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For the three months ended December 31, 2007, the Company's net revenuesincreased 37% to approximately $5.7 million, compared with approximately $4.2million in the three months ended December 31, 2006. The Company's net incomeattributable to common shareholders increased to a record $813,968, or $0.03per diluted share, during the first quarter of FY2008, compared with a netloss of ($226,924), or ($0.01) per share, in the corresponding period of theprevious fiscal year.
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Gross profit increased 85% to $2.4 million (41.3% of revenue) in the mostrecent quarter, compared with $1.3 million (30.4% of revenue) in the firstquarter of FY2007. Operating income improved to $729,645 in the three monthsended December 31, 2007, compared with an operating loss of ($218,406) in thequarter ended December 31, 2006.
The Company expects significant quarter-to-quarter variations in itsoperating results, due to the timing of large order receipts, productionscheduling, and shipping of products.
"We are very pleased to report strong revenue growth, a record number offemale condoms sold and the highest quarterly profit in the Company's historyfor the three months ended December 31, 2007," noted O.B. Parrish, ChiefExecutive Officer of The Female Health Company. "The 37% revenue increasereflects the growing role that our female condoms are playing in the globalbattle against HIV/AIDS. Acceptance of our second-generation FC2 FemaleCondom(R) has been excellent."
"In December, 2007, we completed the expansion of FC2 production capacityin Malaysia to four lines with an annual capacity of 30 million units inaddition to FC production facility in London. A fifth end-stage FC2production line, located in Cochin, India, with an annual capacity of 7.5million units, began producing condoms in December 2007, under the auspices ofour business partnership with Hindustan Latex Limited."
"We ended the first quarter with the strongest balance sheet in ourhistory, with no debt outstanding, approximately $1.8 million of cash in thebank, and a current ratio of 3.5-to-1.0. Based upon information currentlyavailable to the Company, we believe Fiscal 2008 will be another record yearin terms of revenues and earnings."
As previously announced, the Female Health Company will host an investorconference call at 11:00 a.m. EST today, February 13, 2008. Shareholders andother interested parties may participate in the conference call by dialing888-603-6873 (international participants dial 973-582-2706 and referencing theconference code 32404579, a few minutes before 11:00 a.m. EST on February 13,2008. A replay of the call will be available through February 27, 2008 bydialing 800-642-1687 (international callers dial 706-645-9291) and referencingthe conference code 32404579.
About The Female Health Company
The Female Health Company, based in Chicago, Illinois, manufactures andmarkets the FC Female Condom(R), which is primarily distributed by publichealth organizations and donor groups in over 90 developing countries aroundthe world. World-wide, the Female Condom is available in various programs in116 countries. The Company owns certain worldwide rights to the FC FemaleCondom(R), including patents that have been issued in the United States,United Kingdom, Japan, France, Italy, Germany, Spain, the European PatentConvention, the People's Republic of China, Canada, South Korea and Australia.FC Female Condom(R) is the only available FDA-approved product controlled by awoman that offers dual protection against sexually transmitted diseases,including HIV/AIDS, and unintended pregnancy.
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