Masimo Corporation, a global technology company, develops, manufactures and markets a wide array of patient monitoring technologies, as well as automation and connectivity solutions.
The company aims to accelerate its growth strategies by continuously innovating and prioritizing patient care, with a lens toward value-creation initiatives.
Healthcare
The company’s healthcare business develops, manufactures, and markets a variety of noninvasive patient monitoring technologies, hospital automati...
Masimo Corporation, a global technology company, develops, manufactures and markets a wide array of patient monitoring technologies, as well as automation and connectivity solutions.
The company aims to accelerate its growth strategies by continuously innovating and prioritizing patient care, with a lens toward value-creation initiatives.
Healthcare
The company’s healthcare business develops, manufactures, and markets a variety of noninvasive patient monitoring technologies, hospital automation and connectivity solutions, remote monitoring devices, and consumer health products. The company’s healthcare products and patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software, cables, and other services. It primarily sells its healthcare products to hospitals, emergency medical service (EMS) providers, home care providers, physician offices, veterinarians, long-term care facilities, and consumers through its direct sales force, distributors, and original equipment manufacturer (OEM) partners, such as GE Healthcare, Hillrom, Mindray, Philips, Physio-Control, and Zoll, among others.
The company’s core measurement technologies are its breakthrough Measure-through Motion and Low Perfusion pulse oximetry, known as Masimo Signal Extraction Technology (SET) pulse oximetry, and advanced rainbow Pulse CO-Oximetry parameters, such as noninvasive hemoglobin (SpHb), alongside many other modalities, including brain function monitoring, hemodynamic monitoring, regional oximetry, acoustic respiration rate monitoring, capnography and gas monitoring, nasal high-flow respiratory support therapy, patient position and activity tracking, neuromodulation technology, an opioid overdose prevention and alert solution, and telehealth solutions.
The company’s measurement technologies are available on many types of devices, from bedside hospital monitors, like the Root Patient Monitoring and Connectivity Hub, to various handheld and portable devices, and to the tetherless Radius PPG, Radius VSM, and Masimo SafetyNet remote patient surveillance solution. The Masimo Hospital Automation Platform facilitates data integration, connectivity, and interoperability through solutions like Patient SafetyNet, Iris, iSirona, Replica, and UniView, to facilitate more efficient clinical workflows and to help clinicians provide the best possible care, both in-person and remotely. Leveraging the company’s expertise in hospital-grade technologies, it has expanded its suite of products intended for use outside the hospital and products for home wellness to include Masimo Sleep, a sleep quality solution; the Masimo Radius Tº wireless, a wireless wearable continuous thermometer; Radius PCG, a wireless tetherless capnograph; and the Masimo W1 smartwatch. The company has partnered with Qualcomm Technologies and Google to develop a next-generation smartwatch reference platform for OEMs building Wear OS by Google smartwatches.
Non-healthcare
On September 25, 2024, the company announced that its Board remains committed to the previously announced review of alternatives for both its consumer audio and consumer healthcare businesses, and that its Board had engaged Centerview Partners and Morgan Stanley as financial advisors, and Sullivan & Cromwell as a legal advisor. As of year-end, the company’s non-healthcare consumer audio products business remained part of its continuing operations and as an important part of its broader ecosystem. Subsequently, the sales process has progressed in 2025.
Strategy
The company’s strategies are to continue to expand its market share across its product categories; focus its engineering efforts on innovation and maintaining its technology leadership position; allocate its research and development resources on projects that drive unmet patient needs; enhance its long-term growth; expand its connectivity platforms throughout the hospital, care facilities, and into the home market; utilize its existing customer base and OEM relationships to expand product offerings; define and leverage shared Masimo product platforms to scale resources and connected technologies; diversify products to ensure continued innovation; refocus the sales, engineering, and marketing infrastructure to drive future growth initiatives; grow its international presence through brand awareness and marketing; and supplement its internal growth and expand its product portfolio with strategic acquisitions, investments, licensing agreements, and partnerships.
