Contact Information: Contact: David A. Garrison (978) 602-1436 Website: http://www.arthrt.com
Arrhythmia Research Technology, Inc. Announces Fourth Quarter and Year End Results
| Source: Arrhythmia Research Technology, Inc.
FITCHBURG, MA--(Marketwire - March 4, 2010) - Arrhythmia Research Technology, Inc. (the
"Company") (NYSE Amex : HRT ) and its wholly owned subsidiary, Micron
Products, Inc. ("Micron") reported total consolidated revenue of
$21,140,000 for the year ended December 31, 2009 compared to total
consolidated revenue of $22,482,000 for the year ended December 31, 2008, a
decrease of 6%. Net income of $374,000 for the year ended December 31,
2009 increased 4% from net income of $361,000 for the year ended December
31, 2008. Net income per share for the year ended December 31, 2009
increased 8% to $0.14 per share from $0.13 per share for 2008.
For the quarter ended December 31, 2009, total consolidated revenue
increased 18% to $5,628,000 compared to total consolidated revenue of
$4,758,000 for the quarter ended December 31, 2008. Net income for the
quarter ended December 31, 2009 increased to $107,000 from $9,700 for the
quarter ended December 31, 2008. Net income per share for the quarter
ended December 31, 2009 increased to $0.04 per share from $0.00 per share
for 2008.
James E. Rouse, the Company's President and CEO, commented, "We are pleased
to announce the Company ended 2009 with the strongest balance sheet in its
history. At year-end, cash and working capital were $3,674,000 and
$8,922,000 respectively representing increases of 58% and 20%. Operating
cash flow for 2009 was $2,386,000 a 23% increase over 2008. Despite the
challenging economic environment, the Company is very well positioned to
capitalize on opportunities to grow revenues and earnings through internal
and external investments. Cost containment efforts implemented during the
past six months proved effective as we accomplished slight increases in net
income for 2009 as compared to 2008. However, our earnings are not
reflective of our overall financial strength given our healthy cash flows
and solid cash and working capital positions. As we look to the future we
plan to leverage this financial strength as we pursue our current markets
with vigor and explore new opportunities which complement our existing
businesses.
The competitive nature of the sensor product market continues to negatively
impact our margins. Micron has difficulty offsetting higher sensor
manufacturing costs with price increases to its customers due to the
intense competition that has commoditized a once very profitable product
line. Micron remains committed to the sensor business and intends to
continue its programs to reduce costs through technological improvements
and automation with the intention of aggressively capturing market share.
Micron's MIT division improved its margins in 2009 through process and
technological advancements and we expect this trend to continue in 2010.
Notwithstanding our efforts, there remains the risk that any improvements
in margin in the MIT division could be offset by margin contraction in the
sensor market in the immediate future.
Recently ART announced that it had converted its proprietary
signal-averaged electrocardiography (SAECG) software PREDICTOR™ to a
customizable modular software product that is reconfigurable for a variety
of hardware platforms and entered into a licensing agreement with a major
international Original Equipment Manufacturer ("OEM"), Nihon Kohden
(TSE : 6849 ) of Tokyo, Japan. The prospects for this product are bright as
the Company works to expand its licensing arrangements beyond this first
agreement. The completion of the National Institutes for Health ("NIH")
funded investigation into "Risk Stratification in MADIT II Type Patients"
is expected in late 2011. According to the Principal Investigator for the
NIH study, Wojciech Zareba, MD, PhD, of the University of Rochester, "It is
likely that SAECG and Microvolt T-Wave Alternans tests will emerge as
routine for identifying low-risk and high-risk patients considered for ICD
therapy."
About Arrhythmia Research Technology, Inc.
The Company's products include proprietary signal-averaging
electrocardiography (SAECG) software used in the detection of potentially
lethal heart arrhythmias. The Company through its wholly owned subsidiary
Micron Products, Inc. manufactures silver plated and non-silver plated
conductive resin sensors and distributes metal snaps used in the
manufacture of disposable ECG, EEG, EMS and TENS electrodes. Micron's MIT
division provides end-to-end product life cycle management through a
comprehensive portfolio of value-added services such as design,
engineering, prototyping, manufacturing, machining, assembly and packaging.
MIT manufactures custom injection molded products for medical, electronic,
industrial and consumer applications, and provides high end mold design,
manufacturing and precision machining for various industries.
For more information please visit our websites:
http://www.arthrt.com
http://www.micronproducts.com
http://www.micronintegrated.com
Forward Looking Statements
Forward-looking statements made herein are based on current expectations of
the Company that involve a number of risks and uncertainties and should not
be considered as guarantees of future performance. The factors that could
cause actual results to differ materially include: our ability to maintain
our current pricing model and/or decrease our cost of sales; continued
availability of supplies or materials used in manufacturing at competitive
prices; volatility in commodity and energy prices and our ability to offset
higher costs with price increases; the costs inherent with complying with
new statutes and regulations; variability of customer delivery
requirements; our ability to efficiently integrate future acquisitions and
other new lines of business that the Company may enter in the future. More
information about factors that potentially could affect the Company's
financial results is included in the Company's filings with the Securities
and Exchange Commission.