|By Business Wire||
|February 13, 2013 04:00 PM EST||
IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced financial results for its fourth quarter and year ended December 31, 2012.
For the 2012 fourth quarter, the company reported net sales of $16.7 million, an increase of 15.1 percent from the prior-year period. IntriCon had net income of $332,000, or $0.06 per diluted share, compared to a net loss of $(352,000), or $(0.06) per diluted share, for the 2011 fourth quarter.
“We are pleased to have delivered growth across all markets for both the quarter and year – in fact our body-worn device segment had a record year,” said Mark S. Gorder, president and chief executive officer of IntriCon.
“Our medical business posted its strongest revenue quarter ever, driven by increased activity from our largest customer, Medtronic, among others. In hearing health, our non-conventional personal sound amplifier products, drove modest quarterly growth despite continued softness in the conventional hearing health market. And in professional audio communications we delivered significant gains, with sales increasing 44 percent over the 2011 fourth quarter on strong demand for securities products domestically and headset products internationally.”
As a percentage of 2012 fourth-quarter sales, healthcare-related revenue (hearing health and medical combined) totaled 72.7 percent (32.8 percent hearing health and 39.9 percent medical), with professional audio communications at 27.3 percent. This compares to 2011 healthcare-related revenue of 78.2 percent (37.4 percent hearing health and 40.8 percent medical), with professional audio communications at 21.8 percent.
Gross profit margins increased to 23.5 percent from 23.1 percent in the prior-year fourth quarter. The gain was primarily due to higher sales volume, partially offset by an unfavorable product mix within the professional audio communications market.
Said Gorder, “As part of our margin enhancement program, we continued to transfer select, labor-intensive programs to our Singapore and Indonesia facilities during the fourth quarter. In an effort to drive further margin improvement and remain competitive from a cost standpoint, we will continue that shift in 2013. We’re also working to increase the percentage of proprietary IntriCon technology in all of our products by investing in our core technologies—this also will have a favorable effect on margins as we move through the 2013 year.”
IntriCon reduced its operating expenses in the fourth quarter 2.8 percent, despite higher sales, reflecting the company’s ongoing focus on expense management.
For the 2012 year, IntriCon reported net sales of $63.9 million and net income of $709,000, or $0.12 per diluted share. This is up from 2011 net sales of $56.1 million and a net loss of $(1.4 million), or $(0.25) per diluted share. Hearing health sales rose 13.2 percent over the prior year, with medical and professional audio up 6.7 percent and 29.4 percent, respectively. Included in 2012 full-year results was a one-time gain of $822,000, or $0.14 per diluted share, from the previously disclosed sale of the company’s 50-percent ownership interest in Global Coils, to its Switzerland-based joint venture partner, Audemars SA.
As a percentage of 2012 sales, healthcare-related revenue totaled 75.5 percent (37.2 percent hearing health and 38.3 percent medical), with professional audio communications at 24.5 percent. This compares to 2011 healthcare-related revenue of 78.4 percent (37.5 percent hearing health and 40.9 percent medical), with professional audio communications at 21.6 percent.
Gross profit margins for 2012 were 23.4 percent, up from 22.6 percent in the prior year, primarily due to volume increases, partially offset by an unfavorable product mix.
As previously disclosed, IntriCon satisfied hi HealthInnovations’ initial product ramp-up needs for hearing aids early in 2012. As a result, minimal new orders were received in the second half of 2012. The company remains optimistic about the long-term prospects of this program.
Said Gorder, “hi HealthInnovations continues to make progress building the infrastructure to provide high-quality, affordable hearing health care to a broad range of customers. During the year, UnitedHealthcare expanded its hi HealthInnovation' program to more than 26 million people enrolled in its employer-sponsored and individual health benefit plans. We expect that this will open up additional opportunities for IntriCon and that new orders will be received in the second half of 2013.”
Within IntriCon’s medical business, year-over-year sales rose 12.6 percent in the fourth quarter. The growth, as previously stated, was primarily due to increased activity from various large medical customers, most notably Medtronic. Near term, the company expects medical sales going forward to continue to strengthen.
