The Cooper Companies, Inc.
Mar 5, 2009

The Cooper Companies Announces First Quarter 2009 Results

PLEASANTON, Calif., Mar 5, 2009 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the first quarter of fiscal 2009.

  *  First quarter 2009 revenue increased 3% year-over-year to
     $251.1 million.

  *  First quarter 2009 CooperVision (CVI) revenue up 4% to $211.2
     million, and CooperSurgical (CSI) revenue up 1% to $39.9
     million.

  *  First quarter 2009 GAAP earnings per share (EPS) 53 cents,
     up 38 cents from last year's first quarter.

  *  Fiscal 2009 revenue and EPS guidance confirmed.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We are very pleased with our first quarter results, especially given the challenging global economic environment. Both businesses posted revenue growth, and CooperVision recently launched Proclear® 1 Day in Japan and Biofinity® toric in the U.S. and Europe. Additionally, our cost control efforts resulted in strong operating results that position us well to meet our financial goals for the remainder of this year."

First Quarter Operating Highlights

  *  Revenue $251.1 million, 3% above first quarter 2008, 4% in
     constant currency.
  *  Gross margin 57% compared with 59% in last year's first
     quarter.
  *  Operating margin 13% compared with 8% in last year's first
     quarter.
  *  Depreciation and amortization expense $25.0 million including
     $5.4 million related to accelerated depreciation due to
     equipment upgrades.
  *  Restructuring charge of $3.6 million comprised of severance
     of $3.0 million in operating expenses and $0.6 million in cost
     of sales.
  *  Other income, net $8.1 million comprised of $6.5 million from
     foreign exchange, $1.8 million from extinguishment of debt
     and other.
  *  Cash from operations $24.9 million and capital expenditures
     $34.1 million resulted in negative free cash flow of $9.2 million.

First Quarter CVI Operating Highlights

  *  Revenue $211.2 million, up 4% from last year's first quarter,
     4% in constant currency.

  *  Revenue by segment:

                                                             Constant
                         (In          % of CVI               Currency
                      thousands)       Revenue       %chg      %chg
                        1Q09            1Q09         y/y        y/y
                      ----------      --------      -----      -----
 Toric                 $  62,604         30%         -11%       -4%
 Multifocal               13,933          7%           9%       18%
 Single-use sphere        43,231         20%          23%       18%
 Non single-use
  sphere, other           91,440         43%          -4%        4%
                      ----------      --------
 Total                 $ 211,208        100%           4%        4%
                      ==========      ========

  *  Revenue by geography:
                                                             Constant
                         (In          % of CVI               Currency
                      thousands)       Revenue       %chg       %chg
                        1Q09            1Q09         y/y        y/y
                      ----------      --------      -----      -----
 Americas              $  86,115         41%          -1%        1%
 Europe                   82,278         39%           2%        6%
 Asia Pacific             42,815         20%          18%        9%
                      ----------      --------
 Total                 $ 211,208        100%           4%        4%
                      ==========      ========

  *  Revenue by product line:
                                                             Constant
                         (In          % of CVI               Currency
                      thousands)       Revenue       %chg       %chg
                        1Q09            1Q09         y/y        y/y
                      ----------      --------      -----      -----
 Proclear              $  56,744         27%          10%       22%
 Silicone hydrogel     $  16,728          8%          84%      106%

  *  Gross margin 56% compared with 59% in the first quarter of 2008.

  *  Operating margin 15% compared with 11% in last year's first
     quarter.

First Quarter CSI Operating Highlights

  *  Revenue $39.9 million, up 1% from last year's first quarter.

  *  Sales of products marketed directly to hospitals increased 19%
     year-over-year to $13.7 million and now represent 34% of CSI's
     total revenue.

  *  Gross margin 62%, up from 60% in last year's first quarter.

  *  Operating margin 23%, up from 17% in last year's first quarter.

2009 Guidance

The Company confirms fiscal 2009 guidance with revenue in the range of $1,030 million to $1,100 million, including CVI revenue of $865 million to $925 million and CSI revenue of $165 million to $175 million. GAAP EPS guidance for fiscal 2009 is confirmed in the range of $2.16 to $2.36.

