MEDICAL DEVICES ANNOUNCES FIRST QUARTER RESULTS
MEDICAL DEVICES ANNOUNCES FIRST QUARTER RESULTS ST. PAUL, Minn., Oct. 28 /PRNewswire/ -- Medical Devices, Inc.
(NASDAQ: MDEV) (MDI), today announced encouraging results for the first quarter of fiscal 1993, which ended Sept. 30, 1992.
First quarter net sales were $1,183,028 compared to $1,550,478 in the first quarter of fiscal 1992, a decrease of 24 percent. According to Jeff Shields, vice president of finance, "Last year's first quarter sales included final purchases by certain dealers as part of their exclusive distributor contracts. Fiscal 1993 first quarter sales are up significantly over the fourth quarter of fiscal 1992, and we are ahead of forecast at this stage of the year." Gross profit for the first quarter improved to 55 percent of net sales versus gross profit of 47 percent of net sales in the first quarter of last year, while operating expenses decreased 12 percent versus last year. According to Shields, "This increase in gross profit percent is extremely encouraging and comes from our direct selling division, Rehabilicare Systems, as well as increased margins in our traditional business. We are doing a much better job of planning, controlling and managing our expenses." The net loss for fiscal 1993's first quarter was $84,050 or $.04 per share versus a net loss of $91,465 or $.04 per share last year in spite of using a lower tax rate (refund) in fiscal 1993 when compared to fiscal 1992. Shields said, "This loss is less than was planned. We are extremely encouraged by these first quarter results, and feel the foundation is laid for solid growth through the balance of the fiscal year." Shields emphasized that MDI is effectively executing its plans and strategies, and is ahead of forecast in all areas of the business. The traditional wholesale business segment has stabilized, and is exceeding plan. Rehabilicare Systems is growing much faster than expected with very positive results. "Our TENS business is growing once again, and our unique products aimed at the therapeutic and rehabilitation markets are meeting with great success," according to Shields. Medical Devices, Inc. is a leading designer and manufacturer of electromedical rehabilitation and pain management products. The compao?mmon stock is traded on the national over-the-counter market under the NASDAQ symbol MDEV. -0- 10/28/92 /CONTACT: David B. Kaysen, president and CEO, or Jeffrey P. Shields, vice president of finance, 612-631-0590, both of Medical Devices/ (MDEV) CO: Medical Devices, Inc. ST: Minnesota IN: MTC SU: ERN
KH -- MN029 -- 6300 10/28/92 17:43 EST
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|Date:||Oct 28, 1992|
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