Arrhythmia Research Technology, Inc. Announces First Quarter 2013 Results
Published: Jul 01, 2013
FITCHBURG, MA--(Marketwired - June 28, 2013) - Arrhythmia Research Technology, Inc. (NYSE MKT: HRT) and its subsidiaries (the "Company") announced today its results for the quarter ending March 31, 2013. The Company's financial results reflect the consolidated results of Arrhythmia Research Technology, Inc. and its subsidiaries, including Micron Products, Inc. ("Micron"), and the discontinued operations of RMDDxUSA Corp. and RMDDx Corporation (collectively "WirelessDx").
Quarter Ended March 31, 2013
The Company reported total consolidated revenue of $5,643,189 for the quarter ended March 31, 2013, compared to total consolidated revenue of $5,831,622 for the quarter ended March 31, 2012, a decrease of $188,433 or 3.2%.
Net income from continuing operations for the quarter ended March 31, 2013 was $2,067, or $0.00 per share compared to net income from continuing operations of $334,118, or $0.12 per share for the quarter ended March 31, 2012.
Net loss from discontinued operations for the quarter ended March 31, 2013 was $7,738, or $0.00 per share compared to a net loss from discontinued operations of $770,037, or $0.28 per share for the quarter ended March 31, 2012.
Total net loss for the quarter ended March 31, 2013 decreased $430,248 to $5,671, or $0.00 per share compared to a net loss of $435,919, or $0.16 for the quarter ended March 31, 2012.
Salvatore Emma, Jr., the Company's President and CEO, commented, "Micron's custom molding and manufacturing sales increased by 21.9% in the first quarter compared to the same period in 2012. This increase is due in part to increased orders in defense, automotive, and bioscience markets. Additionally, we are pleased that increasing order volume for orthopedic implant products that we experienced in the prior two quarters continued into the first quarter of 2013. Sales of orthopedic implant products increased 76.3% in the first quarter of 2013 as compared to the same period of 2012. This increase is due to larger orders from new and existing customers. Orders for machined orthopedic implant products are expected to continue to increase for the remainder of 2013.
"In the first quarter, Micron Products' sensor revenues decreased $1,091,574 as compared to the same period in 2012. The decrease in sensor revenues is due to several factors: a 3.5% decrease in sensor volume sales compared to the same quarter last year; a 12.2% reduction in silver prices which resulted in a decline in billed silver surcharge of $472,805; and a reduction in selling price as some customers chose thinner silver products. While the Company makes every effort to minimize the risk inherent in the purchase and use of silver in its manufacturing processes, volatility in the market prices of silver will have an impact on earnings. Micron continues to invest in skilled people, newer technology, and research and development in order to improve manufacturing processes and product performance. These investments should enable the Company to increase market share and profitability.
"New orders and inquiries for our Predictor® software and its unique signal averaged electrocardiography technology have been very encouraging following the favorable results from the Multi-Center Study announced by the National Institutes of Health in May 2013. We expect that our investments in software enhancements and business development will continue to yield new opportunities and increase value for shareholders."
About Arrhythmia Research Technology, Inc.
The Company has developed and distributes customizable proprietary signal averaged electrocardiography software used to diagnose the risk of certain heart arrhythmias. The software is reconfigurable for a variety of hardware platforms. Also, 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 has diversified manufacturing capabilities with the capacity to participate in full product life cycle activities from early stage product development, engineering, and prototyping to full scale manufacturing as well as packaging and product fulfillment services.
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 our ability to retain customers who represent significant proportions of revenue; our ability to maintain our pricing model and/or decrease our cost of sales; our ability to increase sales of higher margin products and services; our ability to manage our level of debt and provisions in the debt agreements which could limit our ability to react to changes in the economy or our industry; failure to comply with financial and other covenants in our credit facility; volatility in commodity and energy prices and our ability to offset higher costs with price increases; continued availability of supplies or materials used in manufacturing at competitive prices; variability of customer delivery requirements; variations in the mix of products sold; a stable interest rate market and/or a stable currency rate environment in the world, and specifically the countries where we are doing business; amount and timing of investments in capital equipment, sales and marketing, engineering and information technology resources and our ability to offset higher costs with price increases. 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, 2012.
David A. Garrison
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