Click here to close now.




















Welcome!

News Feed Item

MOCON Third Quarter 2012 Revenue Increases 30 Percent

MOCON, Inc. (NASDAQ: MOCO) today reported sales of $12.3 million for the third quarter ended September 30, 2012, an increase of 30 percent compared to $9.5 million in the same quarter in 2011. This increase was due primarily to the addition of $4.2 million in sales from PBI-Dansensor A/S, which was acquired on April 2, 2012.

The net income for the current quarter was $493,000, or $0.09 per diluted share, compared to net income of $1.5 million or $0.27 per diluted share, in the third quarter of 2011. After giving effect to certain pro forma adjustments related to the acquisition of Dansensor and non-cash stock option expenses, the company’s earnings totaled $760,000, or $0.13 per diluted share, versus $0.28 per diluted share in the comparable period of 2011. A full reconciliation between GAAP and non-GAAP financial measures reflecting the impact of certain discrete items relating to the Dansensor acquisition and non-cash stock option expense is included with the company’s financial tables.

Gross margin of 55 percent in the quarter was lower than the company’s historical levels. This was primarily due to the lower sales of permeation products which historically carries the highest margin, as well as the recognition of costs relating to the amortization of intangible assets arising out of the Dansensor acquisition. Selling, general and administrative expenses in the third quarter 2012 included costs incurred in connection with the closing of Dansensor’s New Jersey office as well as higher salaries and professional fees compared to the prior year.

“We are pleased to report that sales in our Industrial Analyzer and Package Testing segments showed nice increases in the current quarter compared to the prior year which more than offset a decline in our Permeation segment,” said Robert L. Demorest, MOCON President and CEO. “The oil and gas exploration and environmental monitoring markets were strong contributors to the growth in the Industrial Analyzer segment in the current quarter, and our customers in the Package Testing segment are now benefitting from a broader product selection in the MAP (modified atmosphere packaging) area as we continue to integrate Dansensor’s products with our existing instruments.”

Nine-month sales totaled $34.7 million, an increase of 26 percent compared to $27.6 million during the first nine months of 2011. Net income and diluted earnings per share were $1.2 million and $0.21, respectively, for the first nine months of 2012, compared to $4.1 million and $0.73 for the same period in 2011. After giving effect to certain pro forma adjustments related to the acquisition of Dansensor and non-cash stock option expenses, the company’s earnings totaled $2.8 million, or $0.49 per diluted share, versus $4.3 million, or $0.77 per diluted share in the comparable period of 2011.

About MOCON

MOCON is a leading provider of detectors, instruments, systems and consulting services to research laboratories, production facilities, and quality control and safety departments in the medical, pharmaceutical, food and beverage, packaging, environmental, oil and gas and other industries worldwide. See www.mocon.com for more information.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements that can be identified by words such as “will,” “may,” “expect,” “believe,” “anticipate,” “estimate,” “continue,” or other similar expressions. All forward-looking statements speak only as of the date of this press release. MOCON undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. In addition to the risks and uncertainties of ordinary business operations and conditions in the general economy and the markets in which the company competes, there are important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements made in this press release. These factors include, but are not limited to, the integration and performance of Dansensor, competition and technological change, worldwide economic and political stability, setbacks in product development programs, order cancellations, dependence on certain key industries, and other factors set forth in the company’s Annual Report on Form 10-K for the year ended December 31, 2011 and other documents MOCON files with or furnishes to the Securities and Exchange Commission.

MOCON's shares are traded on the NASDAQ Global Market System under the symbol MOCO.

MOCON is a registered trademark of MOCON, Inc.; other trademarks are those of their respective holders.

