Revenue during the quarter grew 27.59 percent to $165.49 million from $129.70 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 24.43 percent. Total expenses were 90.96 percent of quarterly revenues, up from 89.45 percent for the same period last year. That has resulted in a contraction of 151 basis points in operating margin to 9.04 percent.

Operating income for the quarter was $14.96 million, compared with $13.68 million in the previous year period.

However, the adjusted operating income for the quarter stood at $16.58 million compared to $14.24 million in the prior year period. At the same time, adjusted operating margin contracted 96 basis points in the quarter to 10.02 percent from 10.98 percent in the last year period.

Dale G. Barnhart, President and Chief Executive Officer, stated, “I am pleased to report that Lydall delivered 11.1% organic sales growth and 32.1% adjusted EPS growth in the quarter. Organic growth was broad based with expansion across all segments. Thermal/Acoustical Fibers, Thermal/Acoustical Metals and Performance Materials segments delivered 14.8%, 13.6% and 10.4% growth, respectively, on strong market demand and favorable positioning. Reversing trends in prior quarters, the Technical Nonwovens segment delivered 8.5% organic growth on increased sales of advanced materials and improved demand from domestic power generation customers. Net sales from our recent acquisitions of Texel and Gutsche exceeded expectations, and our synergy programs remain on track. Adjusted gross margin was flat as the Thermal/Acoustical Fibers and Performance Materials segments delivered improved gross margins on strength in volume and mix, offset by unfavorable mix in Technical Nonwovens and continued, but improving, operational performance issues coupled with commodity cost increases in Thermal/Acoustical Metals. As expected, while we have made progress in our operational execution, we continued to see inefficiencies in Thermal/