SAINT PAUL, Minn., Jan. 6, 2016 /PRNewswire/ -- MGC Diagnostics Corporation (NASDAQ: MGCD), a global medical technology company, today reported financial results for the fourth quarter and the fiscal year 2015, ended October 31, 2015.
Fiscal Year 2015 and Fourth Quarter Highlights:
- Total fiscal year 2015 revenues grew 24.9% to $37.5 million, from $30.0 million in fiscal 2014. Fourth quarter 2015 revenue increased by 9.3% to $10.6 million, compared to $9.7 million in the prior year period.
- Fiscal year 2015 operating income was $1.6 million, compared to an operating loss of ($811,000) for fiscal 2014. Operating income for the fourth quarter 2015 was $883,000 compared to an operating loss of ($95,000) in the fiscal 2014 fourth quarter.
- Net income for fiscal year 2015 was $4.0 million, or $0.94 per diluted share, compared to a net loss of $1.2 million, or ($0.28) per share for fiscal 2014. For the fourth quarter 2015 the Company reported net income of $1.0 million, or $0.24 per diluted share, compared to a net loss of ($336,000), or ($0.08) per diluted share in the prior year period.
- Fiscal year 2015 domestic equipment and accessories revenues included 66 competitive conversions contributing $3.0 million in revenue, compared to 48 competitive conversions contributing $2.9 million in revenue during fiscal 2014.
- The Attachment Rate, which reflects the percentage of Extended Service Contracts added at the point of sale to customer equipment purchases, was 32% for both fiscal 2015 and 2014.
- Fiscal 2015 domestic equipment, supplies and accessories revenues from Medical Graphics increased 12.7% to $19.5 million, compared to $17.3 million for fiscal 2014. Medisoft contributed domestic revenues of $558,000 from its U.S. distributor.
- Gross margin for the fiscal year was 51.6% (54.1% for Medical Graphics and 36.7% for Medisoft), compared to 55.0% in fiscal 2014 (56.1% for Medical Graphics and 28.7% for Medisoft). Fourth quarter 2015 gross margin was 52.4%, including gross margin for Medical Graphics and Medisoft of 53.8% and 42.6%, respectively.
- Sales backlog going into fiscal year 2016 was $2.6 million ($2.3 million for Medical Graphics and $293,000 for Medisoft), an all-time high, compared to $1.9 million at the end of fiscal year 2014.
“We are very pleased with our record fourth quarter and fiscal year 2015 financial results,” said Todd Austin, chief executive officer of MGC Diagnostics. “Our Medical Graphics subsidiary experienced one of its best operating quarters in the Company’s history by posting revenue of $9.2 million and operating income of $1.0 million. Medical Graphics’ fiscal year 2015 results were just as impressive with revenue of $32.0 million, the best result since 2007, and operating income of $2.7 million, the most profitable year on record.”
“In addition, Medical Graphics started the first quarter of fiscal year 2016 with a sales backlog of $2.3 million, the best start to a new year since 2007. These results could not have been accomplished without the dedication and hard work of all of our employees. I am particularly proud of the performance of our selling team and their contribution to our fiscal 2015 success,” said Mr. Austin.
Additional Fiscal 2015 Fourth Quarter Data:
- Gross margin for the quarter was 52.4% (53.8% for Medical Graphics and 42.6% for Medisoft), compared to 52.9% in the fiscal 2014 fourth quarter (56.6% for Medical Graphics and 28.7% for Medisoft). Gross margin for equipment, supplies and accessories was 48.8% for the quarter (50.0% for Medical Graphics and 42.6% for Medisoft), compared to 49.1% in the prior year’s quarter (53.1% for Medical Graphics and 28.7% for Medisoft). Gross margin for services was 69.3% for the quarter, compared to 69.3% for the same period last year.
- Fourth quarter 2015 general and administrative expenses totaled $1.4 million, or 13.4% of revenue, compared to $1.7 million, or 17.8% of revenue in the comparable quarter last year. This decrease is due to lower Medical Graphics general and administrative expenses of $350,000, partially offset by higher Medisoft general and administrative expenses of $44,000.
- Sales and marketing expenses were $2.5 million, or 23.4% of revenue, compared to $2.6 million, or 27.1% of revenue in the 2014 fourth quarter. This decrease is due to lower Medisoft sales and marketing expenses of $273,000, partially offset by higher Medical Graphics sales and marketing expenses of $130,000.
- Research and development expenses were $693,000, or 6.6% of revenue in the fiscal 2015 fourth quarter, down from $791,000, or 8.2% of revenue in last year’s fourth quarter. This decrease is primarily due to lower Medical Graphics research and development expenses of $116,000, partially offset by higher Medisoft research and development expenses of $18,000.
Additional Full Year 2015 Data:
- Total fiscal year 2015 revenues grew 24.9% to $37.5 million compared to $30.0 million in fiscal 2014. Medical Graphics’ revenue grew 11.6% in fiscal 2015 and Medisoft’s revenue grew 324.6% due to a full year of revenue in fiscal 2015, compared to one quarter of revenue in fiscal 2014.
Operating income was $1.6 million, compared to an operating loss of ($811,000) for fiscal 2014.
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