FITCHBURG, MA--(Marketwire - March 23, 2009) - Arrhythmia Research Technology, Inc. (the
"Company") (NYSE Amex: HRT) (
NYSE Alternext US:
HRT) and its wholly owned
subsidiary, Micron Products, Inc. ("Micron") reported total consolidated
revenue of $22,482,000 for the year ended December 31, 2008 compared to
total consolidated revenue of $19,488,000 for the year ended December 31,
2007, an increase of 15%. Net income of $361,000 for the year ended
December 31, 2008 decreased 72% from net income of $1,287,000 for the year
ended December 31, 2007. Basic net income per share for the year ended
December 31, 2008 decreased 72% to $0.13 per share from $0.47 per share for
2007. As previously reported, the decrease in net income for the year
ended December 31, 2008, includes nonrecurring charges of $302,000 or $0.07
per share, net of taxes, related to acquisition and research and
development activities.
For the quarter ended December 31, 2008, total consolidated revenue
increased 3% to $4,758,000 compared to total consolidated revenue of
$4,621,000 for the quarter ended December 31, 2007. Net income for the
quarter ended December 31, 2008 decreased 95% to $9,800 from $186,000 for
the quarter ended December 31, 2007. Basic net income per share for the
quarter ended December 31, 2008 decreased 100% to $0.0 per share from $0.07
per share for 2007.
As previously announced, in October 2008 the Board of Directors authorized
the repurchase in the open market from time to time of up to $650,000 of
the Company's common stock, subject to SEC restrictions. An aggregate of
23,389 shares, approximately 1% of the outstanding shares, were repurchased
in the fourth quarter of 2008 at an average cost of $2.36 per share.
James E. Rouse, the Company's President and CEO, commented, "We are pleased
to announce an increase in total revenue for 2008 despite the challenging
economic environment. Earnings remain disappointing as we continue to be
challenged by extreme margin pressure and increasing costs. Although our
earnings have been unsatisfactory they are not reflective of our healthy
cash flows, solid cash position and very strong balance sheet. The decrease
in net income during the quarter and for the year was the result of several
factors including reduced margins, continued price erosion in our sensor
products, increased material, labor, energy and corporate costs. The
increased corporate costs include the previously announced write-downs
related to acquisition and research and development activities, $100,000
for additional administrative personnel and depreciation for technology
upgrades in preparation for compliance with Section 404 of the
Sarbanes-Oxley Act of 2002, and an additional $88,000 in costs for outside
consultants associated with Section 404 internal control documentation.
"Due to the competitive nature of the market for our sensor products we
were unable to offset higher sensor manufacturing costs, primarily related
to material and energy costs, with price increases to our OEM customers.
Micron's MIT and NEM divisions incurred higher labor costs to meet customer
delivery schedules in addition to capital equipment investments associated
with early stage products. Although we anticipate revenues from these
products to increase and generate a satisfactory margin, we do not expect
these products to produce improved results until the second quarter of
2009. Both the custom molding and moldmaking divisions experienced sales
decreases as a direct result of the slowing U.S. economy, which can be
expected to continue to impact these divisions throughout 2009.
"During the fall of 2008, we began the task of evaluating all current
products, services and programs, including those in development, for
contribution and value to our overall business strategy and results. As
part of this evaluation process, a low margin product line introduced by
the MIT division in 2008 was determined to be underperforming and a less
than desirable fit with our strategy going forward and has been
discontinued. Our efforts to increase sales revenue in higher margin
products, reduce costs and improve efficiencies continue. Even though we
see continued challenges in 2009, we remain guardedly confident that our
efforts to concentrate the Company's resources on products, services and
programs that meet our contribution and strategic goals will produce
improved results and position our company to capitalize on future growth
opportunities."
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 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,
manufacturing and precision machining for various industries. 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 check our websites:
http://www.arthrt.com
http://www.leominstertool.com
http://www.micronintegrated.com
http://www.micronproducts.com
http://www.newenglandmolders.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
(978) 345-5000
Website: http://www.arthrt.com