Del Global Technologies has reported financial results for its fiscal 2008 fourth quarter and year, which ended Aug. 2.
For the fourth quarter of fiscal 2008, the Franklin Park, Ill.-based company reported net income of $2.1 million, compared to net income of $2.2 million in the fourth quarter of fiscal 2007. Net income for fiscal year 2008 was $3 million, compared to net income of $3.8 million in fiscal 2007.
For the quarter, consolidated net sales declined by approximately 12.1 percent to $27.2 million from $31 million in the fourth quarter of fiscal 2007, due primarily to lower sales at Del Global’s medical systems group, where net sales declined to $22.8 million from $27.3 million in the prior year’s fourth quarter. The medical systems group consists of the Del Medical Imaging and Villa Sistemi Medicali subsidiaries.
According to James A. Risher, Del Global’s president and CEO, the sales decrease reflected a decline in international sales due to the fulfillment of a large Russian tender offer at Del Medical that positively impacted last year’s sales but is now winding down, as well as reduced sales of the domestic digital product line.
For the year-end, consolidated net sales increased by 4 percent to $108.3 million from $104.2 million for fiscal year 2007, primarily the result of higher sales at the medical systems group, Del said.
Total operating expenses in the fiscal 2008 fourth quarter were $4.4 million, or 16.2 percent of total sales, as compared to $4.6 million, or 15 percent of sales in the prior year’s fourth quarter.
Operating income for the 2008 fourth quarter was $2.7 million, a 24 percent decline from operating income of $3.6 million in the fourth quarter of fiscal 2007. Operating income for fiscal 2008 declined to $6.4 million from $8.4 million last year, and included $1.9 million in one-time, non-cash goodwill impairment charges related to the medical systems group’s U.S. business and $500,000 in litigation settlement costs, according to the company.