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Allied Healthcare Products Inc. Reports Operating Results (10-Q)

February 08, 2011 | About:
10qk

10qk

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Allied Healthcare Products Inc. (AHPI) filed Quarterly Report for the period ended 2010-12-31.

Allied Healthcare Products Inc. has a market cap of $36.1 million; its shares were traded at around $4.5056 with and P/S ratio of 0.8. Mutual Fund and Other Gurus that owns AHPI: Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Income from operations was $0.2 million for the three months ended December 31, 2010 compared to income from operations of $44,626 for the three months ended December 31, 2009. Allied had income before provision for income taxes in the second quarter of fiscal 2011 of $0.2 million, compared to income before provision for income taxes in the second quarter of fiscal 2010 of $33,143.

Net income for the second quarter of fiscal 2011 was $117,113 or $0.01 per basic and diluted share compared to net income of $21,570 or $0.00 per basic and diluted share for the second quarter of fiscal 2010. The weighted average number of common shares outstanding, used in the calculation of basic earnings per share for the second quarters of fiscal 2011 and 2010 were 8,098,366 and 8,092,734, respectively. The number of diluted shares outstanding for the three months ended December 31, 2010 and 2009 were 8,119,386 and 8,217,103, respectively.

Selling, general and administrative expenses for the six months ended December 31, 2010 were $5.3 million compared to selling, general and administrative expenses of $6.5 million for the six months ended December 31, 2009. The decrease in selling, general and administrative expenses is due to, among other things, a decrease of approximately $0.6 million in compensation expense related to option grants. Other decreases included a decrease of approximately $0.1 million for compensation expense and $0.1 million for sales commissions compared to the same period of the prior year. The Company also experienced a decrease in selling expenses for outside professional services of approximately $0.1 million, and a decrease in health insurance costs of approximately $0.2 million, primarily due to lower claims.

Income from operations was $0.1 million for the six months ended December 31, 2010 compared to a loss from operations of $1.1 million for the six months ended December 31, 2009. Allied had income before provision for income taxes in the first six months of fiscal 2011 of $47,353, compared to a loss before benefit from income taxes in the first six months of fiscal 2010 of $1.2 million. The Company recorded a tax provision of $17,994 for the six months ended December 31, 2010 compared to a tax benefit of $0.4 million for the six months ended December 31, 2009.

Net income for the six months ended December 31, 2010 was $29,359 or $0.00 per basic and diluted share compared to a net loss of $0.7 million or $0.09 per basic and diluted share for the first six months of fiscal 2011. The weighted average number of common shares outstanding, used in the calculation of basic earnings per share for the first six months of fiscal 2011 and 2010 were 8,095,876 and 8,040,528, respectively. The weighted average number of common shares outstanding, used in the calculation of diluted earnings per share for the first six months of fiscal 2011 and 2010 were 8,114,724 and 8,040,528, respectively.

The Company s working capital was $18.0 million at December 31, 2010 compared to $17.6 million at June 30, 2010. Cash increased $1.0 million, inventory increased $0.3 million and accrued liabilities decreased $0.6 million. At December 31, 2010 these increases in working capital were offset by a decrease in income tax receivable of $0.1 million, and a $0.2 million increase in accounts payable. Accounts receivable decreased $1.2 million to $4.2 million at December 31, 2010. Accounts receivable as measured in days of sales outstanding (“DSO”) decreased to 34 DSO at December 31, 2010; down from 40 DSO at June 30, 2010.

Read the The complete Report

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