SAINT PAUL, Minn., Feb. 28, 2012/PRNewswire/ -- Angeion Corporation (NASDAQ: ANGN) today reported financial results for its first quarter fiscal 2012 ended January 31, 2012.
First Quarter Highlights:
- Revenues of $7.1 million, comparable to the first quarter of 2011;
- Service revenue improved 19% to $1.1 million, compared to $909,000 in last year's first quarter;
- GPO (group purchasing organization) revenue during the first quarter increased 321% to $1.4 million, compared to $332,000 in the comparable quarter;
- Recurring revenue in the first quarter increased 14% to $3.9 million and accounted for approximately 55% of total revenue in the quarter;
- Gross margin for the first quarter remained solid at 56.4%;
- Domestic sales increased to $5.7 million, a 10% increase over the prior year's first quarter;
- Strong balance sheet with $9.2 million in cash and investments, over $13 million of working capital and no long-term debt; and
- Addition of RTD (Real-Time-Diffusion) MultiGas Technology to our product family.
Angeion reported revenue of $7.1 million compared to $7.1 million in the first quarter of fiscal 2011. For the first quarter, domestic sales increased 10% to $5.7 million, compared to $5.2 million in the previous year's first quarter and international sales decreased by 26% to $1.4 million, versus $1.9 million in last year's comparable first quarter. During the first quarter, equipment, supplies and accessories sales decreased by 2.7% to $6.0 million, compared to $6.1 million during last year's period. Service revenue increased 19% to $1.1 million, versus $909,000 in last year's first quarter. Angeion reported net loss of $249,000, or ($0.07) per diluted share, versus net loss of $324,000, or ($0.09) per diluted share, in the comparable quarter last year.
Gross margin for the quarter remained firm at 56.4% compared to the first quarter of fiscal year 2011. General and administrative expenses in the first quarter of fiscal 2012 decreased 14.9% primarily due to the absence of severance and related one-time expenses. Management will continue to examine operating expenses going forward to ensure they remain at reasonable levels. Sales and marketing expenses increased 1.2% compared to the first quarter of fiscal 2011 while research and development costs increased 13.8%. As management disclosed in the fourth quarter, the Company has made a strategic decision to dedicate 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, "We are pleased with the measurable progress achieved in the past two quarters by refocusing the Company on our new strategy and installing more disciplined business processes. The top-line and bottom-line results of the first fiscal quarter of 2012 are generally in line with our internal expectations. Domestic sales for the quarter were up 10% despite the fact our fiscal first quarters are generally most affected by the inherent seasonality in the medical device business. Our strategic decision to focus on developing GPO partnerships continues to pay dividends, as the GPO sales channel delivered a strong quarter with revenues more than three times that of the first quarter of fiscal 2011 and accounted for 20% of total sales for the quarter. Service revenues increased 19% in the first quarter as our direct sales force continued to execute on our initiative to expand service revenues, and in turn, recurring revenues, which accounted for 55% of the quarter's total revenues."
"Outside the U.S. market," continued Dr. Lehman, "economic conditions in Europe continue to be very challenging and substantially impacted revenues in the first quarter of fiscal 2012 with a 26% decrease in total international sales from last year's first quarter. We continue to believe that international markets will be a significant contributor in the coming years and we are dedicated to strengthening our distribution capabilities in those markets as economic conditions improve."
Dr. Lehman continued, "We are committed to developing new products and refreshing our existing product lines so that they can be produced in the most cost-efficient manner possible, leading to enhanced margins, and giving us the ability to enter into new markets. We are pleased to have recently introduced to our customers worldwide our new RTD (Real-Time Diffusion) MultiGas Technology. This proprietary technology platform and real-time sensor quality assurance provides accurate and immediate results, and eliminates the need for repeat tests. The addition of RTD to our product family will provide access to markets from which Angeion may have been previously excluded. This ability to better serve our existing markets and enter new markets represents the new product development model that we expect to execute. We are committed to becoming an industry leader in efficient manufacturing practices and innovative diagnostic solutions."
"As we move through fiscal year 2012, we will commence a number of initiatives, including rebranding the company and leveraging the MedGraphics name to more fully capitalize on the favorable brand equity that we have developed over the years. We look to solidify the identity of the company with that of our products in the minds of our customers and the national investment community as well. Our strong working capital position will facilitate plans to expand and advance our product lines via in-house development as well as participating in joint venture opportunities, and opportunistic and strategic acquisitions. With the business on a more stable footing, we will now move ahead to reconfigure the company for future growth. We believe there are outstanding opportunities in new markets such as primary care, home monitoring and telemedicine that can benefit from MedGraphics technology."
As of January 31, 2012, the Company ended the first quarter fiscal 2012 with cash, equivalents and short term investments totaling $9.2 million, working capital of $13.3 million, no long-term debt and shareholders' equity of $14.2 million. For the first quarter, the Company repurchased a total of 1,000 shares of Angeion common stock in the open market for an average price of $4.98 per share. Under the current stock repurchase program, the Company has the authorization to purchase an additional $2.8 million worth of stock and is prepared to take advantage of opportunistic buying situations.
The Company has scheduled a conference call for February 28, 2012 at 5:00 p.m. ET to discuss its financial results for the first quarter fiscal 2012.
Participants can dial (877) 317-6789 or (412) 317-6789 to access the conference call, or listen via a live Internet webcast on the Company's website at www.angeion.com. A replay of the conference call will be available by dialing (877) 344-7529 or (412) 317-0088, confirmation code 10010101, through March 5, 2012. A webcast replay of the conference call will be accessible on the Company's website at www.angeion.com for 90 days.
About Angeion Corporation
Founded in 1986, Angeion Corporation acquired Medical Graphics Corporation in December 1999. Medical Graphics develops, manufactures and markets non-invasive cardiorespiratory diagnostic systems that are sold under the MedGraphics (www.medgraphics.com) and New Leaf (www.newleaffitness.com) brand names. These cardiorespiratory product lines provide solutions for disease detection, integrated care, and wellness across the entire spectrum of health whether managing chronic illness, promoting fitness, or training for the Olympics. The Company's products are sold internationally through distributors and in the United States through a direct sales force that targets heart and lung specialists located in hospitals, university-based medical centers, medical clinics and physicians' offices, pharmaceutical companies, medical device manufacturers, clinical research organizations, health and fitness clubs, personal training studios, and other exercise facilities. For more information about Angeion, visit www.angeion.com.