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Masimo also reported that it shipped a record 30,800 Masimo SET and MasimoRainbow SET pulse oximeter units, excluding handheld pulse oximeters, duringthe third quarter of 2007, up 32% from 23,300 in the comparable prior yearperiod, resulting in an estimated worldwide installed base of 448,000 MasimoSET pulse oximeters.
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For the quarter ended September 29, 2007, due entirely to the impact of a$2.8 million, net of tax, decline in royalty payments as contemplated in our2006 patent litigation settlement, GAAP net income declined from $12.3 millionin the quarter ended September 30, 2006 to $10.6 million in the currentquarter ended September 29, 2007. Masimo reported third quarter 2007 netincome attributable to common stockholders of $6.9 million or $0.16 per commonshare as compared to $3.3 million or $0.16 per common share for the thirdquarter 2006. For the quarter ended September 29, 2007, on a non-GAAP basisand adjusting only for the assumed conversion of preferred stock into commonstock in connection with the Masimo's recently completed initial publicoffering, net income was $0.18 per common share, as compared to $0.22 percommon share in the prior year period.
Joe E. Kiani, Chairman and Chief Executive Officer of Masimo, said, "Weare happy to report third quarter results that exceeded expectations. Ourstrong performance is a clear reflection of the fact that our innovativeproducts and technologies are finding widespread adoption in virtually everysegment of the clinical community. We will continue to build on these resultsby focusing our efforts on helping clinicians do what's best for patient care,providing them noninvasive patient monitoring technologies like our MasimoRainbow SET platform that seek to 'solve the unsolvable' challenges inhealthcare."
For the nine month period ended September 29, 2007, Masimo's productrevenues were $144.5 million, up 29% from $112.3 million in the same prioryear period. Including royalty revenues, Masimo's total revenues were$187.0 million for the nine month period ended September 29, 2007, up from$162.7 million in the same prior year period. In the nine month period endedSeptember 29, 2007, Masimo shipped a record 87,000 Masimo SET and MasimoRainbow SET pulse oximeter units, excluding handheld pulse oximeters, comparedto 69,900 in the same prior year period.
Net income for the nine month period ended September 29, 2007 was$30.2 million compared to $170.9 million in the comparable prior year period,which included $262.6 million in net patent litigation settlement proceeds andvarious one-time stock based compensation charges related to dividend andbonus payments authorized in the first quarter of 2006. For the nine monthperiod ended September 29, 2007, Masimo's reported net income attributable tocommon stockholders was $11.8 million, or $0.40 per common share, as comparedto $2.79 per common share for the nine month period ended September 30, 2006.For the nine month period ended September 29, 2007, on a non-GAAP basis andadjusting only for the assumed conversion of preferred stock into common stockin connection with Masimo's recently completed initial public offering,Masimo's net income was $0.54 per common share, as compared to $3.12 per sharein the same prior year period.
Cash, cash equivalents a
