National Dentex reported net income of $2.3 million on sales of $42.8 million for the second quarter of 2009 (end-June 30), compared to net income of $1.9 million on sales of $44.6 million for the same period a year ago.
"Despite sales declines of 5.2% in the first quarter of 2009 and 4.1% in the second quarter of 2009, we attained this positive growth in net income primarily through our ongoing efforts to manage our cost structure, as our dental laboratories are successfully executing our cost containment initiatives, while at the same time improving laboratory productivity," said David Brown, president and CEO, in a press release.
The company's latest financial results benefited from declines in commodity prices, particularly in materials costs and delivery expense, he added.
"We attribute the decline in sales in recent quarters to some patients' deferral of discretionary dental services due to the economic recession," Brown said. "As the economy comes out of this recessionary period, we anticipate that our new cost structure and improvements in productivity will allow us to capitalize on the expected increase in demand for dental services, as patients who deferred these types of expenditures no longer do so."
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