Angeion Corporation (NASDAQ: ANGN) today reported results for its fiscal third quarter ended July 31, 2010.
For the 2010 third quarter, Angeion posted a net profit of $126,000, or $0.03 per diluted share, on revenues of $7.1 million. Compared to the prior-year third quarter, which generated a net loss of ($173,000), or ($0.04) per diluted share, current-year earnings increased $299,000, or $0.07 per diluted share, due to $727,000 in improved gross margin partially offset by a $423,000 increase in operating expenses, which included $245,000 of one-time charges related to the previously disclosed financial executive transition.
Gross margins rose as a result of:
- Increased manufacturing efficiencies from increased sales volume and right sizing activities earlier in the year;
- Higher margins on a successful MedGraphics Certified TM sales campaign promoted in the quarter; and
- Reduced provisions for obsolete inventories required due to improved materials management.
Operating expenses rose $423,000, with a $279,000 increase in selling and marketing, and a $163,000 increase in general and administrative. This was partially offset by a $77,000 reduction in amortization expense. The higher selling and marketing expense included key staffing additions early in the year and promotional activities surrounding new product launch initiatives, as well as sales commissions on $888,000 in incremental year-over-year third-quarter revenue.
Revenue from international customers in the 2010 third fiscal quarter was 23.4% of total sales, up from 20.8% for the third quarter of fiscal 2009. Driving international revenue growth were strong performance gains in Europe and Latin America.
“From a top- and bottom-line perspective, we are pleased with the Company’s performance in the fiscal third quarter. We delivered strong increases in revenue, gross margin and profitability over fiscal 2009,” said Rodney A. Young, Angeion’s President and Chief Executive Officer. “We believe the attractiveness of our marketing and sales programs and pent-up demand for our MedGraphics systems, as well as a slight loosening of hospital capital budgets, contributed to our third quarter performance.