DynaVox Reports First Quarter Fiscal 2011 Results
Operating loss was $0.8 million in the first quarter of fiscal year 2011, compared to operating income of $4.1 million in the same period a year ago. Operating expenses also increased from the prior year due primarily to higher general and administrative expense associated with being a public company.
GAAP net loss was $0.5 million, or $(0.05) per share in the first quarter of fiscal year 2011.
Adjusted pro forma net loss and adjusted pro forma net loss per share, as defined below, were $1.1 million, or $(0.04) per share for the first quarter.
Adjusted EBITDA, as defined below, decreased 86% year-over-year in the first quarter of fiscal year 2011 to $0.8 million, compared to $5.5 million in the previous year."First quarter sales of both our speech generating devices and educational software were adversely impacted by pressures on federal, state, local, and particularly school budgets, as well as constraints on government spending in our international markets. To the extent that these funding issues do not improve, our consolidated net sales are projected to be down 10-15% for full year fiscal 2011 as compared to fiscal year 2010," said Ed Donnelly, DynaVox's Chief Executive Officer. Mr. Donnelly continued, "We continue to believe that the underlying patient need for our products remains strong and that our target markets are substantially underserved. Moreover, we are encouraged by the reception to our recent product launches. However, in response to the unprecedented challenges posed by the funding environment, we are taking steps to both optimize the deployment of our resources relative to the market opportunity, and manage costs." Updated Fiscal 2011 Guidance For fiscal year 2011, the Company expects net sales to decline 10-15% from fiscal year 2010. The Company expects Adjusted EBITDA for fiscal year 2011 to be between $19.0 million and $23.0 million and adjusted pro forma net income per share in the range of $0.21 to $0.27 per share.
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