Patterson Companies reported sales of $789.6 million for the first quarter of fiscal 2010 (end-July 25), up 6% from $743.8 million in the same quarter a year ago.
The strong performance of technology offerings in the dental equipment business and higher sales of veterinary supplies helped offset the impact of the weak economy on other portions of Patterson's business, the company said. Acquisitions, net of negative foreign currency adjustments, accounted for the majority of the first-quarter sales growth.
Net income for the quarter was $45 million, down slightly from $45.9 million in the first quarter of 2009.
Sales of Patterson Dental Supply, Patterson's largest business, were $511 million in the first quarter, down 2% from $520 million in the same period of 2009. Sales of consumable dental supplies and printed office products were down 1% from the first quarter of 2009, and sales of dental equipment and software declined 2% from same period a year ago.
However, sales of Cerec dental restorative systems rose 84%, while sales of digital x-ray systems and related software gained 16%. These increases largely offset a 16% decline in sales of such basic equipment as chairs, units, and lights, the company noted.
"Despite the ongoing impact of the recession on our business, we are generally satisfied with Patterson's first-quarter results," said James Wiltz, president and CEO, in a press release. "Within our Patterson Dental unit, sales of consumable supplies held up relatively well, although many patients continued to defer higher level and discretionary dental procedures. However, dental practitioners continued investing in Cerec dental restorative products and digital radiography systems, reflecting our belief that the recession is causing many dentists to focus their investments on equipment with rapid rates of return."
Recessionary conditions are expected to continue to affect the company's performance for at least several more quarters, he added.
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