Rochester Medical Corporation (Form: 8-K)

Rochester Medical Corporation (NASDAQ: ROCM) today announced operating results for its first quarter ending December 31, 2006.

The Company reported record sales of $7,512,000 for the current quarter compared to $4,607,000 for the first quarter of last year. It also reported net income of $31,467,000 or $2.59 per diluted share compared to a net income of $311,000 or $.03 per diluted share for the first quarter of last year.

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The current quarter results include $38,605,000 of income resulting from the previously announced lawsuit settlements.

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The results for the current quarter include $1,267,000 of non-cash expenses comprised of $1,104,000 related to non-cash stock option expenses under FAS123R and $163,000 for amortization of intangibles related to the 2006 asset acquisitions. Last year’s first quarter results included $84,000 of non-cash expenses which were stock option expenses under FAS123R.

Income from operations for the first quarter of 2007 adjusted on a non-GAAP basis to exclude these non-cash expenses was $1,557,000 compared to $341,000 for the first quarter of last year with the same adjustments.

The 63% increase in sales revenues for the current quarter compared to last year’s first quarter resulted from increased Rochester Medical^® Brand sales, primarily attributable to increased international sales of Rochester Medical Brand products resulting from the previously announced acquisition in the United Kingdom, and also from increased Private Label sales.

The Company noted that it utilized its entire Net Operating Loss carryforward this quarter which explains the low tax expense relative to the income.

“This has certainly been an eventful quarter,” said Company CEO and President Anthony J Conway. “We were awarded a National Group Purchasing Contract by Premier Purchasing Partners, L.P.; we renewed our Private Label sales agreement with Hollister, Inc.; we secured two lawsuit settlements in our anti-trust litigation; and we realized strong sales and earnings. We are pleased with the Company’s progress, and we look forward to a good year.”

The Company will hold a quarterly conference call this afternoon to discuss its earnings report. The call will begin at 4:00 p.m. central time (5:00 p.m. eastern time). This call is being webcast by Thomson/CCBN and can be accessed at Rochester Medical’s website at www.rocm.com. To listen live to the conference call via telephone, call:

The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).

This press release contains forward-looking statements that involve risks and uncertainties, including the uncertainty of estimated revenues and profits, as well as the uncertainty of market acceptance of new product introductions, the uncertainty of gaining new strategic relationships, the uncertainty of timing of private label sales revenues (particularly international customers), FDA and other regulatory review and response times, the uncertainty of successfully integrating and growing the Company’s new UK operations, and other risk factors listed from time to time in the Company’s SEC reports and filings, including, without limitation, the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended September 30, 2006.

Rochester Medical Corporation develops, manufactures, and markets disposable medical catheters and devices for urological and continence care applications. The Company markets under its own Rochester Medical^® brand and under existing private label arrangements.

For further information, please contact Anthony J. Conway, President and Chief Executive Officer of Rochester Medical Corporation at (507) 533-9600. More information about Rochester Medical is available on its website at http://www.rocm.com.


Rochester Medical Corporation
Press Release - F07 First Quarter
page 3 of 4
	Condensed Balance Sheets
		(unaudited)
		December 31,		September 30,
		2006		2006
Assets
Current Assets
Cash and equivalents		$	42,220,924	$	2,906,698
Marketable securities			—		—
Accounts receivable			4,378,917		4,494,094
Inventories			5,466,581		4,642,578
Prepaid expenses and other assets			517,975		410,267
Deferred income tax asset			542,000		53,000

Total current assets			53,126,397		12,506,637
Property and equipment			8,386,469		8,239,246
Deferred income tax asset			440,000		1,177,999
Patents, net			280,933		271,172
Intangible assets, net			8,106,776		8,270,157
Goodwill			5,422,490		5,487,141

Total Assets		$	75,763,065	$	35,952,352

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,444,379	$	1,278,441
Accrued expenses			1,467,686		1,621,376
Short term debt			1,681,361		1,681,361
Current maturities of capital leases			42,679		42,084
Income taxes payable			6,777,350		105,559
Deferred revenue			100,000		114,287

Total current liabilities			11,513,455		4,843,108
Long-term liabilities
Long term debt			7,327,214		7,540,737
Capital leases, less current portion			11,050		21,946
Deferred revenue			425,000		449,999

Total long term liabilities			7,763,264		8,012,682
Stockholders' equity			56,486,346		23,096,562

Total Liabilities and Stockholder Equity		$	75,763,065	$	35,952,352


Rochester Medical Corporation
Press Release - F07 First Quarter
page 4 of 4
	Summary Statements Of Operations
		(unaudited)
		Three months ended
		December 31,
		2006			2005
Sales		$	7,511,966		$	4,607,200
Cost of sales			3,736,344			3,005,470

Gross profit			3,775,622			1,601,730
Gross profit %			50	%		35	%
Costs and expense:
Marketing and selling			1,233,662			598,993
Research and development			202,770			173,623
General and administrative			2,049,146			572,255

Total operating expenses			3,485,578			1,344,871

Income from operations			290,044			256,859
Other income (expense)
Interest income			74,850			57,125
Interest expense			(159,647	)		(2,606	)
Other income			38,605,000			—

Net income before income taxes			38,810,247			311,378
Income tax expense			7,343,640			—

Net income		$	31,466,607		$	311,378

Earnings per common share — Basic		$	2.83		$	0.03

Earnings per common share — Diluted		$	2.59		$	0.03

Weighted Average Shares:
Basic			11,102,034			11,052,376

Weighted Average Shares:
Diluted			12,158,281			11,504,740


Minnesota	0-18933	41-1613227
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

One Rochester Medical Drive, Stewartville, Minnesota		55976
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	Rochester Medical Corporation

January 23, 2007	By:	/s/ David A. Jonas

		Name: David A. Jonas
		Title: Chief Financial Officer


Exhibit No.		Description

99.1		Press Release dated January 23, 2007


Domestic:1-800-561-2813, password 41026628

International:617-614-3529, password 41026628

Replay will be available for seven days at: www.rocm.com or via telephone:

Domestic Replay:		1-888-286-8010, password 92111833

International Replay:		617-801-6888, password 92111833


Date of Report (Date of Earliest Event Reported):		January 23, 2007


Registrant’s telephone number, including area code:		507-533-9600