Dave J onas
Thanks Jim. I’m going to spend a few minutes highlighting the results reflected in our just released first quarter 2012 earnings release. And for either discussion unless otherwise noted all sales information will be discussed in constant currency. I’m doing this to exclude the impact of foreign currency exchange in order to show a true reflection of our sales growth. Foreign currency minimally benefited our top line this quarter adding approximately $23,000 for revenue.
As most of you have seen exchange rates for the British Pound and the Euro have been quite volatile the last few months. Our foreign exchange risk is limited to our sales into the UK and Holland these sales currently make up approximately half of our current sales and increased pressure on these rates will have an impact on both our top and bottom line results. Our three year plan and projections for this year used a 1.37 exchange rate for the Euro and 1.57 rate for the Pound. While the Pound has hovered around that number all year the Euro has fluctuated from 1.27 to 1.44 just in the last 120 days.
As Jim mentioned, total sales rose 27% in the first quarter including Laprolan the $13.8 million versus $10.9 million a year ago. Organic growth excluding Laprolan was approximately 5% for the first quarter, this 5% organic growth consist of 15% growth in our direct sales offset by a 20% decline in our private label sales this quarter. Regarding U.S. sales total sales increased 8% to $4.7 million from $4.3 million in the prior year’s first quarter, driven by a robust 27% growth in U.S. direct sales tempered by a 15% decline in U.S. private label sales.Total sales outside of the U.S. mainly in the Europe and the Middle East are EME through 39% led by 53% growth in direct sales, which offset a 30% decline quarter-over-quarter in private label sales. Geographically 34% of our sales in the first quarter were generated in the U.S. with 66% of sales coming from outside the U.S. compared to 39 and 61 last year. This change in global sales mix compared to last year is due mainly to our acquisition of Laprolan in April of 2011. Almost 90% of our international sales are drive from regions in Europe and the Middle East. Read the rest of this transcript for free on seekingalpha.com