Cost of sales increased 67% to $6.9 million in the first half of FY2012, compared with $4.1 million in the corresponding prior-year period, due to higher units sold. In the six months ended March, 31, 2012, gross profit increased 150% to $9.6 million, or 58% of net revenues, compared with $3.8 million, or 48% of net revenues, in the first six months of FY2011.
Operating expenses for the six months ended March 31, 2012 increased 41% to $4.6 million when compared with operating expenses of $3.3 million in the six months ended March 31, 2011. The increase was primarily due to the accrual for fiscal year-end incentive payments related to the expected achievement of unit sales and operating income performance goals, as well as increased wages and benefits, higher stock compensation costs and greater legal and consulting fees. Because the likelihood of the Company's FY2011 performance targets being met was uncertain at March 31, 2011, the bonus accrual for the six months ended March 31, 2011 was minimal.
Operating income increased 824% to $4.9 million in the six months ended March 31, 2012, compared with $0.5 million in the prior-year period. The increase resulted from significantly increased gross profit generated from higher unit sales, somewhat offset by higher operating expenses.
The Company reported net income of $4.6 million, or $0.16 per diluted share, in the first six months of FY2012, for an increase of 876% when compared with net income of $0.5 million, or $0.02 per diluted share, in the first six months of FY2011. The Company recorded a currency loss of $0.08 million in the six months ended March 31, 2012 and a currency loss of $0.06 million in the six months ended March 31, 2011.
During the first six months of FY2012 the Company ge
|SOURCE The Female Health Company|
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