National Dentex reported a loss of $5.3 million on sales of $41.2 million for the fourth quarter of 2008 (end-December 31), according to its latest earnings release. This compares to net income of $656,000 on sales of $41.4 million for the same quarter a year ago.
The loss was the result of a $7 million, noncash goodwill impairment charge, the company said. Without the charge, the company said it would have reported fourth-quarter net income of $831,000.
As a result of the charge, the company also reported a net loss of $877,000 on sales of $171.2 million for the year. In the previous year, the company reported net income of $6.6 million on sales of $170 million.
"Our sales in the fourth quarter were negatively affected due to a decline in patient demand as the economic recession deepened," said David Brown, president and CEO, in a press release. "This negative effect was mostly offset by the company's successful acquisition of Dental Art Laboratories in Michigan in September 2008. During the fourth quarter and in January 2009, we responded to this slowdown by reducing labor costs and instituting other cost-cutting measures throughout our organization."
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