STEWARTVILLE, Minn., April 19 /PRNewswire-FirstCall/ -- Rochester
Medical Corporation (NASDAQ:ROCM) today announced operating results
for its second quarter ending March 31, 2006. The Company reported
record sales of $4,874,000 for the current quarter compared to
$4,147,000 for the second quarter of last year. It also reported
net loss of $244,000 or $(.04) per diluted share compared to a net
income of $141,000 or $.02 per diluted share for the second quarter
of last year. The results for the quarter include a $476,000
expense that consists of $336,000 of non-cash stock option expense,
and one-time expenses related to the contemplated strategic
transactions announced by Rochester Medical on April 3, 2006.
Excluding those expenses, adjusted net income on a non-GAAP basis
was $232,000 or $.04 per diluted share which is a 65% increase from
the second quarter of last year. The 18% increase in revenues
resulted from increased sales of Rochester Medical branded products
and increased sales of Private Label products. The decrease in
earnings was primarily due to the non-cash stock option expense and
the non-recurring costs mentioned above. Commenting on the quarter,
Company CEO and President Anthony J. Conway said, "I am very
pleased with our continuing progress. Sales are strong and we are
showing excellent growth in our relatively new Hydrophilic
Intermittent Catheter product line. Margins on sales of these
advanced catheters are still relatively modest but will improve
significantly as sales levels reach critical volume needed for
efficiency, and also as we automate some of the labor intensive
aspects of the complex packing assemblies required for the kit and
tray configurations of these products. "We continue to believe
sales levels for our Private Label Male External Catheters are
being skewed upward due to inventory increases in light of the
market uncertainty related to the potential Mentor Urology
transaction. "Our cash position has strengthened from $5.5 million
a year ago to $8.1 million today which is very helpful for funding
the upcoming contemplated strategic transactions. "These are
exciting times for Rochester Medical. The marketplace is
demonstrating excellent acceptance of our new products. We continue
to work diligently toward finalizing the contemplated strategic
transactions, and we fully expect them to be consummated in the
near term. As stated in the previous announcement, after those
contemplated transactions are finalized we project Rochester
Medical's sales, margins, and profits will be significantly
enhanced." Rochester Medical has scheduled a conference call today
at 4:00 p.m., C.T. regarding this announcement. The call is being
webcast by Thomson/CCBN and can be accessed at Rochester Medical's
website at http://www.rocm.com/ . To listen to the conference call
via telephone, call: 1-866-543-6411, password 15479436 Replay will
be available for seven days at: http://www.rocm.com/ or via
telephone at 1-888-286-8010, password 86425230. The immediately
preceding statement contains forward-looking statements that
involve risks and uncertainties, including the uncertainty of the
Agreements with Coloplast and Mentor being finalized, including the
uncertainty of estimated revenues and profits, as well as the
uncertainty of market acceptance of new product introductions, the
uncertainty of gaining new strategic relationships, 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 (Part II, I tem 6) for the year ended
September 30, 2005. Rochester Medical Corporation develops,
manufactures, and markets latex- free 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
http://www.rocm.com/ . Condensed Balance Sheets (unaudited) March
31, September 30, 2006 2005 Assets Current Assets Cash and
equivalents $7,915,537 $1,129,876 Marketable securities 174,937
5,286,553 Accounts receivable 3,101,001 3,204,824 Inventories
3,474,099 3,936,243 Prepaid expenses and other assets 444,320
351,027 Deferred income tax asset 21,000 21,000 Total current
assets 15,130,894 13,929,523 Property and equipment 7,183,036
7,561,303 Deferred income tax asset 433,000 433,000 Intangible
assets 274,468 285,194 $23,021,398 $22,209,020 Liabilities and
Stockholders' Equity Current liabilities: Accounts payable $742,301
$283,332 Accrued expenses 554,642 744,260 Short-term debt 34,000
34,000 Current Maturities of Capital Leases 40,918 39,785 Deferred
revenue 157,143 157,143 Total current liabilities 1,529,004
1,258,520 Long-term debt Long term debt 34,000 34,000 Capital
leases, less current portion 43,283 64,030 Deferred revenue 485,715
564,286 Total long term debt 562,998 662,316 Stockholders' equity
20,929,396 20,288,184 $23,021,398 $22,209,020 Summary Statements Of
Operations Three months ended Six months ended March 31, March 31,
2006 2005 2006 2005 Sales $4,874,079 $4,147,173 $9,481,279
$7,812,445 Cost of sales 3,314,823 2,633,061 6,320,293 4,900,339
Gross profit 1,559,256 1,514,112 3,160,986 2,912,106 Gross profit %
32% 37% 33% 37% Costs and expense: Marketing and selling 576,374
566,452 1,175,367 1,136,990 Research and development 186,974
181,309 360,597 378,039 General and administrative 994,546 652,896
1,566,800 1,189,924 Total operating expenses 1,757,894 1,400,657
3,102,764 2,704,953 Income/(Loss) from operations (198,638) 113,455
58,222 207,153 Other income (expense) (Loss) on Sale of Investments
(103,532) - (103,532) - Interest income/(loss) - Net 57,851 27,758
112,372 56,056 Net Income/(Loss) $(244,319) $141,213 $67,062
$263,209 Earnings/(Loss) per common share - Basic $(0.04) $0.03
$0.01 $0.05 Earnings/(Loss) per common share - Diluted $(0.04)
$0.02 $0.01 $0.05 Shares in per share computation Basic 5,533,739
5,457,777 5,529,922 5,452,980 Shares in per share computation
Diluted 5,533,739 5,768,546 5,782,113 5,721,881 DATASOURCE:
Rochester Medical Corporation CONTACT: Anthony J. Conway, President
and Chief Executive Officer of Rochester Medical Corporation,
+1-507-533-9600 Web site: http://www.rocm.com/
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