Navigation Links
Rochester Medical Reports Second Quarter Results

STEWARTVILLE, Minn., April 30 /PRNewswire-FirstCall/ -- Rochester Medical Corporation (Nasdaq: ROCM) reported sales of $8,445,000 for its second quarter ended March 31, 2009 compared to $9,215,000 for the second quarter of last fiscal year. It also reported net income of $361,000 or $.03 per diluted share for the current quarter compared to net loss of ($167,000) or ($.01) per diluted share for the second quarter of last year.

The approximate 8% decrease in sales (1% increase on a constant currency basis) resulted from a 4% decrease in Rochester Medical Branded Sales (13% increase on a constant currency basis) and a 16% decrease in private Label Sales (16% decrease 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 second quarter of 2009 the U.S. dollar was significantly stronger versus the pound sterling, thus negatively affecting Rochester Medical Branded Sales growth levels in actual U.S. dollars given the significant volume of our branded product 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 $207,000 or $.02 per diluted share compared to Non-GAAP Net Income of $353,000 or $.03 per diluted share for the second quarter of last fiscal year. The decrease for the current quarter on a Non-GAAP basis is primarily attributable to the decrease in interest income due to significantly lower interest rates paid on the Company's cash and cash equivalents.

Commenting on the quarterly results and on other significant developments, Rochester Medical CEO and President Anthony J. Conway said, "Excluding exchange rate influences, sales of Rochester Medical Branded products worldwide showed solid double digit growth. On a constant currency basis, branded sales of our Rochester Medical Intermittent Catheters were up an encouraging 52% for the quarter compared to last year. The Intermittent Catheter figures were driven by very strong International sales resulting from an excellent reception to our new MAGIC3 technology. Worldwide Foley Catheter sales were up 37% for the quarter. This is prior to the release of our new improved Line of Foley Catheters for which we are now planning a U.S. introduction this summer. Intermittent and Foley catheters together represent over a billion dollar market in the U.S. and Europe alone, and we expect continued solid growth in these product lines as the benefits of our unique technologies become increasingly recognized."

"On a related topic, the European Union has begun issuing health warnings for certain medical devices containing certain phthalate plasticizers. The French healthcare products safety agency, AFSSAPS, recently announced it is taking action ahead of the rest of the EU to reduce the use of devices containing these plasticizers. Rochester Medical's catheters are plasticizer-free, whereas most competitive intermittent catheters contain these plasticizers."

Conway continued, "Private Label Sales which currently make up approximately 35% of total sales have been fluctuating from quarter to quarter due to timing of orders and, though down in the second quarter, are expected to strengthen again in the third quarter. We continue to focus on our branded sales and, in line with this strategy, we have now further expanded our efforts by initiating direct sales efforts into Japan and adding new mainland European based representation. We are confident in our branded future and believe strongly in the excellent prospects for growth going forward.

"I am also pleased to report that last week we received encouraging news from the U.S. Department of Health and Human Services. The Centers for Medicare & Medicaid Services (CMS) announced they have reached a preliminary decision to grant a unique device reimbursement code covering the FemSoft Insert(R), Rochester Medical's advanced technology for the management of Female Stress Incontinence.

"We believe this preliminary decision by CMS is very timely and is considerate of the significant issues and problems that millions of incontinent women deal with on a daily basis. The Femsoft Insert provides a discreet, gentle, easy to use solution that provides a greatly enhanced quality of life for its users. We believe that a final reimbursement decision will be issued by summer's end, and we are putting plans in place to help ensure that women will be able to readily and efficiently gain access to this important life changing technology. A submission for reimbursement is also pending in the United Kingdom."

The Company also announced that, during the quarter ended March 31, 2009, the Company repurchased 110,653 shares of its outstanding common stock at an average price of $9.56 per share pursuant to its previously announced share repurchase program. Repurchases took place on the open market in accordance with applicable SEC guidelines and regulations.

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. Similarly, constant currency represents reported sales with the cost/benefit of currency movements removed. Management uses the measure to understand the growth of the business on a constant dollar basis, as fluctuations in exchange rates can distort the underlying growth of the business both positively and negatively. While we recognize that foreign exchange volatility is a reality for a global company, we routinely review our company performance on a constant dollar basis, and we believe this also allows our shareholders to understand better our Company's growth trends.

