Total sales for the quarter were $8.08 million, down $2.55 million, or approximately 24%, from the $10.63 million of total sales reported for the quarter ended September 30, 2008. The decrease is primarily attributable to reductions in sales of Systems and Supplies and Other that were down $2.62 million and $161 thousand, respectively. These reductions were partially off-set by an increase in Maintenance sales of $222 thousand and a reduction in commission and other sales expense, compared to the corresponding period of the prior year. The Company reported net income for the quarter of $554 thousand, or $0.03 per share, compared to net income of $493 thousand, or $0.02 per share, for the quarter ended September 30, 2008.
For the six months ended September 30, 2009, total sales were $16.02 million, compared to total sales of $18.80 million for the six-month period ended September 30, 2008. The $2.78 million decrease resulted from reductions in sales of Systems and Supplies and Other of $2.71 million and $446 thousand, respectively. The reductions were partially off-set by an increase in Maintenance sales of $378 thousand over the corresponding six-month period of the prior year. Net income was $455 thousand, or $0.02 per share, for the six-month period, compared to net income of $305 thousand, or $0.02 per share, for the comparable period last year.
Marc Perkins, President and Chief Executive Officer of the Company stated, “Our results for the quarter were negatively impacted by ongoing, world-wide economic conditions, which have resulted in a reduction in spending on capital equipment such as our high-speed, intelligent mailing systems. To some degree, our systems order backlog protected us from the immediate impact of the recession, but the pace of new orders has slowed and we have now converted most of our backlog to revenue.” At September 30, 2009, the Company had a systems order backlog of $1.2 million, compared to a systems order backlog of $7.4 million at September 30, 2008. After the completion and delivery of systems in October our order backlog declined further to $825 thousand at October 31, 2009.
The Company posts current financial statements and other important information on PinkSheets.com (http://www.pinksheets.com; symbol: SORT.PK), as well as the Company’s own website (http://guntherintl.com).
