Electromed, Inc. (NASDAQ:ELMD) today announced financial results for the three and six months ended December 31, 2010. Net revenues for the three months ended December 31, 2010 were approximately $4,686,000, a 45.4% increase compared to net revenues of approximately $3,223,000 for the same period last year. Net revenues for the six months ended December 31, 2010 were approximately $8,851,000, a 37.2% increase compared to net revenues of approximately $6,451,000 for the same period last year.
The Company also announced net income of approximately $292,000, or $0.04 per basic and diluted share, for the three months ended December 31, 2010, compared to net income of approximately $35,000, or $0.01 per basic and diluted share, for the same three-month period last year. For the six-month period ended December 31, 2010, net income was $404,000, or $0.05 per basic and diluted share, compared to net income of approximately $371,000, or $0.06 per basic and diluted share, for the same six-month period last year. Management believes that the Company’s net income results were primarily attributable to an increase in net revenues. These gains resulted from increases in sales force, support and production personnel and an expansion of marketing and research and development activities, offset by expenses relating to such efforts. In addition, earnings per share was affected by an increase to the number of outstanding shares of Company common stock as compared to the prior-year periods, which was attributable to the Company’s completion of its initial public offering in August 2010. Including the underwriter’s over-allotment option, a total of 1,900,000 shares of Company common stock were registered and sold in the initial public offering.
Robert Hansen, Chairman and Chief Executive Officer, stated, “We are very pleased with the increase in quarterly and year-to-date net revenue. We believe we are well-positioned to meet our goal of achieving annual sales of $20,000,000 or greater by the end of fiscal 2012. We intend to maximize long-term shareholder value by remaining dedicated to product development, marketing, and sales growth.”