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Allied Healthcare Products Reports First Quarter Loss on Sales Decline
Date:11/8/2011

ST. LOUIS, Nov. 8, 2011 /PRNewswire/ -- Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported a loss in its first quarter on a decline in sales.

Allied's net loss for the first quarter of its 2012 fiscal year was approximately $145,000, or a negative 2 cents per basic and diluted share, versus a loss of about $88,000, or a negative 1 cent per share, in the previous year's first quarter.

Allied's sales for the quarter ending September 30, 2011 totaled about $11.4 million. This represents a decline of approximately 4 percent from the previous year's first quarter sales of about $11.9 million. Sales remain constrained by recession driven budget cuts in both hospitals and municipalities but the decline in sales between the two periods is believed by the Company to be a result of order timing rather than any further market declines.

The Company incurred expenses of about $400,000 in bringing production of Carbolime in-house during the first quarter. This production expense will be reduced by more than half in the second quarter and eliminated in the fiscal year's third and fourth quarters, resulting in improved margins.

Allied also reported significantly higher commodity prices in the quarter. Prices for commodities such as brass and resin increased by more than 20 percent over prior year levels. Prices for non-commodity goods increased by about 4 percent over the prior year.

Allied Healthcare Products manufactures a variety of respiratory products used in the healthcare industry in a range of hospital and alternate care settings including sub-acute facilities, home healthcare and emergency medical care. Allied's product lines include respiratory care products, medical gas equipment and emergency medical products. Allied's products are marketed to hospitals, hospital equipment dealers, hospital construction contractors, home healthcare dealers and e
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SOURCE Allied Healthcare Products, Inc.
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