ZOLL Medical Corporation, a Chelmsford, MA, U.S.-based manufacturer of non-invasive cardiac resuscitation devices that provide pacing and defibrillation, announced record annual revenues of U.S. $184.6 million, an increase of 23 percent as compared to annual revenues of $150.3 million last year. Net income and earnings per diluted share also increased to record levels, posting a gain of 26 percent and 25 percent, respectively, to $12.85 million, or $1.40 per diluted share, for the year as compared to $10.2 million, or $1.12 per diluted share, for the comparable prior year period.
Annual sales in the North American market grew by 18 percent over 2002. Revenues reached $138.5 million as compared to $117.0 million for the prior year. Sales to the North American hospital market increased 25 percent to $63.6 million, as compared to $50.7 million last year. Sales to the North American pre-hospital market grew 18 percent to $55.4 million as compared to $47.0 million for the prior year. International sales increased 39 percent to $46.1 million as compared to $33.2 million for the prior year. Annual sales of the new AED Plus product totaled $18.8 million as compared to $6.6 million in the prior year.
Fourth-quarter 2003 revenues increased 6 percent over 2002 to $50.2 million. As previously disclosed, in the fourth quarter of 2002 both revenues and earnings were unusually high due to approximately $2.5 million of shipments that were shipped in the fourth quarter of 2002 instead of the third quarter of 2002 due to a production problem experienced in the third quarter. Net income for the fourth quarter of 2003 increased 7 percent to $4,867,000 and earnings per diluted share increased 6 percent to $0.53 as compared to $4,540,000 or $0.50 for the comparable prior year quarter, respectively.
Fourth-quarter sales to the North American market grew to $39.4 million, an increase of 9 percent as compared to the fourth quarter of 2002. North American hospital revenues increased 25 percent to $18.8 million as compared to the fourth quarter of last year. Sales to the North American pre-hospital and international markets decreased by 3 percent and 4 percent to $15.8 million and $10.8 million, respectively. AED sales were $5.3 million in the quarter.
Richard A. Packer, president and CEO of ZOLL commented on the results, "We are proud to have completed another strong year at ZOLL. The fourth quarter was very strong even though the prior year comparatives may not show it due to last year's unusually high shipments. We were especially pleased that our fourth quarter gross margins came in higher than expected, due to both a higher average selling price and improved mix, thereby allowing us to achieve our bottom line growth objectives while at the same time increasing our backlog heading into the first quarter."
Mr. Packer concluded, "Our outlook for the company remains bright and unchanged. We continue to see a strong year in 2004 with both sales and earnings growing approximately 20 percent. We believe that the North American market is strengthening, that we will be successful in building our AED business, and that we have further room to grow internationally. During 2004, we will stay the course of strengthening our distribution channels and investing in our infrastructure to position ourselves for the future."
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