Mesa Labs Reports Quarterly Sales and Earnings

LAKEWOOD, Colo., Nov. 12 /PRNewswire-FirstCall/ -- Mesa Laboratories, Inc.
(Nasdaq: MLAB) today reported marginally lower sales and earnings for both its
fiscal second quarter and six months ended September 30, 2009.

Highlights:
-- Six month cash flow provided by operations exceeded $3,100,000
-- Second quarter revenues up 9% compared to first quarter of this fiscal
year
-- Second quarter net income up 21% compared to first quarter of this
fiscal year

-- Sales of DataTrace products up 25% compared to first quarter of this
fiscal year

For the second quarter of fiscal 2010, net sales decreased five percent to
$5,407,000 from $5,679,000 in the same quarter last year. Net income for the
quarter decreased eight percent to $1,243,000 or $.38 per diluted share
compared to $1,353,000 or $.42 per diluted share one year ago.

For the first six months of fiscal 2010, net sales decreased three percent to
$10,383,000 from $10,734,000 in the same period last year. Net income for the
first six months decreased four percent to $2,269,000 or $.69 per diluted
share compared to $2,370,000 or $.73 per share one year ago.

"Mesa posted solid financial results during the second quarter of fiscal
2010," said John J. Sullivan, President and Chief Executive Officer. "Going
into the quarter, we knew that we would have a very difficult time matching
the financial performance of the comparable quarter last fiscal year. The
second quarter of last fiscal year was exceptionally strong, with near-record
sales and net income. While we didn't match the net income performance of
last year, in this very tough environment we did post higher net income than
any of the previous three quarters. Sales were relatively flat compared to
this quarter last fiscal year, but were up nine percent sequentially compared
to the first quarter of this fiscal year. We are particularly pleased to see
our DataTrace business start to recover. After seeing sequential declines in
this business for three quarters in a row, we saw a turnaround in demand for
these capital equipment systems and DataTrace sales increased 25 percent
compared to the first quarter of this fiscal year. Provided that the global
economy continues to recover, we should see this business return to the levels
seen in early 2008. Overall, I am pleased with the way the business has
performed throughout the economic crisis, and I am confident that our long
term strategic growth initiatives will result in solid financial performance
for the remainder of this year and beyond."

Over the fiscal second quarter, our medical revenues decreased one percent
compared to the prior year period, while over the first six month period we
experienced an increase of five percent compared to the same period one year
ago. This increase was due to higher sales of solutions and service.

During the fiscal second quarter, sales of the DataTrace brand of products
decreased 11 percent from the prior year, and for the first six months
decreased 18 percent compared to prior year. The decrease in DataTrace sales
during the quarter and six month period is the result of declining economic
and capital spending trends which influenced some industrial customers to
delay their capital equipment purchases. The second fiscal quarter was
impacted by a decline in service revenue. For the six month period, we have
experienced declines broadly through out the product line.

Raven sales for the second quarter increased three percent compared to the
second quarter of the prior year, and for the first six months increased nine
percent compared to the same period last year. The Raven biological indicator
products saw sales gains for the quarter in its prospore ampoules business.
For the first six months, we have seen a significant increase in the Company's
core biological indicator strip business, prospore ampoules, chemical
indicators, and consulting services.

Profitability for the second quarter and six month periods of fiscal 2010 was
down compared to the prior fiscal year due chiefly to the decrease in
revenues. A change in sales mix to higher sales of Raven Biological
Indicators and lower DataTrace product sales has also had a negative impact on
profitability so far this fiscal year.

During the first six months of fiscal 2010, the Company repurchased 5,462
shares of our common stock under a previously announced buyback plan for
approximately $117,000.

Mesa Laboratories develops, acquires, manufactures and markets electronic
instruments and disposables for industrial, pharmaceutical and medical
applications.

This news release contains forward-looking statements which involve risks and
uncertainties. The Company's actual results could differ materially from
those in any such forward-looking statements. Additional information
concerning important factors that could cause results to differ materially
from those in any such forward-looking statement is contained in the Company's
Annual Report on Form-10K for the year ended March 31, 2009 as filed with the
Securities and Exchange Commission, and from time to time in the Company's
other reports on file with the Commission.

FINANCIAL SUMMARY

STATEMENT OF EARNINGS (Unaudited)

Quarter Ended September 30 Six Months Ended September 30
2009 2008 2009 2008
Net Sales $5,407,000 $5,679,000 $10,383,000 $10,734,000
Cost of Goods 2,096,000 2,033,000 4,089,000 3,883,000
Gross Profit 3,311,000 3,646,000 6,294,000 6,851,000
Operating Expense 1,339,000 1,552,000 2,713,000 3,220,000
Operating Income 1,972,000 2,094,000 3,581,000 3,631,000
Other (Income)
& Expense (7,000) (34,000) (12,000) (63,000)
Earnings Before
Taxes 1,979,000 2,128,000 3,593,000 3,694,000
Income Taxes 736,000 775,000 1,324,000 1,324,000
Net Income $1,243,000 $1,353,000 $2,269,000 $2,370,000

Earnings Per
Share (Basic) $.39 $.43 $.71 $.75
Earnings Per
Share (Diluted) $.38 $.42 $.69 $.73

Average Shares
(Basic) 3,192,000 3,179,000 3,189,000 3,175,000
Average Shares
(Diluted) 3,294,000 3,258,000 3,272,000 3,259,000

BALANCE SHEETS (Unaudited)
Sept. 30 March 31
2009 2009
Cash and
Short-term
Investments $11,233,000 $9,111,000
Other Current
Assets 8,723,000 9,482,000
Total Current
Assets 19,956,000 18,593,000
Property and
Equipment 4,027,000 3,879,000
Other Assets 6,945,000 7,142,000

Total Assets $30,928,000 $29,614,000

Liabilities $1,593,000 $2,012,000
Stockholders'
Equity 29,335,000 27,602,000

Total Liabilities
and Equity $30,928,000 $29,614,000

SOURCE Mesa Laboratories, Inc.

John J. Sullivan, Ph.D.; President and CEO, or Steven W. Peterson; CFO, both
of Mesa Laboratories, Inc., +1-303-987-8000