Angeion Corporation (NASDAQ: ANGN) today reported results for its fiscal fourth quarter ended October 31, 2010.
For the 2010 fourth quarter, Angeion posted a net profit of $410,000, or $0.10 per diluted share, on revenues of $8.5 million. Compared to the prior-year fourth quarter, which generated a net loss of ($573,000), or ($0.14) per diluted share, current year earnings increased $983,000, or $0.24 per diluted share, due to $1,479,000 in improved gross margin partially offset by a $485,000 increase in operating expenses.
Gross margins increased from improved manufacturing efficiencies as a result of higher sales volume and right-sizing activities undertaken earlier in the year and a higher percentage of domestic medical products and service revenues. Operating expenses rose $485,000, with a $394,000 increase in selling and marketing, and a $354,000 increase in general and administrative expenses, partially offset by a $186,000 reduction in research and development expense and a $77,000 reduction in amortization expense. The higher selling and marketing expense included investments in key staffing additions early in the year and promotional activities surrounding new product launch initiatives, as well as sales commissions on $1.8 million in incremental year-over-year fourth-quarter revenue. General and administrative expenses increased as a result of non-recurring expenses related to the August 2010 filing of a Schedule 13D proposing a special shareholders’ meeting to elect its slate of directors. Subsequent negotiations and resolution of the issues raised in the Schedule 13D resulted in the September 1, 2010, reconstitution of the Angeion Board of Directors.
Revenue from international operations in the 2010 fourth fiscal quarter was 16.7% of total sales, down from 23.6% for the fourth quarter of fiscal 2009. International revenue had strong performance gains in Europe offset by reductions in the Far East and Latin America when compared to the 2009 fourth fiscal quarter.“Success in our traditionally strong fourth quarter was driven by expanded sales and marketing efforts that began in the second fiscal quarter, in both our domestic and international markets. As a result, top-line performance carried through to the bottom line,” said Rodney A. Young, Angeion’s President and Chief Executive Officer. “In addition to the effectiveness of our sales and marketing efforts, we believe a modest improvement in general market conditions contributed to our stronger fourth-quarter and fiscal year-end results.