Masimo Reports First Quarter 2008 Financi...( preferred stockholders ...)

preferred stockholders (4,828) -

Net income attributable to common

stockholders $2,313 $8,791

Net income per common share:

Basic $0.14 $0.16

Diluted $0.11 $0.15

The following table presents details of the stock-based compensation

expense that is included in each functional line item in the condensed

consolidated statements of income above (in thousands):

Three Months Ended

March 31, 2007 March 29, 2008

Cost of goods sold $34 $29

Research and development 111 412

Selling, general and administrative 446 1,137

MASIMO CORPORATION

Reconciliation of GAAP to Non-GAAP Diluted Earnings per Share

(unaudited)

The following tables provide a comparison of our earnings per share

calculated under Emerging Issues Task Force Issue No. 03-6, "Participating

Securities and the Two-Class Method under FASB Statement No. 128", or EITF

03-6, and Statement of Financial Accounting Standards No. 128 "Earnings

per Share", or SFAS No. 128, in accordance with GAAP and the non-GAAP

if-converted method based upon SFAS No. 128. The non-GAAP if-converted

method assumes conversion of all shares of our preferred stock into common

stock as of December 31, 2006.

Upon closing of the Company's initial public offering on August 13, 2007,

all of the outstanding convertible preferred shares were converted into

common shares. Therefore, subsequent to this stock conversion the Company

uses the
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