Diagnostic imaging company Del Global Technologies (OTCBB: DGTC) said Monday it swung to a profit for the fourth quarter of 2010 on higher sales.
For the fourth quarter ending July 31, 2010, the company reported a net income of $1.2 million, or $0.05 per diluted share, compared to a net loss of $0.9 million or $0.04 per diluted share in the prior year period.
Sales during the period also grew considerably by 19.8%, jumping from fiscal 2009 fourth quarter sales of $11.2 million to $13.4 million for Q4 2010. The medical systems group's sales for the fourth quarter grew 19.6% year-over-year, while revenues at the power conversion sector improved 20.3% over the fourth quarter of last year, due to increased volume and in part to the timing of shipment approvals from customers.
Gross margin for the power conversion division decreased from 51.1% to 34.6% though, on account of an unfavourable sales mix and start up costs associated with a new customer program.
"Our balance sheet has been strengthened considerably. However, we are not satisfied with our current performance and are focused on accelerating our growth through strategy deployment initiatives, new product development and strategic acquisitions," said president and CEO John J. Quicke.
For the full year, consolidated sales increased by 6.2% to $56.2 million over fiscal 2009, primarily a result of higher sales from the medical systems group. Net loss for fiscal 2010 narrowed significantly to $0.8 million, or $0.04 per diluted share, from $4.1 million, or $0.18 per diluted share, in fiscal 2009.
At July 31, 2010, the company had increased its backlog to $11.9 million from $10.6 million at August 1, 2009. All of the backlog should result in shipments within the next 12 to 15 months, the company said.
Del Global had $4.0 million in cash at the end of the quarter.
Del Global Technologies is primarily engaged in the design, manufacture and marketing of high performance diagnostic imaging systems for medical and dental applications through the Del Medical Systems Group. Through its Milan, Italy based Villa Sistemi Medicali S.p.A. subsidiary, the company offers a broad portfolio of general radiographic, radiographic/fluoroscopic, portable x-ray and digital radiographic systems to the global marketplace.
Through the power conversion group, Del Global manufactures high-voltage power conversion subsystems including electronic filters, high voltage capacitors, pulse modulators, transformers and reactors, and a variety of other products designed for industrial, medical, military and other commercial applications.
The company was up more than 16% on Monday afternoon, trading at $0.65 as of 2:45pm ET.