For
quarter ended: March 31, 2010
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Commission
File No.
0-11178
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UTAH
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87-0342734
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(State
or other jurisdiction of
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(I.R.S.
Employer
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incorporation
or organization)
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Identification
No.)
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Large
accelerated filer o
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Accelerated
filer x
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Non-accelerated
filer o
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Smaller
reporting company o
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PART
I - FINANCIAL INFORMATION
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PAGE
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Item
1.
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Financial
Statements
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Consolidated
Condensed Balance Sheets as of
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||
March
31, 2010 and December 31, 2009
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1
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Consolidated
Condensed Statements of Income for the
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||
three
months ended March 31, 2010 and March 31, 2009
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2
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Consolidated
Condensed Statements of Cash Flows for
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||
three
months ended March 31, 2010 and March 31, 2009
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3
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Notes
to Consolidated Condensed Financial Statements
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4
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Item
2.
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Management’s
Discussion and Analysis of
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Financial
Condition and Results of Operations
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7
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Item
3.
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Quantitative
and Qualitative Disclosures About Market Risk
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11
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Item
4.
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Controls
and Procedures
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12
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PART
II – OTHER INFORMATION
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Item
1.
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Legal
Proceedings
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13
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Item
1A.
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Risk
Factors
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13
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Item
2.
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Unregistered
Sales of Equity Securities and Use of Proceeds
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13
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Item
6.
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Exhibits
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13
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SIGNATURES
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13
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PART
I - FINANCIAL INFORMATION
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||||||||
Item
1. Financial Statements
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||||||||
UTAH MEDICAL PRODUCTS, INC. AND
SUBSIDIARIES
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||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS AS
OF
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||||||||
MARCH 31, 2010 AND DECEMBER 31,
2009
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||||||||
(in
thousands)
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||||||||
(unaudited)
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(audited)
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|||||||
ASSETS
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MARCH 31, 2010
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DECEMBER 31, 2009
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||||||
Current
assets:
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||||||||
Cash
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$ | 2,200 | $ | 410 | ||||
Investments,
available-for-sale
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19,583 | 18,845 | ||||||
Accounts
& other receivables - net
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3,019 | 3,157 | ||||||
Inventories
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3,370 | 3,407 | ||||||
Other
current assets
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487 | 414 | ||||||
Total
current assets
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28,660 | 26,233 | ||||||
Property
and equipment - net
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7,904 | 8,133 | ||||||
Goodwill
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7,191 | 7,191 | ||||||
Other
intangible assets
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2,163 | 2,660 | ||||||
Other
intangible assets - accumulated amortization
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(1,978 | ) | (2,463 | ) | ||||
Other
intangible assets - net
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186 | 197 | ||||||
TOTAL
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$ | 43,942 | $ | 41,754 | ||||
LIABILITIES AND STOCKHOLDERS'
EQUITY
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||||||||
Current
liabilities:
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||||||||
Accounts
payable
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$ | 528 | $ | 345 | ||||
Accrued
expenses
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2,480 | 1,152 | ||||||
Current
portion of note payable
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256 | 264 | ||||||
Total
current liabilities
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3,264 | 1,761 | ||||||
Note
payable
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1,278 | 1,403 | ||||||
Deferred
income taxes
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592 | 608 | ||||||
Total
liabilities
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5,134 | 3,773 | ||||||
Stockholders'
equity:
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||||||||
Preferred
stock - $.01 par value; authorized - 5,000
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||||||||
shares; no shares issued or outstanding
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||||||||
Common
stock - $.01 par value; authorized - 50,000
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||||||||
shares; issued - March 31, 2010, 3,631 shares
and
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||||||||
