Resuscitation devices and software company ZOLL Medical (ZOLL) reported third-quarter fiscal 2010 earnings of 26 cents per share, topping the Zacks Consensus Estimate of 22 cents and the year-ago result of 7 cents. Net income surged more than four-fold year over year to $5.7 million. The better-than-expected results were driven by the strong performance of the company's LifeVest and Temperature Management businesses.
Revenues climbed roughly 17% year over year to $111.3 million, edging past the Zacks Consensus Estimate of $110 million. Sales include a roughly $5 million contribution from the Temperature Management business (acquired in May 2009).
Sales in the North American market, the highest contributor to ZOLL's revenues, climbed roughly 13% year over year to $81.9 million. North American hospital market revenues, which included $2.6 million from the Temperature Management acquisition, dipped 8% year over year to $24.5 million, impacted by lower military sales.
Revenues from the North American pre-hospital market jumped 26% year over year to $51.1 million, boosted by a large shipment to Canada that helped ZOLL achieve growth in emergency medical services (EMS). International sales, including $2.4 million related to Temperature Management, came in at $29.4 million, up 31% year over year.
LifeVest wearable defibrillator revenues catapulted 51% year over year to $18 million while AutoPulse revenues fell 6% to $3.8 million. The LifeVest business is benefiting from associated sales force enhancements and increased awareness of the product. ZOLL established a direct sales force in Germany in April 2010, which exclusively focuses on the LifeVest business in that country.
Gross margin improved to 54% in the quarter from 51% a year ago. The growth was primarily attributable to better pricing in the North American core defibrillator business. Total expenses increased 12% year over year to $53.6 million. ZOLL exited the quarter with cash and cash equivalents of $59.1 million, up 23% year over year.