IntriCon Corporation (NASDAQ: IIN)
, a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced financial results for its second quarter ended June 30, 2011.
For the 2011 second quarter, the company reported net sales of $13.9 million, versus net sales of $14.9 million for the prior-year period. IntriCon reported a net loss in the 2011 second quarter of $294,000, or $0.05 per diluted share, compared to net income of $269,000, or $0.05 per diluted share, for the prior-year second quarter.
“We believe we are well positioned to serve markets with strong growth prospects long term. However, the continued economic softness has clearly applied pressure on all of our core businesses,” said Mark S. Gorder, president and chief executive officer of IntriCon. “In addition, while our steadfast approach to increasing R&D investment has led to recent design wins across all markets, it has had a short-term adverse financial impact. We anticipate top-line contributions from these design wins beginning in early 2012.
“We are pleased that hearing health revenues were up over the year-ago period. Additionally, our medical revenues increased sequentially from the first quarter. However, they were lower than historical levels as a few of our large medical customers experienced fluctuations in demand and are working through inventory levels above their immediate needs. We continue to believe this lull in medical orders is temporary, and are working very closely with our customers to monitor the situation.
“In professional audio communications, orders were impacted by delays in funding for government sponsored programs—this was particularly evident in our security business. Funding is now in place and we anticipate this portion of the business to rebound during the second half of the year.”
Hearing health revenue rose 7.4 percent from the 2010 second quarter as certain niches within the market continued to strengthen. Medical and professional audio communications declined 11.4 percent and 17.5 percent, respectively, from the prior-year period due to the factors noted above.
Said Gorder, “Although we are disappointed with our performance in medical and professional audio communications, the long-term fundamentals remain strong. We believe the market demand for small, lightweight advanced body-worn monitoring and communication devices is increasing, as evidenced by recent design wins. Our hearing health business continues to benefit from market acceptance of our innovative digital signal processing, or DSP, circuits, such as our new Overtus™ DSP amplifier.”