GRANDVILLE, Mich.--Oct. 16, 2003-- X-Rite, Incorporated announced its financial results for the third quarter ended September 27, 2003 reflecting the fifth consecutive quarter of year-over-year sales growth.
The Company reported a 20.6 percent increase in net sales to $26.8 million for the quarter ended September 27, 2003, compared to $22.2 million last year. Operating income for the quarter was $0.6 million, an increase of 102.2 percent, compared to $0.3 million in the prior year. Net income for the quarter was $0.3 million, or 1 cent per diluted share, compared to $0.3 million, or 1 cent per diluted share in the same quarter of the prior year.
For the nine months ended September 27, 2003, net sales were $78.6 million, which is a 16.3 percent increase over the comparable prior year period sales of $67.6 million. Operating income for the current nine month period was $4.8 million, or nearly three times the operating income of $1.6 million reported one year ago. Net income for the same nine months was $3.3 million, or 16 cents per diluted share versus a net loss of $13.1 million, or 65 cents per share for the comparable period last year. The prior year loss included a $6.6 million write down of investments made by XR Ventures, and a charge for goodwill impairment of $7.6 million in connection with the adoption of new accounting rules.
Commenting on the quarter, Michael C. Ferrara, X-Rite's Chief Executive Officer, said, "We are pleased with our financial results, particularly our record sales for the quarter. Sales improved 20.6 percent over the same period last year. This is the fifth straight quarter of year-over-year revenue growth for X-Rite. The three acquisitions made earlier this year have contributed approximately $3.6 million to our top line growth this year. We have a business model in place; we understand our markets; and are focused on meeting global customer needs. Our margins remained strong at 63 percent, and our profitability continues to improve with year-to-date operating income increasing $3.0 million, or 199 percent over the same period last year. While year-to-date operating expenses have increased 11.6 percent over the prior year, they have actually decreased from 59.5 percent to 57.1 percent of our sales, reflecting our ability to leverage our costs as we continue to grow revenues."
Ferrara continued, "Refocusing our energy and efforts on X-Rite's core color businesses has proven to be a formula that works. We believe our focused strategy on color and our ability to execute, coupled with an improved capital spending environment in the U.S., will continue to provide double digit growth in revenue and a return to historical operating income levels. We will continue to work to increase profitability and generate strong returns for our shareholders."
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