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) 

September 4, 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 September 4, 2008, Registrant issued a press release announcing financial information for the quarter and year ended June 30, 2008. 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 September 4, 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: September 8, 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 September 4, 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 Net Declines

Due to Manufacturing Delays, Higher Costs

ST. LOUIS, SEPTEMBER 4, 2008 - Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported that its net income for the fourth quarter ending June 30 fell about 21 percent, from about $870,000 last year, or 11 cents per share, to about $690,000 in the current quarter, or 9 cents per basic share, due to slight delays in manufacturing and higher material and labor costs.

Sales for the fourth quarter increased by about 4.6 percent, or almost $650,000, compared to the fourth quarter of last year. However, Allied sales for the fiscal year tracked very closely with the previous year, totaling about $56.4 million for 2008 and $56.5 million for 2007.

Sales revenue for 2008 included $1.2 million as a result of a 2004 agreement with Abbott Laboratories to reimburse certain Research and Development costs related to new CO2 absorbent techniques. Sales for 2007 included about $584,000 in reimbursement from that agreement. Sales for the fourth quarter of 2008 included $525,000 in reimbursement of Research and Development cost, versus $134,000 for 2007.

For the fiscal year ending June 30, Allied net income fell about 46 percent, from about $1.64 million last year, or 21 cents per basic share, to about $882,000, or 11 cents per share, in 2008.

Manufacturing delays meant that some customer orders were not filled and could not be translated into sales revenue in 2008. Also, material costs - primarily metals and oil-based resins - increased by about 2 percent and labor costs by about 3.8 percent over fiscal 2007. A modest overall price increase by Allied could not offset the year’s higher material and labor costs.

Manufacturing productivity programs planned for fiscal 2008 were not implemented as quickly as anticipated. However, these programs are proceeding and will result in cost reductions and improved throughput in fiscal 2009, according to Earl Refsland, Allied president and chief executive officer.

Despite problems in the year, positive cash flow of about $2.5 million increased Allied’s cash position to about $6.1 million at the end of the fiscal year, Refsland said.

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.

##

ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
	Three months ended,						Twelve months ended,
	June 30,						June 30,
	2008			2007			2008			2007
Net sales	$	14,692,626		$	14,045,798		$	56,364,111		$	56,500,974
Cost of sales		10,577,599			10,061,519			43,006,007			42,028,125
Gross profit		4,115,027			3,984,279			13,358,104			14,472,849
Selling General and administrative expenses		3,096,161			2,765,157			12,084,971			12,051,500
Income from operations		1,018,866			1,219,122			1,273,133			2,421,349
Interest income		(25,245	)		(28,719	)		(118,119	)		(110,790	)
Other, net		24,501			10,710			60,005			(23,841	)
		(744	)		(18,009	)		(58,114	)		(134,631	)
Income before provision
for income taxes		1,019,610			1,237,131			1,331,247			2,555,980
Provision for income taxes		330,327			368,019			448,748			914,400
Net income	$	689,283		$	869,112		$	882,499		$	1,641,580
Net income per share - Basic	$	0.09		$	0.11		$	0.11		$	0.21
Net income per share - Diluted	$	0.08		$	0.11		$	0.11		$	0.20
Weighted average common shares
Outstanding - Basic		7,883,907			7,883,577			7,883,659			7,875,982
Weighted average common shares
Outstanding - Diluted		8,124,826			8,111,872			8,119,776			8,085,375

ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
	June 30, 2008			June 30, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	6,149,015		$	3,638,870
Accounts receivable, net of allowances
of $300,000 and $460,000, respectively		6,441,683			7,251,767
Inventories, net		12,046,450			12,999,472
Other current assets		394,975			275,254
Total current assets		25,032,123			24,165,363
Property, plant and equipment, net		10,542,573			10,677,000
Goodwill		15,979,830			15,979,830
Other assets, net		703,328			496,127
Total assets	$	52,257,854		$	51,318,320
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,590,804		$	3,040,313
Other accrued liabilities		2,960,334			2,508,820
Deferred income taxes		500,238			882,001
Deferred revenue		690,000			465,000
Total current liabilities		6,741,376			6,896,134
Deferred revenue		2,177,500			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;
10,188,569 and 10,187,069 shares issued at June 30, 2008
and June 30, 2007; respectively. 7,885,077 and 7,883,577
outstanding at June 30, 2008 and June 30, 2007, respectively.		101,886			101,871
Additional paid-in capital		47,524,084			47,441,163
Retained earnings		16,444,436			15,673,080
Less treasury stock, at cost; 2,303,492 shares at
June 30, 2008 and June 30, 2007, respectively		(20,731,428	)		(20,731,428	)
Total stockholders' equity		43,338,978			42,484,686
Total liabilities and stockholders' equity	$	52,257,854		$	51,318,320