PITTSBURGH, Nov. 11, 2010 (GLOBE NEWSWIRE) -- DynaVox (Nasdaq:DVOX), the world's leading provider of communication and education products for individuals with significant speech, language and learning disabilities, today announced results for the first quarter ended October 1, 2010. For the 13-weeks ended October 1, 2010, net sales were $21.6 million or 11% below net sales of $24.3 million during the 13 weeks ended October 2, 2009. Sales of the Company's speech generating devices declined 8% from the prior year to $17.2 million, and sales of its special education software declined 22%, to $4.4 million, for the first quarter of fiscal year 2011. As previously disclosed, the Company experienced a softening of demand for both its speech generating devices and software products during the first quarter of fiscal year 2011. Based on DynaVox's sales performance during the first several weeks of the second quarter of fiscal year 2011, this softening of demand has continued during the second quarter. The Company believes that reduced domestic government funding, and particularly more constrained state and local government funding of school budgets, is adversely affecting its product sales in the United States. In addition, DynaVox believes that constraints on government spending in its key international markets, including Canada and the U.K., have had a similar effect on product sales in those regions. The adverse impact of these factors on the Company's revenue generation has been more significant than initially anticipated. Although the Company is not yet seeing evidence of an improvement in the government funding environment, DynaVox is continuing to invest in its business and has launched new products into its target markets, which the Company views as underpenetrated. Gross profit for the first quarter declined 16% to $15.3 million, compared to $18.2 million in the first quarter of the prior year. The Company's gross profit margin was 71.1% in the first quarter, compared to 75.0% in the prior year. The gross margin decline was the result of a less favorable product mix and lower royalties, as well as lower sales.