Click here to close now.




















Welcome!

IoT User Interface Authors: Elizabeth White, Kevin Benedict, Cloud Best Practices Network, Samuel Scott, Trevor Parsons

News Feed Item

IntriCon Reports 2012 Third-Quarter Results

IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature body-worn devices, today announced financial results for its third quarter ended September 30, 2012.

For the 2012 third quarter, the company reported net sales of $14.9 million, an increase of 7.4 percent from the prior-year period. IntriCon had net income of $217,000, or $0.04 per diluted share, compared to a net loss of $(489,000), or $(0.09) per diluted share, for the 2011 third quarter. Included in 2012 third-quarter results was a one-time gain of $822,000, or $0.14 per diluted share, from the previously disclosed sale of the company’s 50-percent ownership interest in Global Coils, to its Switzerland-based joint venture partner, Audemars SA.

“There were encouraging developments across all of our businesses in the third quarter,” said Mark S. Gorder, president and chief executive officer of IntriCon. “Professional audio posted record sales that were up 53.4 percent over the 2011 third quarter as strong demand continued for securities products domestically and headset products internationally.

“On the medical front, we increased sales over the prior-year period with our largest medical customer, Medtronic. And in hearing health, hi HealthInnovations, a UnitedHealth Group Company, expanded its innovative hearing aid program to more than 26 million people enrolled in its employer-sponsored and individual health benefit plans. Hearing health sales, though, declined 6.9 percent over the prior year, primarily due to an expected pause in orders from hi HealthInnovations and continued softness in the conventional hearing health market.”

As a percentage of 2012 third-quarter sales, healthcare-related revenue (hearing health and medical combined) totaled 67.7 percent (30.6 percent hearing health and 37.1 percent medical), with professional audio communications at 32.3 percent. This compares to 2011 healthcare-related revenue of 77.3 percent (35.3 percent hearing health and 42.0 percent medical), with professional audio communications at 22.7 percent.

Gross profit margins were down slightly to 21.6 percent from 22.2 percent in the prior-year third quarter. The decline was primarily due to higher cost of goods sold, stemming from increased manufacturing infrastructure costs in Singapore and Indonesia.

“The infrastructure in Singapore and Indonesia has positioned IntriCon well for additional low-cost labor intensive opportunities,” said Gorder. “As we transfer select labor-intensive programs to these locations, we believe we will be more cost competitive as a whole, and we expect to experience margin improvement.”

IntriCon reduced its operating expenses in the third quarter, despite higher sales.

Nine-Month Results
For the 2012 nine-month period, IntriCon reported net sales of $47.3 million and net income of $377,000, or $0.06 per diluted share. This is up from 2011 net sales of $41.6 million and a net loss of $(1.1 million), or $(0.19) per diluted share. Hearing health sales rose 17.4 percent over the prior-year nine months, with medical and professional audio up 4.7 percent and 24.2 percent, respectively. Included in 2012 nine-month results was the one-time gain of $822,000, or $0.14 per diluted share, from the Global Coils sale.

As a percentage of 2012 nine-month sales, healthcare-related revenue (hearing health and medical combined) totaled 76.5 percent (38.8 percent hearing health and 37.7 percent medical), with professional audio communications at 23.5 percent. This compares to 2011 healthcare-related revenue of 78.5 percent (37.6 percent hearing health and 40.9 percent medical), with professional audio communications at 21.5 percent.

Gross profit margins for the 2012 nine months were 23.4 percent, up from 22.4 percent in the prior-year period, primarily due to volume increases, partially offset by increased manufacturing infrastructure in Singapore and Indonesia.

hi HealthInnovations
According to Gorder, “As previously disclosed, we’ve satisfied hi HealthInnovations’ initial product ramp-up needs for 2012. In the near-term, we expect minimal new orders; however, we continue to be optimistic about the long-term prospects of this program.