Conference Call and Webcast

The Company will host a conference call today at 5:00 p.m. ET to discuss its first quarter 2009 financial results. The dial in number in the United States is +1-800-561-2731 and outside the United States is +1-617-614-3528. The passcode is 75730392. There will be a replay available approximately one hour after the call ends until Thursday, March 12, 2009. The replay number in the United States is +1-888-286-8010 and outside the United States is +1-617-801-6888. The replay passcode is 97892818. This call will be broadcast live on our website at www.coopercos.com and at www.streetevents.com. A transcript will be available on our Web site within 24 hours after the conference call.

About The Cooper Companies

The Cooper Companies, Inc. develops, manufactures and markets specialty healthcare products through its CooperVision and CooperSurgical units. Corporate offices are located in Pleasanton, CA. For more information, visit www.coopercos.com.

CooperVision develops, manufactures and markets a broad range of soft contact lenses for the worldwide vision correction market. Dedicated to enhancing the contact lens experience for practitioners and patients, CooperVision specializes in lenses for astigmatism, presbyopia and ocular dryness. CooperVision manufactures a full array of monthly, two-week and daily disposable contact lenses featuring advanced materials and optics. Headquartered in Pleasanton, CA, it manufactures in Juana Diaz, Puerto Rico; Norfolk, VA; Rochester, NY; Adelaide, Australia; Hamble and Hampshire, England; and Madrid, Spain. For more information, visit www.coopervision.com.

CooperSurgical develops, manufactures and markets medical devices, diagnostic products and surgical instruments and accessories used primarily by gynecologists and obstetricians. Its major manufacturing and distribution facilities are in Trumbull, CT, and Stafford, TX. For more information, visit www.coopersurgical.com.

The information on Cooper's Web sites and its interactive telephone system are not part of this news release.

Forward-Looking Statements

This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to plans, prospects, goals, strategies, future actions, events or performance and other statements which are other than statements of historical fact, including all statements regarding anticipated growth in our revenue, planned product launches and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words like "believes," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.

Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse changes in global or regional general business, political and economic conditions due to the current global economic downturn, including the impact of continuing uncertainty and instability of U.S. and international credit markets that may adversely affect the Company's or its customers' ability to meet future liquidity needs; limitations on sales following new product introductions due to poor market acceptance; new competitors, product innovations or technologies; a major disruption in the operations of our manufacturing, research and development or distribution facilities due to technological problems, natural disasters or other causes; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; the impact of acquisitions or divestitures on revenues, earnings or margins; losses arising for pending or future litigation or product recalls; interest rate and foreign currency exchange rate fluctuations; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including impaired goodwill as a result of declines in the price of the Company's common stock or other events; changes in U.S. and foreign government regulation of the retail optical industry and of the healthcare industry generally; changes in tax laws or their interpretation and changes in effective tax rates; changes in the Company's expected utilization of recognized net operating loss carry forwards and other events described in our Securities and Exchange Commission filings, including the "Business" and "Risk Factors" sections in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2008, as such Risk Factors may be updated in quarterly filings.

We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law.

             THE COOPER COMPANIES, INC. AND SUBSIDIARIES
                Consolidated Condensed Balance Sheets
                -------------------------------------
                           (In thousands)
                            (Unaudited)


                                        January 31,     October 31,
                                           2009            2008
                                       ------------    ------------

                         ASSETS

 Current assets:
   Cash and cash equivalents           $      1,885    $      1,944
   Trade receivables, net                   158,764         159,158
   Inventories                              286,587         283,454
   Deferred tax asset                        26,948          26,337
   Other current assets                      62,346          55,139
                                       ------------    ------------
     Total current assets                   536,530         526,032
                                       ------------    ------------
 Property, plant and equipment, net         581,225         602,654
 Goodwill                                 1,241,492       1,251,699
 Other intangibles, net                     127,582         130,587
 Deferred tax asset                          28,445          25,645
 Other assets                                35,746          50,999
                                       ------------    ------------
                                       $  2,551,020    $  2,587,616
                                       ============    ============


               LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
   Short-term debt                     $     41,789    $     43,013
   Other current liabilities                212,038         212,394
                                       ------------    ------------
     Total current liabilities              253,827         255,407
                                       ------------    ------------
 Long-term debt                             871,367         861,781
 Other liabilities                           34,082          38,156
 Deferred tax liabilities                    12,623          15,196
                                       ------------    ------------
     Total liabilities                    1,171,899       1,170,540
                                       ------------    ------------
 Stockholders' equity                     1,379,121       1,417,076
                                       ------------    ------------
                                       $  2,551,020    $  2,587,616
                                       ============    ============



             THE COOPER COMPANIES, INC. AND SUBSIDIARIES
             Consolidated Condensed Statements of Income
             -------------------------------------------
               (In thousands, except per share amounts)
                               (Unaudited)



                                           Three Months Ended
                                               January 31,
                                       ----------------------------
                                            2009            2008
                                       ------------    ------------
 Net sales                             $    251,142    $    242,772
 Cost of sales                              109,007          99,890
                                       ------------    ------------
 Gross profit                               142,135         142,882
 Selling, general and administrative
  expense                                    94,992         109,880
 Research and development expense             7,232           8,131
 Restructuring costs                          2,954             823
 Amortization of intangibles                  4,177           4,097
                                       ------------    ------------
 Operating income                            32,780          19,951
 Interest expense                            11,457          11,106
 Other income, net                            8,145             642
                                       ------------    ------------
 Income before income taxes                  29,468           9,487
 Provision for income taxes                   5,595           2,610
                                       ------------    ------------
 Net income                            $     23,873    $      6,877
                                       ============    ============
 Diluted earnings per share            $       0.53    $       0.15
                                       ============    ============
 Number of shares used to compute
  earnings per share                         45,141          45,129
                                       ============    ============

Soft Contact Lens Revenue Update: Fourth Quarter and Calendar Year 2008

CVI Revenue in Constant Currency vs. the Worldwide Market in Constant Currency

The data below is extracted from a compilation of industry participants' revenue by the Contact Lens Institute (CLI), an independent market research firm.

 Worldwide Manufacturers' Soft Lens Revenue
 Independent Market Research Data
 (U.S. dollars in millions; constant currency; unaudited)


                                   Cooper                        Cooper
                 CYQ4              Vision        CY              Vision
                 2008       %        %          2008       %       %
                Market    Change   Change      Market    Change  Change
               -------    ------   ------     -------    ------  ------
   Single
    -Use
    Spherical
    Lenses     $   485      6%      20%       $ 1,936      10%     29%
   Spherical
    Lenses
    (ex
    single
    -use)          605      1%      (1%)        2,567       2%      3%
               -------                        -------
 Total
  Spheres        1,090      3%       5%         4,503       5%     10%
               -------                        -------
 Torics            240      6%      (2%)        1,004       9%      4%
 Multifocal         52     10%      18%           203      10%     20%
               -------                        -------
 Soft
  Contact
  Lenses       $ 1,382      4%       4%       $ 5,710       6%      8%
               =======                        =======
   Total
    Silicone
    Hydrogel   $   442     23%     179%       $ 1,773      25%    351%

   Americas
    Region     $   505      2%      (3%)      $ 2,233       5%      6%
   European
    Region         450      8%       8%         1,797       8%      9%
   Asia
    Pacific
    Region         427      2%      10%         1,680       5%     11%
               -------                        -------
 Worldwide
  Soft
  Contact
  Lenses       $ 1,382      4%       4%       $ 5,710       6%      8%
               =======                        =======
   United
    States     $   431      1%      (3%)      $ 1,937       6%      6%
   Internat-
    ional          951      5%       8%         3,773       6%      9%
               -------                        -------
 Worldwide
  Soft
  Contact
  Lenses       $ 1,382      4%       4%       $ 5,710       6%      8%
               =======                        =======

COO-E

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: The Cooper Companies, Inc.

The Cooper Companies, Inc.
Albert G. White, III, VP, Investor Relations and Treasurer
Kim Duncan, Director, Investor Relations
925-460-3663
ir@coopercompanies.com
www.coopercos.com

 

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