X-Rite Announces Third Quarter 2010 Financial Results

Kentwood-based X-Rite Inc. (Nasdaq: XRIT) reported a much smaller net loss on a sales increase for the third fiscal quarter and nine months ended Oct. 2.

The loss for the quarter was $100,000 or less than a penny a share, vs. a loss of $9 million or 12 cents a share in the year-ago quarter. For the nine months, the loss was $300,000 or less than a penny a share, vs. a loss of $25.3 million or 33 cents a share a year earlier.

Third quarter sales of $55.4 million were up $9.8 million, or 21 percent, from $45.6 million a year earlier. The company was able to pay down debt of $19.2 million for the quarter and $36.2 million for the year to date.

For the nine months, the loss was $300,000 or less than a penny a share, compared to a loss of $25.3 million or 33 cents a share in the first nine months of the prior fiscal year. Sales were $163.7 million, up from $141.6 million in the same nine months of the prior fiscal year.

"As our company's revenue and profitability improve, we continue to leverage our financial performance into an improved capital structure," said CFO Rajesh K. Shah. "The paydown of our Second Lien Credit Facility, which carried an interest rate of 14.375 percent, will result in estimated annual cash savings of $2.8 million."

CEO Thomas Vacchiano said he was particularly proud of 29.3 percent sales growth in Europe in the third quarter, and added: "The continued improvement in revenue and profitability are a result of the company's initiatives as well as improved market conditions. We believe that fourth quarter 2010 sales growth will be in the double digits compared to the fourth quarter of last year. Looking ahead to 2011, while economic conditions remain unclear, we are enthusiastic about the potential for attractive adoption rates of our new products into existing and new markets."

To listen in on a conference call discussing the results, visit http://ir.xrite.com. 

X-Rite develops, manufactures, markets and supports innovative color solutions through measurement systems, software, color standards and services. X-Rite serves a range of industries, including printing, packaging, photography, graphic design, video, automotive, paints, plastics, textiles, dental and medical.

More at www.xrite.com.

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