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Allied Healthcare Posts Third Quarter Loss
Date:5/12/2009

ST. LOUIS, May 12 /PRNewswire-FirstCall/ -- Allied Healthcare Products, Inc. (Nasdaq: AHPI) reported that its net income for the third quarter ending March 31, 2009, declined from about $100,000, or 1 cent per share, in the prior year period, to a loss of about $450,000, or a negative 6 cents per share, due to lower sales.

Net sales in the third quarter declined about 11 percent, or $1.5 million, to about $12.4 million. Sales fell in all segments except domestic hospital construction, reflecting that market's long-term contracts. International sales, which had increased more than 10 percent for the first half of fiscal 2009, declined by about 2 percent, due in part to a stronger dollar.

For the first nine months of the 2009 fiscal year, Allied net income fell from about $193,000 in 2008, or about 2 cents per share, to a loss of about $678,000, or negative 9 cents per share, for 2009. Net sales for the three quarters fell about 5.5 percent, or about $2.3 million.

The third quarter's accelerated sales decline reflects a stronger recessionary effect than Allied has experienced in previous economic downturns, said Earl Refsland, Allied president and chief executive officer. "Clearly, our near-term focus must be to align costs with sales revenues," Refsland said.

Allied achieved progress in cost reduction projects that amounted to about $330,000 in the third quarter, Refsland said. But those savings in negotiated material costs and production efficiencies could not absorb the fixed operating costs related to lower sales and shipments.

Allied also incurred about $220,000 in new product development expenses in the first three quarters of fiscal 2009 primarily associated with its new line of mass casualty ventilators specifically designed for pandemics, natural disasters and terro
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SOURCE Allied Healthcare Products, Inc.
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