“We are encouraged by hi HealthInnovations’ progress building the necessary infrastructure to provide high-quality, affordable hearing healthcare to their customers. UnitedHealthcare recently announced that it is making hi HealthInnovations' high-tech, custom-programmed hearing aids available at a discounted price to more than 26 million people enrolled in its employer-sponsored and individual health benefit plans. We believe this will drive significant growth for IntriCon in 2013, specifically in the second half of the year.”

Business Update
IntriCon recently introduced its new Audion6™, a six-channel hearing aid amplifier, and the Lumen™ 1000 wireless hearing system at the 57th annual International Congress of Hearing Aid Acousticians in Germany. Audion6 is a feature-rich amplifier designed to fit a wide array of applications. In addition to multiple compression channels, the amplifier has a complete set of proven adaptive features which greatly improve the user experience.

Lumen 1000 is a next-generation, wireless hearing system within IntriCon’s existing Lumen product family. Lumen 1000 incorporates the company’s intuitive Physiolink™ wireless technology to allow clear communication. With flexStrem™, voiceStream™, linkStream™, and callStream™ accessories, the device can wirelessly stream music, television, audio or a companion’s voice—making it significantly more versatile and effective than traditional hearing devices. IntriCon also believes this technology and functionality holds great potential in the non-traditional hearing health market.

Within its medical business, year over year sales were down slightly in the third quarter. Said Gorder, “We experienced a temporary slowdown in medical growth in the third quarter. This was primarily due to order timing and customer inventory management. We’re already seeing medical sales rebound, and we expect them to strengthen in the fourth quarter to levels consistent with the first half of the year.

“The shift to small and lightweight, advanced body-worn medical devices continues. Our core technology and product offerings have the proven ability to connect patients and caregivers in non-traditional ways, which positions us to help our customers and their patients. Furthermore, we intend to focus more capital and resources in sales and marketing to expand our reach to other large medical device and healthcare companies that we are not doing business with today. ”

On the cardiac front, IntriCon is delivering demo units of its two FDA-approved wireless cardiac diagnostic monitoring devices—Centauri™ and Sirona™— to targeted customers. The company continues to anticipate these products will generate initial revenue in the fourth quarter and ramp-up in 2013.

Third-quarter professional audio communications sales were very strong, up more than 50 percent from the prior-year period. The company continues delivery on its significant contract with the Singapore government, providing technically advanced headsets to be worn in difficult listening environments. This contract will run through the end of 2012. In addition, IntriCon has seen steady growth in its securities business.

Looking Ahead
Concluded Gorder, “We remain steadfast in our goals for 2012: developing new core technologies while enhancing existing ones; securing additional market-changing relationships with leaders in the healthcare industry; expanding and driving efficiencies at our international manufacturing facilities; increasing our sales and marketing resources; and driving profitability.”

Conference Call Today
As previously announced, the company will hold an investment community conference call today, Wednesday, November 7, 2012, beginning at 4:00 p.m. CT. Mark Gorder, president and chief executive officer, and Scott Longval, chief financial officer, will review third-quarter performance and discuss the company’s strategies. To join the conference call, dial: 1-888-549-7880 (international 1-480-629-9643) and provide the conference identification number 4571342 to the operator.

A replay of the conference call will be available one hour after the call ends through 11:59 p.m. CT on Tuesday, November 13, 2012. To access the replay, dial 1-800-406-7325 (international 1-303-590-3030) and enter access code: 4571342.

About IntriCon Corporation
Headquartered in Arden Hills, Minn., IntriCon Corporation designs, develops and manufactures miniature and micro-miniature body-worn devices. These advanced products help medical, healthcare and professional communications companies meet the rising demand for smaller, more intelligent and better connected devices. IntriCon has facilities in the United States, Asia and Europe. The company’s common stock trades under the symbol “IIN” on the NASDAQ Global Market. For more information about IntriCon, visit www.intricon.com.

Forward-Looking Statements
Statements made in this release and in IntriCon’s other public filings and releases that are not historical facts or that include forward-looking terminology are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond IntriCon’s control, and may cause IntriCon’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2011. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.

