Liberator Medical Holdings Inc. posted record results for its fiscal first quarter ended December 31, 2009, reporting an impressive 70-percent revenue increase. The company’s revenue primarily comes from its general medical supplies products for personal mobility aids, diabetes, urological, ostomy and mastectomy patients, which can be purchased via phone, mail or Internet.
Revenues for the three months ended December 31, 2009 rose 71.4 percent to $9.15 million, compared to $5.34 million the same period of 2008, fueled by the company’s direct-response advertising campaign targeting new mail order customers. The cost of advertising for the three months was $2.03 million, up from $713,000 in the same quarter of 2008.
For the first fiscal quarter of 2009, the company posted gross profit at $2.40 million, up 68.8 percent from the $5.91 million posted for the first quarter the year prior. Liberty Medical attributes the increase to a kick in sales volume over the same three-month period of 2008.
Liberty Medical’s operating expenses for the first quarter were $4.75 million, or 51.9 percent of revenue, compared with $2.99 million, or 56.0 percent of revenue for the three months ended December 31, 2008. A ramp in spending levels for new employees, advertising costs, rent and other administration costs contributed to the increase.
As of December 30, 2009, the company had cash of $2.88 million, compared to cash of $3.79 million reported at September 30, 2009. Liberty Medical said the decrease was primarily due to an accelerated direct-response advertising campaign, as well as the build-out of its new 24,000-square foot facility during the quarter.