Revenues Decline, Losses Rise For Arrhythmia
Citing several challenges over 2012, Fitchburg-based medical device manufacturing and software firm Arrhythmia Research Technology Inc. reported steep losses for the year and fourth quarter.
Total consolidated revenue for the year ended Dec. 31 was down 15 percent, to $20.6 million. The company posted a net loss of $6.1 million, or $2.22 per share, compared to $1.3 million or 47 cents per share the previous year.
Silver surcharge billed was down 27.6 percent over 2011 due to 7 percent lower orders by volume and decreasing silver prices. Sales for custom plastic injection molding were also down, by 5 percent, in 2012, due to lower order volume from the defense industry, Arrhythmia said.
Expenses that contributed to Arrhythmia's higher losses included CEO severance compensation worth $210,739 for James Rouse, who stepped down in October, $117,616 in accounting and tax fees and $190,637 in other fees related to the shutdown of WirelessDx, its startup medical services subsidiary whose expenses had outpaced revenue.
Meanwhile, total consolidated revenue for the fourth quarter dropped to $5.1 million, compared with $5.3 million in 2011. Arrhythmia lost $1.2 million, or 44 cents per share, during the quarter, compared with $1 million, or 37 cents per share in 2011.
"2012 was a year of significant challenges for the company stemming largely from discontinuing operations of WirelessDx, a change in executive management and the search for a new banking relationship," President and CEO Salvatore Emma Jr. said in a statement. "It is important that these events are behind us so we can refocus our efforts and energy into building the core businesses.
The company said it expects to return to profitability this year, thanks to a positive National Institutes of Health clinical trial using Arrhythmia's electrocardiography software, expansion of its staff and added quality certifications at its subsidiary Micron Products.
On Monday, Arrhythmia announced it was submitting a plan to the New York Stock Exchange to prevent delisting after the company failed to report its earnings on time, due to an internal audit.
Read more
Arrhythmia Research Names New Leader
WBJ Web Partners
Most Recent
Most Recent
0 Comments