This excerpt taken from the MRY 8-K filed May 16, 2005.
Nine-Month Revenue Up 27.5% to $31.7M, EPS $0.07
Bethel, CT, May 11, 2005 Memry Corporation (AMEX: MRY) reported today revenue of $12,674,000 in the third fiscal quarter ended March 31, 2005, up 47.9% from $8,571,000 in the comparable quarter a year ago. The revenue increase was primarily due to the inclusion of revenue generated by Putnam Plastics, acquired on November 9, 2004. Putnams revenue for the period ended March 31, 2005 was $3,070,000. Memrys net income was $735,000 or $0.03 per basic and diluted share compared with net income of $365,000 or $0.01 per basic and diluted share in the comparable period last year.
For the first nine months of the fiscal year 2005 that ends June 30, 2005, revenue was $31,662,000 compared with revenue of $24,834,000 in the first nine months of fiscal 2004, an increase of $6,828,000 or 27.5%. Net income for Memry in the first nine months of fiscal 2005 was $1,845,000 or $0.07 per basic and diluted share compared with net income of $1,089,000 or $0.04 per basic and diluted share in the first nine months of fiscal year 2004.
James G. Binch, CEO of Memry, said, Were seeing solid results in both our core Nitinol business and at Putnam Plastics. Nitinol revenue was up 12.1% for the quarter and 8.8% for the first nine months. This third fiscal quarter was the first full quarter that included the substantial contribution from Putnam Plastics, with polymers representing 24.2% of Memrys consolidated revenue.
Shipments of Nitinol wire-based stent components were up approximately $550,000 and shipments of tube-based components rose approximately $300,000 over the comparable quarter a year ago. We also benefited from growth in sales of microcoil and guidewire, arch wire products and tinel lock. Offsetting these increases was a $500,000 decline in revenue from super elastic tube due to a combination of customer inventory adjustments, price discounts, customer loss of market share and a decline in shipments of high-pressure sealing plugs, Binch said.
Chief Financial Officer Robert P. Belcher said, Our manufacturing costs during the quarter were up 47% to $7,602,000, primarily reflecting the addition of Putnam. Nitinol-based manufacturing operated at a gross margin consistent with the level of a year earlier, but Putnams extrusion polymer business operated at a higher gross margin, which had the effect of slightly improving overall company margins. Consequently, gross profit from sales in the third quarter was 40% this year versus 39.8% last year.
Operating expenses increased $644,000, or 23%, to $3,459,000 in the third quarter of fiscal 2005 compared to $2,815,000 last year. The dollar increase was a reflection of new administrative and sales and marketing personnel and programs associated with the acquisition of Putnam, amortization of intangible assets related to Putnam and investor relations and marketing program initiatives undertaken in the third fiscal quarter of 2005.
Amortization of intangible assets was $146,000 versus only $33,000 in the third quarter of fiscal 2004, Belcher continued. The decline of operating expenses as a percentage of revenue from 33% in the third quarter of fiscal 2004 to 27% in the third quarter of fiscal 2005 was primarily a result of two factors. First was the shift in focus of Nitinol staff engineers from new process development and prototype support in fiscal 2004, which was an operating expense, to manufacturing support, which is shown as a manufacturing expense. Second, the acquisition of Putnam has allowed us to leverage our sales, marketing and administrative organizations by broadening the line of products sold and using personnel, accounting and executive staff to support Putnams needs.
Binch said, Looking forward, it appears as if overall Nitinol stent component activity for the remainder of the year will show improvement over a year ago due to improved performance and prospects for several of our stent component programs. Putnam is performing well and we expect another solid contribution from Putnam in the fourth quarter. We have already attained a $50 million revenue run rate, beating our stated target for the end of the fiscal year.