Liberator Medical Holdings, Inc. (OTCBB:LBMH) announced today net revenues of $9.65 million for its second fiscal quarter ended March 31, 2010. Net income for the three months ended March 31, 2010, increased by $161,000, or 169%, to $256,000, compared with net income of $95,000 for the three months ended March 31, 2009. Net income for the six months ended March 31, 2010, increased by $770,000, or 226%, to $1,111,000, compared to $341,000 for the six months ended March 31, 2009.
Mark Libratore, the Company's Founder and CEO, said, "We are very pleased with the results for the quarter, given its seasonal challenges combined with the expansion of our infrastructure and the addition of 80 employees over the last six months. The second fiscal quarter is typically the most seasonally challenging quarter due to the annual renewal of our customers' insurance coverage and calendar year deductibles that must be met at the beginning of each calendar year. In spite of these challenges, we were able to grow our sales primarily as a result of new customers generated from our direct response advertising efforts. Net income for the quarter was pressured from higher than average direct response advertising costs and the expansion of our infrastructure to support significantly higher sales."
Financial Highlights and Recent Events:
Revenue
Sales for the three months ended March 31, 2010, increased by $3,823,000, or 65.6%, to $9,650,000, compared with sales of $5,827,000 for the three months ended March 31, 2009. The increase was due to a substantial direct response advertising campaign to obtain new mail order customers. Sales for the six months ended March 31, 2010, increased by $7,639,000, or 68.4%, to $18,808,000, compared with sales of 11,169,000 for the six months ended March 31, 2009, as a result of the direct response advertising campaign.
Gross Profit
Gross profit for the three months ended March 31, 2010, increased by $2,515,000, or 67.1%, to $6,264,000, compared with gross profit of $3,749,000 for the three months ended March 31, 2009. Gross profit for the six months ended March 31, 2010, increased by $4,925,000, or 67.9%, to $12,175,000, compared to $7,250,000 for the six months ended March 31, 2009. The increase was attributed to our increased sales volume for the three and six months ended March 31, 2010, compared to the three and six months ended March 31, 2009.
Operating Expenses
Operating expenses for the three months ended March 31, 2010, were $5,904,000, or 61.2% of sales, compared to $3,387,000, or 58.1% of sales for the three months ended March 31, 2009. Operating expenses for the six months ended March 31, 2010, were $10,654, or 56.6% of sales, compared to $6,378,000, or 57.1% of sales, for the six months ended March 31, 2009. The increases in operating expenses are primarily attributed to increased spending levels for additional employees, advertising costs, rent, depreciation and other administrative costs to support our current and future sales growth.