Zoll books weak Q2, due to poor North American hospital sales

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Zoll Medical, a manufacturer of resuscitation devices and software solutions, has reported net income of $1.78 million for the second quarter of 2009, compared with $5.65 million in net income for the same period last year.

The Chelmsford, Mass.-based company said that revenues for the second quarter of fiscal 2009 were $92.7 million, compared with revenues in the second quarter of last year of $99.2 million, a decline of 7 percent. Revenue results reflected a negative foreign exchange impact of nearly $5 million, compared with the second quarter of fiscal 2008.

Second quarter sales to the North American market were $70 million, a decrease of 6 percent compared with $74.6 million for the prior-year period, according to Zoll. Sales to the North American hospital market decreased 37 percent to $17.5 million, compared with $27.9 million for the same period last year. North American hospital revenues included U.S. military/big government sales of $1.4 million in the second quarter of 2009, compared with $3.7 million in the same period the prior year.

However, the company noted that sales to the North American pre-hospital market increased 15 percent to $47.1 million, compared with $41 million in the second quarter of 2008.

"Unlike the first quarter of fiscal 2009, when we over-performed in our pre-hospital and International markets, our performance in those markets during Q2 was not enough to offset the reduced spending we continued to see in the North American hospital market. In addition, we received very little military business during the quarter," commented Richard A. Packer, Zoll's CEO. "Q2 was an obvious disappointment for us. However, we are taking the actions now which will position us well in our core markets."