STEWARTVILLE, Minn., July 31 /PRNewswire-FirstCall/ -- Rochester Medical Corporation today announced operating results for its third quarter ended June 30, 2008.
The Company reported sales of $8,241,000 for the current quarter compared to $8,367,000 for the third quarter of last year. The Company also reported net income of $312,000 or $.02 per diluted share for the quarter compared to a net income of $807,000 or $.06 per diluted share for the same period of last year.
The approximately 2% decrease in sales resulted from a 23% increase in Rochester Medical Branded Sales offset by a 36% decrease in Private Label Sales. Sales of the Company's Branded products hit an all time quarterly high of $6,019,000 and accounted for 73% of total sales. The Company believes the decrease in Private Label Sales is attributable to the timing of orders and ordering patterns of large private label customers that can vary up and down in any given quarter; they are expected to strengthen again in the fourth quarter.
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 $770,000 or $.06 per diluted share compared to Non-GAAP Net Income of $1,315,000 or $0.10 per diluted share for the third quarter of last year. The decrease for the current quarter is primarily attributable to increased investment in Sales and Marketing programs as part of our strategic plan for this fiscal year, and increased cost of sales.
Regarding today's announcement, Rochester Medical's CEO and President Anthony J. Conway said, "The 23% growth rate in our Rochester Medical Branded Sales is very gratifying and reflects the continued excellent acceptance of our branded products in the marketplace. All three of our major branded product lines -- Foleys, Intermittents, and Male External Catheters -- are showing very solid growth. Clearly our focused investment in Sales and Marketing is having productive results. As part of this Marketing Investment the Company has created a new corporate website which went live today. We encourage your visit to http://www.rocm.com. Our Private Label Sales have fluctuated over the last three quarters; those ups and downs are reflective of the irregularity in ordering patterns of our large Private Label customers. We expect fourth quarter Private Label Sales levels to be considerably stronger. We also expect gross margins to improve as sales volumes of Foleys and Intermittents continue to rise.
"We are seeing strong interest in our Infection Control products, and we are beginning to see increased growth in the Intermittent Catheter marketplace as a result of the new Medicare reimbursement policy which reimburses patients for up to 200 catheters per month instead of four catheters per month under the previous policy. We are looking forward to introducing new advancements in our product lines during this calendar year, and I believe these introductions will further establish Rochester Medical's reputation as an industry leader and provide increased sales opportunities for the Company."
Rochester Medical has provided Non-GAAP Net Income in addition to earnings calculated in accordance with generally accepted accounting principles (GAAP) because management believes Non-GAAP Net Income provides a more consistent basis for comparisons that are not influenced by certain charges and non-cash expenses and are therefore helpful in understanding Rochester Medical's underlying operating results. Non-GAAP Net Income is not a measure of financial performance under GAAP, and should not be considered an alternative to net income or any other measure of performance or liquidity under GAAP. Non-GAAP Net Income is not comparable to information provided by other companies. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP.
Reconciliations of Net Income and Non-GAAP Net Income are presented at the end of this press release.
The Company will hold a quarterly conference call this afternoon to discuss its earnings report. The call will begin at 4:00 p.m. Central Daylight Time (5:00 p.m. eastern time).This call is being webcast by Thomson/CCBN and can be accessed at Rochester Medical's website at http://www.rocm.com. To listen live to the conference call via telephone, call:
Replay will be available for seven days at http://www.rocm.com or via telephone at:
The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (http://www.streetevents.com).
This press release contains forward-looking statements that involve risks and uncertainties, including the uncertainty of estimated revenues and profits, as well as the uncertainty of market acceptance of new product introductions, the uncertainty of gaining new strategic relationships or locating and capitalizing on strategic opportunities, the uncertainty of timing of private label sales revenues (particularly international customers), FDA and other regulatory review and response times, and other risk factors listed from time to time in the Company's SEC reports and filings, including, without limitation, the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended September 30, 2007.
Rochester Medical Corporation develops, manufactures, and markets disposable medical catheters and devices for urological and continence care applications. The Company markets under its own Rochester Medical(R) brand and under existing private label arrangements.
For further information, please contact Anthony J. Conway, President and Chief Executive Officer of Rochester Medical Corporation at (507) 533-9600. More information about Rochester Medical is available on its website at http://www.rocm.com.
CONTACT: Anthony J. Conway, President and Chief Executive Officer of
Rochester Medical Corporation, +1-507-533-9600
Web site: http://www.rocm.com/
