The Cooper Companies, Inc.
Sep 3, 2009

The Cooper Companies Announces Third Quarter 2009 Results

PLEASANTON, Calif., Sep 3, 2009 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the third quarter of fiscal 2009.



 * Revenue increased 2% year-over-year to $285.2 million.  Revenue
   increased 4% in constant currency.

 * GAAP earnings per share (EPS) 48 cents, up 9 cents or 23% from
   last year's third quarter.

 * Non-GAAP EPS 54 cents.  Non-GAAP EPS excludes $4.1 million, or
   6 cents per share, for the recently announced 2009 CooperVision
   manufacturing restructuring plan.  See "Reconciliation of Non-GAAP
   EPS to GAAP EPS" shown below.

 * Third quarter free cash flow $56.0 million.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "This quarter was another step in the right direction for the long-term health of our company. Although our quarterly earnings were lower than we would have liked, we generated extremely strong cash flow and now expect roughly $100 million of free cash flow for the fiscal year. Excluding charges for the recently announced manufacturing restructuring, we expect to exceed the mid-point of our previous annual earnings guidance. Overall, our financial position continues to improve, and the fundamentals of our business remain intact."

Weiss continued, "Within our business units, CooperVision posted strong sales growth even with challenges in certain parts of the soft contact lens market. Our silicone hydrogel product family grew 35% sequentially, and while our toric share remains under pressure from competing products, our Biofinity(r) toric lens was very well received with $3.6 million of sales. Per independent market data for calendar Q2, we grew 1.7x faster than the market, and I remain impressed with our team's ability to drive growth in the face of tough competition and a difficult economic environment. CooperVision has also taken steps to improve capacity utilization and thus gross margins with several initiatives including the recently announced manufacturing restructuring. CooperSurgical posted another very strong quarter with margins and cash flow continuing to impress. Looking ahead, I am optimistic that the steps we have taken, along with outside factors such as currency, can drive gross margins and earnings improvements over the coming year."

Third Quarter Operating Highlights



 * Revenue $285.2 million, 2% above third quarter 2008, 4% in
   constant currency.

 * Gross margin 51% compared with 56% in last year's third quarter.
   The decline in gross margin is largely attributed to charges
   related to the 2009 CooperVision manufacturing restructuring plan,
   inventory and equipment write-offs and idled equipment.

 * Operating margin 12% compared with 11% in last year's third
   quarter.  A strong focus on expense control combined with a
   positive currency impact helped drive operating expenses as a
   percentage of sales to 39% from 45% in last year's third quarter.
   Within CooperVision, Biofinity toric marketing costs were higher
   than anticipated as the product launch has been accelerated due to
   the positive reception.

 * Depreciation and amortization expense $22.0 million, including
   $1.0 million in accelerated depreciation.

 * Interest expense $11.1 million or 4% of sales vs. $15.3 million
   or 5% of sales in last year's third quarter.

 * Cash provided by operations $75.9 million and capital expenditures
   $19.9 million resulted in free cash flow of $56.0 million.
   Trailing twelve month free cash flow $89.1 million.

 * Total debt decreased $56.6 million to $838.9 million.

Third Quarter CooperVision (CVI) Operating Highlights



 * Revenue $240.9 million, up 2% from last year's third quarter, up
   3% in constant currency.

 * Revenue by segment:

                                                              Constant
                                       % of CVI               Currency
                      (In millions)     Revenue       %chg      %chg
                           3Q09          3Q09          y/y       y/y
                      -------------  -------------  --------  --------
 Toric                $        75.0            31%      -10%       -4%
 Multifocal                    16.6             7%        7%       14%
 Single-use sphere             50.1            21%        8%        9%
 Non single-use
  sphere, other                99.2            41%       -1%        6%
                      -------------  -------------
 Total                $       240.9           100%        2%        3%
                      =============  =============


 * Revenue by geography:

                                                              Constant
                                       % of CVI               Currency
                      (In millions)     Revenue       %chg      %chg
                           3Q09          3Q09          y/y       y/y
                      -------------  -------------  --------  --------

