IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced financial results for its third quarter ended September 30, 2011.
For the 2011 third quarter, the company reported net sales of $13.9 million, versus net sales of $14.7 million for the prior-year period. IntriCon reported a net loss in the 2011 third quarter of $489,000, or $0.09 per diluted share, compared to net income of $243,000, or $0.04 per diluted share, for the prior-year third quarter.
“Although economic softness has continued to adversely impact our year-over-year results, we believe the long-term fundamentals of the markets we serve remain strong,” said Mark S. Gorder, president and chief executive officer of IntriCon. “In addition, our strategic commitment to increasing R&D investment over the last five years should better position IntriCon to meet the demand for small and lightweight, advanced body-worn medical devices.
“Developing a larger portfolio of core technologies has allowed us to pursue several high-potential initiatives for future growth. In addition to the contract with hi HealthInnovations, a UnitedHealth Group business, we have a recently FDA-approved cardiac monitor that offers key patient benefits; and we continue to incorporate our innovative PhysioLink® and nanoDSP® technology into our product lines.”Third-Quarter ResultsThird-quarter hearing health revenue was flat with the prior-year third quarter, and down 7.3 percent sequentially compared sequentially to the 2011 second quarter. The overall hearing health industry remains soft, primarily driven by low consumer confidence. Medical sales declined 8.9 percent year-over-year, but increased 1.1 percent sequentially from the 2011 second quarter. IntriCon’s large medical customers continue to face economic headwinds on several fronts including regulatory delays and sluggish demand. Professional audio communications sales were down 8.3 percent from the prior year third quarter, while rising 8.7 percent sequentially. Said Gorder, “Regarding hearing health, we believe continued market acceptance of our innovative digital signal processing circuits, such as our nanoDSP, Overtus™ DSP Amplifier, and complete systems such as our APT™ and Lumen™ will drive future growth in this business. In addition, the previously announced hi HealthInnovations agreement holds tremendous potential.