IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced financial results for its fourth quarter and year ended December 31, 2010.
For the fourth quarter, the company reported net sales of $14.5 million, an increase of 2 percent from net sales of $14.2 million for the prior-year period. The company reported a net loss in the 2010 fourth quarter of $169,000, or $0.03 per diluted share, a marked improvement from a net loss of $1.6 million, $0.29 per diluted share, for the year-ago period. Included in the prior- year results was a loss from discontinued operations of $1.7 million, or $0.32 per diluted share.
“As we emerge from one of the most challenging economic periods in recent history, we continue to make strides both financially and strategically. In 2010, we drove top- and bottom-line improvement, while positioning the company for long-term growth,” said Mark S. Gorder, president and chief executive officer of IntriCon. “Our bottom-line improvement came even as we increased investments in research and development, which were up $1.1 million, or 34 percent, over the prior year. As a percentage of revenue, research and development was 7.6 percent in 2010, versus 6.5 percent in 2009. In addition, we receive a significant amount of grant funding that contributes to the research and development of core technologies, such as our PhysioLink™ wireless technology.”
Fourth-Quarter ResultsFor the fourth quarter, IntriCon experienced double-digit growth in both hearing health and professional audio communications. As anticipated, medical was down from the year-earlier fourth quarter. During 2010, several large medical customers experienced temporary fluctuations in demand and entered the fourth quarter with inventory levels above their immediate needs. IntriCon continues to maintain strong relationships with its medical OEM customers. The company believes the fourth-quarter pause in medical orders was temporary and anticipates more normalized order patterns in the first half of 2011. As a percentage of total fourth-quarter revenue, the medical business contributed 36 percent, with hearing health and professional audio communications contributing 40 percent and 24 percent, respectively.Said Gorder, “We are encouraged by the rebound in our professional audio communications and hearing health markets, with net sales increasing more than 25 percent and 18 percent, respectively, over the year-ago period.” The professional audio communications gain was primarily due to higher sales of headset devices to existing customers and communication devices to government agencies. These customers continue to demand smaller and more durable products that perform well in noisy or hazardous environments.