 Americas             $       105.7            44%       n/c       n/c
 Europe                        90.7            38%       -1%        7%
 Asia Pacific                  44.5            18%       16%        5%
                      -------------  -------------
 Total                $       240.9           100%        2%        3%
                      =============  =============


 * Selected revenue by material:

                                                              Constant
                                       % of CVI               Currency
                      (In millions)     Revenue       %chg      %chg
                           3Q09          3Q09          y/y       y/y
                      -------------  -------------  --------  --------

 Proclear             $    69.7                29%        3%       11%
 Silicone hydrogel    $    31.8                13%       73%       84%


 * Gross margin 49% compared with 55% in the third quarter of 2008.

 * Operating margin 12% unchanged from last year's third quarter.

Third Quarter CooperSurgical (CSI) Operating Highlights



 * Revenue $44.3 million, up 4% from last year's third quarter.

 * Sales of products marketed directly to hospitals increased 10%
   year-over-year to $14.4 million and now represent 33% of CSI's
   total revenue vs. 31% in last year's third quarter.

 * Gross margin 62%, up from 59% in last year's third quarter.

 * Operating margin 24%, up from 20% in last year's third quarter.

Fourth Quarter and Full-Year 2009 Guidance

The Company initiated fourth quarter guidance and revised its full-year 2009 guidance. Guidance is summarized as follows:



                                  YTD       4Q09            FY09
                                 2009A    Guidance        Guidance
                                 -----  -------------  ---------------
 Revenues (In millions)
     CVI                         $670    $230 - $240   $900   - $910
     CSI                         $127     $41 - $45    $168   - $172
     Total                       $797    $271 - $285   $1,068 - $1,082
 EPS
     GAAP                        $1.55  $0.56 - $0.58  $2.11  - $2.13
     Non-GAAP*                   $1.61  $0.66 - $0.68  $2.27  - $2.29
 Free Cash Flow (In millions)      $71    $22 - $32      $93  - $103

 * Excludes impact of 2009 CVI manufacturing restructuring plan.
   See "Reconciliation of Non-GAAP EPS to GAAP EPS" shown below.

Reconciliation of Non-GAAP EPS to GAAP EPS

To supplement our financial guidance presented on a GAAP basis, we use non-GAAP measures indicated in the table below, which exclude restructuring costs that we believe are helpful in understanding our future results. Our non-GAAP financial guidance is not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements and guidance prepared in accordance with GAAP. Our management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the factors management uses in planning for and forecasting future periods.

Non-GAAP EPS guidance excludes costs related to the recently announced 2009 CooperVision manufacturing restructuring plan of $4.1 million or 6 cents per share. These costs, primarily severance related to the pending closure of the Norfolk manufacturing plant, are recorded in costs of sales. We expect to recognize total pre-tax restructuring charges under this plan of approximately $25.0 million with about $7.5 million in our fiscal fourth quarter 2009 and the remainder in fiscal 2010. We believe it is useful for investors to understand the effects of these restructuring costs on our total operating results.



                        3Q09A  YTD 2009A  4Q09 Guidance  FY09 Guidance
                        -----  ---------  -------------  -------------
 EPS
  GAAP                  $0.48  $    1.55  $0.56 - $0.58  $2.11 - $2.13
  Non-GAAP adjustment
   for costs related to
   the restructuring
   plan discussed
   above                 0.06       0.06           0.10           0.16
                        -----  ---------  -------------  -------------
  Non-GAAP              $0.54  $    1.61  $0.66 - $0.68  $2.27 - $2.29
                        =====  =========  =============  =============

Conference Call and Webcast

The Company will host a conference call today at 5:00 p.m. ET to discuss its third quarter 2009 financial results. The dial in number in the United States is +1-866-800-8651 and outside the United States is +1-617-614-2704. The passcode is 13868795. There will be a replay available approximately two hours after the call ends until Thursday, September 10, 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 43690396. 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 website within 24 hours after the conference call.

About The Cooper Companies

The Cooper Companies, Inc. (www.coopercos.com) manufactures and markets specialty healthcare products through its CooperVision and CooperSurgical units. Corporate offices are in Pleasanton, CA.

