STEWARTVILLE, Minn.—Rochester Medical Corp. executives said the silicone medical product maker is on track to double its sales and post positive net earnings by fiscal year 2013.
The Stewartville-based company previously set a goal to reach $83 million in revenue—double 2010 levels—and post net earnings of $9 million to $10 million by the end of next year, according to President and CEO Anthony J. Conway.
Rochester manufactures and markets latex-free disposable medical catheters and devices for urological and continence care applications, both under the Rochester Medical brand and under private label agreements.
Part of the effort to boost sales includes adding significantly to its direct sales staff and also acquiring last spring Laprolan B.V., the Netherlands-based former Medical Supplies Division of Fornix BioSciences N.V.
For its first quarter of fiscal 2012, ended Dec. 31, Rochester's sales rose 26 percent to $13.8 million. It posted a net loss of $75,000, compared with a loss of $169,000 for the prior-year quarter.
The company said the revenues boost came from a 45-percent increase in direct sales, partially offset by a 20-percent drop in private label sales.
“Our organic direct sales are growing nicely, especially where we have our own dedicated sales and marketing personnel,” Conway said.
U.S. direct revenues in the acute care market rose 31 percent with home care sales up 27 percent. “These are strong numbers, and they reflect the increasing effectiveness of our U.S. sales and marketing team and the growing acceptance of our advanced catheter technology,” he said.
While private label sales and direct international distributor sales were down for the quarter, Conway said in a conference call discussing the results that those revenue streams often fluctuate from quarter to quarter, and are expected to be stable over the entire year.
“I remain confident in Rochester Medical's growth trajectory,” he said, reaffirming the firm's fiscal 2013 sales and profit goals.
Chief Financial Officer David Jonas said during the conference call that the medical goods maker also did a good job at keeping costs down, reflected in the $440,000 in operating income generated in the quarter and the near-breakeven net income number.
“As our direct sales continue to grow and as we continue to control our spending, the earnings will follow,” Jonas said.
Conway said sales of the firm's intermittent catheters would lead revenue growth. The Laprolan acquisition also will help boost sales organically, along with upcoming new product introductions.