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Recession Continues to Depress Sales at Allied Healthcare Products
Date:11/6/2009

ST. LOUIS, Nov. 6 /PRNewswire-FirstCall/ -- Recession in domestic and international markets continued to depress sales for Allied Healthcare Products in the first quarter of fiscal year 2010 ending September 30, 2009.

Sales declines pushed Allied into a loss for the quarter. The net loss for the quarter was about $745,000, or negative 9 cents per share, compared to a net profit the year earlier of about $208,000, or 3 cents per share.

Sales fell about 21 percent in the quarter, from about $14.4 million in the first quarter of last year to $11.3 million in the current quarter.

Allied introduced a new product line late in fiscal 2009 - mass casualty ventilators designed for use in pandemics, natural disasters and terrorist attacks. Sales of the new products totaled $500,000 in the quarter.

Allied mass casualty ventilators address needs that traditional, full-featured ventilators do not meet, said Earl Refsland, president and chief executive officer. For example, Allied ventilators cost a fraction of the price of full-featured ventilators, can be operated by non-professionals after brief instruction and are rugged, for use in harsh field conditions. Also, Allied mass casualty ventilators have minimal maintenance requirements, making them ideal for government stockpiles, Refsland said.

A bright spot in the quarter was strong performance in cost reduction efforts in manufacturing and operations. Most of these savings represent long-term reductions that will continue to benefit the company in future quarters.

Allied earnings in the quarter were affected by a non-cash charge of $609,000 resulting from the company's grant to the chief executive officer of an option to purchase 320,000 shares of common stock in the next six years.

Allied Healthcare Products, Inc., manufactures a variety of respiratory products used in the healthcare industry in a range of hospital and alternate care
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SOURCE Allied Healthcare Products, Inc.
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