 ARDEN HILLS, Minn., Aug. 10, 2020 GLOBE NEWSWIRE -- IntriCon Corporation NASDAQ: IIN, an international company engaged in designing, developing, engineering and manufacturing miniature interventional, implantable and body-worn medical devices, today announced financial results for its second quarter ended June 30, 2020. The IntriCon team continued to deliver against the priorities we established at the outset of this year and Im proud of our accomplishments in the second quarter, despite new challenges in the current business landscape. While we entered the quarter with some degree of visibility afforded to us by ordering patterns earlier in the year from our largest medical customers, our business further stabilized throughout the quarter and as a result, were stronger than initially anticipated. Importantly, the significant restructuring actions taken over the first half of the year, coupled with adjustments made during the pandemic, contributed to meaningful bottom line improvement and provided stability to our core business as we navigate through these uncertain times, said Mark Gorder, president and chief executive officer.Operationally, we continue to make great progress on the integration of Emerald Medical Services, as well as implementing measures that will enable us to evolve our business to best address key medical growth markets. I look forward to working closely with Scott Longval, who will take over the helm as CEO on October 1, throughout the next few months to ensure a smooth transition in responsibilities and on-going priorities. Second Quarter Highlights: Revenue of 23.6 million compared to 29.3 million in the prior year Revenue from the companys largest medical customer declined 24.7 year-over-year Other medical revenue increased 56.3, which included the contribution from recently acquired Emerald Medical Services Gross margin of 28, relatively flat year-over-year Net loss per diluted share of 0.26 versus net loss of 0.57 per diluted share in the prior year period Adjusted net loss per diluted share of 0.02 Acquired Emerald Medical Services Pte. Ltd., a privately held provider of joint development medical device manufacturing services for complex catheter applications Appointed Scott Longval as President and Chief Executive Officer effective October 1, 2020 to succeed Mark Gorder, who will retire from the position on September 30, 2020While the macroeconomic environment remains uncertain, we are encouraged by recent business trends, and believe IntriCon has weathered the worst of the storm, with several encouraging milestones on the horizon. Importantly, we are managing our business for the long-term with investments focused on driving our growth and remain as confident as ever in the durability of our business, concluded Gorder.Second Quarter 2020 Financial Results For the 2020 second quarter, the company reported net revenue of 23.6 million versus 29.3 million in the comparable prior-year period.Revenue in IntriCons Medical business was 18.1 million, a decrease from 20.9 million in the comparable prior-year period. The year over year decline was driven primarily by the reduction in orders due to uncertainty surrounding the COVID-19 pandemic, partially offset by a 21 increase in other medical and the impact of Emerald Medical Services which the company acquired in May 2020.Hearing Health revenue was 4.5 million in the second quarter of 2020 compared to 6.7 million in the prior-year second quarter. The revenue decline during the second quarter was largely attributed to the absence of hi Health Innovations revenue and the COVID-19 pandemic impact on the Legacy hearing health channel.As previously announced, in April of 2020 the company took several steps to strengthen its balance sheet and reduce its cost structure, including headcount reductions and temporary salary reductions for directors and management. The temporary salary reductions reduced expenses for the second quarter by more than 750,000. Salaries were fully restored at the beginning of the third quarter. In addition to the salary reductions, there were several additional items that impacted the comparability of our operating expenses year over year, see Non-GAAP Financial Measures.Gross margin in the second quarter of 2020 was 28, flat compared to the prior-year second quarter, primarily due to the cost reduction initiatives and favorable mix, offset by lower volumes.Operating expenses for the second quarter were 9.2 million, compared to 11.6 million in the comparable prior-year period. The change in operating expenses year over year was due to the cost reduction initiatives and other items included in our Non-GAAP Financial Measures.The company posted a net loss of 2.3 million or 0.26 per diluted share in the second quarter of 2020, versus net loss of 5.0 million or 0.57 per diluted share, for the 2019 second quarter. As presented in the Reconciliation of Non-GAAP Measures table below, the company posted an adjusted net loss of 143,000 or 0.02 per diluted share in the second quarter of 2020, versus net loss of 1.3 million or 0.14 per diluted share, for the 2019 second quarter.2020 Guidance As previously reported, IntriCon is not providing 2020 financial guidance due to the continued uncertainties from the impact of the COVID-19 pandemic.Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles GAAP, this earnings release also contains non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental schedule attached.Conference Call IntriCons management team will hold a conference call today, August 10, 2020, beginning at 4:00 p.m. CT 5:00 p.m. ET. Investors interested in listening to the conference call may do so by dialing 866-795-7248 for domestic callers or 470-495-9160 for international callers, using conference ID: 3544449. A live and archived webcast will be available on the Investors sections of the companys website at: Statements Statements made in this release and in IntriCons other public filings and releases that are not historical facts or that include forward-looking terminology, including estimates of future results, the impact of the Emerald acquisition, statements regarding the estimated costs and expenses of the restructuring and estimated annual expense savings, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond IntriCons control, including without limitation, the impacts of the COVID-19 pandemic and measures taken in response, the risks associated with the Emerald acquisition, the actual number of employee headcount reductions in our strategic restructuring, the results of our lease negotiations, actual cash expenditures that may be made by the company in connection with the reduction in force and the amount, use and impact of any savings generated by the reduction in force and restructuring, and may cause IntriCons actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the companys filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2019 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.About IntriCon Corporation Headquartered in Arden Hills, Minn., IntriCon Corporation designs, develops and manufactures miniature interventional, implantable and body-worn devices. These advanced products help medical, healthcare and professional communications companies meet the rising demand for smaller, more intelligent and better-connected devices. IntriCon has facilities in the United States, Asia, and Europe. The companys common stock trades under the symbol IIN on the NASDAQ Global Market. For more information about IntriCon, visit Contact Leigh Salvo 415 937-5404 CORPORATION MARKET REVENUE Unaudited SECOND QUARTER YEAR TO DATE in 000s2020 2019 Change 2020 2019 Change Medical18,118 20,892 -13.3 34,476 41,685 -7.3 Diabetes 13,521 17,950 -24.7 27,051 35,114 -23.0 Other Medical 4,597 2,942 56.3 7,425 6,571 13.0 Hearing Health 4,473 6,675 -33.0 8,354 13,685 -39.0 Value Based Direct-to-End-Consumer 1,387 1,736 -20.1 2,560 3,366 -23.9 Value Based Indirect-to-End-Consumer 1,365 2,399 -43.1 2,109 4,976 -57.6 Legacy OEM 1,721 2,540 -32.2 3,685 5,343 -31.0 Professional Audio Communications 1,011 1,769 -42.8 2,275 3,536 -35.7 Total23,602 29,336 -19.5 45,105 58,906 -23. 