Angeion Corporation Reports Second Quarter Fiscal Year 2012 Operating Results
Published: May 31, 2012
SAINT PAUL, Minn., May 31, 2012 /PRNewswire/ -- Angeion Corporation (NASDAQ: ANGN) today reported financial results for the second quarter of fiscal year 2012 ended April 30, 2012.
Second Quarter Highlights:
- Order backlog at end of Q2 2012 approximately $700,000 higher than Q2 2011;
- Revenues for the quarter of $6.3 million were impacted by customer requests to delay delivery of certain orders in Q2; management expects the majority of Q2 delayed orders to be delivered in the current quarter. Revenues in the comparable quarter of fiscal 2011 were $6.8 million.
- Service revenue improved 16% to $1.1 million, compared to $987,000 in last year's second quarter;
- Recurring revenue in the second quarter increased 11% to $3.2 million and accounted for approximately 52% of total revenue in the quarter;
- Gross margin for the second quarter in line with expectations at 55.4%; and
- Strong balance sheet with $9.3 million in cash and investments, approximately $13 million of working capital and no long-term debt.
Angeion reported revenue of $6.3 million compared to $6.8 million in the second quarter of fiscal 2011. During the quarter a number of customers requested deliveries to be delayed for a short period of time. The Company has accommodated those requests and expects to deliver the majority of the delayed orders in the current quarter. For the second quarter, domestic sales totaled $5.2 million, compared to $5.5 million in the previous year's second quarter and international sales were $1.1 million, versus $1.3 million in last year's comparable second quarter.
During the second quarter, equipment, supplies and accessories sales totaled $5.1 million, compared to $5.8 million during last year's period. Service revenue increased 16% to $1.1 million, versus $987,000 in last year's second quarter. Angeion reported net loss of $409,000, or ($0.11) per diluted share, versus net loss of $138,000, or ($0.04) per diluted share, in the comparable quarter last year.
Gross margin for the quarter was 55.4% compared to 57.2% in the second quarter of fiscal year 2011. General and administrative expenses in the second quarter of fiscal 2012 totaled $967,000 versus $937,000 in the comparable quarter last year. Management will continue to examine operating expenses going forward to ensure they remain at appropriate levels. Sales and marketing expenses were $1.9 million compared to $2.1 million in the second quarter of fiscal year 2011. Research and development costs were $870,000 compared to $902,000 in last year's second quarter.
For the six month period the Company reported total revenues of $13.3 million compared to $13.9 million in the first half of 2011. The Company reported a net loss of $658,000, or $(0.17) per fully diluted share, compared to a net loss of $462,000, or $(0.12) per diluted share in the first half of fiscal 2011.
Gregg Lehman, Ph.D., president and chief executive officer of Angeion, said, "During the quarter we accommodated requests from a number of important customers to slightly delay deliveries, impacting revenues in the second quarter. However, delivery of those orders has commenced and we expect to deliver the majority of those delayed orders in the current quarter. We do not believe that these delays will have a material impact and we expect solid operational and financial results throughout the remainder of fiscal year 2012."
"Orders from our GPO (group purchasing organizations) continue to be firm and we are pleased with the continued development of this important sales channel," Dr. Lehman continued. "Another important opportunity for us in the coming years is to expand the percentage of our customer base that subscribes to long-term service contracts. We have a large installed base of users around the world that would benefit by having their MedGraphics-branded products effectively supported to maximize their "up-time" and increase their operating efficiencies. Our sales force is focused on this opportunity. On a year-to-date basis services revenues are up 17% and we are very pleased with this long-term opportunity."
Dr. Lehman concluded, "With the recent additions of senior level executives in the sales, marketing and product development areas, we now have the full complement of our new executive management team in place. We have a number of important initiatives that will commence in terms of redefining our sales strategy and operating procedures in the coming months. Matt Margolies, our new Executive Vice President Global Sales is tasked with molding the sales force and our day-to-day operating procedures to substantially drive sales, both domestically and internationally. Matt has extensive experience in developing business throughout the world and we look forward to his leadership in achieving a number of ambitious sales goals. On the marketing and product development side Todd Austin, our Executive Vice President Global Marketing and Corporate Strategy, is working to make our products more competitive, particularly in international markets by reengineering a number of our products with the appropriate feature sets that will sell more successfully in those markets. I am very pleased with the make-up of this management team and I have every confidence that Angeion will be a more aggressive competitor in its respective markets. We are excited with the opportunities ahead."
The Company has scheduled a conference call for Thursday, May 31, 2012 at 11:00 a.m. ET to discuss its financial results for the second quarter of fiscal year 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 10014355, through June 7, 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.
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