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Fiscal Six Months Financial Overview and Business Segment ResultsRevenues for the first six months of fiscal 2011 were $60.8 million, a 3 percent increase compared with the $59.0 million reported for the same period in fiscal 2010. Cost of sales for the first six months of fiscal 2011 were $22.7 million, a 3 percent increase compared with the $22.0 million reported for the same period in fiscal 2010. Gross margins were 63 percent each for the first half of fiscal 2011 and 2010, respectively. Selling, general and administrative costs for the first six months of fiscal 2011 were $17.9 million, a 10 percent increase compared with the $16.2 million reported for the same period in fiscal 2010.
In conjunction with Landauer's acquisition activity, the Company incurred $0.2 million and $1.7 million ($1.2 million, after-tax) of acquisition related transaction and reorganization costs for the first six months of fiscal 2011 and 2010, respectively. Operating income for the six months ended March 31, 2011 was $20.0 million, a 4 percent increase compared with operating income of $19.2 million for the same period in fiscal 2010. Other income for the first six months of fiscal 2011 increased 19 percent to $1.1 million.
The effective tax rate was 33.2% and 34.8% for the first half of fiscal 2011 and 2010, respectively. The decline in effective tax rate was due primarily to the realization of R&D tax credits in fiscal 2011 recognized with the passage of tax legislation in December 2010 and the non-deductibility of certain acquisition related costs in fiscal 2010. Net income for the six months ended March 31, 20
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