MOCON Inc. (MOCO, Financial) filed Quarterly Report for the period ended 2009-09-30.
Mocon Inc. is a leading provider of systems and services designed to assess materials and processes. The company develops, manufactures and markets high technology instrumentation and performs consulting and analytical services. Mocon markets to research laboratories, manufacturers, and Quality Control departments in the life sciences, pharmaceutical, drug discovery, food and beverage, polymer and adhesive, and the electronic and semiconductor industries, among others. (PRESS RELEASE) Mocon Inc. has a market cap of $45.4 million; its shares were traded at around $8.39 with a P/E ratio of 16.5 and P/S ratio of 1.5. The dividend yield of Mocon Inc. stocks is 4.3%. Mocon Inc. had an annual average earning growth of 14.7% over the past 5 years.
Research and Development Expenses Research and development (R&D) expenses were $470,000, or 7.1% of sales in the third quarter 2009, compared to $434,000, or 5.8% of sales, in the same period of 2008. R&D expenses were $1,440,000, or 7.5% of sales in the first nine months of 2009, compared to $1,461,000, or 6.5% of sales, in the same period of 2008. A significant portion of the resources expended in the third quarter 2009 and the year-to-date were related to the development of the OpTech-O2 Platinum oxygen analyzer.
Based on current projected annual operating results and current income tax rates, we expect the effective tax rate for the remainder of 2009 to be in the range of 33% to 36%. This rate fluctuates over time based on the income tax rates in the various jurisdictions in which we operate, and also the level of profits in those jurisdictions. Net Income Net income was $874,000 in the third quarter 2009, compared to $1,082,000 in the third quarter 2008. Diluted net income per share was $0.16 and $0.19 in the third quarters of 2009 and 2008, respectively. For the nine months ended September 30, 2009, net income was $1,788,000, or $0.32 per diluted share, compared to net income of $3,019,000, or $0.53 per diluted share in the prior year.
We have historically financed our operations, capital expenditures and other liquidity needs through our cash flows generated from operations. We have a commitment for a $5 million revolving line of credit to supplement current working capital requirements. This line would replace the prior commitment of $1 million and would be used to supplement our available cash on hand in the event we see a strategic use. Total cash, cash equivalents and marketable securities decreased $2,952,000 during the first nine months of 2009 to $13,157,000 as of September 30, 2009, compared to $16,109,000 at December 31, 2008. The primary reason for this decrease was due to the repurchase during the first three quarters of 2009 of an aggregate of 423,571 shares of our common stock for a total of $3,602,000. Our working capital as of September 30, 2009 increased $206,000 to $18,098,000, as compared to $17,893,000 at December 31, 2008. We invest our excess cash in marketable securities consisting primarily of
Cash Flow from Investing Activities Cash provided by (used in) investing activities totaled $3,693,000 and ($2,664,000) in the first nine months of 2009 and 2008, respectively. The primary reasons for cash provided by investing activities in 2009 were net proceeds from maturities of marketable securities of $4,058,000, offset somewhat by purchases of property and equipment, and patents and trademarks. We presently do not believe that any significant property, plant and equipment expenditures are required to accommodate our current level of operations.
Cash used in financing activities totaled $5,088,000 and $846,000 in the first nine months of 2009 and 2008, respectively. During the first nine months of 2009 we repurchased an aggregate of $3,602,000 of our common stock, $2,012,000 of which was in the third quarter. In addition, we made dividend payments to our shareholders of $1,493,000.
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Mocon Inc. is a leading provider of systems and services designed to assess materials and processes. The company develops, manufactures and markets high technology instrumentation and performs consulting and analytical services. Mocon markets to research laboratories, manufacturers, and Quality Control departments in the life sciences, pharmaceutical, drug discovery, food and beverage, polymer and adhesive, and the electronic and semiconductor industries, among others. (PRESS RELEASE) Mocon Inc. has a market cap of $45.4 million; its shares were traded at around $8.39 with a P/E ratio of 16.5 and P/S ratio of 1.5. The dividend yield of Mocon Inc. stocks is 4.3%. Mocon Inc. had an annual average earning growth of 14.7% over the past 5 years.
Highlight of Business Operations:
Comparison of Financial Results for the Three- and Nine-Month Periods Ended September 30, 2009 and 2008 Sales Sales for the three-month period ended September 30, 2009 were $6,601,000, down 11% compared to $7,429,000 for the same period in 2008. Although total sales in the current quarter were higher than the first and second quarters of 2009, the global economic slowdown continued to affect sales across most major product lines and foreign market regions. On a geographical basis, sales decreased 25% in our foreign markets, offset somewhat by an increase of 11% in our domestic markets. This increase in our domestic market was primarily due to a lower than normal quarter in the prior year. Domestic and foreign sales accounted for 47% and 53%, respectively, of our consolidated third quarter sales in 2009, and 38% and 62% of our consolidated sales, respectively, for the same period in 2008.Research and Development Expenses Research and development (R&D) expenses were $470,000, or 7.1% of sales in the third quarter 2009, compared to $434,000, or 5.8% of sales, in the same period of 2008. R&D expenses were $1,440,000, or 7.5% of sales in the first nine months of 2009, compared to $1,461,000, or 6.5% of sales, in the same period of 2008. A significant portion of the resources expended in the third quarter 2009 and the year-to-date were related to the development of the OpTech-O2 Platinum oxygen analyzer.
Based on current projected annual operating results and current income tax rates, we expect the effective tax rate for the remainder of 2009 to be in the range of 33% to 36%. This rate fluctuates over time based on the income tax rates in the various jurisdictions in which we operate, and also the level of profits in those jurisdictions. Net Income Net income was $874,000 in the third quarter 2009, compared to $1,082,000 in the third quarter 2008. Diluted net income per share was $0.16 and $0.19 in the third quarters of 2009 and 2008, respectively. For the nine months ended September 30, 2009, net income was $1,788,000, or $0.32 per diluted share, compared to net income of $3,019,000, or $0.53 per diluted share in the prior year.
We have historically financed our operations, capital expenditures and other liquidity needs through our cash flows generated from operations. We have a commitment for a $5 million revolving line of credit to supplement current working capital requirements. This line would replace the prior commitment of $1 million and would be used to supplement our available cash on hand in the event we see a strategic use. Total cash, cash equivalents and marketable securities decreased $2,952,000 during the first nine months of 2009 to $13,157,000 as of September 30, 2009, compared to $16,109,000 at December 31, 2008. The primary reason for this decrease was due to the repurchase during the first three quarters of 2009 of an aggregate of 423,571 shares of our common stock for a total of $3,602,000. Our working capital as of September 30, 2009 increased $206,000 to $18,098,000, as compared to $17,893,000 at December 31, 2008. We invest our excess cash in marketable securities consisting primarily of
Cash Flow from Investing Activities Cash provided by (used in) investing activities totaled $3,693,000 and ($2,664,000) in the first nine months of 2009 and 2008, respectively. The primary reasons for cash provided by investing activities in 2009 were net proceeds from maturities of marketable securities of $4,058,000, offset somewhat by purchases of property and equipment, and patents and trademarks. We presently do not believe that any significant property, plant and equipment expenditures are required to accommodate our current level of operations.
Cash used in financing activities totaled $5,088,000 and $846,000 in the first nine months of 2009 and 2008, respectively. During the first nine months of 2009 we repurchased an aggregate of $3,602,000 of our common stock, $2,012,000 of which was in the third quarter. In addition, we made dividend payments to our shareholders of $1,493,000.
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