Technologies
Conventional Pulse Oximetry
Pulse oximetry enables the noninvasive measurement of the oxygen saturation level of arterial blood (SpO2), which delivers oxygen to the body’s organs and tissues. Pulse oximetry also measures pulse rate (PR), which, when measured by electrocardiogram (ECG), is called heart rate. Pulse oximeters use sensors attached to an extremity, typically the fingertip or certain core body sites. These sensors contain two light-emitting diodes that transmit red and infrared light from one side of the extremity through the tissue to a photodetector on the other side of the extremity. The photodetector in the sensor measures the amount of red and infrared light absorbed by the tissue. A microprocessor then analyzes the changes in light absorption to provide a continuous, real-time measurement of the amount of oxygen in the patient’s arterial blood. Pulse oximeters typically give audio and visual alerts, or alarms, when the patient’s arterial blood oxygen saturation level or pulse rate falls outside of a user-designated range.
As one of the most common technologies used in and out of hospitals around the world, pulse oximetry has gained widespread clinical acceptance as a standard patient vital sign measurement because it can give clinicians a warning of possible hypoxemia or hyperoxemia. SpO2 monitoring of oxygen saturation is critical because hypoxemia can lead to a lack of oxygen in the body’s tissues, which can be toxic and result in organ damage or death. Pulse oximeters are used in a variety of critical care settings, including surgery, recovery rooms, intensive care units (ICUs), emergency departments, and general care floors, as well as alternative care settings, such as long-term care facilities, physician offices, and the home monitoring of patients with chronic conditions. Clinicians also use pulse oximeters to monitor oxygen saturation in premature babies to ensure that appropriate oxygen saturation levels are maintained.
Conventional pulse oximetry has limitations that can reduce the company’s effectiveness and the quality of patient care. In particular, when using conventional pulse oximetry, oxygen saturation measurements can be distorted by motion artifact, or patient movement, and low perfusion, or low arterial blood flow at the measurement site. Motion artifact can cause conventional pulse oximeters to inaccurately measure the arterial blood oxygen saturation level, due mainly to the effect of movement-induced pulsations of venous blood, which is at a lower oxygen saturation than arterial blood. Low perfusion can also cause conventional pulse oximeters to report inaccurate measurements or, in some cases, no measurement at all. In addition, conventional pulse oximeters cannot distinguish oxygenated hemoglobin from dyshemoglobin, including the most prevalent forms of dyshemoglobins, carboxyhemoglobin and methemoglobin. Furthermore, conventional pulse oximetry readings can also be impacted by bright light and electrical interference caused by the presence of electrical surgical equipment.
The Masimo Difference - Masimo SET Pulse Oximetry
Masimo SET was designed to overcome the primary limitations of conventional pulse oximetry by maintaining accuracy in the presence of motion artifact, low perfusion, and weak signal-to-noise situations. The company’s Masimo SET platform, which became available to U.S. hospitals in 1998, is the basis of its pulse oximetry products and represented the first significant technological advancement in pulse oximetry since its invention in the early 1970s and introduction in the early 1980s. Masimo SET utilizes five signal processing algorithms, four of which are proprietary, in parallel to deliver high sensitivity and specificity in the measurement of arterial blood oxygen saturation levels. Sensitivity is the ability to detect true alarms, and specificity is the ability to avoid false alarms. One of the company’s proprietary processing algorithms, Discrete Saturation Transform, separates the signal from noise in real-time through the use of adaptive filtering and an iterative sampling technique that tests each possible saturation value for validity. Masimo SET signal processing can therefore identify venous blood and other ‘noise’, isolate them, and extract the arterial signal.
