Electromed, Inc. Provides Guidance Regarding Operating Performance For Second Fiscal Quarter And Last Half Of 2012 Fiscal Year

After reporting a strong First Quarter FY2012 ended September 30, 2011, in which Sales advanced 29% versus the comparable prior Fiscal Year Quarter, Electromed, Inc. (NYSE Amex: ELMD) announces the following actions that will impact operating performance for its Second Quarter ended December 31, 2011 and the Second Half of FY2012 ending June 30, 2012.

Robert D. Hansen, CEO, expects Sales to continue to increase but at a reduced pace during the Second Quarter versus the Company’s comparable prior year Quarter. Management chose to improve its sales presence in several sales territories within the U.S. during the Second Quarter. This resulted in the release, resignation, and planned replacement of several territory managers in the Western and Eastern Regions.

As a result, the level of sales growth for the Second Quarter has been affected. The Company expects net earnings for the Second Quarter will reflect the additional expenses and unrealized Sales incurred in the transition. Mr. Hansen stated that these Second Quarter changes are all aimed at strengthening overall results for the Second Half of FY2012 ending June 30, 2012. Mr. Hansen believes the changes should better position the Company to meet its Second Half and longer term growth goals.

The CEO also noted that International Sales prospects may benefit from the recent signing of an exclusive Distributor Agreement with Linde Gas Therapeutics GmbH conveying rights for exclusive SmartVest® sales in Germany. Mr. Hansen also reported that the Company has signed an exclusive Distributor Agreement with Leader Healthcare based in Toronto, Canada. The agreement conveys SmartVest® sales rights in the United Arab Emirates and the GCC Region (Kuwait, Qatar, Oman, Bahrain, and Saudi Arabia).

While the Company does not usually provide Sales and Earnings guidance, Mr. Hansen stated that, “Personnel changes invite candor. Electromed, Inc.’s decision to make sales staff adjustments in the Second Quarter should strengthen its sales team. It also signals management’s commitment to strong Sales and Earnings for the Second Half of Fiscal Year 2012.” He also added, “The Company’s R&D Programs remain a source of importance and encouragement.” The Company expects to release its regular Second Quarter results in mid-February.

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