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MesaLabs Mesa Labs Announces First Quarter Results LAKEWOOD , Colo . , Aug. 04 , 2021 ( GLOBE NEWSWIRE ) -- Mesa Laboratories , Inc. ( NASDAQ : MLAB ) today reported results for its first fiscal quarter ( " 1Q22 ” ) . Financial highlights for the quarter ended June 30 , 2021 as compared to last year : | Revenues increased 17 % 1 Operating income decreased 13 % | Non - GAAP adjusted operating income¹ excluding unusual items increased 12 % Financial Results ( amounts in thousands , except per share data ) In comparison to the same quarter in the prior year ( " 1Q21 ” ) , 1Q22 revenues increased 17 % to $ 34,920 , operating income decreased 13 % to $ 3,123 , and net income was $ 1,995 , an increase of 64 % or $ 0.38 per diluted share of common stock . As detailed in the Unusual Items table below , operating income for the first quarter of the previous year was impacted by unusual items totaling $ ( 364 ) . Excluding the unusual items , operating income would have decreased 3 % to $ 3,123 for 1Q22 . On a non - GAAP basis , in comparison to the same quarter in the prior year , both 1Q22 adjusted operating income 1 ( " AOI " ) and adjusted operating income excluding unusual items increased 12 % to $ 9,136 or $ 1.72 per diluted share of common stock . A reconciliation of non- GAAP measures is provided in the tables below . Division Performance Sterilization and Disinfection Control ( 43 % of revenues in 1Q22 ) continued to deliver strong results with 16 % organic revenues growth versus 1Q21 led by recovery in our healthcare services and medical device verticals and ongoing strength in biopharmaceuticals . Quarter over quarter gross profit percentage contracted 130 bps versus prior year to 75 % , primarily from unfavorable vertical market mix and higher wages offsetting the volume growth . | Biopharmaceutical Development ( 25 % of revenues in 1Q22 ) delivered solid topline results in the quarter with 49 % organic growth quarter over quarter primarily due to COVID related declines in 1Q21 . Gross profit percentage contracted 22 percentage points versus 1Q21 to 53 % primarily due to unfavorable exchange rates , higher labor - related costs , and the absence of the benefit of a positive purchase accounting adjustment in 1Q21 . With the SEK at a current exchange rate of approximately 0.116 USD , we expect gross profit percentage in this segment to range from the low to mid 50's . Instruments ( 22 % of revenues in 1Q22 ) organic revenues declined by 2 % versus 1Q21 despite declines due to the impacts of COVID in the same quarter of the prior year . The division continues to lag the broader economic recovery . Additionally , the division was impacted by the previously announced consolidation of our Butler , NJ facility into our Lakewood , CO facility which we expect to complete within 2Q22 with topline recovery in the affected product lines following and spreading into 3Q22 . Despite the volume decline and the impact of higher wages , gross profit percentage expanded 60 bps versus 1Q21 due to improving efficiencies . ■ Continuous Monitoring ( 10 % of revenues in 1Q22 ) posted steady results with 3 % organic growth versus 1Q21 . The division continued solid execution in profitability with gross profit percentage increasing 710 basis points versus the same quarter in the prior year from the same factors described in previous periods , namely better discounting controls , product pricing mix improvements , increased revenues and improved efficiencies . Executive Commentary " Operationally we are leveraging The Mesa Way to deepen improvements in our commercial processes , increase manufacturing flexibility , and reduce the complexity of running our business . With this added resilience and focus on long term growth , we continue to keep a strong focus on our long - term goals while navigating rapidly changing economic conditions , " said Gary Owens , Chief Executive Officer of Mesa Labs . " Overall , we are satisfied with the solid start to the year . Adjusted operating income increased 12 % , in line with our 17 % topline performance and our deepening investment in commercial resources . The sequential step down from 4Q21 was in line with expectations and we remain poised to continue to take advantage of the recovery in our end markets . Total company gross profit percentage contracted by 430 bps versus 1Q21 to 64 % but was only down 100 bps versus full fiscal 2021 , " added Mr. Owens . " Looking forward , the COVID Delta variant is colliding with increased vaccinations globally and inflation pressures in the U.S. contributing to increased economic uncertainty . We remain optimistic regarding the continued economic recovery and focused on capturing the opportunities presented in our biopharmaceutical and other healthcare driven verticals . We retain a strong cash position and balance sheet flexibility and are positioned to invest in growth opportunities both organic and inorganic , " concluded Mr. Owens . 1 The non - GAAP measures of adjusted operating income and adjusted operating income per diluted share are defined to exclude the non- cash impact of amortization of intangible assets acquired in a business combination , stock - based compensation and impairment of goodwill and long - lived assets . A reconciliation between these non - GAAP measures and their GAAP counterparts is set forth in the table