STEWARTVILLE, Minn., April 29 /PRNewswire-FirstCall/ -- Rochester Medical Corporation (Nasdaq: ROCM) today announced operating results for its second quarter ending March 31, 2008.
The Company reported record sales of $9,215,000 for the quarter compared to $8,347,000 for the second quarter of last year. Last year's revenues included a one time recording of a $525,000 deferred asset related to a marketing fee paid to Rochester Medical by Coloplast A/S. The Company reported a Net Loss of $167,000 or $.01 per diluted share compared to a Net Income of $1,044,000 or $.08 per diluted share for the second quarter of last year.
Rochester Medical Branded Sales increased approximately 24% for the quarter. Excluding last year's realization of the $525,000 deferred asset, Private Label sales increased by 9% for the quarter resulting in an overall net sales increase of 18% for the 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 $531,000 or $.04 per diluted share compared to Non-GAAP Net Income of $1,041,000 or $.08 per diluted share for the second quarter of last year. The decrease for the quarter is primarily attributable to the Company's strategic decision to significantly increase its investment in Sales and Marketing personnel and programs. This increase has been carefully planned and implemented as a response to several key factors. First there is greatly heightened interest in infection control catheters as a result of scheduled Medicare reimbursement changes that will no longer pay hospitals for costs associated with treatment of Catheter Associated Infections. The change becomes effective October 1, 2008. Rochester Medical has the only Drug-Eluting Anti-Infection Foley Catheter in the marketplace.
The increased investment in Sales and Marketing is also designed to allow the Company to better service the changing dynamics of the Intermittent Catheter marketplace resulting from recent Medicare reimbursement changes allowing for significantly increased sterile one-time catheter usage in order to prevent infections. In addition, the increased resources and programs are strongly focused on promotion and sale of products in the United Kingdom.
Regarding the quarter, Anthony J. Conway, Rochester Medical's CEO and President said, "Our Investment for Growth Strategy is off to an excellent start. As a result of this increased investment for the future we now have a well fortified Sales, Marketing, and Customer Service Team in place. Going forward, I believe the Company is well positioned to leverage our advanced proprietary products for strong gains in our key markets."
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:
Domestic: 888.713.4213, password 19121219
International: 617.213.4865, password 19121219
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.
SOURCE Rochester Medical Corporation