Arrhythmia Research Technology (ART), and its wholly owned subsidiary Micron Products, has reported decreased earnings for the 2008 third quarter.
The Fitchburg, Mass.-based company booked total revenue of $5.84 million and a net income of $68,000 for the quarter ended Sept. 30, compared to total revenue of $4.46 million and net income of $421,000 for the same quarter of 2007.
Based on these results, ART saw total revenue increase 31 percent while net income decreased by 84 percent in the quarter ending Sept. 30, as compared to the same period in 2007.
“The decrease in net income during the quarter was the result of several factors. We experienced lower than expected margins in our sensor products as a result of continued price erosion due to a competitive marketplace as well as volatility in commodity prices which resulted in higher material costs that we were unable to completely offset with price increases to customers. The MIT division incurred higher labor costs to meet customer delivery schedules in addition to capital equipment investments associated with early stage products. Revenues from these early stage products are not expected to offset operating costs positively until 2009,” said James E. Rouse, ART’s president and CEO.