IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of body-worn medical and electronics devices, announced that its strategic partner, Minneapolis-based Advanced Medical Electronics Corp. (AME), is participating in two new research grants from the U.S. Government.

The first, from the National Institute of Biomedical Imaging and Bioengineering (NIBIB), supports development of an ultra-miniature, body-worn technology platform for recording signals from skin electrodes. This core capability can be applied to:
  • electrocardiography (ECG), measuring the heart’s electrical activity;
  • electromyography (EMG), gauging the electrical activity of skeletal muscles;
  • electroencephalography (EEG), measuring electrical activity in the brain; and
  • skin impedance recording, measuring electrical and temperature changes at the skin’s surface.

In addition to further development of this core recording platform, the grant will support testing and Food and Drug Administration (FDA) submission.

“The funding that AME received will be used to further advance and commercialize our ultra-low power PhysioLink™ wireless technology platform,” said Mark S. Gorder, president and chief executive officer of IntriCon. “This includes aggressive development of the electronics and device enclosure that will comprise our next-generation ambulatory ECG products, among other body-worn monitoring applications.”

In addition to the NIBIB funding, AME also is a collaborator on a grant from the National Institute on Disability and Rehabilitation Research (NIDRR). This phase-one grant is for additional research and feasibility testing for solid-state sensor technology that will ultimately replace aging telecoil sensor technology in hearing aids.

Said Gorder, “Ultimately, this funding will allow AME and IntriCon to explore the possibility of creating hearing aid devices that work better with personal electronics such as land-line and mobile phones, iPods and other listening devices. Right now hearing aid users have to orient their head or the device to achieve the optimal signal—and that can be problematic at best. New technology will eliminate that and also result in smaller overall devices.”

Said Gary Havey, AME’s president, “We are very excited to receive these grants to support the development of our bio-telemetry technology. In addition to being a trusted partner, IntriCon is a collaborator in both grants and has exclusive rights to sell the technology into its core markets—which are in alignment with the research we’re conducting.”

According to Gorder, the two new grants will provide IntriCon access to approximately $900,000 of funded research and development over the next two years. In collaboration with AME over the past three years, IntriCon has received the benefits of grant funding for 15 development programs.

IntriCon Addresses Recent Stock Price Volatility

Today, in response to ongoing shareholder inquiries, IntriCon also stated that it is unaware of any developments concerning its business operations that could account for recent volatility and declines in the price of the company’s common shares.

Said Gorder, “While it’s typically not our practice to comment on the company’s stock price and trading trends, the amount of inquiries we’ve received from shareholders has made us aware of the need to comment on the issue. It’s our opinion that the decline in the price of our stock speaks to the volatility of the market, not to the strength of our company and certainly not to any developments regarding our business operations.

“As we said at the end of our second quarter, IntriCon is as focused as ever on our strengths in the body-worn area. Uncertainty surrounding the economy remains, but we believe the targeted initiatives we’ve undertaken in the past year position us to deliver long-term growth.”

In July, the company reported second quarter net sales of $14.9 million, an increase of 16.6 percent from net sales of $12.8 million for the prior-year period. Net income in the 2010 second-quarter was $269,000, or $0.05 per diluted share, versus a net loss of $598,000, or $0.11 per diluted share, for the prior-year period.

About IntriCon Corporation

Headquartered in Arden Hills, Minn., IntriCon Corporation designs, develops and manufactures miniature and micro-miniature body-worn medical and electronics products. The company is focused on three key markets: medical, hearing health, and professional audio and communications. IntriCon has facilities in the United States, Asia and Europe. The company’s common stock trades under the symbol “IIN” on the NASDAQ Stock Market. For more information about IntriCon, visit www.intricon.com.

Forward-Looking Statements

Statements made in this release and in IntriCon’s other public filings and releases that are not historical facts or that include forward-looking terminology such as “may”, “will”, “believe”, “anticipate”, “expect”, “should”, “optimistic” or “continue” or the negative thereof or other variations thereon are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, without limitation, statements concerning prospects in the miniature body-worn device arena, new products, strategic alliances, future growth and expansion, market fundamentals, future financial condition and performance, prospects and the positioning of IntriCon to compete in chosen markets and the Company’s planned investments in research and development. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond IntriCon’s control, and may cause IntriCon’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and factors include, without limitation, risks related to the current economic crisis, the risk that IntriCon may not be able to achieve its long-term strategy, weakening demand for products of the company due to general economic conditions, risks related to the company’s strategic alliances and joint venture, possible non-performance of developing the Centauri, Scenic, Overtus, wireless glucose monitor and situational listening device products and other technological products, the volume and timing of orders received by the company, changes in the mix of products sold, competitive pricing pressures, the cost and availability of electronic components and commodities for the company’s products, ability to create and market products in a timely manner, competition by competitors with more resources than the company, foreign currency risks arising from the company’s foreign operations, ability to satisfy and maintain compliance with the covenants under the company’s loan facility, the costs and risks associated with research and development investments, volatility in the price of the Company’s common stock and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2009. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.

Copyright Business Wire 2010