 
MOCON, INC.
SUMMARY CONSOLIDATED FINANCIAL DATA
(in Thousands, Except Per Share Data)
 

INCOME STATEMENT DATA: (unaudited)

       
Quarters Ended September 30, Nine Months Ended September 30,
2012   2011 2012   2011
Sales
Products $ 11,589 $ 8,722 $ 32,517 $ 25,281
Consulting services 717   741   2,172 2,338
Total sales 12,306   9,463   34,689 27,619
 
Cost of sales
Products 5,120 3,075 14,509 9,016
Consulting services 473   411   1,324 1,231
Total cost of sales 5,593   3,486   15,833 10,247
 
Gross profit 6,713 5,977 18,856 17,372
 

Selling, general and administrative

expenses

5,104

3,131

14,482

9,485

Research and development expenses 844   597   2,610 1,841
Operating income 765 2,249 1,764 6,046
 
Other income (expense), net (25 ) (6 ) 117 42
Income before income taxes 740 2,243 1,881 6,088
 
Income tax expense 247   726   709 2,030
 
NET INCOME $ 493   $ 1,517   $ 1,172 $ 4,058
 
Net income per common share:
Basic $ 0.09 $ 0.28 $ 0.21 $ 0.76
Diluted $ 0.09 $ 0.27 $ 0.21 $ 0.73
 
Weighted average common shares

outstanding:

Basic 5,478 5,366 5,467 5,315
Diluted 5,683 5,629 5,695 5,554
 
 

BALANCE SHEET DATA: (unaudited)

   
September 30, 2012 December 31, 2011
Assets:
Cash and marketable securities $ 8,689 $ 12,731
Accounts receivable, net 8,033 4,777
Inventories 6,525 4,480
Other current assets 1,828 1,369
Total current assets 25,075 23,357
Marketable securities, noncurrent 457 5,799
Property, plant and equipment, net 5,188 3,175
Investment in affiliated company 3,215 3,237
Goodwill, intangibles and other assets 21,115 4,137
 
Total assets $ 55,050 $ 39,705
 
Liabilities and Stockholders’ Equity:
Notes payable, current $ 6,999 $ 0
Other current liabilities 7,527 6,140
Total noncurrent liabilities 7,807 325
Stockholders’ equity 32,717 33,240
 
Total liabilities and stockholders’ equity $ 55,050 $ 39,705
 

Non-GAAP Discussion

The information discussed within this release includes financial results that are in accordance with accounting principles generally accepted in the United States (GAAP). In addition, certain non-GAAP financial measures have been provided that exclude certain charges and expenses. The non-GAAP measures should be read in conjunction with the corresponding GAAP measures and should be considered in addition to, and not as an alternative or substitute for, the measures prepared in accordance with GAAP. The non-GAAP financial measures are provided in an effort to provide information that investors may deem relevant to evaluate results from the company’s core business operations and to compare the company’s performance with prior periods. The non-GAAP financial measures identify and exclude the following discrete items: Dansensor transaction-related expenses, amortization expenses and expenses associated with stock-based compensation required under ASC 718.

 

MOCON, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
 
Three Months Ended       Three Months Ended
September 30,       September 30, September 30,       September 30,
2012 2012 2011 2011
As Reported   Adjustments       Non-GAAP As Reported   Adjustments       Non-GAAP
Sales
Products $ 11,589 $ - $ 11,589 $ 8,722 $ - $ 8,722
Consulting services   717     -   717   741     -   741
Total sales   12,306     -   12,306   9,463     -   9,463
 
Cost of sales
Products 5,120 (201) (a) 4,919 3,075 - 3,075
Consulting services   473     -   473   411     -   411
Total cost of sales   5,593     (201)   5,392   3,486     -   3,486
 
Gross profit 6,713 201 6,914 5,977 - 5,977
 
Selling, general and administrative expenses 5,104 (200) (a), (b), (c) 4,904 3,131 (97) (c) 3,034
Research and development expenses   844     -   844   597     -   597
Operating income 765 401 1,166 2,249 97 2,346
 
Other income (expense), net   (25)     -   (25)   (6)     -   (6)
Income before income taxes 740 401 1,141 2,243 97 2,340
 
Income tax expense   247     134 (d)   381   726     31 (d)   757
 
NET INCOME $ 493   $ 267 $ 760 $ 1,517   $ 66 $ 1,583
 
Net income per common share:
Basic $ 0.09 $ 0.05 $ 0.14 $ 0.28 $ 0.01 $ 0.29
Diluted $ 0.09 $ 0.04 $ 0.13 $ 0.27 $ 0.01 $ 0.28
 
Weighted average common shares:
Basic 5,478 5,478 5,366 5,366
Diluted 5,683 5,683 5,629 5,629
 
(a)       Represents the amortization of intangible assets associated with the Dansensor acquisition: Cost of sales - $201, SG&A - $69.
(b) Represents the acquisition costs associated with the purchase of Dansensor - $14.
(c) Represents non-cash stock-based compensation expense - $117 in 2012; $97 in 2011.
(d) Represents the tax expense related to non-GAAP adjustments.
 
