MOCON (MOCO) Reports Q3 EPS of $0.20

MOCON (NASDAQ: MOCO) reported Q3 EPS of $0.20, versus $0.29 reported last year. Revenue for the quarter came in at $15.49 million, versus $13.11 million reported last year.

Commenting on the Company's performance, MOCON's president and CEO, Robert L. Demorest said, "On a Constant Currency basis, our third quarter revenue grew 5 percent. Our Permeation and Package Testing business segments both continue to meet our growth expectations at 18 percent and 10 percent respectively. As experienced in the first half of the year, our Industrial Analyzer and Other segment continues to be challenged by the soft oil and gas market. Our earnings are trending up; on a sequential basis diluted EPS improved by 82 percent as revenue improved while we prudently managed costs and expenses. While the strengthening of the US dollar negatively impacted our revenue as reported for the three and nine-month periods, there is less of an effect to our operating income. A large portion of the costs to support our international businesses are denominated in foreign currencies, which provides a natural hedge therefore mitigating the negative effect of a strengthening dollar to operating profits.

"As part of an ongoing process improvement initiative designed to grow MOCON's global brand and to provide our customers with enhanced products and services, we recently implemented a realignment plan and as part of that plan, we brought the sales and marketing functions of our Package Testing and Permeation business segments under common leadership. Overall, the realignment resulted in a 5 percent reduction in our U.S. headcount. We expect the realignment plan, which also includes the elimination of several vacant positions within other areas of the Company, will result in approximately $1.7 million of pre-tax savings in 2016. We will record a pre-tax charge of approximately $0.5 million, or $0.09 per diluted share, in the fourth quarter of 2015 related to employee separation costs. We believe the decision to have common leadership over both of these businesses will not only strengthen our market presence, but will also provide a cost-effective approach to achieving our objectives".

For earnings history and earnings-related data on MOCON (MOCO) click here.

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