On the cardiac front, IntriCon continues to deliver demo units of its two FDA-approved wireless cardiac diagnostic monitoring (CDM) devices—Centauri™ and Sirona™— to targeted customers to compile feedback. Additionally, the company is expanding its CDM sales and marketing infrastructure, to further advance its cardiac program and elevate its devices with market-demanded features.
Said Gorder, “Our technology connects patients and caregivers in non-traditional ways. We help shift the point of care from traditional settings such as hospitals, to non-traditional settings like the home. We accomplish this with devices that are more advanced, smaller and lightweight. In 2013, we will focus more capital and resources in sales and marketing to expand our reach to other large medical device manufacturers and healthcare companies.”
Within hearing health, IntriCon continues to experience softness in the conventional market. Said Gorder, “The 13.2 percent growth we experienced during the year came primarily from our hi HealthInnovations work, and non-conventional personal sound amplifier products. And in 2013, while we don’t anticipate hi HealthInnovations to ramp until the second half of the year, there are several growth opportunities that give us optimism for the longer term to strengthen our position as a supplier to the value hearing health market.
“First, we continue to develop new technology to improve the user experience. Our Audion6™, a six-channel hearing aid amplifier, is a notable example. Audion6 is a feature-rich amplifier that fits a wide array of applications and has a complete set of proven adaptive features.
“Second, hearing health technology is evolving beyond traditional hearing aid applications. Devices can now wirelessly stream music, television, audio or a companion’s voice—making them significantly more versatile and effective than traditional hearing devices. In addition, this technology and functionality holds great potential in the non-conventional personal sound amplifier market.”
Fourth-quarter professional audio communications sales remained very strong, up more than 44 percent from the prior-year period. The company completed delivery on its significant contract with the Singapore government during the quarter, providing technically advanced headsets to be worn in difficult listening environments. Professional audio sales going forward are expected to moderate to more historical levels.
Heightened Focus on Marketing
Said Gorder, “Over the past five years we have invested heavily in our technology portfolio and global manufacturing infrastructure. Better understanding customer and market needs, and evolving our technology portfolio to meet those needs, as well as developing new products and product platforms, is the next step in our strategic plan.
“To that end, we will be increasing investments in marketing and sales in 2013 to advance us down that path. That process has already begun and we expect to add additional staff and resources throughout the year to build customer relationships, market knowledge and sales.”
Concluded Gorder, “As a business, our primary goals are to build revenue, improve margins and grow our bottom line. We plan to do so by: placing a heightened focus on marketing; raising the percentage of proprietary IntriCon technology we incorporate in our products; and leveraging our low-cost manufacturing footprint.
“Consistent with historical revenue cycles we anticipate a more moderate 2013 first quarter in comparison to our 2012 fourth quarter. That being said, we are optimistic about our opportunities in 2013 and our ability to execute and deliver growth.”
Conference Call Today
As previously announced, the company will hold an investment community conference call today, Wednesday, February 13, 2013, beginning at 4:00 p.m. CT. Mark Gorder, president and chief executive officer, and Scott Longval, chief financial officer, will review fourth-quarter performance and discuss the company’s strategies. To join the conference call, dial: 1-877-941-6009 (international 1-480-629-9818) and provide the conference identification number 4596685 to the operator.
A replay of the conference call will be available one hour after the call ends through 11:59 p.m. CT on Tuesday, February 19, 2013. To access the replay, dial 1-800-406-7325 (international 1-303-590-3030) and enter access code: 4596685.
About IntriCon Corporation
Headquartered in Arden Hills, Minn., IntriCon Corporation designs, develops and manufactures miniature and micro-miniature body-worn devices. These advanced products help medical, healthcare and professional communications companies meet the rising demand for smaller, more intelligent and better connected devices. IntriCon has facilities in the United States, Asia and Europe. The company’s common stock trades under the symbol “IIN” on the NASDAQ Global Market. For more information about IntriCon, visit www.intricon.com.
