Electromed, Inc. Provides Guidance Regarding Operating Performance for Second Fiscal Quarter and Last Half of 2012 Fiscal Year
January 17 2012 - 9:00AM
Business Wire
After reporting a strong First Quarter FY2012 ended September
30, 2011, in which Sales advanced 29% versus the comparable prior
Fiscal Year Quarter, Electromed, Inc. (NYSE Amex: ELMD) announces
the following actions that will impact operating performance for
its Second Quarter ended December 31, 2011 and the Second Half of
FY2012 ending June 30, 2012.
Robert D. Hansen, CEO, expects Sales to continue to increase but
at a reduced pace during the Second Quarter versus the Company’s
comparable prior year Quarter. Management chose to improve its
sales presence in several sales territories within the U.S. during
the Second Quarter. This resulted in the release, resignation, and
planned replacement of several territory managers in the Western
and Eastern Regions.
As a result, the level of sales growth for the Second Quarter
has been affected. The Company expects net earnings for the Second
Quarter will reflect the additional expenses and unrealized Sales
incurred in the transition. Mr. Hansen stated that these Second
Quarter changes are all aimed at strengthening overall results for
the Second Half of FY2012 ending June 30, 2012. Mr. Hansen believes
the changes should better position the Company to meet its Second
Half and longer term growth goals.
The CEO also noted that International Sales prospects may
benefit from the recent signing of an exclusive Distributor
Agreement with Linde Gas Therapeutics GmbH conveying rights for
exclusive SmartVest® sales in Germany. Mr. Hansen also reported
that the Company has signed an exclusive Distributor Agreement with
Leader Healthcare based in Toronto, Canada. The agreement conveys
SmartVest® sales rights in the United Arab Emirates and the GCC
Region (Kuwait, Qatar, Oman, Bahrain, and Saudi Arabia).
While the Company does not usually provide Sales and Earnings
guidance, Mr. Hansen stated that, “Personnel changes invite candor.
Electromed, Inc.’s decision to make sales staff adjustments in the
Second Quarter should strengthen its sales team. It also signals
management’s commitment to strong Sales and Earnings for the Second
Half of Fiscal Year 2012.” He also added, “The Company’s R&D
Programs remain a source of importance and encouragement.” The
Company expects to release its regular Second Quarter results in
mid-February.
About Electromed, Inc.Electromed, Inc., founded in 1992
and headquartered in New Prague, Minnesota, manufactures, markets,
and sells products that provide airway clearance therapy, including
the SmartVest® Airway Clearance System and related products, to
patients with compromised pulmonary function. Further information
about the Company can be found at www.Electromed.com.
Cautionary StatementsCertain statements found in this
release may constitute forward-looking statements as defined in the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect the speaker’s current views with
respect to future events and financial performance and include any
statement that does not directly relate to a current or historical
fact. The forward-looking statements in this release include those
relating to the Company’s sales and earnings expectations for
future periods, the benefits of recently executed distributor
agreements and the Company’s long term growth goals . Forward
looking statements can generally be identified by the words
“believe,” “expect,” “anticipate” or “intend” or similar words.
Forward-looking statements cannot be guaranteed and actual results
may vary materially due to the uncertainties and risks, known and
unknown, associated with such statements. Examples of risks and
uncertainties for Electromed include, but are not limited to, the
impact of emerging and existing competitors, the effectiveness of
the Company’s sales and marketing initiatives, the success of the
Company’s research and development activities, changes to
reimbursement programs, as well as other factors described from
time to time in the Company’s reports to the Securities and
Exchange Commission (including its Annual Report on Form 10-K).
Investors should not consider any list of such factors to be an
exhaustive statement of all of the risks, uncertainties or
potentially inaccurate assumptions investors should take into
account when making investment decisions. Shareholders and other
readers should not place undue reliance on “forward-looking
statements,” as such statements speak only as of the date of this
release.
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