December 31, 2009, 3,611 shares
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36 | 36 | ||||||
Accumulated
other comprehensive loss
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(1,256 | ) | (994 | ) | ||||
Additional
paid-in capital
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415 | - | ||||||
Retained
earnings
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39,613 | 38,939 | ||||||
Total
stockholders' equity
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38,808 | 37,981 | ||||||
TOTAL
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$ | 43,942 | $ | 41,754 | ||||
see
notes to consolidated condensed financial statements
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UTAH MEDICAL PRODUCTS, INC. AND
SUBSIDIARIES
|
||||||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME FOR
THE
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||||||||
THREE MONTHS ENDED MARCH 31, 2010 AND MARCH 31,
2009
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||||||||
(in
thousands, except per share amounts)
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||||||||
(unaudited)
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||||||||
THREE MONTHS ENDED | ||||||||
MARCH 31, | ||||||||
2010
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2009
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|||||||
Sales,
net
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$ | 6,436 | $ | 6,445 | ||||
Cost
of goods sold
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3,113 | 2,945 | ||||||
Gross
profit
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3,323 | 3,500 | ||||||
Operating
expense
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||||||||
Selling,
general and administrative
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939 | 952 | ||||||
Research
& development
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95 | 89 | ||||||
Total
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1,034 | 1,041 | ||||||
Operating
income
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2,289 | 2,459 | ||||||
Other
income
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19 | 9 | ||||||
Income
before provision for income taxes
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2,308 | 2,468 | ||||||
Provision
for income taxes
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781 | 876 | ||||||
Net
income
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$ | 1,527 | $ | 1,592 | ||||
Earnings
per common share (basic)
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$ | 0.42 | $ | 0.44 | ||||
Earnings
per common share (diluted)
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$ | 0.42 | $ | 0.44 | ||||
Shares
outstanding - basic
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3,618 | 3,606 | ||||||
Shares
outstanding - diluted
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3,645 | 3,619 | ||||||
see
notes to consolidated condensed financial statements
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UTAH MEDICAL PRODUCTS, INC. AND
SUBSIDIARIES
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||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS
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||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND
MARCH 31, 2009
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||||||||
(in
thousands - unaudited)
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||||||||
MARCH 31, | ||||||||
2010
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2009
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|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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||||||||
Net
income
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$ | 1,527 | $ | 1,592 | ||||
Adjustments
to reconcile net income to net
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||||||||
cash
provided by operating activities:
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||||||||
Depreciation
and amortization
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151 | 143 | ||||||
Gain
on investments
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(12 | ) | (47 | ) | ||||
Provision
for losses on accounts receivable
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(1 | ) | (5 | ) | ||||
Stock-based
compensation expense
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25 | 31 | ||||||
Changes
in operating assets and liabilities:
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||||||||
Accounts
receivable - trade
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144 | 293 | ||||||
Accrued
interest and other receivables
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(39 | ) | 3 | |||||
Inventories
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(24 | ) | (449 | ) | ||||
Prepaid
expenses and other current assets
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(85 | ) | (113 | ) | ||||
Accounts
payable
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184 | 182 | ||||||
Accrued
expenses
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478 | 726 | ||||||
Total
adjustments
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821 | 765 | ||||||
Net
cash provided by operating activities
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2,347 | 2,357 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
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||||||||
Capital
expenditures for:
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||||||||
Property
and equipment
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(210 | ) | (83 | ) | ||||
Intangible
assets
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- | (3 | ) | |||||
Purchases
of investments
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(700 | ) | (1,300 | ) | ||||
Net
cash used in investing activities
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(910 | ) | (1,386 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
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||||||||
Proceeds
from issuance of common stock - options
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364 | 25 | ||||||
Common
stock purchased and retired
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- | - | ||||||
Tax
benefit attributable to exercise of stock options
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25 | 3 | ||||||
Repayments
of note payable
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(20 | ) | (231 | ) | ||||
Payment
of dividends
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- | - | ||||||
Net
cash provided by (used in) financing activities
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370 | (202 | ) | |||||
Effect
of exchange rate changes on cash
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(17 | ) | (11 | ) | ||||
NET
INCREASE IN CASH
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1,790 | 758 | ||||||
CASH
AT BEGINNING OF PERIOD
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410 | 97 | ||||||
CASH
AT END OF PERIOD
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$ | 2,200 | $ | 855 | ||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
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||||||||
Cash
paid during the period for income taxes
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$ | - | $ | - | ||||
