

In July, Natus Medical saw shares fall over 2% after releasing 2nd quarter earnings that missed the mark on earnings per share and revenue.

The company reported profits of $10.5 million, or 32¢ per share, on sales of $96 million for the 3 months ended June 30, 2016.

Adjusted to exclude 1-time items, earnings per share were 39¢, a few cents short of the 42¢ adjusted EPS that analysts on Wall Street were looking for. Revenue was also off by over $1.5 million, with the Street expecting Natus to bring in $97.8 million.

Along with the 2nd quarter numbers, Natus released updated guidance for the next quarter and full year. In Q3, Natus expects to bring in revenue between $97 and $98 million, with GAAP earnings per share between 35¢ and 37¢ and non-GAAP between 41¢ and 43¢.

For the full year, Natus said it expects revenue between $388 and $390 million, up from previous guidance of between $378 and $382 million. The company adjusted its non-GAAP earnings per share guidance from between $1.61 and $1.65 to between $1.67 and $1.70.

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