GLENWOOD, Ill., May 5 /PRNewswire-FirstCall/ -- Landauer, Inc. (NYSE: LDR), a recognized leader in personal and environmental radiation monitoring services, today reported financial results for the three and six months ended March 31, 2009.

Fiscal 2009 Second Quarter Highlights

-- Revenue grew 5 percent to $25.0 million on continued demand for InLight

products and increased domestic badge revenues.

-- Gross profit grew 2 percent to $16.6 million on increased sales.

-- Recorded one-time charges of $2.7 million ($1.8 million after- tax, $0.19

per diluted share) for pension curtailment and transition and management

reorganization.

-- Effective tax rate declined to 31 percent due primarily to changes in

Illinois state tax law and favorable settlement of certain state tax

liabilities.

-- Net income declined 16 percent to $5.4 million, or $0.58 per diluted

share due to impact of one-time charges. Excluding one-time charges,

net income would have increased 12% and earnings per diluted share would

have been $0.77.

-- Established multi-year agreement with Health Canada to support continued

implementation of InLight solution for radiation monitoring.

"This quarter's record financial results were solid, but were partially offset by the cost of actions we have taken to support continued execution on our strategic priorities of optimizing the core business, driving competitive growth, and pursuing strategic expansion," stated Bill Saxelby, President and CEO of Landauer. "Investments toward right sizing our long-term cost structure through an alternative retirement program and the reorganization costs required to strengthen key management positions are short- term investments that we believe will strengthen our core business for long-term success."

"Completion of our current systems initiative is another required investment in the infrastructure necessary to support the continued growth of Landauer, Inc. We have completed a thorough assessment of the scope, timing and cost required to successfully implement our information technology systems initiative, with a goal to limit the risk to our continued strong financial execution. We estimate currently that the total project will cost $25 - $27 million and is targeted to be completed during calendar 2010."

Saxelby added, "The continued acceptance of our InLight suite of products, success of our international expansion initiative and adoption of our offerings in the medical and nuclear markets affirm the strong long-term growth prospects for our business and the success of our focus on driving competitive growth. For example, during the quarter we placed InLight products in our 19th country and continued to foster our relationship with Health Canada, which is demonstrated by a multi-year agreement for approximately $8 million of additional InLight products to support their commitment to our OSL (Optically Stimulated Luminescence) technology for a breadth of monitoring solutions. We recognized approximately $1.6 million of revenue in the quarter from this relationship."

Record Performance Offset by One-Time Charges

Revenues for the second fiscal quarter of 2009 were $25.0 million, a 5 percent increase compared with the $23.7 million reported for the second fiscal quarter of 2008. Domestic revenue increased 6 percent, or $1.1 million, on InLight product demand and growth in domestic badge revenue. Organic international revenue growth of approximately 20 percent was offset by the impact of the strengthening of the dollar against most foreign currencies, which reduced revenue by approximately $1.0 million in the quarter, resulting in a reported increase of 2 percent, or $101,000.

Cost of sales increased 12 percent for the quarter due to increased cost of materials to support increased InLight products sales. Gross margin declined to 66 percent from 68 percent in the year ago period due to the revenue mix. Selling, general and administrative expenses for the second fiscal quarter of 2009 increased 4 percent, or $241,000. The primary factors contributing to the increase were $371,000 in additional non-recurring pension expense due to the acceleration of certain costs to support the defined benefit plan curtailment and transition, and $185,000 in additional professional fees to support due diligence of an acquisition opportunity the Company chose not to pursue. These costs were partially offset by the timing of expense spending to re- engineer business processes and to replace the Company's information technology systems that support customer relationship management and the order-to-cash cycle.