Poor economic system dampens Patterson profits

Poor economic system dampens Patterson profits

Patterson reported combined revenue of $780 thousand for it all 1 / 4, compared with $778 thousand for the same 1 / 4 a season ago, the organization announced.

Net income for the 1 / 4 was $54 thousand, down 15% from $63 thousand in it all 1 / 4 of 2008.

Full-year financial 2009 combined revenue totaled $3 billion dollars, up 3% from $2.9 billion dollars in financial 2008. Net income for the season was $199.6 thousand, compared with $224.8 thousand in 2008.

The weak economic system impacted each of Patterson's three businesses in it all 1 / 4, especially in the area of devices revenue, the organization noted. This impact was particularly evident on revenue of primary oral devices, although oral offices ongoing investing at solidly higher levels in new technological innovation items, including Cerec oral restorative items and digital radiography techniques, the organization said.

Sales of Patterson Dental Supply, Patterson's largest business, were $534 thousand in it all 1 / 4, down 5% from $562 thousand in the same period a season ago. Sales of usable oral resources and printed office items were down 2% from last seasons 4th 1 / 4, and revenue of oral devices and software declined 10% from a season ago. Sales of other items and solutions, consisting primarily of technical service materials, software support solutions, and artificial teeth, rose 4% from last seasons 4th 1 / 4.

"Our 4th 1 / 4 operating results were below our expectations as we experienced reduced customer demand for the capital devices offerings at each of our three businesses," said James Wiltz, president and CEO. "In addition, revenue of usable oral resources stayed impacted by the economy-related trend of patients deferring higher-level and discretionary solutions."

"Partly offsetting the lower revenue of primary oral devices was the strong revenue growth of new technological innovation items, with revenue of Cerec techniques up 7% and revenue of digital x-ray techniques up 25%," he said. "We believe the recession is causing many oral offices to limit their investments to devices with rapid rates of return. New technological innovation items, in comparison to such primary oral devices as chairs and lights, meet this revenue requirement."