The performance of Masimo SET pulse oximetry has been evaluated in more than 100 independent studies and thousands of clinical evaluations. Compared to conventional pulse oximeters, during patient motion and low perfusion, Masimo SET provides measurements when other pulse oximeters cannot, significantly reduces false alarms (improved specificity), and accurately detects true alarms (improved sensitivity). Despite pulse oximetry’s widespread use since the 1980s, it had not been shown to improve clinical outcomes before the introduction of Masimo SET, which has been shown to help clinicians reduce severe retinopathy of prematurity in neonates, improve CCHD screening in newborns, and, when used for continuous monitoring with Masimo Patient SafetyNet in post-surgical wards, reduce rapid response team activations, ICU transfers, and costs. The company’s pulse oximetry technology is contained on a circuit board that can be placed inside a standalone pulse oximetry monitor, placed inside OEM multiparameter monitors, or included as part of an external ‘Board-in-Cable’ solution that is plugged into a port on an OEM or other device. All of these solutions, as well as most of the company’s patient cables, use its proprietary single-patient-use or reusable sensors. It sells its products to end-users through its direct sales force and through certain distributors, as well as to its OEM partners for incorporation into their products. In 2013, with the launch of iSpO2, it began selling its pulse oximetry products in the consumer home wellness market.
To complement the company’s Masimo SET platform, it has developed a wide range of proprietary single-patient-use (disposable) sensors, including untethered Radius PPG, and multi-patient-use (reusable) sensors, cables, and other accessories designed specifically to work with Masimo SET software and hardware. The company’s single-patient-use sensors offer several advantages over reusable sensors, including improved performance, cleanliness, increased comfort, and greater reliability. Although the company’s technology platforms operate solely with its proprietary sensor lines, its sensors have the capability to work with certain competitive pulse oximetry monitors through the use of adapter cables.
Adhesive sensors are single-patient-use items, but the U.S. Food and Drug Administration (FDA) allows third parties to reprocess pulse oximetry sensors. In response to some hospitals’ requests to implement environmentally friendly products, the company offers sensor reprocessing, as well as sensor recycling programs.
Masimo rainbow SET Platform and Other Technology Solutions
Since introducing Masimo SET, the company has continued to innovate by introducing noninvasive measurements that go beyond arterial blood oxygen saturation and pulse rate. The company’s Masimo rainbow SET platform leverages its Masimo SET technology and incorporates licensed rainbow technology to enable real-time monitoring of additional noninvasive measurements. The company’s rainbow SET platform includes its rainbow SET Pulse CO-Oximetry products, which are the first devices cleared by the FDA to noninvasively and continuously monitor additional hemoglobin species that were previously only measurable using intermittent invasive procedures, using multiple wavelengths of light.
In addition to SpO2, PR, perfusion index (Pi), Pleth Variability Index (PVi), Rainbow Pleth Variability Index (RPVi), and respiration rate from the pleth (RRp), rainbow Pulse CO-Oximetry has the unique ability to measure and distinguish oxygenated hemoglobins from the dyshemoglobins that are incapable of transporting oxygen, carboxyhemoglobin (SpCO), and methemoglobin (SpMet). Besides the ability to measure SpCO and SpMet, the Masimo rainbow SET platform also allows for the noninvasive and continuous monitoring of total hemoglobin concentration (SpHb), as well as the monitoring of arterial oxygen saturation, in the presence of carboxyhemoglobin and methemoglobin, known as fractional arterial oxygen saturation (SpfO2). Additionally, the rainbow SET platform also allows for the calculation of Oxygen Content (SpOC). SpfO2 has received CE Marking, but is not currently available for sale in the U.S.
Products with the company’s MX circuit board contain its Masimo SET pulse oximetry technology, as well as circuitry to support rainbow measurements. At the time of purchase, or at any time in the future, the company’s customers and its OEMs’ customers have the option of purchasing additional rainbow software measurements, which allow such customers to incrementally expand their patient monitoring systems with a cost-effective solution. To date, over forty companies have released rainbow SET equipped products or announced rainbow integration plans.
