GLENWOOD, Ill., Aug. 6, 2012 /PRNewswire/ -- Landauer, Inc. (LDR), a recognized leader in personal and environmental radiation measurement and monitoring, outsourced medical physics services and high quality medical consumable accessories, today reported financial results for its fiscal 2012 third quarter ended June 30, 2012.

Fiscal 2012 Third Quarter Highlights

"We are pleased with our third quarter results, which demonstrated continued progress against our key strategic initiatives," stated Bill Saxelby, President and CEO of Landauer. "We executed on our initiatives with the military and emergency response markets as we made our first substantial Radwatch system shipment and received additional orders for the system during the quarter. The Medical Physics segment continued to build momentum with another profitable quarter, and we successfully went live with our new ERP platform in early July."

Saxelby continued, "The current market opportunities provide Landauer with attractive prospects to grow and expand our business, and our year to date results continue to support achievement of our full year guidance."

Third Fiscal Quarter Financial Overview and Business Segment Results

Revenues for the third fiscal quarter of 2012 were $39.2 million, an increase of $10.0 million, or 34.5 percent compared with revenues of $29.2 million for the same quarter in fiscal 2011. The Radiation Measurement segment contributed an increase of $3.1 million, the Medical Physics segment contributed an increase of $2.8 million and the new Medical Products segment increased revenues by $4.2 million. Excluding revenue from the acquired businesses during the year, as compared with the prior year quarter, revenue increased 12.7 percent. Revenue in the quarter included $1.8 million of Radwatch System sales, primarily to the National Guard. Consolidated revenue in the quarter was negatively affected $1.1 million by currency fluctuation, as compared with the prior year period, principally due to weakness in the Euro against the U.S. dollar.

Gross margins were 55.7 percent for the third fiscal quarter of 2012, compared with 58.6 percent for the third fiscal quarter of 2011. The decrease in gross margin rate was primarily due to the Radiation Measurement segment increase of lower margin equipment sales in the third fiscal quarter of 2012, as compared to the prior year period, inclusive of sales to the military and emergency response markets. This includes the impact of Radwatch System sales that are at a lower overall margin rate than those generated in our traditional Radiation Measurement business.

Total operating expenses for the third fiscal quarter of 2012 were $12.6 million, an increase of $3.4 million, or 36.2 percent, compared with operating expenses of $9.2 million for the same quarter in fiscal 2011. The operating expense increase was partially due to $1.5 million associated with acquired companies purchased subsequent to the prior year's comparable quarter, $0.4 million due to timing of the recording of incentive compensation expenses associated with improved operating performance in fiscal 2012 versus fiscal 2011, investment in research and development in support of military and first responder initiatives, investment in customer facing organizations, and expenses related to the company's IT systems initiative. For the third fiscal quarter of 2012, total operating expenses before $0.3 million of non-recurring acquisition expenses, $0.6 million of IT platform enhancement related expenses, and $0.7 million of non-cash stock based compensation expenses were $11.0 million or 28.1 percent of total revenues. This compares with the $8.4 million, or 28.9 percent of total revenues, reported for the third fiscal quarter of 2011, before $0.3 million of IT platform enhancement related expenses, and $0.5 million of non-cash stock based compensation expenses.

Operating income for the third fiscal quarter of 2012 was $9.2 million, an increase of $1.4 million, or 18.1 percent compared with operating income of $7.8 million for the same quarter in fiscal 2011. The increase in operating income was primarily driven by an increase of $0.5 million in the Medical Physics segment, and the addition of the Medical Products segment which contributed $1.9 million in operating income, partially offset by a $1.0 million decrease in the Radiation Measurement segment. Operating income, adjusted for non-recurring acquisition expenses, IT platform enhancement related expenses, and non-cash stock based compensation expenses, for the third fiscal quarter of 2012 was $10.8 million, a 25.1 percent increase compared with adjusted operating income on a relative basis of $8.7 million for the third fiscal quarter of 2011. Consolidated operating income in the quarter was negatively affected $0.3 million by currency fluctuation, as compared with the prior year period, principally due to weakness in the Euro and the Real against the U.S. dollar.

Interest expense in the quarter increased $1.1 million associated with borrowings to acquire IZI in the first fiscal quarter of 2012.

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Landauer, Inc. Reports Fiscal 2012 Third Quarter Results