For the 2013 first quarter, the Company reported a net loss of $383,000, or ($0.10) per diluted share, versus a net loss of $249,000, or ($0.07) per diluted share, in the 2012 first quarter. During the quarter, the Company incurred non-recurring corporate development expenses of approximately $177,000 while pursuing a potential strategic acquisition. The Company abandoned the acquisition during the later stages of due diligence. The Company also incurred a $28,000 expense related to legal fees regarding an intellectual property dispute. Research and development expenses were $647,000 compared to $810,000 in last year's first quarter, reflecting cost savings from prior year executive separations and conversion of consulting resources to full time personnel.
Gregg O. Lehman, Ph D., president and chief executive officer of MGC Diagnostics, said, "We are very pleased with the revenue increase achieved in the fiscal 2013 first quarter. The nine percent increase is the highest first quarter revenue increase in nearly a decade. With the implementation of a new strategic initiative to drive improved first quarter sales, our sales force did a great job of converting sales leads into active buyers."
"We had solid performance across all of our sales channels and geographies. During the quarter, revenue from our GPO distribution channel increased 109%. International sales were up 25%, as we made a number of upgrades in our international distribution group. Extended service contracts sold at the point of sale increased to 17% compared to 7% in Q1 2012. Recurring revenue, which includes supply and service revenue, totaled 39% of total first quarter revenue. Growing our base of recurring revenue, which provides our highest gross margin, will continue to be a core focus. We are off to a good start in fiscal 2013 and we look forward to the rest of the year."
|SOURCE MGC Diagnostics Corporation|
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