Utah Medical’s Q1 Revenue Falls 10.2% to $8.7M, EPS at $0.82
Utah Medical’s first-quarter revenue dropped 10.2% year-over-year to $8.7 million, while gross profit declined 4.6% to $5.28 million, lifting gross margin to 60.6% from 57.0%. Operating income fell 18.7% to $2.57 million, net income decreased 14.4% to $2.6 million, and EPS slid 11.0% to $0.82 after repurchasing 96,864 shares.
1. First-Quarter Financial Results
Utah Medical posted $8.7 million in first-quarter sales, down 10.2% year-over-year, and recorded gross profit of $5.28 million, a 4.6% decline. Operating income fell 18.7% to $2.57 million, net income slipped 14.4% to $2.6 million, and diluted EPS declined 11.0% to $0.82.
2. Margin Performance and Cost Drivers
Gross margin improved to 60.6% from 57.0% as a more favorable product mix and a one-time standard cost adjustment boosted inventory valuation. Operating income margin narrowed to 29.4% from 32.5% due to $127,000 in higher litigation expenses and $147,000 in increased U.S. employee health care costs.
3. Overseas Sales and Currency Impact
Consolidated sales were $987,000 lower year-over-year, reflecting the loss of $857,000 in sales to its former China distributor and PendoTECH. Excluding those customers and adjusting for foreign-currency movements, sales outside the U.S. declined by an additional $169,000 in constant currency.
4. Share Repurchases and Balance Sheet Strength
The company repurchased 96,864 shares over the past year, bolstering per-share earnings. After deploying $9.5 million for buybacks, dividends, and equipment purchases, cash equivalents rose by $4.1 million, and stockholders’ equity reached $120.4 million, up $1.1 million from year-end.