Masimo Reports Second Quarter 2007 Financi...(mpany's performance (in thousands except...)

Three Months Ended Six Months Ended

June 30, June 30,

2006 2007 2006 2007

Numerator:

GAAP net income $3,864 $2,798 $53,391 $5,110

Preferred stock dividend (1) - - 58,571 -

Accretion of preferred

stock (2) 1,956 1,956 4,073 3,913

Undistributed income

attributable to preferred

stockholder (3) 8,102 5,802 42,584 10,630

Non-GAAP net income 13,922 10,556 158,619 19,653

Denominator:

GAAP Weighted average number

of shares - Diluted 20,301,629 20,732,014 19,975,936 20,699,111

Weighted average

preferred shares (4) 34,612,503 34,612,503 34,612,503 34,612,503

Non-GAAP Weighted average

number of shares -

Diluted 54,914,132 55,344,517 54,588,439 55,311,614

Earnings per share - Diluted:

GAAP earnings per share $0.19 $0.13 $2.67 $0.25

Adjustments to if

converted method 0.06 0.06 0.24 0.11

Non-GAAP earnings per share $0.25 $0.19 $2.91 $0.36

Adjustments:

(1) Under the if converted method, no shares of preferred stock would

have been outstanding, therefore no dividends would have been

recorded specifically for preferred shareholders.

(2) Under the if converted method, no shares of preferred stock would

have been outstanding; therefore no allocation of undistributed

income to preferred stockholders would have been made.

(3) Under the if converted method, no shares
'/>"/>