Non-GAAP Net Income and constant currency are not measures 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 and constant currency are not comparable to information provided by other companies. Non-GAAP Net Income and constant currency have limitations as analytical tools 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, and reconciliations of sales under GAAP and sales on a constant currency basis, are presented at the end of this press release.

This press release contains "forward-looking statements" that are based on currently available information, operating plans and management's expectations about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements, including the uncertainty of estimated revenues and profits, the uncertainty of current domestic and international economic conditions that could adversely affect the level of demand for the Company's products and increased volatility in foreign exchange rates, 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, 2008 and subsequent reports on Forms 10-Q and 8-K. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

The Company will hold a quarterly conference call to discuss its earnings report. The call will begin at 4:00 p.m. central 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 To listen live to the conference call via telephone, call:

Domestic: 888.713.4217, password 15763623

International: 617.213.4869, password 15763623

Pre Registration:

Replay will be available for seven days at or via telephone at:

Domestic: 888-286-8010, password 84889200

International: 617-801-6888, password 84889200

Individual investors can listen to the call at, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (

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

    Reconciliation of Reported GAAP Revenue to Non-GAAP Revenue in Constant
    For the Three and Six months ended
    March 31, 2009

                                       (unaudited)             (unaudited)
                                   Three months ended       Six months ended
                                        March 31,               March 31,
                                        ---------               ---------
                                     2009       2008         2009        2008
                                     ----       ----         ----        ----

    GAAP Sales as Reported     $8,445,029 $9,215,238  $16,881,114 $17,438,526
                               ========== ==========  =========== ===========
      Exchange rate as Reported      1.43       1.98         1.51        2.01
                                     ====       ====         ====        ====

    Constant Currency Sales    $8,445,029 $8,350,135  $16,881,114 $15,846,280
                               ========== ==========  =========== ===========
    (1) Exchange rate used for
         Constant Currency
         Purposes                    1.43       1.43         1.51        1.51
                                     ====       ====         ====        ====

    Net Effect of Constant Currency
     Illustration                      $-  $(865,103)          $- $(1,592,246)
                                      ===  =========          === ===========

    (1) For illustrative purposes Constant currency translates prior period
        foreign sales at current exchange rates.  For Rochester Medical
        Corporation this is the conversion rate of British pounds to
        US dollars.  The rate represents the average exchange rate for the
        respective three or six month period.

    Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income
    For the Three and Six months ended
    March 31, 2009 and 2008

                                      (unaudited)              (unaudited)
                                   Three months ended        Six months ended
                                        March 31,               March 31,
                                       ---------                ---------
                                     2009        2008        2009        2008
                                     ----        ----        ----        ----

    GAAP Net Income as Reported  $361,000   $(167,000)   $415,000    $105,000
                                 ========   =========    ========    ========

    Diluted EPS as Reported         $0.03      $(0.01)      $0.03       $0.01
                                    =====      ======       =====       =====

    Adjustments for non-recurring
     unusual items:
      Settlement income
       after taxes (1)           (637,000)          -    (637,000)          -
                                 --------         ---    --------         ---
    Subtotal                     (637,000)          -    (637,000)          -

    Adjustments for
     recurring non-cash
        amortization (2)          129,000     129,000     258,000     258,000
       FAS 123R
        expense (3)               354,000     391,000     567,000     600,000
                                  -------     -------     -------     -------
    Subtotal                      483,000     520,000     825,000     858,000

    Non-GAAP Net Income          $207,000    $353,000    $603,000    $963,000
                                 ========    ========    ========    ========

     Diluted EPS                    $0.02       $0.03       $0.05       $0.08
                                    =====       =====       =====       =====

    Weighted Average
     Shares - Diluted          12,671,119  11,822,435  12,663,538  12,557,214

    (1) Settlement income received January 15, 2009 from Covidien Ltd. of
        $1,000,000, $637,000 after taxes of $363,000. This adjustment reduces
        net income for amounts received net of taxes paid in connection with
        one-time settlement of certain litigation.  These amounts were
        recorded in Other Income in the Statement of Operations for the fiscal
        year ended September 30, 2009.

