Zoll posts 285 percent increase in profits during Q3

July 29, 2010 by MassDevice staff

Chelmsford, Mass-based Zoll Medical Corp. records another strong quarter based on increased sales in it's emergency medical services market.

Zoll Medical Corp. (NSDQ:ZOLL) continues to have a rebound year in 2010, posting a 285 percent increase in its bottom line during the three month period ended on July 4.

The Chelmsford, Mass-based resuscitation products maker reported revenues of $111.3 million in its third quarter, compared with $95 million during the same period last year, a 17 percent increase overall. The brisk sales helped the company post a $5.7 million profit, a 285 percent increase from the $1.5 million in net income the company posted for the same period last year.

Company officials said that strong sales of products used by EMT's, firefighters and other first responders in North Amercia increased dramatically during the quarter to $51.1 million, compared to $40.5 million during the same period last year, a 51 percent increase.

However, a bulk of that increase resulted from a large shipment to Canada, which standardized the EMS system in Newfoundland to Zoll and "helped [the company] achieve growth in the North American EMS market in spite of continued spending constraints in the US," company CEO Rick Packer said in a prepared release.

Packer said the company remains "cautious" about the EMS market in the U.S.

The strong sales in EMS helped offset some softness in the North American hospital market, where sales dropped 8 percent to $24.5 million, compared to $26.6 million for the same period last year.

Company officials blamed the decrease in its hospital business to lower than expected orders from the U.S. military.

Packer said the company was upbeat about stronger sales of its LifeVest wearable defibrillator and accelerated its hiring of a direct sales for the product during the quarter. Total sales for the LifeVest jumped some 51 percent during the quarter to $18 million.

However, Packer noted that one key initiative, increasing sales of the LifeVest internationally, was still having some trouble getting off the ground.

Zoll announced last April that it was transferring sales of the LifeVest away from distributors and into a direct sales force in Germany, a market Packer called, "the most significant market opportunity in Europe for the LifeVest."

However, in a conference call with investors Thursday, Packer said that that there has been some difficulty in the transition because of a conflict with the company's former distribution partners who have objected to the company's decision to switch up tactics.

In a separate announcement, Zoll said it received approval from Japanese authorities for its AED Plus and AED Pro products and will be announcing a distribution agreement with a partner for the country soon.