The Cooper Companies Reports First Quarter Results
The Cooper Companies Reports First Quarter Results Thursday March 6, 4:00 pm ET
PLEASANTON, Calif., March 6, 2008 (PRIME NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO - News) today reported first quarter results for fiscal 2008. Highlights
* First quarter revenue increased 12% year-over-year to $245 million with CooperVision (CVI) up 12% and CooperSurgical (CSI) up 10%.
* GAAP earnings per share (EPS) 15 cents, up 25% or 3 cents from last year's first quarter.
* Adjusted EPS 45 cents. Adjusted EPS excludes the non-GAAP adjustments as shown below in "Unaudited Reconciliation and Explanation of Non-GAAP to GAAP Operating Results."
* 2008 revenue and EPS guidance raised.
Commenting on the results, Robert S. Weiss, Cooper's chief executive officer said, ``This was a solid quarter as we continue to experience strong revenue growth, significant manufacturing improvements and earnings stabilization. At CVI, revenues were strong in all geographic markets and we outpaced market growth. We are clearly seeing a revival of CVI's historic revenue growth and share gain patterns.
``With respect to manufacturing, we are now producing our two-week silicone hydrogel sphere Avaira(tm) on a Gen II platform, which will support its upcoming launch in April. Biofinity(r) production reached an all time high of 3.8 million units in February, and a new line began production this month. We continue to anticipate $160 million to $170 million in capital expenditures this year primarily to support capacity expansion, but we now expect 2009 capital expenditures to decrease to $125 million to $140 million. This is due to yield improvements in several processes and the expected completion of the plant expansion in Puerto Rico during fiscal 2008.''
2008 Revenue and Earnings Guidance
Cooper now expects fiscal 2008 revenue of $1,060 million to $1,100 million, up from previous guidance of $1,040 million to $1,090 million, due to strong growth of core contact lens products and anticipated sales of Avaira. Reflecting the increased sales, Non-GAAP EPS guidance is increased to $2.10 to $2.35 and GAAP EPS guidance to $1.40 to $1.85 from previous guidance of Non-GAAP EPS $2.00 to $2.30 and GAAP EPS $1.30 to $1.80. Non-GAAP EPS guidance excludes costs considered unrelated to core operating performance as shown below in ``Unaudited Reconciliation and Explanation of Non-GAAP to GAAP Operating Results.''
CVI expects fiscal 2008 revenue of $895 million to $930 million, previously $875 million to $920 million, and CSI expects fiscal 2008 revenue of $165 million to $170 million, unchanged from previous guidance.
First Quarter Operating Highlights
* Revenue $245.0 million, 12% above first quarter 2007, 7% in constant currency.
* Gross margin 58% compared with 59% in last year's first quarter. Excluding costs considered unrelated to core operating performance, gross margin was 62%, the same as in last year's first quarter.
* Operating margin 8% compared with 7% in last year's first quarter. Excluding costs considered unrelated to core operating performance, operating margin was 14% compared with 15% in last year's first quarter.
* Capital expenditures $42.7 million.
* Depreciation and amortization expense $20.1 million including $0.8 million related to accelerated depreciation on assets made redundant as part of integration activities.