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Mesa Labs Reports 6% Increase in First Quarter Revenues
Date:8/6/2013

onger than expected incubation times, which is used to determine a positive or negative BI test result.  We chose to dedicate a significant portion of our production capacity to replacement product rather than new orders, which lowered revenues for the quarter and increased our cost of goods sold.  However, our customers wound up with high-quality Mesa product and we believe that little or no business will be lost in this process.  We expect to recover the delayed shipments during our second quarter, with gross margins returning to normal levels in the second or third quarter.  We also don't anticipate this being an issue again in the future as we have implemented new spore crop screening procedures to now identify such issues prior to manufacture or shipment.  The overall decline in Mesa's net income for this quarter, as compared to the same quarter in the previous year, was also primarily due to the effects of this product replacement initiative."

"On a positive note, we are excited about the acquisition of the SureTorque line of bottle cap torque testing products that was concluded immediately after the end of our first quarter," continued John Sullivan.  "The SureTorque products are widely used in the pharmaceutical and biotechnology industries for quality control of bottling processes, which complements our existing line of torque testing instruments, that has gained wide acceptance in the food and beverage industries.  With the combination of the two lines of bottle cap torque testing instrumentation, we will be able to offer a wider range of products to a broader set of potential customers.  The SureTorque acquisition illustrates our commitment to growing our business through strategic acquisitions."

1 The non-GAAP measures of adjusted net income and adjusted net income per diluted share are defined to exclude the non-cash impact of amortization of intangible assets,
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SOURCE Mesa Laboratories, Inc.
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