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THE FEMALE HEALTH COMPANY REPORTS: THE
FEMALE HEALTH COMPANY REPORTS 43 PERCENT INCREASE IN
FIRST QUARTER REVENUES Principal
U.S. Patent Extended Two Years CHICAGO
(Feb. 15, 2001) – The Female Health Company (OTC BB: FHCO) today
reported a 43 percent increase in net revenues for the first quarter
ending December 31, 2000. Revenues
were $1,213,625, up from $847,295 in the same period in 1999. Unit sales
for the quarter grew 40 percent to 1.4 million from 1.0 million in the
same period last year. The higher sales volume was primarily attributable
to a substantial increase in shipments to domestic public sector
customers. “Our improving results underscore The Female Health
Company’s continued progress in executing its long-term strategies for
growth and are in line with our expectations,” said Mary Ann Leeper,
Ph.D., president of The Female Health Company.
“This improvement is particularly gratifying in that it was
driven by strong sales to the public sector in the United States.” The
results were consistent with expectations for the quarter. The company
expects significant quarter-to-quarter variation due to the timing of the
receipt of large orders and other shipping and production scheduling
factors. The net loss for the first quarter was reduced 51 percent to
$652,616, or $0.05 per diluted share, compared with a net loss of
$1,340,268, or $0.11 per diluted share for the same period in 1999. The
reduction was a result of a decrease in the operating loss and lower
non-operating expenses. The
Company’s operating loss for the three months ended Dec. 31, 2000
declined 41 percent to $502,580 from $856,115 in the prior-year period..
The reduction in net operating loss was due to gross margin improvements
coupled with a reduction in operating expenses. Gross
margins significantly improved in the quarter, driven by a 43 percent
growth in net revenues, which outpaced the 23 percent growth in cost of
goods sold. Total
operating expenses for the quarter decreased 25 percent to $586,331 from
$786,115 in the same period last year. The reduction was a result of a
decrease in selling, general and administrative expenses during the
period. Additionally,
the Company experienced a 33 percent, or $300,000, reduction of
non-operating expenses for the current fiscal year compared to $450,712
for the prior year. The decrease was due to a smaller amount of non-cash
expenses incurred from the amortization of debt issuance costs and
discounts on convertible debentures and notes payable than in the first
quarter of the prior year. The reduction was largely due to the Company
having not issued new convertible debentures since June 1999. The
Company also reported that the principal U.S. patent on The Female Condom
has been extended to April 14, 2007, instead of April 14, 2005, due to
patent regulation changes, providing an additional two years of patent
protection. “The
extension of our patent further strengthens our leading position in the
segment and allows us to greater leverage this ground-breaking public
health innovation,” said Leeper. The Female Health Company, based in Chicago, owns certain
worldwide rights to The Female Condom including patents that have been
issued in the United States, United Kingdom, Japan France, Italy, Germany,
The People’s Republic of China, Canada, New Zealand, South Korea and
Australia. The Female Condom is the only available product controlled by a
woman that protects against sexually transmitted diseases including
HIV/AIDS, and unintended pregnancy. “Safe Harbor” Statement under the Private
Securities Litigation Reform Action of 1995: The
statements in this release which are not historical fact are
forward-looking statements based upon the Company’s current plans and
strategies, and reflect the Company’s current assessment of the risks
and uncertainties related to its business, including such things as
product demand and market acceptance; the economic and business
environment and the impact of governmental regulations, both in the United
States and abroad; the effects of competitive products and pricing
pressures; currency risks; capacity; efficiency and supply constraints;
and other risks detailed in the Company’s press releases, shareholder
communication and Securities and Exchange Commission filings. Actual
events affecting the Company and the impact of such events on the
Company’s operations may vary from those currently anticipated. For
more information, dial toll-free via fax 1-800-PRO-INFO, and enter company
code “FHCO.” Also, visit
the company’s web site, www.femalehealth.com. #
# # THE
FEMALE HEALTH COMPANY Unaudited
Condensed Consolidated Balance Sheet
THE FEMALE HEALTH COMPANY Unaudited Condensed Consolidated Income Statement
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