May 6 2010
MOCON, Inc. (NasdaqGM:MOCO) today reported its operating results for the quarter ended March 31, 2010.
Net sales for the first quarter 2010 were $7,093,000, an increase of 15 percent compared to $6,172,000 for the first quarter 2009. Operating income increased 108% to $1,045,000 for the first quarter 2010 compared to $503,000 for the same period last year. Net income for the first quarter 2010 was $922,000, a 131 percent increase compared to $399,000 in the first quarter 2009. Diluted net income per share was $0.17 in the first quarter 2010 compared to $0.07 for the same period in 2009.
We experienced increases in sales in all major product groups in the first quarter 2010 compared to first quarter 2009, as the global economic conditions that had negatively affected the prior year's results showed signs of improvement in the current period. Sales of our permeation equipment and services, which accounted for 58 percent of total consolidated sales in the first quarter 2010, increased 15 percent compared to the same period in 2009. Sales of our gas analyzers, sensors and detectors, which accounted for 19 percent of our total consolidated sales in the first quarter 2010, increased 6 percent compared to the first quarter in 2009. This increase came primarily from sales of gas chromatographs to the oil and gas exploration and industrial hygiene markets. Sales of our packaging products, which accounted for 15 percent of our total consolidated sales in the first quarter 2010, increased 3 percent compared to the same period in 2009. Finally, sales in our other instrument and services category, which accounted for 8 percent of our total consolidated sales in the first quarter 2010, increased 96 percent compared to the same period in 2009. This increase was the result of more specialty projects performed by our analytical testing and consulting groups. Geographically, our sales for the first quarter 2010 were up 11 percent and 18 percent in our domestic and foreign markets, respectively, compared to the same period in the prior year.
The increase in net income during the first quarter 2010 compared to the same period last year was primarily due to a higher gross profit percentage as a result of a favorable product mix and manufacturing efficiencies gained due to the higher volume. In addition, we realized a pre-tax gain of $239,000 relating to foreign currency fluctuations. Our selling, general and administrative expenses were slightly higher in the current quarter compared to the prior year primarily due to costs incurred relating to the equity investment in Luxcel Biosciences Limited (Luxcel). Our research and development expenses were slightly higher this quarter compared to the same quarter last year, and are in line with our plan for the year.
"We are pleased to report increased sales and earnings for our first quarter 2010. During the quarter, we completed our investment for an equity stake in Luxcel, which we expect will expand our product offerings and help us become a player in the microbiological food safety testing market. We are seeing some positive signs in the economy and are very encouraged by the sales increases we experienced this quarter in both our domestic and foreign markets," commented Robert L. Demorest, MOCON President and CEO.
SOURCE MOCON, Inc.