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MGC Diagnostics Corporation Reports 2013 Third Quarter Operating Results
Date:8/29/2013

ion from $1.3 million in last year's third quarter, due primarily to sales improvements in Canada and Latin America.  Third quarter Group Purchasing Organization ("GPO") sales increased 21% to $4.3 million, compared to $3.6 million in the prior year's third quarter.

Third quarter equipment, supplies and accessories sales totaled $6.6 million, an increase of 12.5%, compared to $5.9 million during last year's third quarter. Service revenues for the third quarter totaled $1.3 million, compared to $1.0 million during last year's third quarter. The Attachment Rate, which reflects the percentage of Extended Service Contracts added at the point of sale to customer equipment purchases, was 25.7% for the fiscal 2013 third quarter, compared to 2.7% for the same period last year. Backlog at July 31, 2013 was $709,000, and has steadily improved over the past nine months from $541,000 at the end of the 2013 second quarter and $415,000 at the end of the 2012 fourth quarter.

Gross margin for the quarter was 55.4%, compared to 53.7% in the 2012 third quarter.  Gross margin for equipment, supplies and accessories was 52.3% for the quarter, compared to 51.8% in the prior year's quarter. Gross margin for services increased to 70.8% for the quarter, compared to 65.3% for the prior year's quarter, primarily as a result of improved pricing and service mix.

Third quarter 2013 general and administrative expenses totaled $973,000, or 12.3% of revenue, compared to $913,000, or 13.2% of revenue in the comparable quarter last year. Sales and marketing expenses were $2.2 million, or 27.1% of revenue, compared to $2.1 million, or 30.9% of revenue in the 2012 third quarter. Research and development expenses were $591,000, or 7.5% of revenue, compared to $825,000, or 12.0% of revenue in last year's third quarter.  This decrease is due primarily to expense reductions attributed to management level personnel changes and the conversion of consultant services to fu
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SOURCE MGC Diagnostics Corporation
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