Masimo disclosed that a cyber attack on its systems has hit its manufacturing facilities, slowing production at the remote patient monitoring company.
In a filing with the SEC alongside its quarterly earnings report, Masimo said that—while the investigation remains ongoing, and its full scope and impacts are unknown—the company believes the intrusion has not affected its cloud-based hospital data systems, and it said there’s currently no evidence of employee or patient data being compromised.
In the filing, the company said it identified unauthorized activity within its on-premise network April 27, and then worked to isolate those systems.
“As a result of the incident, certain of the Company’s manufacturing facilities have been operating at less than normal levels, and the Company’s ability to process, fulfill, and ship customer orders timely has been temporarily impacted. The Company has been working diligently to bring the affected portions of its network back online, restore normal business operations and mitigate the impact of the incident.”
Masimo also said it has been coordinating with law enforcement—and CEO Katie Szyman said the company has predicted the cyber attack will not dent the company's financial guidance for the year.
What has altered those predictions, however, has been tariffs.
The company lowered its guidance for operating profits, dragging its range to $383 million to $403 million, down from $420 million to $436 million. Margins are also set to shrink to between 25.5% and 26.4%, versus the previous pitch of 28.0% to 28.5%.
Masimo said those forecasts do not account for mitigation measures the company may take this year. Calling tariffs a curveball, Szyman said on the call with investors that the company would adjust its supply chain strategy “once there’s sufficient clarity to commit to a path.” The company still predicts about $1.5 billion in revenue for the year, for a gain of between 8% to 11%.
For the first quarter, Masimo posted $372 million in revenue, for a 10% gain.
Masimo also outlined plans to sell Harman International its Sound United business—a division that includes professional and home audio brands such as Bowers & Wilkins, Denon and Marantz, and has been a major sticking point in the proxy battle with Politan Capital Management spanning recent years.
Harman, a wholly-owned subsidiary of Samsung Electronics, signed up to pay $350 million in cash.
“Finding the right home for this business has been a stated priority of the new Board from day one, and this transaction represents an important milestone as we continue to position the Company to achieve our goals of accelerating revenue growth while delivering disciplined margins,” said Politan co-founder Quentin Koffey, now vice chairman of Masimo’s board of directors.
“Masimo has tremendous opportunities ahead and we are confident we have the right healthcare-focused strategy, experienced leadership team and culture of innovation in place to build on our significant positive momentum,” Koffey said.