The Cooper Companies, Inc. (Cooper) has reported net sales of $260.6 million for the second quarter of fiscal 2009, compared with the net sales of $259.2 million in the year-ago quarter. It also reported a net income of $24.6 million, or $0.54 per diluted share, for the second quarter of fiscal 2009, compared with the net income of $11.2 million, or $0.25 per diluted share, in the year-ago quarter.
The company confirms fiscal 2009 guidance with revenue in the range of $1,030 million to $1,100 million, including CVI revenue of $865 million to $925 million and CSI revenue of $165 million to $175 million. GAAP EPS guidance for fiscal 2009 is confirmed in the range of $2.16 to $2.36.
Commenting on the results, Robert S. Weiss, Cooper’s president and chief executive officer said, We are very pleased with our second quarter results as we generated strong earnings growth, solid free cash flow and made progress with several key products including our silicone hydrogel spheres, Avaira(r) and Biofinity(r). Our Biofinity toric launch in the US and Europe continues ahead of schedule, and our growth in the single-use modality remains strong. We remain committed to growing the business for the long term while prudently managing costs in today’s economic environment.
Second Quarter Operating Highlights
Gross margin 57% compared with 58% in last year’s second quarter.
Operating margin 16% compared with 11% in last year’s second quarter.
Depreciation and amortization expense $21 million, including $1 million in accelerated depreciation.
Research and development $10.1 million, including a one-time in-process R&D charge of $3 million, or 7 cents per share, for the acquisition of certain distribution rights.
Interest expense $10.8 million, or 4% of sales vs. $12.1 million, or 5% of sales in last year’s second quarter.
Capital expenditures $20 million.
Second Quarter CooperVision (CVI) Operating Highlights
Revenue $217.8 million, consistent with last year’s second quarter, up 4% in constant currency.
Gross margin 56% compared with 58% in the second quarter of 2008.
Operating margin 16% compared with 12% in last year’s second quarter.
Second Quarter CooperSurgical (CSI) Operating Highlights
Revenue $42.8 million, up 3% from last year’s second quarter.
Sales of products marketed directly to hospitals increased 18% year-over-year to $14 million and now represent 33% of CSI’s total revenue up from 29% in last year’s second quarter.
Gross margin 61%, up from 59% in last year’s second quarter.
Operating margin 26%, up from 19% in last year’s second quarter.
Cooper develops, manufactures and markets healthcare products, primarily medical devices, through its two business units: CooperVision, Inc. (CVI) and CooperSurgical, Inc. (CSI).