Following the introduction of the company’s rainbow SET platform, it has continued to expand its technology offerings by introducing additional noninvasive measurements, such as Oxygen Reserve Index (ORi), technologies, platforms, and other solutions to create new market opportunities in both hospital and non-hospital care settings, as well as into home health and wellness settings, including the Masimo Hospital Automation Platform, along with other connectivity platforms and telehealth solutions.
The Masimo Hospital Automation Platform
Patient SafetyNet, the company’s patient surveillance, remote monitoring, and clinician notification solution, works in concert with its bedside and ambulatory monitoring devices to facilitate the supplemental monitoring of the oxygen saturation, pulse rate, perfusion index, hemoglobin, methemoglobin, and respiration rate of up to 200 patients simultaneously from a single server. Patient SafetyNet offers an intuitive and powerful user interface with trending, real-time waveform capability at a central station, as well as remote clinician notification via pager, voice-over-IP phone, or smartphones. Patient SafetyNet also features an Adaptive Connectivity Engine (ACE) that enables two-way, HL-7 based connectivity to clinical/hospital information systems. The ACE significantly reduces the time and complexity to integrate and validate custom HL-7 implementations, and demonstrates its commitment to innovation that automates patient care with open, scalable, and standards-based connectivity architecture.
Patient SafetyNet Series 5000, along with Hospital Automation Connectivity, Iris Gateway, Kite, iSirona, UniView, UniView: 60, and MyView through the Root patient monitoring and connectivity platform, offers a new level of interoperability designed to enhance clinician workflows and reduce the cost of care in a variety of hospital settings, including operating rooms and the general care floors. Patient SafetyNet Series 5000 with Iris ports enables Root to assimilate data from all devices connected to the patient, thereby acting as a comprehensive in-room patient monitor and connectivity hub. Alarms and alerts for all devices are seamlessly forwarded to the patient’s clinician, and device data can be transferred to the patient’s electronic medical record (EMR). In an operating room setting, the patient-centric user interface of the Patient SafetyNet Series 5000 displays near real-time data from all devices with Kite, providing a single unified dashboard of patient information.
Connectivity Platforms
Despite medical technology advances, the lack of device communication and integration creates risks to patient safety in hospitals around the world. Without device interoperability, critical patient information can go unnoticed, leaving clinicians unaware and patients at risk. Existing approaches for device interoperability require separate hardware, software, and/or network infrastructure, which can clutter the patient room, increase complexity, burden IT management, and increase costs. To address these challenges, the company introduced Iris connectivity in its Root patient monitoring and connectivity platform. iSirona and Iris connectivity enables multiple standalone third-party devices, such as intravenous pumps (IV), ventilators, hospital beds, and other patient monitors, to connect through Root, enabling display, notification, and documentation to the EMR through Masimo Patient SafetyNet.
The addition of Iris connectivity to Root and Patient SafetyNet provides multiple advantages to hospitals, such as allowing standalone device information to be remotely viewed at a Patient SafetyNet view station, transmitted through notification systems to clinicians regardless of location, or sent to electronic health record systems. In addition, bringing data from disparate devices together facilitates more integrated patient care and provides a flexible and cost-effective platform, while avoiding installation of separate costly systems and potentially reducing costs by leveraging existing network infrastructure.
Telehealth Solutions
In an effort to help clinicians and public health officials combat the COVID-19 pandemic, the company developed the Masimo SafetyNet solution. The Masimo SafetyNet solution provides continuous tetherless pulse oximetry and respiration rate monitoring coupled with a patient surveillance platform. The Masimo SafetyNet solution is available worldwide. In partnership with Samsung Electronics America, Inc., the Masimo SafetyNet Patient App is available on select Samsung smartphones, pre-installed and pre-configured.
