SCHEDULE
14A INFORMATION
Proxy
Statement Pursuant to Section 14(a)
of
the
Securities Exchange Act of 1934
Filed
by
the Registrant
x
Filed
by
a Party other than the Registrant o
Check
the
appropriate box:
|
o
|
Preliminary Proxy Statement |
|
o
|
Confidential, for Use of Commission Only (as permitted by Rule 14a-6(e)(2)) |
|
o
|
Definitive Proxy Statement |
|
x
|
Definitive Additional Materials |
|
o
|
Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12 |
ARRHYTHMIA
RESEARCH TECHNOLOGY, INC.
(Name
of
Registrant as Specified in its Charter)
N/A
(Name
of
Person(s) Filing Proxy Statement if other than the Registrant)
Payment
of Filing Fee (Check the appropriate box):
|
x
|
No fee required. |
|
o
|
Fee computed on table below per Exchange Act Rules 14a-6(a)(4) and 0-11. |
| (1) |
Title
of each class of securities to which transaction applies:
____________________________________________________
|
| (2) |
Aggregate
number of securities to which transaction applies:
___________________________________________________
|
| (3) |
Per
unit price or other underlying value of transaction computed pursuant
to
Exchange Act Rule 0-11 (Set forth the amount on which the filing
fee is
calculated and state how it was determined):
_______________________________________________
|
| (4) |
Proposed
maximum aggregate value of transaction:
_______________________________________________
|
| (5) |
Total
fee paid:
_________________________________________
|
| o |
Fee
paid previously with preliminary materials.
|
| o |
Check
box if any part of the fee is offset as provided by Exchange Act
Rule
0-11(a)(2) and identify the filing for which the offsetting fee
was paid
previously. Identify the previous filing by registration statement
number,
or the Form of Schedule and the date of its
filing.
|
| (1) |
Amount
Previously Paid:
___________________________________________________
|
| (2) |
Form,
Schedule or Registration Statement No.:
__________________________________
|
| (3) |
Filing
Party:
____________________________________________________________
|
| (4) |
Date
Filed:
_____________________________________________________________
|
April
12,
2007
Dear
Fellow Shareholder:
We
are
very pleased that 2006 was another successful year for us in our efforts to
sustain profitable growth through further diversification, product development
and acquisitions. In fact, 2006 marked the third time in four years that
Arrhythmia Research Technology achieved record consolidated net income and
net
income per share, $2,164,000
and
$0.81, respectively, and our third consecutive year of record income from
operations as we increased to $3,216,000 in 2006. Consolidated sales revenues
increased 50% to $19,318,000, our highest revenue results in ten years and
third
highest in the Company’s history.
Micron
Products, Inc.
Our
principal operating subsidiary, Micron Products, Inc. (“Micron”), despite an
increasingly competitive marketplace, remains the world’s leading manufacturer
of silver-plated sensors, non-silver plated conductive resin sensors, and
custom
designed and coated sensors used in the manufacture of disposable ECG, EEG,
EMS
and TENS electrodes. We have successfully implemented our product development
and diversification plans at Micron. Recently, we announced that Micron had
entered into an exclusive three-year supply agreement with Ambu A/S (Copenhagen:
AMBU) to produce silver/silver chloride and non-silver plated conductive
resin
medical electrophysiological sensors as well as other products being produced
or
under development by Ambu. We are very pleased to have been chosen by
Ambu
as
the
manufacturer of these
critical components for their monitoring and diagnostic electrodes, especially
the highly regarded Blue Sensor and
Neuroline Cup product lines.
Micron’s
New England Molders (“NEM”) division, formed in 2004, experienced tremendous
growth in 2006. NEM’s revenue and earnings contribution increased approximately
70% and 115%, respectively, over its 2005 results, producing a wide variety
of
custom injection molded consumable medical products, medical device and
equipment components, as well as other products for the consumer, electronics
and aerospace industries. The division also successfully consummated two
three-year customer supply agreements which further diversify its product
offerings:
IDEXX
Laboratories
(Nasdaq:
IDXX), a market leader in veterinary diagnostic testing solutions selected
NEM
to manufacture consumable plastic injection molded products for IDEXX’s
production animal services division. NEM will also provide manufacturing
services from product development to production of complex consumable test
products for IDEXX.
Molecular
Diagnostics division of Osmetech plc
(LSE:
OMH) selected NEM to provide manufacturing services for consumable components
used in Osmetech’s OPTI TUBE™ and OPTI GENE™ product lines. The expansion into
test products for the molecular diagnostics industry is a significant complement
to the current line of high quality medical products Micron
manufactures.
As
part
of our product diversification efforts, Micron formed in early 2006 a new
division, Micron Integrated Technologies (“MIT”), specializing in the production
of metal and plastic components for the medical and defense industries. The
resulting expansion of Micron’s offerings better serves our existing customer
base and allows for diversification into new markets. MIT provides end-to-end
product life cycle management through a comprehensive portfolio of value-added
services such as design, engineering, prototyping, manufacturing, machining,
assembly and packaging.
In
an
effort to continue to expand and diversify our capabilities, Micron completed
the purchase of substantially all of the operating assets of privately-held
Leominster Tool Company, Inc. of Leominster, Massachusetts on January 3, 2007.
We believe that the new Leominster Tool division is an excellent fit for Micron
operationally, financially and strategically. The division provides vertical
integration of our mold design and manufacturing capabilities with Micron’s
proprietary sensor product line, with the custom injection molding of our NEM
division and with the product life cycle management of our MIT division. The
division will continue to enjoy the loyalty of its customer base outside of
the
Micron family of companies.
Micron’s
diversification into high volume custom injection molded components through
the
NEM division, its manufacturing, assembly and value added services through
the
MIT division, and its acquisition of the Leominster Tool division in the first
quarter of 2007 have solidified Micron’s ongoing plan for sustained growth and
profitability as we continue to build on our successes through organic growth
and through strategic acquisitions.
Arrhythmia
Research Technology, Inc.
We
were
very excited to announce in May of 2006 that Arrhythmia Research Technology
had
entered into a multiyear Research Agreement with the University of Rochester,
Rochester, New York, to participate in a National Institutes for Health (“NIH”)
funded investigation into “Risk Stratification in MADITT II Type Patients.” The
inclusion of ART’s proprietary SAECG technology products in this study is a
significant event for the Company. The technology is one of the clinical
variables to stratify the risk of arrhythmias and sudden cardiac death for
the
purpose of identifying patients with increased benefit from implantable cardiac
defibrillator therapy. The Company’s SAECG software platform has long been
recognized as the “gold standard” in signal averaging and we are excited about
the prospects that could result from the study for licensing the
Windows® version of Predictor®
SAECG
analysis software to original equipment manufacturers for inclusion in existing
systems.
Looking
Ahead
The
Company has begun a new fiscal year at an unprecedented level of financial
strength and is poised for continued growth. We are committed to sustaining
the
expansion of the Company in the years to come through product development,
diversification and acquisition. We look forward to 2007 with confidence and
optimism that the Company can continue to prosper with the continued support
of
our loyal customers and shareholders and dedicated employees.
/s/
James
E.
Rouse
James
E.
Rouse
President
& Chief Executive Officer