Detection Systems Inc. (DS) reports results for its fiscal 2001 first quarter, ended June 30, showed the company’s gross margin rising to 42.4 percent, compared to 39.7 percent a year ago. DS contends that the increase in gross margin reflects the continued effect of the company’s manufacturing efficiency gains. Other results reported include net sales of $33.8 million for the three-month period (compared to $34.8 million in the first quarter of fiscal 2000) and net income of $678,000, or 10 cents per diluted share (compared to $1.4 million and 21 cents respectively a year ago). Excluding the impact of foreign currency losses, net income for the period was $876,000, or 13 cents per diluted share. Operating income for the quarter was $1.7 million, compared to $2.5 million a year ago, which the company attributes to an increase in research and development costs for new technology and expenses related to the recent opening of distribution offices in Argentina and Spain.
“While this quarter had its challenges, our long-term outlook has never been stronger,” says Karl Kostusiak, chairman and CEO. “Our quarterly results were affected by a planned increase in research and development and higher market development costs. We firmly believe that these investments are necessary to maintain our technology leadership position and integral to our long-term growth strategy.”