Products and Markets
Noninvasive Monitoring Solutions:
Circuit Boards and Modules (e.g., MX-7, MX-5, MSX): The company’s Masimo circuit boards perform all signal processing and other pulse oximetry functions incorporating the Masimo SET, Masimo rainbow Pulse CO-Oximetry, or rainbow Acoustic Monitoring technology with specific functionality or measurements. The company’s MX-7 OEM circuit board is its latest and most advanced rainbow SET board, offering more efficient power utilization, and designed for integration into the more than 200 multi-parameter monitors available from its more than 90 OEM partners. The MX-7 has the ability to support all 13 of Masimo’s SET pulse oximetry and rainbow Pulse CO-Oximetry measurements. Incorporated and sold to OEM partners who incorporate its circuit boards into their patient monitoring systems.
Monitors and Devices (e.g., Radical-7, Rad-G with Temperature): The company offers a variety of continuous bedside monitoring and transport devices suitable for all patient populations. Fueled by clinically proven Masimo SET pulse oximetry and advanced rainbow Pulse CO-Oximetry, and additional noninvasive monitoring technologies, these highly versatile and configurable monitors are designed to accommodate patient scenarios across the continuum of care, from high-acuity ICUs and surgical suites to low-acuity general floors and recovery units, to long-term care facilities and beyond. Sold directly to end-users, through distributors, and, in some cases, to the company’s OEM partners who sell to end-users.
Patient Monitoring and Connectivity Platform (e.g., Radius VSM): Radius VSM is a wearable vital signs monitoring platform that includes three single-use sensors: a chest patch, a blood pressure cuff, and a finger sensor. As an on-demand, connected, continuous vital signs monitoring platform, Radius VSM is designed to streamline workflows, reduce nurse burn-out, and increase throughput. Radius VSM is intended for a range of care areas, including the waiting room, emergency room departments, critical care, and ambulatory surgery centers. Sold directly to end-users and through distributors.
Patient Monitoring and Connectivity Platform (e.g., Root with Radius VSM, Root with NIBP, and Root with Next Generation SedLine): The company’s patient monitoring and connectivity platforms are expandable, customizable patient monitoring and connectivity hubs that integrate an array of technologies, devices, and systems to provide multimodal monitoring and connectivity solutions in a single, clinician-centric platform. With plug-and-play expansion capabilities, clinicians can centralize patient monitoring by bringing together advanced rainbow SET Pulse CO-Oximetry, brain function monitoring, regional oximetry, and capnography measurements on an easy-to-interpret, customizable display, empowering them with more information for making patient assessments. Further, acting as a central connectivity hub, with automated electronic charting of Masimo and third-party device data to patient data management systems (PDMS), the hub can help with manual data documentation. Sold directly to end-users and through distributors.
Sensors (e.g., RD SedLine, TFA-1, RD SET, RD rainbow SET, O3 Pediatric, RD rainbow Lite SET, rainbow DCI-Mini, Centroid, and Radius PPG): The company’s innovative noninvasive monitoring devices depend on reliable, high-quality sensors, cannulas, and accessories to capture the accurate, high-fidelity patient data trusted by clinicians all over the world. The company offers a wide variety of these components, all manufactured to the highest standards, many in both single-patient-use and reusable configurations, to meet a broad spectrum of monitoring needs across all patient populations and care scenarios. Sold directly to end-users, through distributors, and to OEM partners who sell to end-users.
Capnography and Gas Monitoring (e.g., Rad-97 with NomoLine Capnography, Root with Capnography, IRMA CO2, IRMA AX+, and EMMA): The company offers a complete portfolio of capnography and gas monitoring solutions, both sidestream and mainstream, to meet the challenges of ventilation and gas monitoring across care areas, from pre-hospital and in-hospital to transport, long-term care, home care, and more. Solutions range from external ‘plug in and measure’ gas analyzers, to bedside and handheld devices, to flexible, integrated OEM offerings. Sold directly to end-users, through distributors, and to OEM partners who sell to end-users.