Cash
paid during the period for interest
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$ | 7 | $ | 16 | ||||
see
notes to consolidated condensed financial statements
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March
31,
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December
31,
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|||||||
2010
|
2009
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|||||||
Finished
goods
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$ | 1,049 | $ | 1,391 | ||||
Work-in-process
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952 | 851 | ||||||
Raw
materials
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1,369 | 1,165 | ||||||
Total
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$ | 3,370 | $ | 3,407 |
Beginning
Balance, January 1, 2010
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$ | 0 | ||
Changes in Warranty Reserve during 1Q
2010:
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||||
Aggregate
reductions for warranty repairs
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- | |||
Aggregate
changes for warranties issued during reporting period
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- | |||
Aggregate
changes in reserve related to preexisting warranties
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- | |||
Ending
Balance, March 31, 2010
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$ | 0 |
1Q 2010 | 1Q 2009 | |||||||
Balance,
beginning of period
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$ | (235 | ) | $ | (250 | ) | ||
Realized
loss from securities included in beginning balance
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- | 5 | ||||||
Gross
unrealized holding gains (losses), in equity securities
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26 | (75 | ) | |||||
Deferred
income taxes on unrealized holding loss
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(10 | ) | 27 | |||||
Balance,
end of period
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$ | (219 | ) | $ | (293 | ) |
Fair
Value Measurements Using
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||||
Description
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Total Fair Value at
3/31/2010
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Quoted
Prices in Active
Markets
for Identical Assets
(Level 1)
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Significant
Other
Observable
Inputs
(Level 2)
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Significant
Unobservable
Inputs
(Level 3 )
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Available-for-sale
securities
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$
19,583
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$
19,583
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$ 0
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$ 0
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1Q 10
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1Q 09
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Gross
Profit Margin:
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51.6%
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54.3%
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Operating
Profit Margin:
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35.6%
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38.1%
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Net
(Income) Margin:
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23.7%
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24.7%
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Sales:
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N/C
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Gross
Profit:
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(5%)
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Operating
Income:
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(7%)
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Net
Income
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(4%)
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Earnings
Per Share
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(5%)
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Cash
& Investments
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$ | 2,528 | ||
Receivables
& Inventory
|
(174 | ) | ||
Total
Assets
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2,188 | |||
Total
Current Liabilities
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1,503 | |||
Ireland
Note Payable
|
(133 | ) | ||
Shareholders’
Equity
|
827 |
1Q 2010 |
%
|
1Q 2009 |
%
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|||||||||||||
Obstetrics
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$ | 1,457 | 23 | $ | 1,597 | 25 | ||||||||||
Gynecology/
Electrosurgery/ Urology
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1,574 | 24 | 1,586 | 25 | ||||||||||||
Neonatal
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1,907 | 30 | 1,872 | 29 | ||||||||||||
Blood
Pressure Monitoring and Accessories*
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1,498 | 23 | 1,390 | 21 | ||||||||||||
Total:
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$ | 6,436 | 100 | $ | 6,445 | 100 |
1Q 2010 |
%
|
1Q 2009 |
%
|
|||||||||||||
Obstetrics
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$ | 158 | 8 | $ | 113 | 6 | ||||||||||
Gynecology/
Electrosurgery/ Urology
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600 | 29 | 586 | 33 | ||||||||||||
Neonatal
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308 | 15 | 235 | 13 | ||||||||||||
Blood
Pressure Monitoring and Accessories*
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994 | 48 | 873 | 48 | ||||||||||||
Total:
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$ | 2,060 | 100 | $ | 1,807 | 100 |
Exhibit #
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SEC
Reference #
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Title of Document
|
||
1
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31
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Certification
of CEO pursuant to Rule 13a-14(a) as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002
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||
2
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31
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Certification
of Principal Financial Officer pursuant to Rule 13a-14(a) as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
||
3
|
32
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Certification
of CEO pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
|
||
4
|
32
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Certification
of Principal Financial Officer pursuant to 18 U.S.C. §1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
UTAH MEDICAL PRODUCTS,
INC.
|
|
REGISTRANT
|
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Date:
5/10/10
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By:
/s/
Kevin L.
Cornwell
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Kevin L. Cornwell
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CEO
|
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Date:
5/10/10
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By:
/s/ Paul
O.
Richins
|
Paul O. Richins
|
|
Principal Financial
Officer
|