Mankato, Minn. / May 11, 2012 - Winland Electronics, Inc. (NYSE Amex: WEX) today reported sales of Proprietary Environmental Monitoring products of $807,000 for the first quarter ended March 31, 2012, down $113,000, or 12.3 percent, from the $920,000 that the company reported in the comparable period in 2011. Net loss from the quarter totaled $115,000, or $0.03 per share, versus a loss of $206,000, or $0.06 per share, in the first quarter of 2011.
Gross margins increased to 28.4 percent from 26.3 percent for the three months ended March 31, 2012 versus the comparable period in 2011. This increase was expected based on a price increase effective January 1, 2012 on the Company’s proprietary products.
First quarter operating expenses totaled $411,000, consistent with the first quarter of 2011. The Company funded research and development expenses incurring expenses of $60,000 that were partially offset by a decrease in general and administrative expenses when compared with the first quarter of 2011.
“We realized an increase in sequential sales over the fourth quarter of 2011, with sales returning to historical averages,” said Brian Lawrence, Winland’s Chief Financial Officer and Senior Vice President. “While we’re pleased with this positive development, our results on a year-over-year basis reflected a significant reduction in sales to our largest customer, which restructured its restocking program. In spite of the impact this had on our results, sales to our other top ten customers increased collectively by 13 percent over the same period a year ago.”
Our latest product release, the EnviroAlert EA800-ip contributed to sales volume in the first quarter of 2012, but fell short of our projections. The Company continued to invest in the development of our on-line web interface for the EA800-ip based on feedback received in the market and anticipate releasing version 2.0 during the second quarter of 2012.
“We remain excited about the potential for this product,” Lawrence said. “We’re encouraged by discussions with our customers and potential end users, who see the potential for the EA800-ip as a key component of their total security solution. We anticipate the improved interface, along with additional end user integration of total security solutions, will increase sales of the EA800-ip positively affecting operations for the balance of 2012.”
Certain statements contained in this press release and other written and oral statements made from time to time by the company do not relate strictly to historical or current facts. As such, they are considered forward-looking statements, which provide current expectations or forecasts of future events. The statements included in this release with respect to the following matters are forward looking statements; that (i) the EnviroAlert EA800-ip on-line web interface version 2.0 will be released in the second quarter of 2012; (ii) the EnviroAlert EA800-ip has the potential to become a key component of end-user total security solutions; and (iii) the EnviroAlert EA800-ip will positively affect the company’s operating results in 2012. These statements involve risks and uncertainties, known and unknown, including among other risks that (i) the EnviroAlert EA800-ip on-line web interface will be released during the second quarter of 2012; (ii) the EnviroAlert EA800-ip will become a key component of end-users total security solutions; and (iii) the EnviroAlert EA800-ip will positively affect the company’s operating results going forward. Consequently, no forward-looking statement can be guaranteed and actual results may vary materially.
