Arrhythmia reports profit drop in first quarter
Medical device manufacturer Arrhythmia Research Technology of Fitchburg reported a 39 percent decline in gross profits for the first quarter of 2015 compared with the first quarter of 2014.
Gross profit was $796,000 in the first quarter of 2015, compared with $1.31 million a year earlier.
Net income, after overhead and other expenses, had a 58 percent drop in the first quarter of 2015 compared with the first quarter of 2014. Net income was $108,062 in the first quarter of 2015; $256,717 a year earlier.
Meanwhile, net sales for the quarter, which ended March 31, were $5.9 million, were down slightly from $6 million, Arrhythmia said Wednesday. Increased sales of custom thermoplastic injection molded products and sensors nearly offset a 29.7-percent drop in net sales in orthopedic implant components, the company said in a statement.
Arrhythmia, which operates through its subsidiary, Micron Products, said the decline in gross profit was primarily the result of a 13.2-point decrease in gross margin related to the contract manufacturing of orthopedic implant components. It was also impacted by increased overtime and production delays during a period of increased demand for orthopedic implant components, the company said.
Despite the down numbers, the head of the company foresees stronger demand ahead for its products and services.
“The company is well positioned to capitalize on anticipated demand growth for our contract manufacturing services,” president and CEO Salvatore Emma Jr. said. “While we continue to seek avenues to diversify our product mix and expand our customer base, we continue to believe that contract manufacturing of medical devices and components will be a primary driver of future revenue and margin growth.”
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