"We believe the budget challenges in schools and the regulatory uncertainty in the national health care arena will continue through fiscal 2013. We realize it is imperative that we look for new areas to drive top line growth in the most effective way possible, while adhering to strong operating discipline. We remain committed to investing in innovation, to further adjusting our strategies and to delivering value to our customers around the world."
Fiscal Year 2012 Results
For the fiscal year ended June 29, 2012, net sales declined 10% to $97.3 million from $108.1 million in the same period last year.
Gross profit for fiscal year 2012 declined 8% to $69.8 million from $75.9 million a year ago. Gross margin expanded 150 basis points to 71.7%, compared to 70.2% in fiscal year 2011. The gross margin improvement was attributable to product mix as well as cost reductions in materials, royalties and overhead.Operating expenses, excluding impairment charges, for the full fiscal year 2012 decreased 6% to $60.4 million, compared to $64.4 million in the prior year. Operating income, excluding impairment charges, for fiscal year 2012 was $9.4 million, compared to $11.5 million in fiscal year 2011. GAAP net loss for fiscal year 2012 was $18.5 million, or $1.76 per share, compared to GAAP net income of $1.2 million, or $0.13 per share, a year ago. Adjusted pro forma net income for fiscal year 2012 was $4.3 million, or $0.14 per share, compared to $5.8 million, or $0.19 per share, in the prior year. Adjusted EBITDA for fiscal year 2012 was $16.8 million, a decline of 13% from $19.3 million in the same period last year. Conference Call The conference call is scheduled to begin at 4:30 p.m. EDT on September 20, 2012. The call will be broadcast live over the Internet, hosted at the Investor Relations section of DynaVox's website at http://ir.dynavoxtech.com/index.cfm , and will be archived online through October 3, 2012. In addition, listeners may dial (877) 312-5529 in North America, and international listeners may dial (253) 237-1147. Participants from the Company will be Michelle Heying Wilver, Chief Executive Officer, and Ken Misch, Chief Financial Officer. A telephonic playback will be available from 7:30 p.m. EDT, September 20, 2012 through October 3, 2012. To hear the playback participants may dial (855) 859-2056 and international listeners may dial (404) 537-3406. The conference ID number is 24515792.