|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|
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Oct. 27, 2016 10:15 AM EDT Reads: 1,395
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Oct. 27, 2016 10:15 AM EDT Reads: 3,198
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 27, 2016 10:02 AM EDT Reads: 117
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 27, 2016 09:15 AM EDT Reads: 2,156
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 27, 2016 08:45 AM EDT Reads: 11,585
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...
Oct. 27, 2016 07:00 AM EDT Reads: 5,020
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Oct. 27, 2016 07:00 AM EDT Reads: 4,935
SYS-CON Events announced today that Streamlyzer 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. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 27, 2016 06:45 AM EDT Reads: 1,092
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Oct. 27, 2016 06:45 AM EDT Reads: 1,066
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 27, 2016 05:45 AM EDT Reads: 1,270
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 27, 2016 05:30 AM EDT Reads: 1,216
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 27, 2016 04:45 AM EDT Reads: 2,885
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
Oct. 27, 2016 04:00 AM EDT Reads: 783
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Oct. 27, 2016 03:45 AM EDT Reads: 773
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
Oct. 27, 2016 03:45 AM EDT Reads: 1,115
“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. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
Oct. 27, 2016 03:45 AM EDT Reads: 1,514
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Oct. 27, 2016 03:30 AM EDT Reads: 3,863
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Oct. 27, 2016 03:00 AM EDT Reads: 2,702
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Oct. 27, 2016 02:45 AM EDT Reads: 1,601
SYS-CON Events announced today that SoftNet Solutions 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. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
Oct. 27, 2016 02:15 AM EDT Reads: 1,141