    (2) Amortization of the intangibles acquired in June 2006 asset
        acquisition from Coloplast AS and Mentor Corporation.  Management
        believes these assets are appreciating.  This adjustment adds back
        amortization expense for the three and sixth months ended March 31,
        2009 and 2008 related to certain intangibles. The gross amount of
        amoritization is $163,000 per quarter after taxes of $34,000 for a net
        amount of $129,000.

    (3) Compensation expense mandated by SFAS 123R.  This adjustment adds back
        the compensation expense recorded for stock options granted to
        employees and directors that vested during the three and sixth months
        ended March 31, 2009 and 2008.  The gross amount of compensation
        expense for the three months ended March 31, 2009 and 2008 is $478,000
        and $535,000 net of taxes of $124,000 and $144,000 for net amounts of
        $354,000 and $391,000 respectively.  The gross amount of compensation
        expense for the six months ended March 31, 2009 and 2008 is $743,000
        and $786,000 net of taxes of $176,000 and $186,000 for net amounts of
        $567,000 and $600,000 respectively.

    Rochester Medical Corporation
    Press Release - F09 Second Quarter

                    Condensed Balance Sheets

                                               March 31,    September 30,
                                                   2009          2008
                                                   ----          ----


      Current Assets
        Cash and equivalents                   $5,926,108    $8,508,000
        Marketable securities                  29,008,718    28,493,648
        Accounts receivable                     5,383,294     6,009,023
        Inventories                             8,853,143     8,745,873
        Prepaid expenses and other assets         690,669     1,110,291
        Deferred income tax                     1,621,725     1,143,931
                                                ---------     ---------

          Total current assets                 51,483,657    54,010,766

      Property and equipment, net               9,707,742     9,883,329
      Deferred income tax                       1,009,834       831,299
      Patents, net                                219,259       227,358
      Intangible assets, net                    6,145,474     6,860,213
      Goodwill                                  4,152,483     5,169,661
                                                ---------     ---------

      Total Assets                            $72,718,449   $76,982,626
                                              ===========   ===========

      Liabilities and Stockholders' Equity

      Current liabilities:
        Accounts payable                       $1,428,062    $2,127,470
        Accrued expenses                        1,234,671     1,170,654
        Short-term debt                         2,756,178     1,940,292
                                                ---------     ---------

          Total current liabilities             5,418,911     5,238,416

      Long-term liabilities
        Other long term liabilities               239,496       239,496
        Long-term debt                          2,040,751     3,806,185
                                                ---------     ---------

          Total long term liabilities           2,280,247     4,045,681

      Stockholders' equity                     65,019,291    67,698,529
                                               ----------    ----------

      Total Liabilities and
       Stockholder's Equity                   $72,718,449   $76,982,626
                                              ===========   ===========

    Rochester Medical Corporation
    Press Release - F09 Second Quarter

                         Summary Statements Of Operations

                                   (unaudited)              (unaudited)
                               Three months ended        Six months ended
                                    March 31,                March 31,
                                    ---------                ---------
                                2009        2008         2009         2008
                                ----        ----         ----         ----

    Sales                    $8,445,029  $9,215,238  $16,881,114  $17,438,526

    Cost of sales             4,030,671   4,942,975    8,541,842    9,025,460
                              ---------   ---------    ---------    ---------

    Gross profit              4,414,358   4,272,263    8,339,272    8,413,066
      Gross profit %                 52%         46%          49%          48%

    Costs and expense:
      Marketing and selling   2,448,122   2,380,306    5,014,384    4,604,671
      Research and
       development              299,103     304,257      616,763      533,200
      General and
       administrative         1,757,499   2,016,767    3,123,255    3,631,885
                              ---------   ---------    ---------    ---------

    Total operating expenses  4,504,724   4,701,330    8,754,402    8,769,756
                              ---------   ---------    ---------    ---------

    Loss from operations        (90,366)   (429,067)    (415,130)    (356,690)

