LAKEWOOD, Colo., Feb. 11 /PRNewswire-FirstCall/ -- Mesa Laboratories, Inc. (Nasdaq: MLAB) today reported sales and earnings for both its fiscal third quarter and nine months ended December 31, 2009. Highlights:
Acquisition of Vibrac Torqo Bottle Cap Torque Testing product line completed.
Nine month cash flow provided by operations exceeded $4,882,000.
DataTrace sales improve 16% in the most recent six month period over the prior six months.
For the third quarter of fiscal 2010, net sales decreased less than one percent to $5,318,000 from $5,337,000 in the same quarter last year. Net income for the quarter decreased five percent to $1,154,000 or $.35 per diluted share compared to $1,216,000 or $.38 per diluted share one year ago. For the first nine months of fiscal 2010, net sales decreased two percent to $15,702,000 from $16,071,000 in the same period last year. Net income for the first nine months decreased five percent to $3,424,000 or $1.04 per diluted share compared to $3,586,000 or $1.11 per share one year ago. On December 18, 2009, Mesa announced that it had purchased the assets associated with the bottle cap torque testing products of Vibrac LLC. The instruments acquired by Mesa include their original high-performance cap testing product, the Torqo I, along with the newer Torqo II and the innovative Smart Bottle. Under the terms of the agreement, Mesa agreed to pay approximately $2,658,000, and Vibrac has agreed to manufacture these products for a one year period. Due to the timing of the acquisition of these products, they only made a minor contribution to sales and gross profits in the fiscal third quarter. The acquisition of the Vibrac products is expected to be accretive to Mesa's earnings per share during this first 12 month period following the closing. "The highlight of the quarter for Mesa was the purchase of the Vibrac torque testing product line," said John J. Sullivan, President and Chief Executive Officer. "There are great growth opportunities for these products, as we integrate them into our distribution channels and continue to develop their capabilities. Acquisitions such as this are a key part of our growth strategy, and we expect to do very well with this new line of instruments." "We are pleased that revenue and profitability held up well in the current environment," continued John Sullivan. "While we are seeing incremental improvement in sales activity for our capital equipment lines of DataTrace and Nusonics, it is evident that the slow recovery of the capital equipment markets will continue to make year-over-year sales and profitability comparisons difficult. However, as the markets continue to recover we expect to see all of Mesa's product lines return to a growth track. In addition, as we start to realize revenue from the new Vibrac products we expect they will have a positive impact on Mesa's sales and profits. While we will see some impact of these new products during the remainder of this fiscal year, we will not see the full impact of their profitability contribution until the latter half of fiscal 2011, when manufacturing is transferred to Mesa." During the third quarter and first nine months of fiscal 2010, sales of the Company's medical products and services increased one and four percent, respectively, compared to the prior year periods. For both the quarter and the nine month period, small declines in shipments of the medical meter products have been more than offset by significant increases in standard solutions and meter accessories.