Proprietary Measurements (e.g., SpHb, SpCO, SpMet, PVi, RRa, RRp, ORi, 3D Alarms, and Adaptive Threshold Alarm): Licensed directly to end-users and through OEM partners who sell to new and existing end-users.
Hospital Automation and Connectivity Suite (e.g., Iris Connectivity, Iris Gateway, iSirona, Patient SafetyNet, UniView, UniView: 60, Replica, Iris Analytics, and Halo ION): As increasing amounts of patient information become available to clinicians, new opportunities to enhance the care experience for both the clinician and the patient abound. The company’s automation solutions are revolutionizing not only the kind of patient data that can be collected and moved through the continuum of care, but also how that information can empower clinicians to deliver superior, evidence-based care.
The company’s hospital automation integrates patient monitoring, driven by clinically proven SET pulse oximetry and rainbow Pulse CO-Oximetry, with sophisticated connectivity and interoperability solutions to seamlessly provide access to the most accurate, relevant patient data in the most helpful ways at the most important moments, improving workflow efficiencies and helping clinicians deliver the best care possible. Sold directly to end-users.
Minimally Invasive and Noninvasive Advanced Hemodynamic Monitoring Solutions (e.g., Masimo LiDCO Hemodynamic Monitoring system, Double Channel Pressure Transducer, and Stimpod NMS450X Peripheral Nerve Stimulator): The Masimo LidCO Hemodynamic monitoring system provides beat-to-beat advanced monitoring to support informed decision-making in high-acuity care areas like an operating room. This platform uses an already existing arterial line and blood pressure transducer to monitor hemodynamic parameters through the use of the PulseCO algorithm, which converts beat-to-beat blood pressure into its constituent parts, flow and resistance, which is scalable to each patient’s age, height, and weight. Sold directly to end-users and through distributors.
Home Wellness and Remote Patient Monitoring Solutions to Extend Care from the Hospital to the Home (e.g., Masimo SafetyNet, Radius T, MightySat with PVi and RRp, iSpO2, Bridge, and Masimo W1 with Sleep): Designed to help providers remotely manage patient care, Masimo SafetyNet is a secure, scalable, cloud-based patient management platform featuring clinical-grade spot-checking and continuous measurements, digital care pathways, and remote patient surveillance. Sold directly to end-users and through distributors. Sold directly to consumers through the Masimo Personal Health website and through consumer retailers. Sold directly to consumers through the Masimo Consumer and individual brand websites, and through consumer retailers.
Willow Laboratories, Inc.
Willow Laboratories, Inc. (Willow) is an independent entity. The company is a party to a cross-licensing agreement with Willow (the Cross-Licensing Agreement), which governs each party’s rights to certain intellectual property held by the two companies.
Government Regulation
Many of the company’s healthcare products are regulated by numerous government agencies, the most significant of which are the U.S. FDA, the national authorities in the European Union (EU) and the United Kingdom (UK), and the Ministry of Health, Labour and Welfare of Japan.
In the U.S., unless an exemption applies, each medical device that the company wishes to market in the U.S. must, generally, first receive from the FDA either 510(k) clearance, premarket approval (PMA), or a de novo classification grant. The majority of its current regulated medical products fit into Class II device types, requiring 510(k) clearance, while some have been deemed Class I devices or exempt from a 510(k) clearance.
Most of the company’s OEM partners are required to obtain clearance or approval of their devices that incorporate Masimo’s healthcare technologies, like Masimo SET technology, Masimo rainbow SET technology, Masimo Board-in-Cable technology, or that are used with Masimo’s sensors. The company generally allows its OEM partners to cross-reference the 510(k) submission files from its cleared Masimo SET circuit boards, sensors, cables, and notification systems.
The United States Bureau of Customs and Border Protection (CBP) also imposes its own regulatory requirements on the import of the company’s products, including inspection and possible sanctions for noncompliance.