    Other income (expense)

      Interest income            34,256     355,646      201,528      808,986
      Interest expense          (80,354)   (128,834)    (164,128)    (278,323)
      Other income            1,000,000           -    1,200,442            -
                              ---------           -    ---------            -

    Net income (loss)
     before income taxes       $863,536   $(202,255)    $822,712     $173,973

    Income tax
     expense(benefit)           502,334     (35,397)     407,883       69,277
                                -------     -------      -------       ------

    Net income (loss)           361,202    (166,858)     414,829      104,696
                                =======    ========      =======      =======

    Earnings (loss) per
     common share - Basic         $0.03      $(0.01)       $0.03        $0.01
                                  =====      ======        =====        =====

    Earnings (loss) per
     common share - Diluted       $0.03      $(0.01)       $0.03        $0.01
                                  =====      ======        =====        =====

    Weighted Average Shares:
      Basic                  12,083,169  11,822,435   12,031,460   11,776,083
                             ==========  ==========   ==========   ==========

    Weighted Average Shares:
      Diluted                12,671,119  11,822,435   12,663,538   12,557,214
                             ==========  ==========   ==========   ==========

SOURCE Rochester Medical Corporation
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Rochester Medical Announces Second Quarter 2009 Earnings Conference Call April 30, 2009
2. Rochester Medical Renews Share Repurchase Activity
3. University of Rochester Launches iTraining for Emergency Responders
4. Rochester Medical Reports First Quarter Results
5. Rochester study raises new questions about controversial plastics chemical
6. Rochester Medical Announces First Quarter 2009 Earnings Conference Call February 2, 2009
7. Rochester Medical Announces Settlement With TYCO Healthcare Group, L.P., Now Operating as Covidien Ltd.
8. Rochester Shoulder Surgeon Blends Innovative Techniques with Personalized Patient Care
9. Rochester Medical Reports Record Fourth Quarter Sales and Record Annual Sales
10. Rochester Medical Announces Fourth Quarter 2008 Earnings Conference Call November 6, 2008
11. Balloon Manor Reappears in Rochester
Post Your Comments:
(Date:11/26/2015)... Bangalore, Karnataka (PRWEB) , ... ... ... an innovative online platform for mental health and wellness consultation, has collaborated ... self-empowerment, to holistically address their reader’s queries on topics on mental and ...
(Date:11/25/2015)... Indianapolis, IN (PRWEB) , ... November 25, 2015 ... ... clean water accessible for all, Water For Empowerment ™ attracts volunteers together ... on clean water by empowering women as key stakeholders in the process. The ...
(Date:11/25/2015)... Neb. (PRWEB) , ... November 25, 2015 , ... ... staffing companies, has been recognized once again for its stellar workplace culture with ... to Work.” , Medical Solutions’ Cincinnati office was named a finalist ...
(Date:11/25/2015)... ... , ... Ministers, senior government and UN agencies, representatives from ... Excellence, and public R&D institutions, civil societies and other partners gathered today at ... Network for Drugs and Diagnostics Innovation, ANDI, Stakeholders Meeting. The three- day meeting ...
(Date:11/25/2015)... Angeles, CA (PRWEB) , ... November 25, 2015 , ... ... da Vinci surgical robot is being more and more widely heralded as a breakthrough ... assisted da Vinci method has over traditional laparoscopic surgery is that it can greatly ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... 2015 --> ... potential att använda SyMRI för att hitta ... patienter med multipel skleros (MS) eller hjärntumörmetastaser ... AB för att kunna använda SyMRI Research ... SyMRI kan man generera flera konstrastbilder från ...
(Date:11/26/2015)... November 26, 2015 ... adds "Global Repaglinide Industry ... Report on China Repaglinide Market, 2010-2019" ... data and information to its online ... . --> ...
(Date:11/26/2015)... 2015 ) ... "Radioimmunoassay Market by Type (Reagents & Kits, ... Clinical Diagnostic Labs), Application (Research, Clinical Diagnostics), ... report to their offering. --> ... of the "Radioimmunoassay Market by Type ...
Breaking Medicine Technology: