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These statements further clarify the risks and uncertainties that are associated with the forward-looking statements. Now before we review the financials, I would like to first explain the new labels for our sales categories. What we had formally refer to as branded sales will now be referred to as direct sales. This terminology better characterizes our growing product line, now that we have closed on the Laprolan acquisition.We will continue to sell products directly out of the Rochester medical brand, our Laprolan, which sells Rochester medical brand products also sells other unique brands that we have under license or contract. In addition as many of you know products sold under our Script-easy prescription brand in the U.K. often carry other manufacturers' labels. As far as sales to private label customers we will continue to refer to that segment as private label sales as before. Regarding the direct sales category we will also be breaking out direct sales into our two sales channels; home care and acute care. Acute care represents sales to hospitals and homecare refers primarily to sales to individuals in the home as well as to home health care distributors. This new break out of direct sales by channel will give more clarity to the fact that most of our sales are to the home care market. And that should help investors better assess our growth as we continue to penetrate this market which we estimate comprises about two-thirds of the $1.5 billion opportunity for our products in North America and Europe. At the same time we are making meaningful inroads into the acute care market, which presents an excellent opportunity in its own right. Currently 73% of our US direct sales and 95% of our direct sales in Europe and the Middle East are via the homecare channel.
Turning now to our revenue performance; In terms of constant currency we reported sales of $12.9 million, a 29% increase over last year. This growth was due to 37% growth in direct sales while our private label sales grew 8%. The Laprolan acquisition coupled with strong sales in the US and the U.K. rolled the growth in direct sales. This strength was partially muted by the slippage of a large international tender order out of the second quarter and into the second half.In terms of GAAP earnings we reported a loss of approximately $1.3 million. On a non-GAAP basis after striping out acquisition costs and certain non-cash expenses we reported a loss of $437,000 which is generally inline with our expectations considering the increase in selling and marketing expenses. Now let me turn it over to Dave for further details. David Jonas Thanks, Jim. I am going to spend a few minutes highlighting the results reflected in our just released second quarter earnings release. Ease of discussion, unless otherwise noted order all sales information will discussed in constant currency. I am doing this to exclude the impact of foreign currency exchange in order to show a true reflection of our sales growth. Foreign currency has a benefit of approximately $102,000 in the second quarter was a drag of about $20,000 in the first half. As Jim mentioned, total sales rose 29% to $12.9 million from $9.8 million a year ago. Total sales in the U.S. increased 16% to $4.7 million from $4.1 million and solid strength in direct sales. Total sales outside of the U.S. mainly in the Europe and Middle East which I will refer to as the EME region increased 41% on a very healthy growth in direct sales. In large part due to acquisition of Laprolan partially offset by decline in private label sales.
Geographically, 37% of our sales in the second quarter were in the U.S. compare to 42% last year with 63% of our sales outside the U.S. compared to 58% last year. The reason for the change from last year is clearly due to Laprolan acquisition. Bottom-line, these results indicate that we are executing well in both our U.S. and international businesses.Read the rest of this transcript for free on seekingalpha.com