ROCM Rochester Medical Corp. (MM)

Rochester Medical Reports Record Quarter STEWARTVILLE, Minn., July 20 /PRNewswire-FirstCall/ -- Rochester Medical Corporation (NASDAQ:ROCM) today announced operating results for its third quarter ending June 30, 2004. The Company reported record sales of $4,257,000 for the third quarter compared to $3,777,000 for the third quarter of last year. It also reported record net income of $387,000 or $.07 per share compared to net income of $86,000 or $.02 per share for the third quarter of last year. The 13% increase in revenues resulted from increased sales of Rochester Medical(R) Brand products and increased sales to private label customers. The 450% increase in net income was due primarily to increased contribution from higher sales and improved gross margin. "The quarter showed solid gains," said Company CEO and President Anthony J. Conway. "As sales levels move upwards and fixed overheads remain relatively constant, we expect continued earnings growth. "We are also very pleased with the acceptance of our intermittent catheter offering, particularly the Hydrophilic Intermittent Catheters and the Antibacterial Intermittent Catheters, in both domestic and overseas markets. In addition, we recently gained a further 510(k) FDA clearance to combine these technologies into new product offerings. The Company plans to introduce these advanced new products in the first quarter of Fiscal 2005. "Going forward we expect both top and bottom line revenue growth. While the timing of large private label orders may continue to be a factor in any given quarter, the overall growth trend is favorable in both the private label and branded areas of our business." The immediately preceding statement contains forward-looking statements that involve risks and uncertainties, including the uncertainty of gaining acceptance of the anti-infection catheters and hydrophilic catheters in the marketplace, the uncertainty 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, as well as 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, Item 6) for the year ended September 30, 2003. 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/ . Rochester Medical has scheduled a conference call today at 4:00 p.m., C.D.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 live to the conference call via telephone, call: 1-800-901-5231, password 59114045 Replay will be available for seven days at: http://www.rocm.com/ or via telephone at 1-888-286-8010, password 85528065. Condensed Balance Sheets June 30, September 30, 2004 2003 Assets Current Assets Cash and equivalents $1,042,781 $1,764,499 Marketable securities 5,187,991 4,201,736 Accounts receivable 2,624,716 2,454,310 Inventories 3,703,396 3,542,619 Prepaid expenses and other assets 365,106 272,245 Total current assets 12,923,990 12,235,409 Property and equipment 8,292,624 8,663,662 Intangible assets 226,325 225,597 $21,442,939 $21,124,668 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $795,319 $507,580 Accrued expenses 731,532 1,098,578 Short-term debt 34,000 34,000 Current Maturities of Capital Leases 37,086 40,263 Deferred Revenue 157,143 157,143 Total current liabilities 1,755,080 1,837,564 Long-term debt Long term debt 102,000 102,000 Capital leases, less current portion 113,416 164,806 Deferred revenue 760,714 878,571 Total long term debt 976,130 1,145,377 Stockholders' equity 18,711,729 18,141,727 $21,442,939 $21,124,668 Summary Statements Of Operations Three months ended Nine months ended June 30, June 30, 2004 2003 2004 2003 Sales $4,257,223 $3,777,490 $11,416,876 $11,034,349 Cost of sales 2,652,547 2,525,110 7,272,620 7,239,540 Gross profit 1,604,676 1,252,380 4,144,256 3,794,809 Gross profit % 38% 33% 36% 34% Costs and expense: Marketing and selling 632,899 550,279 1,640,424 1,628,206 Research and development 183,001 215,221 551,907 635,193 General and administrative 430,564 437,523 1,424,210 1,364,207 Total operating expenses 1,246,464 1,203,023 3,616,541 3,627,606 Income from operations 358,212 49,357 527,715 167,203 Other income (expense) Interest income - Net 28,467 36,879 61,917 121,759 Net Income $386,679 $86,236 $589,632 $288,962 Earnings per common share - Basic $0.07 $0.02 $0.11 $0.05 Earnings per common share - Diluted $0.07 $0.02 $0.10 $0.05 Shares in per share computation Basic 5,437,262 5,406,529 5,432,607 5,366,060 Shares in per share computation Diluted 5,666,057 5,729,616 5,695,782 5,626,475 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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