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10qk
10qk
Articles 

Angeion Corp. Reports Operating Results (10-Q)

September 13, 2013 | About:

Angeion Corp. (ANGN) filed Quarterly Report for the period ended 2013-07-31.

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Highlight of Business Operations:

Total revenues for the fiscal third quarter of 2013 were $7.9 million, an increase of 15% from $6.9 million in 2012. Operating expenses for the fiscal third quarter of 2013 were $3.7 million, a decrease of 7% from the same period in 2012. Net income for the three months ended July 31, 2013 was $652,000, or $0.16 per basic and diluted share, compared to a net loss of $(133,000), or $(0.03) per basic and diluted share, for the same period in 2012.

Selling and marketing expenses increased by 1% to $2.2 million for the three months ended July 31, 2013 from $2.1 million for the comparable period of fiscal 2012. Expenses as a percent of revenues decreased to 27.1%, compared to 30.9% for the same period last year. Expenses increased primarily due to increased selling commissions and group purchasing organization fees of $166,000, attributable to the 15% increase in revenues, increased travel, trade shows and meetings expenses of $39,000, and increased costs of new sales management tools of $26,000, offset by net personnel cost and incentive compensation decreases of $199,000.

Research and development expenses for the three months ended July 31, 2013 decreased by 28%, or $234,000, to $0.6 million compared to $0.8 million in the comparable period in fiscal 2012. Expenses as a percent of revenues decreased to 7.5%, compared to 12.0% for the same period last year. The decrease resulted primarily from $249,000 of reduced net personnel and consulting expenses and stock-based compensation costs, as consultants were replaced by full-time, internal personnel and executive personnel costs were reduced. These savings were partially offset by a $31,000 net increase in project-related costs from the Company’s expansion of its investment in new product hardware and software development. Internal software development costs capitalized totaled $153,000 and $216,000 in the three months ended July 31, 2013 and 2012, respectively.

General and administrative expenses for the nine months ended July 31, 2013 increased by 21%, or $617,000, to $3.6 million compared to $3.0 million in 2012. Expenses as a percent of revenues increased to 16.0%, compared to 15.8% for the same period last year. Much of the increase is due to the current year cost accruals versus prior year cost reversals. Management incentive accruals increased $166,000, compared to no expense for management incentives for the same period last year. Stock-based performance awards for management and non-employee consultants increased by $137,000 for fiscal 2013. Bad debt provisions increased $71,000, primarily related to foreign distributor receivables. The current year expense increase also included $267,000 related to corporate development initiatives.

Research and development expenses for the nine months ended July 31, 2013 decreased by 24%, or $577,000, to $1.9 million compared to $2.5 million in the comparable period in fiscal 2012. Expenses as a percent of revenues decreased to 8.3%, compared to 13.0% for the same period last year. The decrease resulted primarily from $732,000 of reduced net personnel and consulting expenses and stock-based compensation costs, as consultants were replaced by full-time, internal personnel and executive personnel costs were reduced. These savings were partially offset by a $162,000 net increase in project-related costs from the Company’s expansion of its investment in new product hardware and software development. Internal software development costs capitalized totaled $619,000 and $576,000 in the nine months ended July 31, 2013 and 2012, respectively. For the nine months ending July 31, 2013, the Company has invested approximately $1.3 million in new research and project development initiatives to ensure that its future product pipeline remains robust.

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10qk
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