Medical Action Industries Inc., a medical and surgical products supplier, said Wednesday its profit dropped in the fiscal fourth quarter even as an acquisition boosted its sales.
The company said it earned $1.1 million, or 7 cents per share, in the three months ended March 31. A year ago, Medical Action reported a profit of $5.2 million, or 32 cents per share. Its revenue rose 48 percent to $105.3 million from $71.2 million. The company said it received $34.2 million in revenue from Avid Medical, a company Medical Action acquired in August.
Analysts expected a profit of 10 cents per share, according to FactSet.
For the full fiscal year, Medical Action said its profit dropped to $4.4 million, or 27 cents per share, from $16.8 million, or $1.03 per share. Its results in fiscal 2011 included charges of 8 cents per share related to the Avid Medical deal, and 5 cents per share related to weather damage at warehouse used to store finished goods. Its revenue grew 25 percent, to $362.5 million from $290.2 million.
Medical Action said that rising costs hurt annual results. "We believe that raw material costs, particularly resin and cotton, will continue to influence our gross margins in the near term," the company said. "We have responded to rising raw material costs by implementing price increases where commercially practical and managing our operating expenses."
Shares of Medical Action rose 12 cents to $8.70 in midday trading.