Full Press Release Details
Female Health Company Reports 267% Increase in
E.P.S. of $0.07 in First Half of FY2008
May 14, 2008- The Female Health Company (AMEX: FHC
which manufactures and markets the FC and
FC2 Female Condoms , today
reported its operating results for the second quarter and first half of
FY2008. The Company will host an investor conference call today, May
14, 2008, at 11:00 a.m. Eastern Time to discuss its operating results and other
topics of interest (see details below).
three months ended March 31, 2008, the Company's net revenues increased 20%
to approximately $6.4 million, compared with approximately $5.3 million in
three months ended March 31, 2007. The Company's net income
attributable to common stockholders increased 267% to $1,165,936, or $0.04
diluted share, during the second quarter of FY2008, compared with $317,348,
$0.01 per diluted share, in the corresponding period of the previous fiscal
profit increased 31% to $2.7 million (41.8% of revenue) in the most recent
quarter, compared with $2.0 million (38.2% of revenue) in the second quarter
FY2007. Operating income increased 137% to $827,133 (12.9% of
revenue) in the three months ended March 31, 2008, compared with operating
income of $348,820 (6.6% of revenue) in the quarter ended March 31,
Company expects significant quarter to quarter variations due to the receipt
large orders, production scheduling, and shipping of products.
income attributable to common stockholders for the three months and six months
ended March 31, 2008 includes a benefit for income taxes of
$377,000. This income tax benefit is the result of the continual
evaluation of our ability to realize our deferred tax assets
based on all available positive and negative evidence including our past
operating results and our forecast of future taxable income. We did
not recognize such a benefit for the three and six months ended March 31,
Company has Federal and state net operating loss carryforwards of approximately
$66 million, expiring in years 2008 to 2027. The Company's UK
subsidiary, The Female Health Company-UK plc. has UK net operating loss
carryforwards of approximately $88 million. The UK net operating loss
carryforwards can be carried forward indefinitely to be used to offset future
U.K. taxable income.
six months ended March 31, 2008, the Company's net revenues increased 27% to
approximately $12.1 million, compared with approximately $9.5 million in the
months ended March 31, 2007. For the six months ended March 31,
2008, net income attributable to common stockholders increased to $1,979,904,
$0.07 per diluted share, compared with $90,424, or $0.00 per diluted share,
the corresponding period of the previous fiscal year.
profit increased 52% to $5.0 million (41.5% of revenue) in the first six months
of FY2008, compared with $3.3 million (34.8% of revenue) in the first half
FY2007. Operating income increased to $1,556,779 (12.8% of revenue)
in the six months ended March 31, 2008, compared with operating income of
$130,414 (1.4% of revenue) in the same period last year.
the first half of FY 2008, the Company generated $2.4 million in cash from
operations. The Company has no debt and $1.5 million in unused credit
very pleased to report record revenues and earnings during the first half of
2008 fiscal year," noted O.B. Parrish, Chief Executive Officer of The Female
Health Company. "Growing acceptance of the female condom as the only
available barrier contraceptive method controlled by women that allows them
protect themselves against HIV/AIDS is the basis for our growth. The FC Female Condom is now
available in over 100 countries, and we believe it will play an increasingly
important role in the global battle against HIV/AIDS in the
for our second-generation female condom, the FC2, have continued
increase, and we now have four FC2 production lines
Malaysia. Our partner in India, Hindustan Latex Ltd., is operating a
production line in that country, which has a population of over one billion
people and a rapidly increasing incidence of HIV/AIDS. Lower
manufacturing costs for FC2 allow us to sell
second-generation product to public health agencies at a significantly lower
while providing a higher gross profit margin on revenues. This was
evident in an expansion in our gross profit margin to 41.5% in the first half
FY2008, from 34.8% in the first half of the previous year."
April, FHC provided earnings guidance for the first time for the full fiscal
year 2008. We indicated that we expected unit sales for FY 2008 to
increase 20 - 25% over the 25.9 million units sold in FY 2007 and pre-tax income
to increase 100% to 125% over
$868,913 recorded for FY 2007. We confirm the unit sales guidance for
FY 2008. We now expect pre-tax income to increase 150-200% over the
are optimistic regarding the outlook for The Female Health
Company. Our team members are now working with organizations in
nearly all regions of the world, from Brazil to Cambodia, from the United
Kingdom to India, from New York to South Africa. Given the gravity of
the HIV/AIDS pandemic, our results are an indicator of the even greater
contribution the female condom will make to world health in coming years,"
previously announced, the Female Health Company will host an investor conference
call at 11:00 a.m. Eastern time, May 14, 2008. Shareholders and other interested
parties may participate in the conference call by dialing 800-860-2442
(international/local participants dial 412-858-4600) and asking to be connected
to "The Female Health Company" conference call, a few minutes before 11:00 a.m.
EDT on May 14, 2008. A replay of the call will be available through
May 28, 2008 by dialing 877-344-7529 (international callers dial 412-317-0088)
and referencing the conference code ID 418836.
The Female Health Company
Female Health Company (FHC), headquartered in Chicago, IL, is the maker of
FC Female Condom (FC1
and FC2), a revolutionary
offering women dual protection against both sexually transmitted diseases,
including HIV/AIDS, and unintended pregnancy. FHC was created as a worldwide
company in February 1996 with the purchase of Chartex Resources Ltd., the holder
of exclusive worldwide rights to FC1. The Company holds
exclusive product and technology patents for FC1 in the United States,
Australia, Brazil, Canada, France, Germany, Italy, Spain, the United Kingdom,
the People's Republic of China, South Korea and Japan. Patents are
pending for FC2. FHC is the
sole manufacturer and marketer of the FC1 and FC2
female condoms in the
world. The Female Health Company and its partners currently market