Technitrol Inc. (TNL, Financial) filed Quarterly Report for the period ended 2011-09-30.
Technitrol Inc. has a market cap of $635.43 million; its shares were traded at around $0 with a P/E ratio of 12. The dividend yield of Technitrol Inc. stocks is 2.4%.
Discontinued operations. Net (loss) earnings from discontinued operations was ($0.3) million and $6.2 million in the three months ended September 30, 2011 and October 1, 2010, respectively. During the three months ended October 1, 2010, our results from discontinued operations included a gain recorded upon the completion of the sale of our Electrical business and a gain recorded on the Medtech divestiture as a result of settling an unresolved matter that existed at the date of sale. During the three months ended September 30, 2011, we incurred $0.3 million of costs in connection with the Electrical sale to reimburse the buyer for certain contingent costs that we were obligated to pay under the sale agreement.
Gross profit. Our consolidated gross margin for the nine months ended September 30, 2011 was 22.6% as compared to 25.2% for the nine months ended October 1, 2010. The decrease in our gross profit during the nine months ended September 30, 2011 was primarily the result of lower demand in Network and Wireless, higher wage rates, higher raw material costs, and price concessions for certain Network products. Partially offsetting these decreases to our gross profit was increased demand in Power products and the continued migration of our manufacturing to existing facilities located in lower cost areas in central China.
Our RD&E spending tends to develop at a rate which is less dramatic than our sales changes. Due to decreased sales levels experienced in the nine months ended September 30, 2011, our RD&E as a percentage of sales increased. We believe that future sales in the electronic components markets will be driven by next-generation products. As a result, design and development activities with our OEM customers continue at an aggressive pace that is consistent with market activity. Also, included in RD&E expense for both the nine months ended September 30, 2011 and October 1, 2010 was approximately $0.8 million and $1.9 million of legal expenses, respectively, which we incurred in connection with the patent lawsuit filed by Halo Electronics. Refer to further discussion in Note 7, Commitments and contingencies.
Discontinued Operations. Net earnings from discontinued operations were approximately $0.3 million during the nine months ended September 30, 2011 as compared to a loss of approximately $9.0 million in the nine months ended October 1, 2010. During the nine months ended September 30, 2011, we recorded $0.6 million of income to reflect updated estimates of the net proceeds we expect to receive upon the disposition of the remaining operations of Electrical, partially offset by $0.3 million of costs incurred in connection with the Electrical sale to reimburse the buyer for certain contingent costs that we were obligated to pay under the sale agreement.
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Technitrol Inc. has a market cap of $635.43 million; its shares were traded at around $0 with a P/E ratio of 12. The dividend yield of Technitrol Inc. stocks is 2.4%.
Highlight of Business Operations:
Our RD&E spending as a percentage of sales in the quarter ended September 30, 2011 is consistent with the quarter ended October 1, 2010. We believe that future sales in the electronic components markets will be driven by next-generation products. As a result, design and development activities with our OEM customers continue at an aggressive pace that is consistent with market activity. Also, included in RD&E expense for both the three months ended September 30, 2011 and October 1, 2010 was approximately $0.1 million and $0.5 million of legal expenses, respectively, which we incurred in connection with the patent lawsuit filed by Halo Electronics. Refer to further discussion in Note 7, Commitments and contingencies.Discontinued operations. Net (loss) earnings from discontinued operations was ($0.3) million and $6.2 million in the three months ended September 30, 2011 and October 1, 2010, respectively. During the three months ended October 1, 2010, our results from discontinued operations included a gain recorded upon the completion of the sale of our Electrical business and a gain recorded on the Medtech divestiture as a result of settling an unresolved matter that existed at the date of sale. During the three months ended September 30, 2011, we incurred $0.3 million of costs in connection with the Electrical sale to reimburse the buyer for certain contingent costs that we were obligated to pay under the sale agreement.
Gross profit. Our consolidated gross margin for the nine months ended September 30, 2011 was 22.6% as compared to 25.2% for the nine months ended October 1, 2010. The decrease in our gross profit during the nine months ended September 30, 2011 was primarily the result of lower demand in Network and Wireless, higher wage rates, higher raw material costs, and price concessions for certain Network products. Partially offsetting these decreases to our gross profit was increased demand in Power products and the continued migration of our manufacturing to existing facilities located in lower cost areas in central China.
Our RD&E spending tends to develop at a rate which is less dramatic than our sales changes. Due to decreased sales levels experienced in the nine months ended September 30, 2011, our RD&E as a percentage of sales increased. We believe that future sales in the electronic components markets will be driven by next-generation products. As a result, design and development activities with our OEM customers continue at an aggressive pace that is consistent with market activity. Also, included in RD&E expense for both the nine months ended September 30, 2011 and October 1, 2010 was approximately $0.8 million and $1.9 million of legal expenses, respectively, which we incurred in connection with the patent lawsuit filed by Halo Electronics. Refer to further discussion in Note 7, Commitments and contingencies.
Discontinued Operations. Net earnings from discontinued operations were approximately $0.3 million during the nine months ended September 30, 2011 as compared to a loss of approximately $9.0 million in the nine months ended October 1, 2010. During the nine months ended September 30, 2011, we recorded $0.6 million of income to reflect updated estimates of the net proceeds we expect to receive upon the disposition of the remaining operations of Electrical, partially offset by $0.3 million of costs incurred in connection with the Electrical sale to reimburse the buyer for certain contingent costs that we were obligated to pay under the sale agreement.
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