Gish Biomedical Says Costs Led to 45% Drop in Income

Gish Biomedical Inc., a manufacturer of surgical products, reported net income of $260,300, or 8 cents a share, for the third fiscal quarter, down 45% from the year-earlier figure of $473,700, or 14 cents a share. The company said the decline was due to costs associated with the development of a direct sales force, increased research and product development, and higher manufacturing expenses. Sales for the quarter ended March 31 increased 7%, to $6 million, from $5.6 million.

Net income for the nine-month period dropped to $274,000, or 8 cents a share, from $1.3 million, or 40 cents a share, for the same period of fiscal 1995. Results for the recent nine-month period included a $702,000 expense related to termination of a distributor contract. Sales were up 5%, to $17.1 million, from $16.3 million.