UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13D
                                Amendment No. 4*

                    Under the Securities Exchange Act of 1934

                               Natus Medical, Inc.
                                (Name of Issuer)

                                  Common Stock
                         (Title of Class of Securities)

                                    639050103
                                 (CUSIP Number)

                                 George Travers
                                   Perry Corp.
                              599 Lexington Avenue
                               New York, NY 10022
                                 (212) 583-4000
  (Name, Address, and Telephone Number of Person Authorized to Receive Notices
                               and Communications)

                                  March 3, 2004
             (Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 3d-1(f), or 13d-1(g), check the following box
|_|.

Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7 for other parties
to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).



CUSIP No. 639050103                     13D                    Page 2 of 8 Pages


--------------------------------------------------------------------------------
1    NAME OF REPORTING PERSON
     S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON

     Perry Corp.
--------------------------------------------------------------------------------
2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                 (a)  |_|
                                                                 (b)  |_|
--------------------------------------------------------------------------------
3    SEC USE ONLY


--------------------------------------------------------------------------------
4    SOURCE OF FUNDS*

     00
--------------------------------------------------------------------------------
5    CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
     PURSUANT TO ITEMS 2(d) OR 2(e)                                   |_|


--------------------------------------------------------------------------------
6    CITIZENSHIP OR PLACE OF ORGANIZATION

     New York
--------------------------------------------------------------------------------
               7    SOLE VOTING POWER

                    3,988,040
               -----------------------------------------------------------------
  NUMBER OF    8    SHARED VOTING POWER
   SHARES
BENEFICIALLY        NONE
  OWNED BY     -----------------------------------------------------------------
    EACH       9    SOLE DISPOSITIVE POWER
  REPORTING
   PERSON           3,988,040
    WITH       -----------------------------------------------------------------
               10   SHARED DISPOSITIVE POWER

                    NONE
--------------------------------------------------------------------------------
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     3,988,040
--------------------------------------------------------------------------------
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*  |_|


--------------------------------------------------------------------------------
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

     24.18%
--------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON*

     IA, CO
--------------------------------------------------------------------------------
                     *SEE INSTRUCTIONS BEFORE FILLING OUT!



CUSIP No. 639050103                     13D                    Page 3 of 8 Pages


--------------------------------------------------------------------------------
1    NAME OF REPORTING PERSON
     S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON

     Richard C. Perry
--------------------------------------------------------------------------------
2    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                                 (a)  |_|
                                                                 (b)  |_|
--------------------------------------------------------------------------------
3    SEC USE ONLY


--------------------------------------------------------------------------------
4    SOURCE OF FUNDS*

     00
--------------------------------------------------------------------------------
5    CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
     PURSUANT TO ITEMS 2(d) OR 2(e)                                   |_|


--------------------------------------------------------------------------------
6    CITIZENSHIP OR PLACE OF ORGANIZATION

     New York
--------------------------------------------------------------------------------
               7    SOLE VOTING POWER

                    3,988,040 (all shares beneficially owned by Perry Corp.)
               -----------------------------------------------------------------
  NUMBER OF    8    SHARED VOTING POWER
   SHARES
BENEFICIALLY        NONE
  OWNED BY     -----------------------------------------------------------------
    EACH       9    SOLE DISPOSITIVE POWER
  REPORTING
   PERSON           3,988,040 (all shares beneficially owned by Perry Corp.)
    WITH       -----------------------------------------------------------------
               10   SHARED DISPOSITIVE POWER

                    NONE
--------------------------------------------------------------------------------
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     3,988,040
--------------------------------------------------------------------------------
12   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*  |_|


--------------------------------------------------------------------------------
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

     24.18%
--------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON*

     IN, HC
--------------------------------------------------------------------------------
                     *SEE INSTRUCTIONS BEFORE FILLING OUT!



ITEM 1. SECURITY AND ISSUER:

            This statement on Schedule 13D relates to shares of common stock,
$0.001 par value per share of Natus Medical, Inc., a Delaware corporation (the
"Issuer") acquired by private investment funds managed by Perry Corp. (the
"Shares"). The principal executive offices of the Issuer are located at 1501
Industrial Road, San Carlos, CA 94070.

ITEM 2. IDENTITY AND BACKGROUND:

            This statement on Schedule 13D is filed on behalf of Perry Corp., a
New York corporation, and Richard C. Perry, an American citizen. Perry Corp. is
a registered investment adviser that provides asset management services to
private investment funds. Richard C. Perry is the President, sole director, and
sole stockholder of Perry Corp. The address of Perry Corp. and Richard C. Perry
is 599 Lexington Avenue, New York, NY 10022. A joint filing agreement of Perry
Corp. and Richard C. Perry is attached hereto as Exhibit A.

            The names, citizenship, business addresses and principal occupations
of each of the directors and executive officers of Perry Corp. (other than
Richard C. Perry) are set forth in Schedule B, which is incorporated herein by
reference.