 
 
IntriCon Corporation
Consolidated Condensed Statements of Operations
(in thousands, except per share data)
               
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2012 2011 2012 2011

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

 
Sales, net $ 14,904 $ 13,873 $ 47,268 $ 41,584
Cost of sales   11,679     10,789     36,209     32,261  
Gross profit 3,225 3,084 11,059 9,323
 
Operating expenses:
Sales and marketing 734 734 2,363 2,422
General and administrative 1,504 1,486 4,744 4,382
Research and development   1,243     1,326     3,513     3,600  
Total operating expenses   3,481     3,546     10,620     10,404  
Operating income (loss) (256 ) (462 ) 439 (1,081 )
 
Interest expense (210 ) (144 ) (588 ) (431 )
Equity in income (loss) of partnerships (39 ) (12 ) (77 ) 317
Gain on sale of investment in partnership 822 -- 822 --
Other (loss) expense   (36 )   69     (64 )   32  
Income (loss) before income taxes 281 (549 ) 532 (1,163 )
 
Income tax expense (benefit)   64     (60 )   155     (90 )
Net income (loss) $ 217   $ (489 ) $ 377   $ (1,073 )
 
 
Net income (loss) per share:
Basic $ 0.04 $ (0.09 ) $ 0.07 $ (0.19 )
Diluted $ 0.04 $ (0.09 ) $ 0.06 $ (0.19 )
 
Average shares outstanding:
Basic 5,674 5,600 5,666 5,576
Diluted 5,854 5,600 5,910 5,576
 
 
IntriCon Corporation
Consolidated Condensed Balance Sheets
(in thousands, except per share data)
 
    September 30,    
2012 December 31,
(Unaudited) 2011
Current assets:
Cash $ 244 $ 119
Restricted cash 553 540
Accounts receivable, less allowance for doubtful accounts 8,295 8,545
Inventories 11,976 11,720
Refundable income taxes -- 82
Other current assets   1,074     652  
Total current assets 22,142 21,658
 
Machinery and equipment 40,547 39,170
Less: Accumulated depreciation   33,563     32,164  
Net machinery and equipment 6,984 7,006
 
Goodwill 9,709 9,709
Investment in partnerships 812 1,283
Other assets, net   1,268     1,074  
Total assets $ 40,915   $ 40,730  
 
Current liabilities:
Checks written in excess of cash

$

637 $ 396
Current maturities of long-term debt 3,225 2,883
Accounts payable 4,813 6,298
Accrued salaries, wages and commissions 2,134 1,617
Deferred gain 110 110
Partnership payable 240 240
Other accrued liabilities   2,422     1,907  
Total current liabilities 13,581 13,451
 
Long-term debt, less current maturities 7,530 8,217
Other postretirement benefit obligations 670 685
Accrued pension liabilities 415 431
Deferred gain 312 385
Other long-term liabilities   139     115  
Total liabilities 22,647 23,284
 
Commitments and contingencies
 
Shareholders’ equity:
Common stock, $1.00 par value per share; 20,000 shares authorized; 5,680 and 5,646 shares issued outstanding at September 30, 2012 and December 31, 2011, respectively

5,680

5,646

Additional paid-in capital 15,669 15,259
Accumulated deficit (2,692 ) (3,069 )
Accumulated other comprehensive loss   (389 )   (390 )
Total shareholders' equity   18,268     17,446  
Total liabilities and shareholders’ equity $ 40,915   $ 40,730  

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.

@CloudExpo Stories
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 IceWarp 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. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of I...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
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.
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...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, 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. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
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...
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...
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
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...
SmartBear Software has updated its API tools, ServiceV for API service virtualization and LoadUI NG for API load testing, to accelerate development and testing processes in Agile teams. Updates to ServiceV enable software teams to rapidly build advanced mocks from real-time API traffic and quickly switch between virtualized “mock” services and actual APIs during diagnostic, load or integration testing in the continuous delivery lifecycle.