ST. LOUIS, Nov. 5, 2010 /PRNewswire-FirstCall/ -- Despite difficult economic conditions, Allied Healthcare Products (Nasdaq: AHPI) managed to increase sales by 5.3 percent in the first quarter of fiscal year 2011. Sales increased by $600,000 to total $11.9 million compared to $11.3 million for the first quarter of fiscal 2010.
An unanticipated $350,000 in shipping and other start-up production costs for carbon dioxide absorbent products used in anesthesia procedures narrowly tipped the company into a net loss of about $88,000 for the quarter, or a negative one cent per basic and diluted share, compared to a loss of about $745,000, or a negative nine cents per basic and diluted share, for the previous year's quarter. Allied earnings in the prior year quarter were affected by a non-cash charge of $609,000 for the company's grant of stock options.
Allied Healthcare Products continued to exercise strict cost controls, reducing selling, general and administrative expenses by about $300,000, or 10.0 percent, compared to the previous year's first quarter and eliminating the effect of the $609,000 stock option expense in that period. Also, despite the net loss for the quarter, the company increased its cash balance to about $5.3 million at the end of the quarter.
A new Allied product – Litholyme™, a patented carbon dioxide absorbent formulation with the safety benefits of premium products but priced closer to non-premium offerings – has received "extremely positive" customer reviews, said Earl Refsland, president and chief executive officer, but is not expected to affect results until the third and fourth quarters.
Allied Healthcare Products manufactures a variety of respiratory products used in the healthcare industry in a range of hospital and alternate care settings including sub-acute facilities, home healthcare and emergency medical care. A