FITCHBURG, MA--(Marketwire - May 15, 2008) - Arrhythmia Research Technology, Inc. (the
"Company") (
AMEX:
HRT) and its wholly owned subsidiary Micron Products,
Inc. ("Micron") reported total revenue of $5,460,000 and net income of
$149,000 for the quarter ended March 31, 2008 compared to total revenue of
$5,009,000 and net income of $234,000 for the same quarter of 2007. Net
income per share for the three months ended March 31, 2008 decreased to $
0.06 per share from $ 0.09 per share for the same period in 2007.
Increases in the cost of manufacturing and price erosion in the highly
competitive sensor and custom injection molding markets are the primary
cause for the over 30% decrease in net income and earnings per share for
the quarter ending March 31, 2008 compared with the same period in 2007.
Additionally, in preparation for Sarbanes Oxley Section 404 compliance, the
Company is experiencing an increase in corporate costs. This includes an
enterprise management software system implementation and Section 404
compliance specific costs which we began to expend in the fourth quarter of
2007 and which will continue through at least the third quarter of 2008.
James E. Rouse, the Company's President and CEO commented, "Although we are
encouraged by our increase in revenue, management is focused on improving
gross margin on existing product lines through technological and process
improvements along with developing new business with higher gross margin
potential. We remain very confident that our long term diversification
strategy, including acquisitions, and our investment in capital equipment
and resources will result in continuing growth. Higher profit from
projects and programs in development or early stage production are expected
to positively affect our margins over the long term."
The Company, through Micron, 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 NEM
division manufactures custom injection molded products for medical,
electronic, industrial and consumer applications. 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. Micron's Leominster Tool
division provides high end mold design and manufacturing for the injection
molding industry. The Company's products also include proprietary
signal-averaging electrocardiography (SAECG) software used in the detection
of potentially lethal heart arrhythmias.
For more information please visit our websites:
http://www.arthrt.com http://www.micronproducts.com
http://www.newenglandmolders.com http://www.micronintegrated.com
http://www.leominstertool.com
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: interruptions or
cancellation of existing contracts, impact of competitive products and
pricing, product demand and market acceptance, risks, the presence of
competitors with greater financial resources than the Company, product
development and commercialization risks, changing economic conditions in
developing countries, and an inability to arrange additional debt or equity
financing. 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, including its Annual Report on Form
10-K for the year ended December 31, 2007.
Contact Information: Contact:
David A. Garrison
Website: http://www.arthrt.com
(978) 345-5000