X-Rite Continues Double-Digit Growth
KENTWOOD -- X-Rite Inc. (Nasdaq: XRIT), the Kentwood developer of color management technology, reported a jump in sales and profits for the second quarter ended July 2.
Net income rose to $8.5 million or 10 cents a share from $6.6 million or 8 cents a share in the same quarter a year earlier. Sales rose 13.1 percent year over year to $64.6 million.
The company also said it paid down $13.2 million in debt during the quarter.
All major lines of business reported growth in the quarter. The industrial, support services, and standards product lines led the quarter with 19.4, 17.5 and 16.5 percent growth over the prior year quarter results, respectively.
The strong growth by the industrial product line was supported by the increasing success of the company's multi-angle product portfolio. The standards product line growth was driven by the 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, followed by growth in Europe and a nominal increase in the Americas. Excluding the impact of positive changes in foreign exchange rates due to a weakening United States dollar, net sales increased by $3.9 million or 6.8 percent on a quarter over quarter basis.
"The company continues to report healthy year over year growth," said X-Rite CEO Thomas J. Vacchiano Jr. "It is particularly satisfying to see investments for growth in new products and an expanding Asia Pacific presence yield such positive results."
For the six months, sales were $122.1 million, up from $108.3 million a year earlier. The net loss for the period was $2.5 million or 3 cents a share, compared to a loss of $200,000 or less than a penny a share in the year-ago period. This year's loss was the product of a one-time $13.8 million charge in the first quarter for a loss on the redemption of preferred shares and debt refinancing costs.
Looking ahead, Vacchiano warned that "As we start the third quarter, we are seeing a slowdown in the global economic recovery with significant continuing uncertainty, particularly in the short term. In spite of this adverse environment, for the third quarter 2011 we are forecasting sales growth in the single digits on a year over year basis."
To listen in on a replay of the conference call discussing the results, visit www.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.
