ST. LOUIS, Feb. 8, 2011 /PRNewswire/ -- With its governmental markets still depressed, Allied Healthcare Products (Nasdaq: AHPI) earned a modest profit in the second quarter of fiscal year 2011 and improvement in its year-over-year performance.
Net income for the quarter ending December 31 was $117,000, or 1 cent per basic and diluted share, compared to $22,000, or zero cents per share, for the previous year's quarter. For the first two quarters of the fiscal year, net income was about $29,000, or zero cents per basic and diluted share, compared to a loss of $723,000, or a negative 9 cents per share, for the previous year's first two quarters. Allied earnings in the previous year were affected by a non-cash charge of $609,000 for a grant of stock options.
Sales for the second quarter totaled about $11.4 million, slightly below the mark set in the previous year's quarter. For the first six months of the fiscal year, sales increased by about $605,000, or 2.7 percent, to about $23.3 million.
Unanticipated costs of about $280,000 associated with the introduction of a new product depressed results for the quarter. Most of those costs were a one-time event.
In the first half of the fiscal year, prices for commodity materials such as brass and steel increased 8 percent. Still, Allied managed to hold overall purchased material costs to an increase of less than 1 percent. Also, the company reduced selling, general and administrative (SG&A) costs by about 10 percent for the quarter, the second consecutive quarter in which significant SG&A reductions were achieved."Our cost structure is strong, so we are well-positioned to take advantage of an upturn in the market," said Earl Refsland, Allied president and chief executive officer.
Allied Healthcare Products manufactures a variety of respiratory products used in the healthcare industry in a range o