Sales of colour toner cartridges increased by 6.6 percent, however sales of solid inks contracted by 5.9 percent.
Media Sciences put this down to sales of it new products this year. It added that the revenue was also driven by an increase in market share for some existing products, and “continued growth of the installed base of colour business printers for which we manufacture products”.
Gross profit decreased by three percent, to $8.6 million, from $8.9 million during the same period last year. Media Sciences blamed this on year-over-year increases in warranty costs, and “production product mix offset by a decrease in deprecation”.
For the year ended 30 June, the firm reported a net loss of $3.6 million, up from last year’s $1.7 million. Operating loss also stood at $1.4 million, and improvement from $1.5 million in fiscal 2009.
The colour toner and solid ink manufacturer’s selling, general and administrative expense, exclusive of depreciation and amortization, decreased by $711,000, or 8 percent.
The firm explained: “This decrease was primarily driven by a cessation of start-up activities in China and a reduction in compensation as a result of reductions imposed in the 2009 fiscal year. These were offset by increases in travel and acquisition costs associated with the purchase of Master Ink.”
Michael Levin, Media Sciences’ President and CEO, said: “Fiscal 2010 was both a rewarding and challenging year. With the leaner organization resulting from our fiscal 2009 right-sizing efforts, we made significant progress in pursuing a solution to address our supply chain and product development goals culminating with the signing of the Master Ink purchase agreement, and in growing our European, US office product channel and industrial ink sales.
“We shipped our 10 millionth solid ink stick, and reduced our inventories by an additional $900,000 while reducing our customer backorders.
“In our litigation with Xerox, the court issued a ruling that we view as highly favorable. Our financial results however, were tempered by declines in our sales through internet partners, continued elevated warranty expenses, the impact of a stronger dollar in the latter half of the year, and significant costs associated with the acquisition of Master Ink.”
Levin continued, “As we progress in fiscal 2011, our opportunities are clear. Upon completion of the Master Ink acquisition we must leverage and capitalize on the resulting capability to drive new and expanded revenues.
“The ability to reduce our time to market, reduce our product costs and to customize products for certain customers and/or channels, should allow us to do so. We believe with a continued vigilance on our operating costs we will improve our operating and financial performance in fiscal 2011.”