News Column

MOCON Announces Record Revenues for the Second Quarter 2014

August 22, 2014



By a News Reporter-Staff News Editor at Energy Weekly News -- MOCON, Inc. (NASDAQ: MOCO) reported sales of $15.6 million for the second quarter ended June 30, 2014, an increase of 14 percent compared to $13.7 million for the same quarter in 2013, and a new quarterly record for the Company. Net income for the second quarter 2014 was $1.2 million, or $0.20 per diluted share, an increase of 45 percent compared to net income of $802,000 or $0.14 per diluted share, in the first quarter 2013. Sales totaled $30.9 million for the six-month period ended June 30, 2014, an increase of 10 percent compared to $28.1 million during the first six months of 2013. Net income and diluted earnings per share were $1.9 million and $0.33, respectively, for the first half of 2014, an increase of 14 percent compared to $1.7 million and $0.29 for the same period in 2013.

The sales growth for the current quarter was attributable to our Industrial Analyzer and Other segment which recorded a 27 percent increase in revenues, which was driven by continued strong demand in the oil and gas exploration and environmental monitoring markets. In addition, sales in our Package Testing segment increased in the current quarter by 22 percent due primarily to improved shipments of headspace analyzers to service the order backlog which was created in the fourth quarter 2013 due to a sensor warranty issue. Sales in our permeation segment were down slightly in the current quarter due mainly to a soft domestic market for both instruments and consulting services. In the second quarter 2014, the Company began shipments of the OX-TRAN™ Model 2/22, its new generation of oxygen permeation instruments, which was not a significant contributor to revenue in the period.

The Company-wide gross margin was consistent at 56 percent for each of the second quarters ended June 30, 2014 and 2013. The current year margin was slightly lower than plan due primarily to the lower than expected domestic sales of permeation instruments. Selling, general and administrative expenses were slightly higher in the second quarter and six-months ended June 30, 2014 compared to the same periods last year due primarily to increased commissions and headcount, as well as higher audit and SOX consulting fees. As a percentage of revenues, selling, general and administrative expenses decreased for both the quarter ended and six-months ended June 30, 2014 compared to the same periods last year.

"We are pleased to report a 14 percent growth in revenues and a 45 percent increase in net income for the quarter as our Industrial Analyzer and Package Testing groups showed strong growth in their respective markets," said Robert L. Demorest, MOCON President and CEO. "We are encouraged by the fact that we see significant growth drivers in all our major business segments, ranging from intensified oil and gas exploration, growing environmental initiatives for cleaner water and air, and regulatory requirements for improved food and beverage consumer safety." About MOCONMOCON is a leading provider of detectors, instruments, systems and consulting services to research laboratories, production facilities, and quality control and safety departments in the medical, pharmaceutical, food and beverage, packaging, environmental, oil and gas and other industries worldwide. See www.mocon.com for more information.

Keywords for this news article include: Energy, Oil & Gas, MOCON Inc., Oil And Gas.

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Source: Energy Weekly News


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