 

MOCON, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
 
  Nine Months Ended       Nine Months Ended
September 30,       September 30, September 30,       September 30,

2012

2012 2011 2011
As Reported   Adjustments       Non-GAAP As Reported   Adjustments       Non-GAAP
Sales
Products $ 32,517 $ - $ 32,517 $ 25,281 $ - $ 25,281
Consulting services   2,172     -   2,172   2,338     -   2,338
Total sales   34,689     -   34,689   27,619     -   27,619
 
Cost of sales
Products 14,509 (1,276) (a),(b) 13,233 9,016 - 9,016
Consulting services   1,324     -   1,324   1,231     -   1,231
Total cost of sales   15,833     (1,276)   14,557   10,247     -   10,247
 
Gross profit 18,856 1,276 20,132 17,372 - 17,372
 
Selling, general and administrative expenses 14,482 (1,278) (b),(c),(d) 13,204 9,485 (292) (d) 9,193
Research and development expenses   2,610     -   2,610   1,841     -   1,841
Operating income 1,764 2,554 4,318 6,046 292 6,338
 
Other income, net   117     -   117   42     -   42
Income before income taxes 1,881 2,554 4,435 6,088 292 6,380
 
Income tax expense   709     963 (e)   1,672   2,030     97 (e)   2,127
 
NET INCOME $ 1,172   $ 1,591 $ 2,763 $ 4,058   $ 195 $ 4,253
 
Net income per common share:
Basic $ 0.21 $ 0.30 $ 0.51 $ 0.76 $ 0.04 $ 0.80
Diluted $ 0.21 $ 0.28 $ 0.49 $ 0.73 $ 0.04 $ 0.77
 
Weighted average common shares:
Basic 5,467 5,467 5,315 5,315
Diluted 5,695 5,695 5,554 5,554
 
(a)       Represents the revaluation of Dansensor inventory at the time of acquisition - $865. This revaluation will not occur again in the future.
(b) Represents the amortization of intangible assets associated with the Dansensor acquisition: Cost of sales - $411, SG&A - $137.
(c) Represents the acquisition costs associated with the purchase of Dansensor - $790.
(d) Represents non-cash stock-based compensation expense - $351 in 2012; $292 in 2011.
(e) Represents the tax expense related to non-GAAP adjustments.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device acce...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
IBM’s Blue Box Cloud, powered by OpenStack, is now available in any of IBM’s globally integrated cloud data centers running SoftLayer infrastructure. Less than 90 days after its acquisition of Blue Box, IBM has integrated its Blue Box Cloud Dedicated private-cloud-as-a-service into its broader portfolio of OpenStack® based solutions. The announcement, made today at the OpenStack Silicon Valley event, further highlights IBM’s continued support to deliver OpenStack solutions across all cloud depl...
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
WSM International, the pioneer and leader in server migration services, has announced an agreement with WHOA.com, a leader in providing secure public, private and hybrid cloud computing services. Under terms of the agreement, WSM will provide migration services to WHOA.com customers to relocate some or all of their applications, digital assets, and other computing workloads to WHOA.com enterprise-class, secure cloud infrastructure. The migration services include detailed evaluation and planning...
Cloud and datacenter migration innovator AppZero has joined the Microsoft Enterprise Cloud Alliance Program. AppZero is a fast, flexible way to move Windows Server applications from any source machine – physical or virtual – to any destination server, in any cloud or datacenter, using its patented container technology. AppZero’s container is also called a Virtual Application Appliance (VAA). To facilitate Microsoft Azure onboarding, AppZero has two purpose-built offerings: AppZero SP for Azure,...