Angeion Corporation (NASDAQ: ANGN) today reported financial results for its fourth quarter and fiscal year ended October 31, 2011.
Fourth Quarter Highlights:
- Revenues of $8.4 million comparable to the fourth quarter of 2010, sequentially up 22% from the third quarter;
- Service revenue improved 33% to $1.2 million, compared to $888,000 in last year's fourth quarter;
- GPO (group purchasing organization) revenue during the fourth quarter increased 146% to $1.6 million, compared to $650,000 in the comparable quarter;
- Gross margin for the fourth quarter remained solid at 56.5%;
- International sales increased to $1.6 million, a 12% increase over the prior year's fourth quarter; and
- Strong balance sheet with $9.2 million in cash and investments and no long-term debt.
Angeion reported revenue of $8.4 million compared to $8.5 million in the fourth quarter of fiscal 2010. Angeion reported net income of $391,000, or $0.10 per diluted share, versus net income of $410,000, or $0.10 per diluted share, in the comparable quarter last year. Sequentially, revenues in the fourth quarter increased 22% from $6.8 million in the third quarter of fiscal 2011.
Gross margin for the quarter improved to 56.5% compared to the 56.1% gross margin in the fourth quarter of fiscal year 2010. General and administrative expenses in the fourth quarter of fiscal 2011 decreased 13.4% primarily due to the absence of severance and related one-time expenses in the fourth quarter of fiscal 2010. Management will continue to examine operating expenses going forward to maintain profitability. Sales and marketing expenses decreased 3.4% compared to the fourth quarter of fiscal 2010 while research and development costs increased 33.2% as management dedicated additional resources to advance software and hardware development initiatives to enhance current product offerings and develop future new products.
Gregg O. Lehman, Ph.D., president and chief executive officer of Angeion Corporation commented, "The results of the fourth quarter are gratifying. On a sequential basis, total revenues increased 22% and service revenues increased 33% year-over-year, as we continue to emphasize to our customers the importance of maintaining the highest level of efficiency possible. We are particularly pleased with the traction that we are beginning to gain with our GPO (group purchasing organization) partners. Sales from that channel increased 146%, representing 19% of total sales for the quarter versus 8% of total sales in last year's comparable quarter. We believe that in the coming years GPO channel sales will be a positive contributor in smoothing out some of the 'lumpiness' that has historically characterized our revenue stream over the course of our fiscal year. We achieved measurable progress during the quarter that made a meaningful contribution to the results of the fiscal year. We look forward to maintaining that trend in the new fiscal year as we work to rebrand the company as a leading-edge medical technology provider."
Fiscal Year 2011 Financial Results
For the fiscal year ended October 31, 2011, Angeion reported revenues of $29.1 million, as compared to revenues of $29.0 million for the prior year. Angeion reported a net loss of $152,000, or $(0.04) per diluted share versus a net loss of $849,000, or $(0.21) per diluted share in the prior year. Financial results for the year were impacted by severance charges and associated legal and consulting fees attributable to the departure of executive officers. Severance and related one-time items incurred in fiscal 2011 totaled approximately $614,000, or $0.16 per diluted share, compared to one-time items of approximately $450,000, or $0.11 per diluted share in fiscal 2010.
Gross margin for the fiscal year improved to 56.9% compared to the 54.4% gross margin in fiscal year 2010 primarily due to lower factory and technical service costs. General and administrative expenses for the fiscal year decreased 4.8% versus the prior year as a result of administrative staff changes. Sales and marketing expenses increased 2.9% compared to fiscal 2010 while research and development costs increased 1.5% for the year.