THE FEMALE HEALTH 

COMPANY REPORTS:

 

                                     THIRD QUARTER FY 2000 RESULTS

 

                            Units Shipped/Orders In-House Increase 51%

 

 

CHICAGO, Aug. 14, 2000 – The Female Health Company (OTC BB:  FHCO) today reported third quarter net revenues of $1,377,932 for the period ending June 30, 2000 compared with $1,611,975 in the same period in 1999.  Year-to-date unit sales and orders in house as of June 30, 2000, totaled 7.4 million units compared to 4.9 million during the same period prior year for an increase of 51 percent.

           The results were consistent with the expectations for the quarter, in terms of shipments and orders. The Company expects significant quarter to quarter variation due to the timing of receipt of large orders, subsequent production scheduling, and shipping of products as various countries in the global public sector schedule the introduction of the product in prevention programs under the UNAIDS agreement.

            Net loss for the fiscal third quarter ending June 30, 2000, decreased 17 percent to $865,698 ($0.07 per diluted share) compared to a net loss of $1,048,325 ($0.09 per diluted share) for the same period in fiscal year 1999. The net loss declined as a result of improved gross profit coupled with lower operating expenses offset in part by non-operating interest expenses associated with greater outstanding debt than held during the prior year third quarter. The operating loss for the quarter decreased 36% to $533,070 compared to the same prior year quarter.Gross profit improved as a result of a reduction in cost of goods sold more than offsetting the sales decline. The improvement in cost of goods sold is a result of a larger percentage of the Company total sales being comprised of international and global public sector business (61%) than during the same period in the prior year (52%)

Selling, general and administrative expenses decreased 22 percent as a result of reductions in consulting and legal fees compared to those incurred in the prior fiscal year’s third quarter.

Non-operating expenses increased for the current period principally as a result of a higher level of debt outstanding existing than the same period last year, due to the issuance of convertible debentures. The result is a larger amount of non-cash expenses incurred from the amortization of discounts on convertible debentures than the second quarter of the prior year.

The Company continues its discussion with WHO and UNAIDS regarding the implementation of programs involving the Female Condom in the developing world.

Key events that will impact results in the last quarter of fiscal year 2000 include the development of the national prevention programs in Sub-Saharan African countries and the continued roll out of the Female Condom in Japan by the Taiho Pharmaceuticals Company.

The Female Health Company, based in Chicago, owns certain worldwide rights to The Female Condomä including patents that have been issued in the United States, United Kingdom, Japan, France, Italy, Germany, Spain, The People’s Republic of China, Canada, New Zealand, South Korea and Australia.  The Female Condomä 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 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.

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THE FEMALE HEALTH COMPANY

Unaudited Condensed Consolidated Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

For the Nine Months Ended

 

 

 

 

 

June 30,

 

June 30,

 

 

 

 

 

2000

 

1999

 

2000

 

1999

NET REVENUES

 

 

 

 

 $       1,377,932

 

 $      1,611,975

 

 $      3,923,425

 

 $     3,409,695

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT (LOSS)

 

 

 

 

            157,163

 

             26,422

 

           311,209

 

         (378,090)

 

 

 

 

 

 

 

 

 

 

 

 

Advertising and promotion

 

 

 

 

              54,358

 

             44,489

 

           169,000

 

          219,333

SG&A

 

 

 

 

            635,875

 

           813,079

 

         2,085,001

 

        2,129,111

Total Operating Expenses

 

 

 

 

            690,233

 

           857,568

 

         2,254,001

 

        2,348,444

OPERATING LOSS

 

 

 

 

           (533,070)

 

          (831,146)

 

       (1,942,792)

 

      (2,726,534)

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of debt issuance costs

 

              31,032

 

             69,650

 

           245,676

 

            69,650

Interest, net and other expense

 

 

 

 

            268,690

 

           114,225

 

           937,561

 

          245,042

Pretax loss

 

 

 

 

           (832,792)

 

       (1,015,021)