Rochester Medical Corporation (Form: 8-K)

Rochester Medical Corporation (NASDAQ: ROCM) today announced operating results for its second quarter ending March 31, 2007.

The Company reported record sales of $8,347,000 for the current quarter compared to $4,874,000 for the second quarter of last year. It also reported net income of $1,044,000 or $.08 per diluted share compared to a net loss of $(244,000) or $(.02) per diluted share for the second quarter of last year.

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The results for the current quarter include $523,000 of non-cash expenses comprised of $359,000 related to non-cash stock option compensation expenses under FAS123R and $164,000 for amortization of intangibles related to the 2006 asset acquisitions.

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The current quarter revenues include realization of $508,000 which represents the remaining portion of the $1 million fee paid by Coloplast A/S to Rochester Medical in 2002 for marketing rights to Rochester Medical’s antibacterial Foley Catheter. Those rights have now been cancelled by mutual agreement, thus triggering the immediate recognition of the remaining amount as all conditions of the revenue agreement have now been met.

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The results for the current quarter include an expense of approximately $200,000 related to enhancing IT systems and implementing procedures needed to become compliant with Section 404 of Sarbanes-Oxley, which the Company is required to complete by the end of this fiscal year. The Company expects these expenses will be non-recurring after third quarter 2007.

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The results for the quarter reflect a planned increased investment in marketing and sales in both the U.S. and U.K. The Company expects this investment will lead to increased sales and earnings in the future.

The 71% increase in sales revenues for the current quarter compared to last year’s second quarter resulted primarily from increased sales of Rochester Medical branded products and from increased Private Label sales. International sales resulting from the acquired U.K. business generated a significant portion of the increase. The increase in net income for the current quarter compared to last year’s second quarter was primarily due to increased contribution from increased sales.

“I am very pleased with our progress,” said Company CEO and President Anthony J. Conway. “The recent asset acquisitions are contributing to the Company very nicely and, apart from that, our year to date organic growth is a healthy 13%. We are carefully investing in our marketing and sales activities to support our new contract with Premier Purchasing Partners, L.P., one of the largest group purchasing organizations in the U.S., and also to support the introduction of new products into the United Kingdom and mainland Europe. We expect these planned expenditures will generate increased sales and income over the long term. We are very focused on continuing the growth of Rochester Medical, both through internal growth and through additional strategic opportunities. I look forward to continued progress ahead.”

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 Financial and can be accessed at Rochester Medical’s website at www.rocm.com. To listen live to the conference call via telephone, call:


Domestic: International:		1-800-901-5241, password 60913482 1-617-786-2963, password 60913482

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

Domestic Replay: International Replay:		1-888-826-8010, password 43696339 1-617-801-6888, password 43696339

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 Financial 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 or locating and capitalizing on strategic opportunities, the uncertainty of timing of private label sales revenues (particularly international customers), FDA and other regulatory review and response times, 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


	(unaudited)
	March 31,
	2007		September 30, 2006
Assets
Current Assets
Cash and equivalents	$	10,070,274	$	2,906,698
Marketable securities		30,075,000		—
Accounts receivable		4,723,543		4,494,094
Inventories		6,331,134		4,642,578
Prepaid expenses and other assets		446,811		410,267
Deferred income tax assets		760,000		53,000

Total current assets		52,406,762		12,506,637
Property and equipment		8,979,199		8,239,246
Deferred income tax asset		336,000		1,178,000
Patents, net		270,155		271,171
Intangible assets, net		7,943,394		8,270,157
Goodwill		5,430,176		5,487,141

Total Assets		75,183,686		35,952,352

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,983,960	$	1,278,441
Accrued expenses		1,160,778		1,621,376
Short term debt		1,160,778		1,681,361
Current maturities of capital leases		43,081		42,084
Income taxes payable		1,850,089		105,559
Deferred revenue		—		114,287

Total long term liabilities		7,111,993		8,012,682
Stockholders’ equity		61,352,424		23,096,562

Total Liabilities and Stockholder Equity
	$	75,183,686	$	35,952,352


								Six months ended
	Three months ended March 31,							March 31,
Sales	$	8,346,603		$	4,874,079		$		15,858,569		$	9,481,279
Cost of sales		3,919,245			3,314,823				7,655,589			6,320,293

Gross profit		4,427,358			1,559,256				8,202,980			3,160,986
Gross profit %		53	%		32	%			52	%		33	%
Cost and expense:
Marketing and selling		1,520,685			576,374				2,754,347			1,175,367
Research and development		240,495			186,974				443,265			360,597
General and administrative		1,709,553			994,546				3,758,699			1,566,800

Total operating expenses		3,470,733			1,757,894				6,956,311			3,102,764

Income from operations		956,625			(198,638	)			1,246,669			58,222
Other income (expense)
(Loss) on Sale of Investments		—			(103,532	)			—			(103,532	)
Interest income		439,503			60,322				514,353			117,447
Interest expense		(153,184	)		(2,471	)			(312,822	)		(5,075	)
Other income		—			—				38,605,000			—

Net income before income taxes	$	1,242,944		$	(244,319	)	$		40,053,200		$	67,062
Income tax expense		199,426			—				7,543,066			—
Net income		1,043,518			(244,319	)			32,510,134			67,062

Earnings per common share – Basic	$	0.09		$	(0.02	)		$	2.89		$	0.01

Earnings per common share – Diluted	$	0.08		$	(0.02	)		$	2.64		$	0.01

Weighted Average Shares: Basic		11,367,295			11,067,478				11,233,207			11,059,844

Weighted Average Shares: Diluted		12,475,859			11,067,478				12,331,312			11,564,226


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

April 30, 2007	By:	/s/ David A. Jonas

		Name: David A. Jonas
		Title: Chief Financial Officer


Exhibit No.		Description

99.1		Press Release dated April 30, 2007


Date of Report (Date of Earliest Event Reported):		April 30, 2007


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