STEWARTVILLE, Minn., Jan. 25 /PRNewswire/ -- Rochester Medical Corporation
(Nasdaq: ROCM) today announced operating results and developments for its
fiscal quarter ending December 31, 2000.
Net sales decreased 14% to $2,008,000 for the first quarter of fiscal 2000
from $2,346,000 for the comparable quarter of last year. The decrease in net
sales is the result of comparably lower sales to domestic private label
customers as previously reported by the Company, partially offset by a 20%
increase in domestic branded sales and a 117% increase in international sales.
The Company reported a net loss of $1,334,000 or ($.25) per share for the
current quarter compared to a net loss of $730,000 or ($.14) for the first
quarter of last year. The increase in net loss is attributable to the lower
net sales levels and comparably higher operating expenses, primarily related
to market introduction of the FemSoft insert.
Anthony J. Conway, the Company's Chief Executive Officer commented, "The
results for the quarter are generally in line with our expectations and plans
for the Company. As we have expected, the increases in sales of our branded
base products in the domestic market, along with the sales increases in our
International business are now largely offsetting the previously announced
loss of domestic private label sales. We continue to make progress in both
the distribution and clinical segments of the domestic market, which has
resulted in sustained healthy growth of our branded base products.
"I am also pleased with the renewed growth in International sales,
particularly in Europe where we have been focusing our market development
efforts. We expect continued growth throughout International, but would point
out that the growth rate was especially strong this quarter due to initial
ordering from new customers.
"The process of validating the premium value of Release-NF(R) technology
in the marketplace continues. As previously announced, the Release-NF
catheter was proven effective in reducing catheter associated UTI in burn
patients in a recently completed clinical study at Johns Hopkins Bayview
Medical Center. We believe that continued positive results from the
Release-NF catheter in such clinical trials will solidify its credibility in
the marketplace and result in increasing acceptance and utilization of this
product."
Conway continued, "With the introduction of the FemSoft(R) Insert, the
year 2000 promises to be very exciting for Rochester Medical. This unique new
technology can provide relief for millions of incontinent women."
On January 18, 2000 Rochester Medical announced commercial availability of
the FemSoft Insert.
The FemSoft Insert is a simple and gentle solution to female stress
urinary incontinence. It is a small, disposable, fluid filled sleeve that is
soft, comfortable, and compressible. A woman places the FemSoft Insert in her
urethra to prevent leakage and removes it before voiding. If continued
protection is needed, she simply inserts a new one.
Urinary incontinence (the involuntary loss of urine) is a medical problem
that impacts the lives of millions of women of all ages, most of whom have
stress urinary incontinence. In women between the ages of 15 and 64 years,
the incidence of incontinence can be as high as 30%. Stress urinary
incontinence is marked by the involuntary leakage of urine during coughing,
laughing, sneezing, or other physical activities that increase pressure on the
bladder.
Throughout the coming year, the Company will be phasing in patient access
to the FemSoft Insert at preplanned locations across the United States.
Before introducing the product in a particular city or region, the company
will ensure that prescribing clinicians in those locations are appropriately
trained and supplied with patient training information, starter-kits, etc.
Conway went on to say, "The Company is very focused on the introduction of
FemSoft. Our Marketing and Sales activities have increased significantly as
we bring this new product to market, and we are extremely pleased at the
initial enthusiasm we are seeing in the clinical community."
This press release contains forward looking statements that involve risks
and uncertainties, including the results of product evaluations, the securing
of Group Purchasing Organization contract participation, the timing of
purchases by customers, manufacturing capacities for both current products and
new products, results of clinical tests, the timing of clinical preference
testing and product introductions, market acceptance of new products, FDA
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, 1999.
Rochester Medical Corporation develops, manufactures and markets latex-
free disposable medical catheters and devices for urological and continence
care applications. The Company markets its products 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 or Brian J. Wierzbinski, Executive Vice President and
Chief Financial Officer of Rochester Medical Corporation at 507-533-9600. For
product information on the FemSoft Insert call 1-800-FEMSOFT. More
information about Rochester Medical is available on its website at
http://www.rocm.com .
Condensed Balance Sheets
December 31, September 30,
1999 1999
Assets
Current assets:
Cash and equivalents $2,769,130 $4,216,814
Marketable securities 9,016,117 9,029,296
Accounts receivable 1,356,216 1,369,662
Inventories 2,030,036 2,047,820
Prepaid expenses and
other assets 275,895 347,860
Total current assets 15,447,394 17,011,452
Property and equipment 11,559,060 11,471,725
Intangible assets 213,350 219,218
$27,219,804 $28,702,395
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,018,530 $689,475
Accrued expenses 431,141 835,914
Total current liabilities 1,449,671 1,525,389
Long-term debt -- --
Stockholders' equity 25,770,133 27,177,006
$27,219,804 $28,702,395
Summary Statement of Operations
Three months ended
December 31,
1999 1998
Sales $2,007,783 $2,345,995
Cost of sales 1,525,100 1,755,960
Gross profit 482,683 590,035
Gross profit % 24% 25%
Costs and expense:
Marketing and selling 1,298,718 830,323
Research and development 223,176 220,643
General and administrative 459,939 444,951
Total other expenses 1,981,833 1,495,917
Loss from operations (1,499,150) (905,882)
Other income (expense)
Interest income 165,121 175,903
Interest expense -- --
Net loss $(1,334,029) $(729,979)
Net loss per common share $(0.25) $(0.14)
Shares in per share computation 5,348,221 5,288,353
SOURCE Rochester Medical Corp.
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Related links:
http://www.rocm.com
CONTACT:
Anthony J. Conway, Chief Executive Officer of
Rochester Medical Corp., 507-533-9600; or General Inquiries,
Craig Dickson, Analyst Inquiries, Leslie Loyet, or Media
Inquiries, Darcy Bretz, all of The Financial Relations Board,
312-266-7800
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