Attached files
file | filename |
---|---|
8-K - 8-K - MOCON INC | a11-11560_18k.htm |
Exhibit 99.1
Press Release
|
For More Information Contact |
FOR IMMEDIATE RELEASE |
Darrell Lee, CFO/VP |
May 4, 2011 |
763-493-6370 / www.mocon.com |
MOCON Announces Strong Sales and Earnings for the First Quarter 2011
MINNEAPOLIS, MN, May 4, 2011 MOCON, Inc. (NasdaqGM:MOCO) today reported its operating results for the first quarter ended March 31, 2011.
Net sales for the first quarter 2011 were $9,074,000, an increase of 28 percent compared to $7,093,000 for the first quarter 2010. Operating income increased 96 percent to $2,053,000 for the first quarter 2011 compared to $1,045,000 for the same period last year. Net income for the first quarter 2011 was $1,317,000, a 43 percent increase compared to $922,000 in the first quarter 2010. Diluted earnings per share were $0.24 in the first quarter 2011 compared to $0.17 for the same period in 2010.
We experienced increased sales in all of our major product groups in the first quarter 2011 compared to first quarter 2010. The unprecedented volume of orders received in the latter part of 2010 resulted in a strong backlog, a large portion of which was shipped in the first quarter of 2011. Sales of our permeation instruments and services, which amounted to 62 percent of our consolidated sales in the first quarter 2011, increased 37 percent compared to the same period in 2010. This increase was reflected in both our domestic and foreign markets as both areas recorded double-digit growth. Sales of our gas analyzer instruments, sensors and detectors product group, which accounted for 17 percent of our consolidated sales in the first quarter 2011, increased 15 percent compared to the first quarter in 2010. Sales of total hydrocarbon instruments, primarily to air quality monitoring and oil and gas drilling applications, as well as stronger demand for OEM detectors, accounted for the majority of the increase. Sales of our packaging products and services, which accounted for 14 percent of our consolidated sales in the first quarter 2011, increased 16 percent compared to the same period in the prior year, and was due exclusively to higher shipments of headspace analyzers. During the first quarter 2011, we also began shipping our new GreenLight Model 910 instrument which is used for detecting food-borne pathogens in meats, dairy products, produce and seafood.
Our gross margins in the first quarter 2011 showed significant improvement over the same period in 2010 due primarily to a favorable sales mix, higher production volume and higher consulting and testing revenue over which to spread fixed costs. Our selling, general and administrative expenses were higher in the first quarter compared to the same quarter in the prior year primarily due to increased headcount, benefits and incentive compensation, and travel and marketing expense. Our research and development expenses in the first quarter 2011 were consistent with the same period in the prior year and were within our planned range of expenditures.
We are pleased to report another strong quarter for the Company. Our mainstay product line consisting of permeation instruments and services accounted for the vast majority of the sales increase, although we experienced growth in all four major product categories. Both our domestic and foreign markets showed a nice improvement for the quarter as it appears the economy has begun to stabilize. We are thrilled to note that we shipped our first GreenLight instruments in this quarter which we believe will solidify our position in the food safety market, commented Robert L. Demorest, MOCON President and CEO.
MOCON is a leading provider of detectors, instruments, systems and consulting services to research laboratories, production facilities, and quality control and safety departments in the medical, pharmaceutical, food and beverage, packaging, environmental, oil and gas and other industries worldwide. See www.mocon.com for more information.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements that can be identified by words such as will, may, expect, believe, anticipate, estimate, continue, or other similar expressions. All forward-looking statements speak only as of the date of this press release. MOCON undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and the markets in which the Company competes, there are important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements made in this press release. These factors include, but are not limited to, competition and technological change, worldwide economic and political stability, setbacks in product development programs, order cancellations, slower-than-anticipated customer acceptance of new products, dependence on certain key industries, risk associated with the Companys acquisition strategy and international operations, and other factors set forth in the Companys Annual Report on Form 10-K for the year ended December 31, 2010 and other documents MOCON files with or furnishes to the Securities and Exchange Commission.
MOCONs shares are traded on the Nasdaq Global Market System under the symbol MOCO.
MOCON is a registered trademark of MOCON, Inc.; other trademarks are those of their respective holders.
MOCON, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(in Thousands, Except Per Share Data)
INCOME STATEMENT DATA: (unaudited)
|
|
Quarters Ended March 31, |
| ||||
|
|
2011 |
|
2010 |
| ||
Sales |
|
|
|
|
| ||
Products |
|
$ |
8,190 |
|
$ |
6,457 |
|
Consulting services |
|
884 |
|
636 |
| ||
Total sales |
|
9,074 |
|
7,093 |
| ||
|
|
|
|
|
| ||
Cost of sales |
|
|
|
|
| ||
Products |
|
2,846 |
|
2,428 |
| ||
Consulting services |
|
413 |
|
339 |
| ||
Total cost of sales |
|
3,259 |
|
2,767 |
| ||
|
|
|
|
|
| ||
Gross profit |
|
5,815 |
|
4,326 |
| ||
|
|
|
|
|
| ||
Selling, general and administrative expenses |
|
3,205 |
|
2,733 |
| ||
Research and development expenses |
|
557 |
|
548 |
| ||
Operating income |
|
2,053 |
|
1,045 |
| ||
|
|
|
|
|
| ||
Other income |
|
12 |
|
270 |
| ||
Income before income taxes |
|
2,065 |
|
1,315 |
| ||
|
|
|
|
|
| ||
Income taxes |
|
748 |
|
393 |
| ||
|
|
|
|
|
| ||
NET INCOME |
|
$ |
1,317 |
|
$ |
922 |
|
|
|
|
|
|
| ||
Net income per common share: |
|
|
|
|
| ||
Basic |
|
$ |
0.25 |
|
$ |
0.18 |
|
Diluted |
|
$ |
0.24 |
|
$ |
0.17 |
|
|
|
|
|
|
| ||
Weighted average shares outstanding: |
|
|
|
|
| ||
Basic |
|
5,268 |
|
5,181 |
| ||
Diluted |
|
5,485 |
|
5,324 |
|
BALANCE SHEET DATA: (unaudited)
|
|
March 31, 2011 |
|
December 31, 2010 |
| ||
Assets: |
|
|
|
|
| ||
Cash and marketable securities |
|
$ |
8,726 |
|
$ |
8,014 |
|
Accounts receivable, net |
|
5,254 |
|
6,096 |
| ||
Inventories |
|
4,586 |
|
4,141 |
| ||
Other current assets |
|
1,013 |
|
1,148 |
| ||
Total current assets |
|
19,579 |
|
19,399 |
| ||
Marketable securities, noncurrent |
|
5,513 |
|
4,388 |
| ||
Property, plant and equipment, net |
|
2,958 |
|
2,843 |
| ||
Investment in affiliated company |
|
3,524 |
|
3,313 |
| ||
Other assets, net |
|
4,519 |
|
4,396 |
| ||
|
|
|
|
|
| ||
Total assets |
|
$ |
36,093 |
|
$ |
34,339 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders Equity: |
|
|
|
|
| ||
Total current liabilities |
|
$ |
5,874 |
|
$ |
5,632 |
|
Total noncurrent liabilities |
|
331 |
|
298 |
| ||
Stockholders equity |
|
29,888 |
|
28,409 |
| ||
|
|
|
|
|
| ||
Total liabilities and stockholders equity |
|
$ |
36,093 |
|
$ |
34,339 |
|