Natus Medical Incorporated announced unaudited consolidated earnings results for the first quarter ended March 31, 2016. For the first quarter, the company reported revenue of $87.3 million, a decrease of 2.3% compared to $89.4 million reported for the first quarter 2015. GAAP net income was $8.5 million, or $0.26 per diluted share, compared with GAAP net income of $8.6 million, or $0.26 per diluted share in the first quarter 2015. The Company reported non-GAAP net income of $11.1 million for the first quarter ended March 31, 2016, an increase of 7.8% over the prior year's non-GAAP income of $10.3 million. Non-GAAP earnings per diluted share increased 9.7% to $0.34 for the first quarter 2016, compared to $0.31 in the first quarter 2015. Income from operations was $11,211,000 against $13,346,000 a year ago. Income before tax was $11,667,000 against $12,517,000 a year ago. Net cash provided by operating activities was $18,382,000 against $13,812,000 a year ago. Purchases of property and equipment were $1,921,000 against $1,399,000 a year ago. Non-GAAP income before provision for income tax was $14,705,000 against $14,310,000 a year ago. Non-GAAP operating profit was $14,249,000 against $15,139,000 a year ago.

For the second quarter of 2016, the company is providing revenue guidance of $92.0 million to $93.0 million and non-GAAP earnings per share guidance of $0.35 to $0.36.

Full year 2016 revenue guidance is being reduced to $378 million to $382 million compared to previous guidance of $445 million to $450 million. The updated revenue guidance excludes $60 million of previously guided annual revenue from the Venezuela contract. Full year 2016 earnings guidance is being updated to non-GAAP earnings per share of $1.61 to $1.65. The company remains committed to achieving the company's full year 2016 non-GAAP operating margin goal of 20%.

For the first quarter, the company's impairment of property and equipment was $15,000.

The company expects overall 2016 tax rate to be between 26% and 27%.