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THE FEMALE HEALTH COMPANY REPORTS: THE FEMALE HEALTH COMPANY REPORTS FIRST QUARTER FY 2002
RESULTS
COMPANY POSTS 38% INCREASE IN REVENUES
CHICAGO
(February 15, 2002) – The Female Health Company (OTC BB FHCO) today reported
revenues of $1,670,171 and net loss attributable to common stockholders of $389,561
($0.02 per diluted share) for the three months ending December 31, 2001 compared to
revenues of $1,213,625 and a net loss attributable to common stockholders of
$652,620 ($0.05 per diluted share) for the three months ended December 31, 2000. The
Company posted an operating loss for the three-month ended December 31, 2001 of
$200,498 compared to a $502,580 operating loss for the same period last year an
improvement of 60% as a result of improved gross profit and a reduction of operating
expenses compared to the same period last year. Net
revenues increased $456,546 for the current quarter or 38%, compared with the same
period last fiscal year. The higher sales volume for the first quarter was
attributable to an increase in shipments to global public sector customers. The
results were consistent with the expectations for the quarter. The Company expects
significant quarter to quarter variation due to the timing of receipt of large
orders, subsequent production scheduling, and shipping of products and demonstrates
the Female Health Company’s continued progress in executing its long-term
strategies for growth.
Gross
profit increased $214,914, or $257%, to $298,765 from $83,751 for the same period in
the prior year. The improvement in gross profit resulted from the increase in net
revenues coupled with a less than proportionate increase in cost of products sold.
Total
operating expenses for the three-month ended December 31, 2001 declined 15 percent
to $499,263 from $586,331 for the same period last year. The reduction was a result
of a reduction of promotion and consulting expenses offset in part by higher legal
fees incurred during these periods. Total operating expenses as a percent of sales were 30% in the
first quarter compared to 48% in the same prior year quarter. The Company experienced a $39,023 increase in non-operating expenses to $155,792 for the current quarter compared to $116,769 for the same period during the prior fiscal year. The increase is due to a higher amount of non-cash expenses incurred from the amortization of discounts on convertible debentures and notes payable than the first quarter of the prior year. The
Company's strategy is to act as a manufacturer and to develop a global distribution
network for the product by completing partnership arrangements with companies with
the necessary marketing and financial resources and local market expertise As
part of this strategy the Company entered into two recent agreements. On
November 29, 2001, the Company signed a non-binding memorandum of understanding with
Hindustan Latex Limited ("HLL"),
an Indian government organization and India's largest male condom manufacturer. HLL
distributes to public sector customers including government and non-government
organizations and to consumers through 160,000 retail outlets. Jointly with HLL a
marketing strategy will be developed for the country of India. Over time, the
Company anticipates that HLL and the Company will explore manufacturing options
within India. On
December 18, 2001, the Company announced the appointment of Total Access Group
("TAG") as the exclusive distributor for public sector sales within a
fifteen-state region in the western United States. TAG is a privately held national
distributor to the United States public sector and serves over 2,500 customers,
which include state and local health departments, community based organizations,
HIV/STD prevention organizations, Planned Parenthood clinics and family planning
organizations. TAG is a full service
distributor and will provide marketing, education and customer service support.
The
Female Health Company, based in Chicago, owns certain worldwide rights to The Female
Condom including patents which have been issued in the United States, United
Kingdom, Japan, France, Italy, Germany, The People’s Republic of China, Canada,
Brazil, 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
government 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 about the Female Health Company, dial toll-free via fax, 1-800-PRO-INFO and enter company code “FHCO.” Also, visit the Company’s Web site at www.femalehealth.com and www.femalecondom.org. If you would like to be added an e-mail alert list, please send an e-mail to FHCInvestor@aol.com Contacts:
Investors
Business / Product
Global Program
William R. Gargiulo, Jr.
Mary Ann Leeper, Ph.D. Mitchell Warren 231.526.1244 312.595.9123 845.353.8298
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