Landauer, Inc. Reports Strong Fiscal 2008 First Quarter Results
"Our strong financial performance, which includes another quarter ofrecord revenues, is a direct reflection of executing on our key strategicinitiatives: Optimizing our core business, driving competitive growth, andpursuing strategic expansion," explained Bill Saxelby, President and ChiefExecutive Officer of Landauer. "Our top-line growth was positively impactedby our objective to expand internationally through the InLight productplatform. Continued strong revenue contribution from our internationalsubsidiaries and the addition of our new venture in Mexico are key indicatorsof continued progress against this priority."
Saxelby added, "While our efforts regarding the global expansion ofInLight has been one successful tactic in our strategic plan, our long termsuccess reflects continued progress across all of our strategic initiatives.We believe our revenue and earnings growth are attributable to these effortsas well as the favorable industry environment in which we operate. Despitechallenges in the overall economy, our major customer base is less exposed tothe economic headwinds than many industries. As a result of our investmentsin an experienced management team, cutting edge technology, and a streamlinedand efficient infrastructure, we believe Landauer is well positioned tocapitalize on the growth opportunities offered by the continuing awareness ofthe risk of radiation exposure. As we move forward in fiscal 2008, we intendto build upon the momentum that we have generated while leveraging all ofLandauer's capabilities."
Quarterly Earnings Rise on Higher International Sales and Continued Cost
Revenues for the first three months of fiscal 2008 were $21.8 million, an8 percent increase compared with the $20.2 million at this time last year.Domestic revenue rose nearly 4 percent or $573,000 for the quarter,attributable primarily to InLight equipment sales. International revenue wasup 24 percent, or $1.1 million, led by growth in most regions, strong InLightservice and equipment growth and the impact of favorable currency translation.
Cost of sales increased 2 percent from the same quarter last year whilethe gross margin expanded to 67 percent from 65 percent in the year agoperiod. Selling, general and administrative expenses for the first quartergrew 14 percent, or $831,000. Of the increase, $384,000 was driven byspending to reengineer business processes and to replace the company's ITsystems that support customer relationship management and the order-to-cashcycle. Other factors contributing to the increase included internationalspending to support growth, the impact of foreign exchange, higher salary andbenefits related to staff additions, and investments in sales and marketingresources.
Net income for the most recent quarter grew 9 percent to $5.3 million,compared with $4.9 million a year ago. Earnings per diluted share for thethree months were $0.57 versus $0.53 in fiscal 2007.
Continued Strong Financial Position
Total assets at December 31, 2007, were $100 million, up 6 percent fromthe prior-year period, including $24.8 million in working capital and$23.8 million in cash. At December 31, 2007, Landauer was debt free. Thecompany's cash provided by operating activities increased 12 percent to$8.5 million for the latest three months.
Saxelby also commented on recent developments within the company. "Wecontinue to make progress towards the completion of our systems initiative,which upon implementation later this fiscal year will significantly upgradeour IT and front-end systems infrastructure. During the quarter, Landauer alsorecorded severa
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