I'm in 9.8 Nov 1, 2005 4:01:02 PM
SALT LAKE CITY, Nov 01, 2005 (BUSINESS WIRE) --
ZEVEX International Inc. (Nasdaq: ZVXI) reported record financial results for the three and nine months ending Sept. 30, 2005.
Net income for the third quarter ending Sept. 30, 2005, was a record $785,483, or $0.22 per share, compared with a net loss of $294,721, or ($0.09) per share, for the same period of 2004. For the nine-month period ending Sept. 30, 2005, net income was a record $999,104, or $0.28 per share, compared with $106,952, or $0.03 per share, for the same period of 2004.
Revenue for the third quarter ending Sept. 30, 2005, increased 52 percent to $8.1 million, compared with $5.3 million for the third quarter of 2004. For the nine-month period ending Sept. 30, 2005, revenue grew by 18 percent to $20.9 million, compared with $17.8 million for the same period of 2004.
ZEVEX CEO and President David McNally said, "Sales were very strong in both of our divisions during the third quarter. Our Applied Technology division produced revenue of $3.4 million, a 44 percent gain over third quarter 2004 revenue of $2.3 million. Applied Technology division sales were substantially higher this quarter due to strong demand from two of our largest customers.
"In addition, our Therapeutics division produced revenue of $4.7 million, a 59 percent gain over third quarter 2004 revenue of $3.0 million. The international revenue from our Therapeutics division increased more than sixfold over last year's third quarter, primarily based upon sales to Numico, our exclusive distributor for a private-label version of our newest, most advanced enteral feeding pump, the EnteraLite(R) Infinity(R), that provides patients in hospitals, nursing homes, or at home with the lightest, most accurate, and longest lasting, battery-operated pump available in Europe. Also, growth in our domestic ambulatory pump and disposable set sales led to a 14 percent increase in revenue from our Therapeutics division during this year's third quarter," concluded McNally. McNally further stated that the company has added a second production shift in order to support forecasted demand for the company's products.
Gross profit for the third quarter increased to 38 percent, compared with 34 percent in the same quarter of 2004, primarily due to the product mix delivered during the quarter. Operating expenses continued to decline as a percent of sales to 28 percent for the third quarter of 2005, compared with 40 percent for the same quarter of 2004. Selling, general and administrative expenses were 24 percent of sales for the third quarter of 2005, compared with 32 percent for the same quarter of 2004. Research and development expenses for the third quarter of 2005 were 4 percent of sales, compared with 8 percent of sales for the same quarter of 2004. Operating income for the third quarter of 2005 was 10 percent of sales, compared with a loss for the same quarter of 2004.
For both the nine-month periods ended Sept. 30, 2005 and 2004, gross profit was 37 percent. Operating expenses for the first nine months of 2005 were 32 percent of sales, compared with 36 percent of sales for the same period of 2004. Selling, general and administrative expenses were 27 percent of sales for the nine-month period of 2005, compared with 30 percent for the same period of 2004. R&D expenditures were 4 percent of sales for the first nine months of 2005, compared with 6 percent of sales for the same period of 2004. For the nine-month period ended Sept. 30, 2005, operating income was 5 percent of sales, compared with 1 percent of sales for the same period of 2004.
McNally added, "We are very encouraged by this quarter's performance. The reductions in operating expenses expressed as a percentage of sales for the third quarter and first nine months of 2005 compared to the same periods of 2004 indicate that we have been able to generate more sales without proportionally increasing overhead expenses. This operating leverage is a tribute to our management team and all our employees who are exercising budget control while driving sales growth."
CONFERENCE CALL
ZEVEX International Inc. invites all those interested to join the ZEVEX management team for its earnings conference call for the third quarter ended Sept. 30, 2005. The call will be held Tuesday, Nov. 1, 2005, at 4:30 p.m. EDT (3:30 p.m. Central, 2:30 p.m. Mountain, 1:30 p.m. Pacific). The telephone numbers for the call are as follows:
AI
