X-Rite Announces Strong Earnings Performance in Third Quarter 2011
KENTWOOD — X-Rite Inc. (Nasdaq:XRIT) Thursday announced sales of $57 million for the third quarter ended Oct. 1, up 2.8 percent from $55.4 million a year earlier, and net income of $7 million or 8 cents a share, vs. a loss of $100,000 or break-even per share for the same quarter a year earlier.
Industrial, Standards and Support Services product lines again led the quarter with 10.9, 7.9 and 13.4 percent growth over the prior year quarter results, respectively. The strong growth by the Industrial and Standards product lines continues to be supported by the success of the company’s multi-angle product portfolio and recently released Pantone Fashion and Home system extension.
On a regional basis, after adjusting for foreign exchange, the strongest operational growth in the quarter was in Asia Pacific. Excluding the impact of positive changes in foreign exchange rates due to a weakening United States dollar, net sales decreased by 1.1 percent on a quarter over quarter basis. This marginal decline was largely due to the weakening offset printing market coupled with the continuing economic uncertainties in the global economy.
“While the Company’s sales in the third quarter were tempered by market and economic uncertainties we are pleased to report the continued growth performance of our Asia Pacific region which reflects the benefit of our specific investments over the past year,” said X-Rite CEO Thomas J. Vacchiano Jr.
The company’s operating expenses were slightly reduced from the prior year’s third quarter with the costs of strategic investments offset by continued cost management actions and reductions in variable compensation expense. Operating income as a percent of net sales improved to 14.7 percent for the third quarter 2011, compared to 12.5 percent for the third quarter 2010.
To listen to a replay of a conference call discussing the results, visit the investor relations page of X-Rite, http://ir.xrite.com.
X-Rite develops, manufactures, markets and supports color measurement systems, software, color standards and services.
More at www.xrite.com.
For the nine months, revenue was $179.1 million, up from $163.7 million a year earlier. Net income was $4.5 million or 5 cents a share, vs. a loss of $300,000 or less than a penny a share in the first nine months of the prior fiscal year.