8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) 

February 8, 2008

ALLIED HEALTHCARE PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or Other Jurisdiction of Incorporation) 0-19266 (Commission File Number) 25-1370721 (IRS Employer Identification No.)

1720 Sublette Avenue, St. Louis, Missouri	63110
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code

(314) 771-2400

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 8, 2008, Registrant issued a press release announcing financial information for the quarter and six-months ended December 31, 2007. The press release is attached hereto as Exhibit 99.1 and is furnished to, but not filed with, the Commission.

ITEM 9.01 Financial Statements and Exhibits

(c) Exhibits

Exhibit No.	Description
99.1	Press Release dated February 8, 2008

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: February 11, 2008

ALLIED HEALTHCARE PRODUCTS, INC.

/s/ Daniel C. Dunn

Daniel C. Dunn

Chief Financial Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated February 8, 2008*

*This exhibit is furnished to, but not filed with, the Commission by inclusion herein.

EX-99.1

Exhibit 99.1

Contact: Daniel C. Dunn

Chief Financial Officer

314/771-2400

Allied Healthcare’s Net Suffers

On Flat Sales, Performance Issues

ST. LOUIS, February 8, 2008 - Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported today that its net income in the second quarter ending December 31 fell almost 98 percent from $293,000 last year, or 4 cents per share, to about $6,500 in the current quarter, or zero cents per share.

For the first half of the 2008 fiscal year ending December 31, net income fell about 81 percent, from about $495,000 last year, or six cents per share, to about $93,500, or one cent per share, in the current fiscal year.

Customer orders for the first two quarters of fiscal 2008 were consistent with those of the prior year, declining only about $235,000. Sales, however, which depend on customer purchase order releases, declined about $1,000,000 or 3.6 percent, for the first two quarters of this fiscal year. Customer release rates are expected to return to more normal levels in the second half of the year, Allied said.

The sharp decline in net income resulted from gross margins that fell by about $960,000 compared to last year. Low production levels, caused by lower sales, combined with decreases in inventory to result in lower absorption of fixed costs. Also, cost reduction programs to offset higher labor and material costs did not take effect as planned in the first two quarters.

Material costs increased by 2.2 percent and labor costs by 4.5 percent compared to the previous year, Allied said. “Those increases should have been offset by cost reduction efforts, but we failed to execute in the first two quarters,” said Earl Refsland, Allied president and chief executive officer. Difficulties in introducing a new product contributed to production delays, Refsland said.

“We know what we have to do to correct problems we encountered,” Refsland said. “We just have to focus on the basics and execute.”

Despite difficulties, Allied once again improved its cash position, Refsland said. The company had a cash balance of about $4.7 million at the end of the first half of the fiscal year, an increase of more than 17 percent over the previous quarter and 30 percent over the previous year end.

Allied Healthcare Products, Inc. is a leading manufacturer of respiratory care products, medical gas equipment and emergency medical products used in a wide range of alternate care settings.

“SAFE HARBOR” STATEMENT: Statements contained in this release that are not historical facts or information are “forward-looking statements.” Words such as “believe,” “expect,” “intend,” “will,” “should,” and other expressions that indicate future events and trends identify such forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome and future results of operations and financial condition to be materially different than stated or anticipated based on the forward-looking statements. Such risks and uncertainties include both general economic risks and uncertainties, risks and uncertainties affecting the demand for and economic factors affecting the delivery of health care services, and specific matters which relate directly to the Company’s operations and properties as discussed in its periodic filings with the Securities and Exchange Commission. The Company cautions that any forward-looking statement contained in this report reflects only the belief of the Company or its management at the time the statement was made. Although the Company believes such forward-looking statements are based upon reasonable assumptions, such assumptions may ultimately prove inaccurate or incomplete. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement was made.

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ALLIED HEALTHCARE PRODUCTS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED) 

	Three months ended,						Six months ended,
	December 31,						December 31,
	2007			2006			2007			2006
Net sales	$	13,626,016		$	14,273,950		$	27,727,634		$	28,751,392
Cost of sales		10,714,172			10,757,222			21,648,777			21,715,111
Gross profit		2,911,844			3,516,728			6,078,857			7,036,281
Selling General and administrative expenses		2,932,428			3,091,418			5,975,398			6,282,415
Income (loss) from operations		(20,584	)		425,310			103,459			753,866
Interest income		(38,177	)		(28,059	)		(78,946	)		(56,228	)
Other, net		11,113			(53,182	)		26,263			(43,878	)
		(27,064	)		(81,241	)		(52,683	)		(100,106	)
Income before provision
for income taxes		6,480			506,551			156,142			853,972
Provision for income taxes		-			213,395			62,597			359,183
Net income	$	6,480		$	293,156		$	93,545		$	494,789
Net income per share - Basic
and diluted	$	0.00		$	0.04		$	0.01		$	0.06
Weighted average common shares
Outstanding - Basic		7,883,577			7,877,120			7,883,577			7,868,512
Weighted average common shares
Outstanding - Diluted		8,130,901			8,059,573			8,122,607			8,064,650

ALLIED HEALTHCARE PRODUCTS, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	December 31, 2007			June 30, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	4,732,692		$	3,638,870
Accounts receivable, net of allowances
of $325,000 and $460,000, respectively		6,190,756			7,251,767
Inventories, net		11,810,149			12,999,472
Other current assets		523,486			275,254
Total current assets		23,257,083			24,165,363
Property, plant and equipment, net		10,267,716			10,677,000
Goodwill		15,979,830			15,979,830
Other assets, net		562,161			496,127
Total assets	$	50,066,790		$	51,318,320
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,719,389		$	3,040,313
Other accrued liabilities		1,945,603			2,508,820
Deferred income taxes		726,861			882,001
Deferred revenue		465,000			465,000
Total current liabilities		5,856,853			6,896,134
Deferred revenue		1,705,000			1,937,500
Commitments and contingencies
Stockholders' equity:
Preferred stock; $0.01 par value; 1,500,000 shares
authorized; no shares issued and outstanding		-			-
Series A preferred stock; $0.01 par value; 200,000 shares
authorized; no shares issued and outstanding		-			-
Common stock; $0.01 par value; 30,000,000 shares
authorized; 10,187,069 shares issued at December 31, 2007
and June 30, 2007; 7,883,577 shares outstanding at
December 31, 2007 and June 30, 2007		101,871			101,871
Additional paid-in capital		47,479,012			47,441,163
Retained earnings		15,655,482			15,673,080
Less treasury stock, at cost; 2,303,492 shares at
December 31, 2007 and June 30, 2007, respectively		(20,731,428	)		(20,731,428	)
Total stockholders' equity		42,504,937			42,484,686
Total liabilities and stockholders' equity	$	50,066,790		$	51,318,320