MGC Diagnostics closes FY12 on the safe side of a major revamp
The growth in diagnostics as an increasingly important part of the healthcare system led MGC Diagnostics ($MGCD) to complete a major restructuring in its 2012 fiscal year. But with all the pieces in place, financial results for the cardiorespiratory diagnostics outfit show, it has a long way to go before it fully capitalizes on the changes.
Over the last year MCG sold off its New Leaf health, fitness and sports products, got a new CEO and even changed its name from Angeion to better reflect its focus. In the fourth quarter and 2012 fiscal year ending Oct. 31, results show the company hasn't fully broken away from transition mode.
MGC's FY 2012 fourth quarter revenue hit $8.2 million, up 4% from $7.9 million reported in the fiscal 2011 fourth quarter. But the company lost $1.06 million from continuing operations as it shed the New Leaf line. MCG turned a small profit during the fourth quarter, but essentially broke even for the 2012 fiscal year (reporting a tiny net loss). Revenue for fiscal 2012 reached $27.2 million, versus $27 million in fiscal 2011.
President and CEO Gregg Lehman said in a statement that Angeion/MCG has "completely transformed" itself. That work, he said, which included new executives, a "streamlined" sales and marketing team and some corporate rebranding, helped stabilize the company, he said, as well as adding more predictability to revenue. Lehman said 2013 will be filled with "substantial traction" and growth. Time will tell if he can truly deliver.
- read the earnings release