Del Global Reports Fiscal 2010 First Quarter Financial Results

Del Global Technologies announced financial results for its fiscal 2010 first quarter.

In a December 14 release, Del Global reported that consolidated net sales from continuing operations for the fiscal 2010 first quarter declined by approximately 18.6 percent to $11.6 million from $14.2 million in the first quarter of fiscal 2009, due primarily to decreased volume at the Medical Systems Group, where net sales declined 17.3 percent to $9.5 million from $11.5 million in the prior year's first quarter, as a result of decreased international customer orders.

The Medical Systems Group consists of the Villa Sistemi Medicali S.p.A. ("Villa") subsidiary. Sales at the Power Conversion Group, which consists of the Company's RFI Corp. subsidiary ("RFI"), for the first quarter of fiscal 2010 were $2.1 million, approximately $0.6 million, or 23.6 percent less than the prior year's first quarter.

Consolidated gross margin for the fiscal 2010 first quarter was 22.2 percent compared to 26.1 percent in the same period last year, due to the impact of lower sales volume. The Medical Systems Group's first quarter 2010 gross margin of 20.3 percent was lower than the gross margin of 23.7 percent in the first quarter of fiscal 2009 primarily related to lower sales volume. The Power Conversion Group's gross margin for the first quarter of fiscal 2010 was 31.1 percent, versus 36.2 percent in the prior year first quarter.

Total operating expenses in the fiscal 2010 first quarter were $2.7 million, or 23.1 percent of total sales, compared to $2.8 million, or 19.5 percent of total sales, in the prior year's first quarter.

The operating loss for the fiscal 2010 first quarter was $0.1 million, as compared to operating income of $0.9 million in the first quarter of fiscal 2009. The Medical Systems Group generated operating income of $0.2 million in the fiscal 2010 first quarter compared to operating income of $0.8 million for the first quarter of fiscal 2009. RFI posted an operating profit of $0.1 million in the fiscal 2010 first quarter as compared to $0.4 million in the comparable period last year. Unallocated corporate expenses for the first quarter of fiscal 2010 totaled $0.4 million.

The discontinued operations loss of $3.1 million in the first quarter of fiscal 2010 reflects a $1.3 million loss from operations on sales of $3.5 million and $1.8 million from the write-down of assets to net realizable value. The discontinued operations in the first quarter of fiscal 2009 incurred a loss from operations of $1.2 million on sales of $8.1 million.

For the first quarter of fiscal 2010, the Company reported a net loss of $3.5 million, or $0.15 per diluted share, compared to net loss of $0.6 million, or $0.03 per diluted share, in the first quarter of fiscal 2009.

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.

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