Statements made in this release and in IntriCon’s other public filings and releases that are not historical facts or that include forward-looking terminology are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond IntriCon’s control, and may cause IntriCon’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2011. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.
|Consolidated Condensed Statements of Operations|
|(in thousands, except per share data)|
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,||December 31,||December 31,|
|Cost of sales||12,748||11,131||48,957||43,392|
|Sales and marketing||961||763||3,324||3,185|
|General and administrative||1,215||1,415||5,958||5,797|
|Research and development||1,181||1,276||4,694||4,876|
|Total operating expenses||3,357||3,454||13,976||13,858|
|Operating income (loss)||560||(111||)||1,000||(1,192||)|
|Equity in income (loss) of partnerships||(39||)||(143||)||(116||)||174|
|Gain on sale of investment in partnership||--||--||822||--|
|Other income (expense), net||(14||)||10||(78||)||42|
|Income (loss) from before income taxes||341||(422||)||873||(1,585||)|
|Income tax expense (benefit)||9||(70||)||164||(160||)|
|Net income (loss)||$||332||$||(352||)||$||709||$||(1,425||)|
|Net income (loss) per share:|
|Average shares outstanding:|
|Consolidated Condensed Balance Sheets|
|(in thousands, except per share data)|
|At December 31,||2012||2011|
|Accounts receivable, less allowance for doubtful accounts of $154 and $223 at December 31, 2012 and 2011, respectively||7,171||8,545|
|Refundable income taxes||--||82|
|Other current assets||1,483||652|
|Total current assets||20,560||21,658|
|Machinery and equipment||40,796||39,170|
|Less: Accumulated depreciation||34,012||32,164|
|Net machinery and equipment||6,784||7,006|
|Investment in partnerships||773||1,283|
|Other assets, net||1,306||1,074|
|Checks written in excess of cash||$||637||$||396|
|Current maturities of long-term debt||2,945||2,883|
|Accrued salaries, wages and commissions||1,786||1,617|
|Income taxes payable||96||--|
|Other accrued liabilities||2,048||1,907|
|Total current liabilities||11,667||13,451|
|Long-term debt, less current maturities||7,222||8,217|
|Other postretirement benefit obligations||590||685|
|Accrued pension liabilities||510||431|
|Other long-term liabilities||146||115|
|Commitments and contingencies|
|Common stock, $1.00 par value per share; 20,000 shares authorized; 5,687 and 5,646 shares issued and outstanding at December 31, 2012 and 2011, respectively.||
|Additional paid-in capital||15,797||15,259|
|Accumulated other comprehensive loss||(402||)||(390||)|
|Total shareholders' equity||18,722||17,446|
|Total liabilities and shareholders’ equity||$||39,132||$||40,730|
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 26, 2016 02:15 AM EDT Reads: 1,929
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 26, 2016 01:30 AM EDT Reads: 1,660
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 26, 2016 01:00 AM EDT Reads: 1,939
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 26, 2016 12:45 AM EDT Reads: 2,241
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 26, 2016 12:30 AM EDT Reads: 2,893
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aug. 25, 2016 11:45 PM EDT Reads: 2,272
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 25, 2016 10:15 PM EDT Reads: 1,710
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 25, 2016 09:15 PM EDT Reads: 2,195
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Aug. 25, 2016 05:15 PM EDT Reads: 689
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 25, 2016 03:30 PM EDT Reads: 1,494
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 25, 2016 02:00 PM EDT Reads: 3,552
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 25, 2016 01:00 PM EDT Reads: 3,899
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aug. 25, 2016 01:00 PM EDT Reads: 2,599
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 25, 2016 09:00 AM EDT Reads: 586
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Aug. 25, 2016 08:45 AM EDT Reads: 2,129
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 25, 2016 08:30 AM EDT Reads: 1,792
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Aug. 25, 2016 08:30 AM EDT Reads: 496
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Aug. 25, 2016 06:00 AM EDT Reads: 1,448
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 25, 2016 02:00 AM EDT Reads: 1,815
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 25, 2016 12:00 AM EDT Reads: 3,002