Arrhythmia Research Technology, Inc. Announces Results for Third Quarter 2008
14 Noviembre 2008 - 8:30AM
Marketwired
Arrhythmia Research Technology, Inc. (the "Company") (AMEX: HRT)
(NYSE Alternext US: HRT) and its wholly owned subsidiary Micron
Products, Inc. ("Micron") reported total revenue of $5,838,000 and
net income of $68,000 for the quarter ended September 30, 2008
compared to total revenue of $4,458,000 and net income of $421,000
for the same quarter of 2007. Basic net income per share for the
three months ended September 30, 2008 decreased to $0.03 per share
from $0.16 per share for the same period in 2007.
Total revenue increased by 31% while net income decreased by 84%
and earnings per share decreased by 81% in the quarter ending
September 30, 2008 as compared to the same period in 2007.
For the nine months ended September 30, 2008, total revenue of
$17,724,000 and net income of $352,000 was achieved as compared to
total revenue of $14,867,000 and net income of $1,101,000 for the
same period in 2007. Basic net income per share for the nine months
ended September 30, 2008 was $0.13 as compared to $0.41 for the
same period in 2007. As previously reported, the decrease in net
income for the nine month period includes nonrecurring charges of
$302,000 or $0.07 per share, net of taxes, related to acquisition
and research and development activities.
Total revenue increased by 19% while net income and earnings per
share decreased by 68% in the nine months ending September 30, 2008
as compared to the same period in 2007.
James E. Rouse, the Company's President and CEO, commented,
"Although total revenue in the period increased over the same
period in 2007, our earnings were disappointing as we continue to
experience extreme margin pressure as well as increasing costs. The
decrease in net income during the quarter was the result of several
factors. We experienced lower than expected margins in our sensor
products as a result of continued price erosion due to a
competitive marketplace as well as volatility in commodity prices
which resulted in higher material costs that we were unable to
completely offset with price increases to customers. The MIT
division incurred higher labor costs to meet customer delivery
schedules in addition to capital equipment investments associated
with early stage products. Revenues from these early stage products
are not expected to offset operating costs positively until 2009.
The custom molding and moldmaking divisions experienced sales
decreases as a direct result of the slowing U.S. economy which can
be expected to continue to impact these divisions in the near term.
In addition, a low margin product line introduced by the MIT
division in 2008 has been detrimental to margins than originally
projected due to significantly higher internal costs caused by
quality and delivery problems from a subcontractor. The Company has
incurred expenses in 2008, not present in previous years that have
had a severe effect on operating income in the first nine months.
These additional expenses include, but are not limited to, $110,000
in energy costs, $200,000 in depreciation of capital equipment and
technology upgrades, non-recurring write-downs of $302,000 related
to acquisition and research and development activities, and
approximately $100,000 in costs associated with the preparation for
compliance with Section 404 of Sarbanes Oxley in the form of
consulting fees and additional administrative personnel.
"Our task going forward is to continue efforts to increase sales
revenue in higher margin products while reducing costs and
improving efficiencies. At the same time, all current products,
services and programs, including those in development, are being
evaluated for contribution and value to our overall business
strategy and results. Products, services and programs that are
underperforming from an overall contribution standpoint and not
expected to improve will be phased out or discontinued so that the
Company's resources can be put to use in developing those of more
strategic value. We remain cautiously optimistic that our efforts
to maximize higher margin products, services and programs and our
investments in capital equipment, sales and marketing, engineering
and information technology resources for our more diverse offerings
will produce improved results and position our company to
capitalize on future growth opportunities."
The Company, through its wholly owned subsidiary Micron
Products, Inc., manufactures silver plated and non-silver plated
conductive resin sensors and distributes metal snaps used in the
manufacture of disposable ECG, EEG, EMS and TENS electrodes.
Micron's NEM division manufactures custom injection molded products
for medical, electronic, industrial and consumer applications.
Micron's MIT division provides end-to-end product life cycle
management through a comprehensive portfolio of value-added
services such as design, engineering, prototyping, manufacturing,
machining, assembly and packaging. Micron's Leominster Tool
division provides high end mold design, manufacturing and precision
machining for various industries. The Company's products also
include proprietary signal-averaging electrocardiography (SAECG)
software used in the detection of potentially lethal heart
arrhythmias.
For more information please check our websites:
http://www.arthrt.com
http://www.micronproducts.com
http://www.leominstertool.com
http://www.newenglandmolders.com
http://www.micronintegrated.com
Forward-looking statements made herein are based on current
expectations of the Company that involve a number of risks and
uncertainties and should not be considered as guarantees of future
performance. The factors that could cause actual results to differ
materially include: interruptions or cancellation of existing
contracts, impact of competitive products and pricing, product
demand and market acceptance, risks, the presence of competitors
with greater financial resources than the Company, product
development and commercialization risks, changing economic
conditions in developing countries, and an inability to arrange
additional debt or equity financing. More information about factors
that potentially could affect the Company's financial results is
included in the Company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year
ended December 31, 2007.
Contact: David A. Garrison (978) 345-5000 Website:
http://www.arthrt.com
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