CHICAGO, Feb. 10 /PRNewswire-FirstCall/ -- The Female Health Company (NYSE Alternext: FHC), which manufactures and markets the FC and FC2 Female Condoms(R), today reported its operating results for the first quarter of FY2009.
While unit sales increased during the three months ended December 31, 2008, the Company's net revenues decreased 7% to approximately $5.3 million, compared with approximately $5.7 million in the first quarter of the previous fiscal year. The decline in revenues reflects a continuing shift in product shipments towards the Company's FC2 Female Condom(R), which is priced lower and generates a higher gross profit margin than FC1. In addition, unit sales have been temporarily limited by a significant increase in orders for FC1, our first generation product, by customers requiring final FDA approval to order FC2. At times, the increased demand has exceeded our capacity to produce FC1. We elected not to invest in expanding FC1 production capacity in anticipation of securing FC2 FDA approval, discontinuing FC1 and investment in expanding FC2 production capacity. Given final FDA approval, it is anticipated that these customers will purchase FC2, eliminating this temporary limitation.
The Company's net income attributable to common shareholders increased 98% to $1,608,816, or $0.06 per diluted share, during the first quarter of FY2009, compared with net income attributable to common shareholders of $813,968, or $0.03 per share, in the corresponding period of the previous fiscal year. The Company was positively impacted by the strengthening of the U.S. dollar relative to the British pound sterling in the first quarter of FY2009, resulting in a foreign currency gain of $1,194,107, compared with a currency gain of $115,358 in the first quarter of FY2008.
Gross profit increased 3% to $2,441,194 in the most recent quarter,
compared with $2,366,116 in the first quarter of FY2008.
|SOURCE The Female Health Company|
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