            During the last five years, neither Perry Corp., Richard C. Perry,
nor any of the persons listed in Schedule B has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or has been a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION:

            The transactions reported hereunder with respect to Shares purchased
or sold by the reporting persons were consummated by two or more private
investment funds for which Perry Corp. acts as a general partner and/or
investment adviser. The source of funds for the purchase transactions was the
working capital of such investment funds. The total purchase price for the
Shares purchased was $550.00 The total sales price for the Shares sold was
$4,725,885.60.

ITEM 4. PURPOSE OF TRANSACTION:

            The Shares were acquired for investment and proprietary trading
purposes in the ordinary course of business by two or more private investment
funds managed by Perry Corp. and were not acquired with the purpose or effect of
changing or influencing control of the Issuer.

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER:

            (a)-(b) Perry Corp. is the indirect beneficial owner of 3,988,040
Shares, which constitutes approximately 24.18% of the Issuer's outstanding
shares, based upon 16,494,000 shares outstanding as of March 3, 2004. Perry
Corp. has sole power to vote and sole power to dispose of the 3,988,040 Shares.
By virtue of his position as President and sole stockholder of Perry Corp.,
Richard C. Perry may be considered to indirectly beneficially own such Shares.
Richard C. Perry disclaims any beneficial ownership interest of the Shares held
by any funds for which Perry Corp. acts as the general partner and/or investment
adviser, except for that portion of such shares that relates to his economic
interest in such shares.

            (c) See Exhibit B attached hereto. All of the transactions in the
Shares set forth on Exhibit B were consummated by private investment funds for
which Perry Corp. acts as a general partner and/or investment adviser within 60
days of the event which triggered the filing of this Schedule 13D. All
transactions in the Shares were open market transactions.

            (d) The limited partners of (or investors in) each of two or more
private investment funds for which Perry Corp. acts as general partner and/or
investment adviser have the right to participate in the receipt of dividends
from, or proceeds from the sale of, the Shares held for the accounts of their
respective funds in accordance with their respective limited partnership
interests (or investment percentages) in their respective funds.

            (e) Not Applicable.



ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
        SECURITIES OF THE ISSUER:

            Except for the arrangements described in Item 5(d) above, to the
best knowledge of Perry Corp., there are no contracts, arrangements,
understandings or relationships (legal or otherwise) between the persons
enumerated in Item 2 and any other person with respect to any securities of the
Issuer, including but not limited to, transfer or voting of any of the Shares,
finder's fees, joint ventures, loan or option arrangements, puts or calls,
guarantees of profits, division of profits or loss, or the giving or withholding
of proxies.

ITEM 7. MATERIALS TO BE FILED AS EXHIBITS

      Exhibit A --      Agreement between Perry Corp. and Richard C. Perry to
                        file this statement jointly on behalf of each of them.

      Exhibit B --      List of transactions in Issuer's common stock taking
                        place during the 60 day period preceding this filing.

      Schedule A --     Executive Officers and Directors of Perry Corp. (other
                        than Richard C. Perry).

                                    SIGNATURE

      After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

                                               PERRY CORP.


Dated: March 5, 2004
       New York, New York                    By: /s/ Richard C. Perry
                                                 -------------------------
                                                 Name:  Richard C. Perry
                                                 Title: President


Dated: March 5, 2004
       New York, New York                        /s/ Richard C. Perry
                                                 -------------------------
                                                 Richard C. Perry



                                                                       EXHIBIT A

                                    AGREEMENT

                          JOINT FILING OF SCHEDULE 13D

            The undersigned hereby agree to jointly prepare and file with
regulatory authorities a Schedule 13D and any future amendments thereto
reporting each of the undersigned's ownership of securities of Natus Medical,
Inc., and hereby affirm that such Schedule 13D is being filed on behalf of each
of the undersigned pursuant to and in accordance with the provisions of Rule
13d-1(k) under the Securities Exchange Act of 1934. The undersigned acknowledge
that each shall be responsible for the timely filing of such amendments, and for
the completeness and accuracy of the information concerning him or it contained
therein, but shall not be responsible for the completeness and accuracy of the
information concerning the other, except to the extent that he or it knows or
has reason to believe that such information is inaccurate.

                                             PERRY CORP.


Dated: March 5, 2004
       New York, New York                    By: /s/ Richard C. Perry
                                                 -------------------------
                                                 Name:  Richard C. Perry
                                                 Title: President


Dated: March 5, 2004
       New York, New York                        /s/ Richard C. Perry
                                                 -------------------------
                                                 Richard C. Perry



                                                                       EXHIBIT B

                              List of Transactions

   Trade Date    Transaction        Quantity         Price
------------------------------------------------------------

    3/3/2004        SELL           500,000          $  6.50
    3/3/2004        SELL           234,640             6.29
    3/3/2004        BUY            100                 5.50



                                                                      SCHEDULE A

                 Executive Officers of Perry Corp. (other than Richard C. Perry)

Name & Principal Occupation               Citizenship       Business Address
---------------------------               -----------       ---------------
Randall Borkenstein,                      USA               c/o Perry Corp.
Chief Financial Officer of Perry Corp.                      599 Lexington Avenue
                                                            36th Floor
                                                            New York, NY 10022

William J. Vernon,                        USA               c/o Perry Corp.
Secretary of Perry Corp.                                    599 Lexington Avenue
                                                            36th Floor
                                                            New York, NY 10022