Mesa Laboratories Inc. (MLAB, Financial) filed Quarterly Report for the period ended 2008-12-31.
MESA LABORATORIES INC. designs develops acquires manufactures and markets instruments and systems utilized in connection with industrial applications and hemodialysis therapy. Mesa Laboratories Inc. has a market cap of $63.92 million; its shares were traded at around $19.95 with a P/E ratio of 14.1 and P/S ratio of 3.27. The dividend yield of Mesa Laboratories Inc. stocks is 1.99%. Mesa Laboratories Inc. had an annual average earning growth of 21.6% over the past 5 years.
General and administrative expenses tend to be fairly fixed and stable from year-to-year. To the greatest extent possible, we work at containing and minimizing these costs. In the past year, we have been forced to add costs in this area to deal with the regulatory requirements of the Sarbanes - Oxley Act. Our initial phase of consulting to comply with the Act was completed during the first quarter of this fiscal year. Additionally, we have added a new Controller to our staff to allow us to meet these and other regulatory requirements. Beyond these cost increases for regulatory requirements, we have had to shift compensation costs previously allocated to sales and marketing to administration due to the on-going development of that staff as we grow. Thus, total administrative costs were $614,000 in the current quarter compared to $575,000 for the same quarter last year, and for the first nine months period administrative costs were $1,987,000 compared to $1,652,000 for the comparable period last year.
In dollars, selling costs were $785,000 in the third fiscal quarter and $688,000 in the same prior year quarter, and for the first nine months of the fiscal year selling costs were $2,299,000 compared to $2,161,000 in the same period last year. As a percent of sales, selling cost was 14.7% in the current quarter compared to 14.9% in the prior year quarter, and 14.3% in the current nine month period compared to 15.7% for the same period last year. On a quarterly basis, sales and marketing expense was increased from the prior year, but was in line with the revenue increase, while for the first nine months of fiscal 2009 we also experienced an increase in expense due chiefly to higher costs for the Datatrace sales and marketing effort, but again in line with the corresponding increase in revenue.
Company sponsored research and development cost was $151,000 during the third fiscal quarter and $136,000 during the previous year period. For the first nine months of fiscal 2009, research and development spending increased to $484,000 from $337,000 in the same period one year ago. We are currently implementing a strategy of increasing the flow of internally developed products. Late in the first quarter of the current fiscal year we introduced our new Datatrace Micropack RF product. Unlike previous versions of the Micropack line, this product allows real time radio transmission of data in addition to logging of data as the instrument moves through a process.
Net income increased eight percent to $1,216,000 or $.38 per share on a diluted basis during the quarter ended December 31, 2008 from $1,121,000 or $.34 per share on a diluted basis in the same period one year ago. For the first nine months of the fiscal year, net income has increased five percent to $3,586,000 or $1.11 per diluted share compared to $3,415,000 or $1.04 per diluted share in the same period last year. As previously discussed margins decreased during the quarter. Other factors impacting net income during the quarter included the increases in general and administrative costs and research and development costs which we also discussed earlier in this report. A final factor impacting net income this quarter is lower interest income on the Companys surplus cash due to a softening of interest rates over the past three quarters.
On December 31, 2008, we had cash and short term investments of $7,962,000. In addition, we had other current assets totaling $9,356,000 and total current assets of $17,318,000. Current liabilities of our Company were $1,374,000 which resulted in a current ratio of 13:1.
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MESA LABORATORIES INC. designs develops acquires manufactures and markets instruments and systems utilized in connection with industrial applications and hemodialysis therapy. Mesa Laboratories Inc. has a market cap of $63.92 million; its shares were traded at around $19.95 with a P/E ratio of 14.1 and P/S ratio of 3.27. The dividend yield of Mesa Laboratories Inc. stocks is 1.99%. Mesa Laboratories Inc. had an annual average earning growth of 21.6% over the past 5 years.
Highlight of Business Operations:
Net sales for the first nine months of fiscal 2009 increased 17 percent from fiscal 2008. In real dollars, net sales of $16,071,000 in fiscal 2009 increased $2,303,000 from $13,768,000 in 2008.General and administrative expenses tend to be fairly fixed and stable from year-to-year. To the greatest extent possible, we work at containing and minimizing these costs. In the past year, we have been forced to add costs in this area to deal with the regulatory requirements of the Sarbanes - Oxley Act. Our initial phase of consulting to comply with the Act was completed during the first quarter of this fiscal year. Additionally, we have added a new Controller to our staff to allow us to meet these and other regulatory requirements. Beyond these cost increases for regulatory requirements, we have had to shift compensation costs previously allocated to sales and marketing to administration due to the on-going development of that staff as we grow. Thus, total administrative costs were $614,000 in the current quarter compared to $575,000 for the same quarter last year, and for the first nine months period administrative costs were $1,987,000 compared to $1,652,000 for the comparable period last year.
In dollars, selling costs were $785,000 in the third fiscal quarter and $688,000 in the same prior year quarter, and for the first nine months of the fiscal year selling costs were $2,299,000 compared to $2,161,000 in the same period last year. As a percent of sales, selling cost was 14.7% in the current quarter compared to 14.9% in the prior year quarter, and 14.3% in the current nine month period compared to 15.7% for the same period last year. On a quarterly basis, sales and marketing expense was increased from the prior year, but was in line with the revenue increase, while for the first nine months of fiscal 2009 we also experienced an increase in expense due chiefly to higher costs for the Datatrace sales and marketing effort, but again in line with the corresponding increase in revenue.
Company sponsored research and development cost was $151,000 during the third fiscal quarter and $136,000 during the previous year period. For the first nine months of fiscal 2009, research and development spending increased to $484,000 from $337,000 in the same period one year ago. We are currently implementing a strategy of increasing the flow of internally developed products. Late in the first quarter of the current fiscal year we introduced our new Datatrace Micropack RF product. Unlike previous versions of the Micropack line, this product allows real time radio transmission of data in addition to logging of data as the instrument moves through a process.
Net income increased eight percent to $1,216,000 or $.38 per share on a diluted basis during the quarter ended December 31, 2008 from $1,121,000 or $.34 per share on a diluted basis in the same period one year ago. For the first nine months of the fiscal year, net income has increased five percent to $3,586,000 or $1.11 per diluted share compared to $3,415,000 or $1.04 per diluted share in the same period last year. As previously discussed margins decreased during the quarter. Other factors impacting net income during the quarter included the increases in general and administrative costs and research and development costs which we also discussed earlier in this report. A final factor impacting net income this quarter is lower interest income on the Companys surplus cash due to a softening of interest rates over the past three quarters.
On December 31, 2008, we had cash and short term investments of $7,962,000. In addition, we had other current assets totaling $9,356,000 and total current assets of $17,318,000. Current liabilities of our Company were $1,374,000 which resulted in a current ratio of 13:1.
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