Masimo Reports Fourth Quarter 2007 and Full Year 2007 Financi...(ock (1956) - (79...)

Undistributed

income

attributable to

preferred

stockholders - - (34,275) (14,339)

Net income (loss)

attributable to

common

stockholders $(10,261) $12,055 $61,781 $23,079

Net income (loss)

per common share:

Basic $(0.62) $0.22 $3.79 $0.71

Diluted $(0.62) $0.20 $3.04 $0.60

The following table presents details of the stock-based compensation

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

consolidated statement of operations above (in thousands):

Three Months Ended Year Ended

December 31, December 29, December 31, December 29,

2006 2007 2006 2007

Cost of goods sold $364 $130 $2,379 $264

Research and development 887 204 9,378 670

Selling, general and

administrative 1,612 966 23,313 2,958

MASIMO CORPORATION

Reconciliation of GAAP to Non-GAAP Diluted Earnings per Share

(unaudited)

We prepare our consolidated financial statements in conformity with

accounting principles generally accepted in the United States of America,

or U.S. GAAP. In an effort to provide investors with additional

information regarding our results of operations and to provide a

meaningful period-over-period comparison of our financial performance, we

use non-GAAP financial measures as defined by the Securities and Exchange

Commission. The differences between the U.S. GAAP and non-GAAP financial

measures are reconciled be
'/>"/>