Rochester Medical Corp. (NSDQ:ROCM) posted record first-quarter sales of $10.2 million for the three months ended Dec. 31, 2009, up 21.3 percent compared with $8.4 million during the same period last year. Despite the record sales, Rochester Medical posted a net loss of nearly $170,000 for the quarter, compared with net income of about $54,000 during Q1 2009:
STEWARTVILLE, Minn., Jan 26, 2010 /PRNewswire via COMTEX/ — Rochester Medical Corporation (Nasdaq: ROCM) today announced operating results for its first quarter ended December 31, 2009.
The Company reported record sales of $10,232,000 for the current quarter compared to $8,436,000 for the first quarter of last year. It also reported net loss of $169,000 or ($.01) per diluted share compared to net income of $54,000 or $.00 per diluted share for the first quarter of last year.
The approximate 21% increase in sales (20% on a constant currency basis) resulted from a 21% increase in Rochester Medical Branded Sales (19% on a constant currency basis), and a 22% increase in Private Label Sales (22% on a constant currency basis). Constant currency basis assumes current exchange rates for all periods in order to exclude the impact of foreign exchange variations. In the first quarter of 2010 the U.S. dollar was somewhat weaker versus the pound sterling thus having a small positive effect on Rochester Medical Branded Sales levels in translated U.S. dollars given the significant volume of branded sales in the United Kingdom.
Net income adjusted for certain non-recurring unusual items and certain recurring non-cash expenses, or “Non-GAAP Net Income” for the current quarter was $148,000 or $.01 per diluted share compared to Non-GAAP Net Income of $358,000 or $.03 per diluted share for the first quarter of last year. The decrease for the current quarter is primarily attributable to increased investment in sales and marketing.
Commenting on today’s announcement Rochester Medical CEO and President Anthony J. Conway said, “We had a very solid quarter. The overall sales growth is strong, and I am particularly pleased that combined sales of Rochester Medical Branded products in the U.S. and U.K. markets grew at a 25% pace, and combined Intermittent Catheter sales in this market increased 61% over last year. These are the two markets in which we have our own direct sales force. Also noteworthy is the fact that U.S. Foley catheter sales for the first quarter increased 73% over the first quarter of last year. The new StrataSI(TM) and StrataNF(TM) Foley Catheters are being very well received for their latex-free comfort and anti-infection properties.”
He added “We have just rolled out our FemSoft(R) Insert Introduction in the U.K., and we will be launching significant Direct to Consumer FemSoft pilot programs in North Carolina and Southern Florida in February. This campaign will include television and print advertising and clinician based education efforts sponsored both by Rochester Medical and Homecare Distributors/Providers. In addition to our other sales and marketing activities we are investing significantly in the FemSoft opportunity while maintaining our solid cash position.”
Conway concluded, “We are off to a good start for fiscal 2010, and we expect to have a good year.”