DynaVox Reports Second Quarter Fiscal 2011 Results
PITTSBURGH, Feb. 9, 2011 (GLOBE NEWSWIRE) -- DynaVox (Nasdaq:DVOX), the world's leading provider of communication and education products for individuals with significant speech, language and learning disabilities, today announced results for the second quarter ended December 31, 2010.
For the 13 weeks ended December 31, 2010, net sales were $25.5 million, or 11% below net sales of $28.6 million during the 13 weeks ended January 1, 2010. Sales of the Company's speech generating devices declined 6% to $20.8 million, and sales of its special education software declined 27%, to $4.7 million, from the prior year.
Gross profit for the second quarter of fiscal year 2011 declined 17% to $17.9 million, compared to $21.5 million in the second quarter of the prior year. The Company's gross profit margin was 70.3%, compared to 75.2% in the prior year. The gross margin decline was the result of a less favorable product mix.Operating income was $1.7 million in the second quarter of fiscal year 2011, compared to operating income of $5.8 million in the same period a year ago. Operating expenses increased from the prior year due primarily to general and administrative expense associated with being a public company. Second quarter GAAP net income was $0.2 million, or $0.02 per share. Adjusted pro forma net income and adjusted pro forma net income per share, as defined below, were $0.7 million, or $0.02 per share, for the second quarter of fiscal year 2011. Adjusted EBITDA, as defined below, declined 49% in the second quarter of fiscal year 2011 to $3.9 million, from $7.7 million in the previous year. "During the second quarter, we took important strategic actions to better adapt to the challenging government and school budget conditions we continue to face," said Ed Donnelly, DynaVox's Chief Executive Officer. "While we are still in the initial stages of our plan, we believe our second quarter results demonstrate that our efforts are gaining traction in the marketplace. We saw improvement in sales trends over the course of the quarter, led by our U.S. device business, and the response to our new products has been positive."
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