STEWARTVILLE, Minn., July 28, 2011 /PRNewswire/ -- Rochester Medical Corporation (NASDAQ: ROCM) today announced operating results for its third quarter ended June 30, 2011.
The Company reported record sales of $14,281,000 for the current quarter compared to $10,244,000 for the third quarter of last year. It also reported net loss of $294,000 or ($.02) per diluted share compared to net income of $95,000 or $.01 per diluted share for the same quarter of last year.
The 39% increase in sales (35% on constant currency basis) resulted from a 53% increase in Rochester Medical Direct Sales (46% on a constant currency basis) and a 1% increase in Private Label Sales (1% 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 third quarter of fiscal 2011, the U.S. dollar was weaker versus the pound sterling thus positively affecting Rochester Medical Direct Sales growth levels in actual U.S. dollars given the significant volume of direct 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 $398,000 or $.03 per diluted share compared to Non-GAAP Net Income of $428,000 or $.03 per diluted share for the third quarter of last year. The decrease for the current quarter is primarily attributable to significantly increased gross profits from higher sales, offset by the Company's recently increased investment in sales and marketing programs.
Direct Sales to the Home Care market which are approximately 87% of the total Global Direct Sales grew approximately 53% from $6.6 million dollars last quarter to $10.1 million dollars this quarter. The increase resulted from a 64% increase in International Direct Home Care Sales (53% constant currency growth) and a 19% increase in U.S. Direct Home Care Sales. Direct sales to the Acute Care market which are approximately 13% of the total Global Direct Sales grew approximately 54% from just under $1 million dollars in the third quarter of last year to just over $1.5 million this quarter. The increase came from a 205% increase in International Direct Acute Care Sales (195% constant currency growth) partially offset by a 12% decrease in U.S. Direct Acute Care Sales.
Commenting on the quarterly results, Rochester Medical's CEO and President Anthony J. Conway, said, "Overall we are pleased with our progress this quarter. The strong 46% constant currency growth in Direct Sales is a result of the Laprolan acquisition coupled with solid organic growth in Direct Sales from the rest of the Company, particularly in our U.S. and U.K. Home Care business. Though we fell short of our growth goals in U.S. Acute Care sales this quarter, we fully expect that we will resume growth in this business in Q4 given the increased sales and marketing efforts that we have recently put in place."
He concluded, "Excepting the final Laprolan acquisition costs, our bottom line this quarter is approaching the break even level as we had expected. As we have previously stated, we expect to be operating profitably by fiscal year end. Looking ahead, we are strongly focused on growing the top line, flattening costs, and generating increasing profits."
3M Infection Prevention Leadership Summit Partner
Rochester Medical has been chosen as one of three companies to partner with 3M in an upcoming Infection Prevention Leadership Summit on Oct 2-4, 2011. The Summit is a collaborative effort with the participation of the leading professional associations in infection prevention, SHEA, APIC, AORN and IAHCSMM. As a best in class customer education event, it will feature strategic thinkers with proven leadership skills, expertise and experience in the field of infection prevention, and serve to increase awareness of the infection prevention solutions provided by the collaborative partners, including Rochester Medical.