The company’s international operations are subject to the U.S. Foreign Corrupt Practices Act of 1977 (FCPA), the U.K. Bribery Act 2010, and other global anti-corruption laws.
The company is subject to stringent international, federal, state, and local laws relating to the protection of the environment, including those governing the use, handling, and disposal of hazardous materials and wastes. Products that the company sells in Europe are subject to regulation in EU markets under the Restriction of Hazardous Substances Directive (RoHS).
Other regulations which affect the product content, manufacturing, packaging, and disposal of the company’s products include, for example, the Registration, Evaluation, Authorization and Restriction of Chemical substances, the Waste Electrical and Electronic Equipment Directive, and the Directive on Packaging and Packaging Waste enacted in the EU, which require the registration of and regulate the use of certain hazardous substances and chemicals in certain products the company manufactures, and require the collection, reuse, and recycling of waste product and packaging from certain products the company manufactures.
Competitions
The company’s primary competitor in the healthcare market is Medtronic plc. In the non-healthcare market, the company competes with Sonos, Bang & Olufsen, Sony, Samsung (and its subsidiaries), Apple, Alphabet, Amazon, and others.
Market
The company currently sells its healthcare products directly to hospitals and various distributors in the U.S. and around the world, including Europe, the Middle East, and Asia Pacific, through its direct sales force. The company sells its home wellness products through e-commerce internet sites, such as www.masimopersonalhealth.com, www.amazon.com, and www.shopify.com.
The company’s sales and marketing strategy for pulse oximetry has been, and will continue to be, focused on building end-user awareness of the clinical and cost-saving benefits of its technologies. The company’s healthcare sales representatives’ primary focus is to facilitate the conversion of competitor accounts to its Masimo SET pulse oximetry and rainbow SET Pulse CO-Oximetry products, to expand the use of Masimo SET and Patient SafetyNet on the general hospital floor, and to create and expand the use of rainbow measurements in both critical care and non-critical care areas. In addition to sales representatives, the company employs clinical specialists to work with its sales representatives to educate end-users on the benefits of Masimo SET and assist with the introduction and implementation of its technology and products to their sites.
Additionally, the company sells certain of its healthcare products through its OEM partners who incorporate its technologies into their monitors and sometimes resell its sensors to their installed base. The company’s OEM agreements allow it to expand the availability of its technologies through the sales and distribution channels of each OEM partner. To facilitate clinician awareness of Masimo technologies, its OEM partners have generally agreed to place the applicable Masimo trademark prominently on their instruments.
In order to facilitate the company’s U.S. direct sales to hospitals, it has signed contracts with five national GPOs in the U.S., based on the total volume of negotiated purchases. In return for the GPOs putting its healthcare products on contract, the company has agreed to pay the GPOs a percentage of its healthcare revenue from their member hospitals.
Seasonality
The company’s quarterly revenues for the healthcare and non-healthcare segments are influenced by many factors, including new product releases, acquisitions, regulatory approvals, holiday schedules, hospital census, the timing of influenza season, consumer discretionary spending, inflation, competitive pricing, adaptation of new technologies, and consumer loyalty, among other factors.
The company’s healthcare revenues in the third quarter of its fiscal years (year ended December 28, 2024) have generally historically represented a lower percentage of segment revenues due to the seasonality of the U.S., European, and Japanese markets, where summer vacation schedules normally result in fewer medical procedures utilizing its healthcare products.
The company’s non-healthcare revenues in the fourth quarter of a fiscal year generally produce a higher percentage of its segment revenues than the other quarters of its fiscal year due to the holiday shopping season and its corresponding promotional activities.
Research and Development
The company’s research and development expenses were $222.8 million for the year ended December 28, 2024.
History
Masimo Corporation was founded in 1989. The company was incorporated in California in 1989 and reincorporated in Delaware in 1996.
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