- First quarter net sales were $5.9 million
- Generated $275 thousand of cash from operations in the first quarter
FITCHBURG, Mass., May 13, 2015 (GLOBE NEWSWIRE) — Arrhythmia Research Technology, Inc. (NYSE MKT:HRT) (the “Company”), through its wholly-owned subsidiary, Micron Products, Inc., a diversified contract manufacturing organization that produces highly-engineered, innovative medical device technologies requiring precision machining and injection molding, announced today results for its first quarter ended March 31, 2015.
Salvatore Emma, Jr., President and CEO, commented, “In the quarter, we reported a 25.6% increase in net sales of automotive and molded medical components, as well as a 19.7% increase in sensors’ sales volume. However, our operating results were adversely impacted by a measurable drop in the average market price of silver, production delays and the fact that the comparable prior-year quarter benefitted from a $250,000 final sale of Predictor licenses, which dropped directly to gross profit.”
Mr. Emma added, “We also invested aggressively in quality, manufacturing systems and process improvements in the quarter and are very encouraged by the progress we are making year over year. As we ramped up for higher demand of orthopedic implant components, we encountered production delays. These challenges have been addressed and production volume improved measurably in the latter part of March. We expect that the investments we are making in manufacturing capacity and talented people will enable us to take full advantage of increased demand for our contract manufacturing services.”
First Quarter 2015 Review
Net sales for the first quarter of 2015 were $5.9 million compared with $6.0 million in the prior-year period. Increased net sales of custom thermoplastic injection molded products and 6.8% higher net sales of sensors nearly offset the 29.7% lower net sales in orthopedic implant components. Despite higher sensor volume, the silver surcharge billed was lower due to a 17.8% decline in the average price of silver over the prior-year period. Shipments of orthopedic implant components were delayed due to previously noted production challenges. The prior-year first quarter benefitted from $250 thousand in sales of Predictor licenses.