CooperVision, Inc. (www.coopervision.com) develops, manufactures and markets a broad range of 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 and presbyopia. 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, UK; and Madrid, Spain.

CooperSurgical, Inc. (www.coopersurgical.com) 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.

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, CooperVision's manufacturing restructuring plan 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; the Company's failure to realize anticipated savings, or its incurrence of unexpected costs, from CooperVision's manufacturing restructuring plan; a major disruption in the operations of our manufacturing, research and development or distribution facilities due to technological problems, natural disasters, CooperVision's manufacturing restructuring plan or other causes; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel and other 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 goodwill; 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)


                                               July 31,    October 31,
                                                2009          2008
                                             -----------   -----------

                 ASSETS

 Current assets:
   Cash and cash equivalents                  $    3,790    $    1,944
   Trade receivables, net                        170,276       159,158
   Inventories                                   276,847       283,454
   Deferred tax assets                            20,944        26,337
   Other current assets                           46,158        55,139
                                             -----------   -----------
     Total current assets                        518,015       526,032
                                             -----------   -----------
 Property, plant and equipment, net              608,342       602,654
 Goodwill                                      1,260,793     1,251,699
 Other intangibles, net                          119,809       130,587
 Deferred tax assets                              28,855        25,645
 Other assets                                     45,621        50,999
                                             -----------   -----------
                                              $2,581,435    $2,587,616
                                             ===========   ===========


      LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
   Short-term debt                            $   38,448    $   43,013
   Other current liabilities                     173,685       212,394
                                             -----------   -----------
     Total current liabilities                   212,133       255,407
                                             -----------   -----------
 Long-term debt                                  800,525       861,781
 Other liabilities                                41,336        38,156
 Deferred tax liabilities                         13,064        15,196
                                             -----------   -----------
     Total liabilities                         1,067,058     1,170,540
                                             -----------   -----------
 Stockholders' equity                          1,514,377     1,417,076
                                             -----------   -----------
                                              $2,581,435    $2,587,616
                                             ===========   ===========



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


                              Three Months Ended    Nine Months Ended
                                    July 31,              July 31,
                             -------------------   -------------------
                               2009       2008       2009       2008
                             --------   --------   --------   --------

 Net sales                   $285,230   $278,513   $796,966   $780,533
 Cost of sales                138,835    123,416    359,380    332,547
                             --------   --------   --------   --------
 Gross profit                 146,395    155,097    437,586    447,986
 Selling, general and
  administrative expense      100,038    110,639    288,735    328,048
 Research and development
  expense                       7,737      9,030     25,032     26,278
 Restructuring costs              462        173      3,416      1,521
 Amortization of intangibles    4,233      4,211     12,490     12,678
                             --------   --------   --------   --------
 Operating income              33,925     31,044    107,913     79,461
 Interest expense              11,085     15,266     33,372     38,441
 Other (expense) income, net     (155)     1,738      8,249      1,929
                             --------   --------   --------   --------
 Income before income taxes    22,685     17,516     82,790     42,949
 Provision for (benefit
 from) income taxes               777       (363)    12,360      6,952
                             --------   --------   --------   --------
 Net income                  $ 21,908   $ 17,879   $ 70,430   $ 35,997
                             ========   ========   ========   ========

 Diluted earnings per share  $   0.48   $   0.39   $   1.55   $   0.79
                             ========   ========   ========   ========

 Number of shares used to
  compute earnings per
  share                        45,694     46,934     45,368     47,477
                             ========   ========   ========   ========


 Soft Contact Lens Revenue Update:  Second Calendar Quarter 2009
 ---------------------------------------------------------------

 Worldwide Market in Constant Currency vs. CooperVision 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
 (U.S. dollars in millions; constant currency; unaudited)

                 2009             Cooper-    2009              Cooper-
                 CYQ2      %      Vision   CYQ2 YTD     %      Vision
                Market  Change   % Change   Market   Change   % Change
                ------  -------  --------  --------  -------  --------
   Single-Use
    Spherical
    Lenses      $  507     1%       14%      $  977     1%       17%
   Spherical
    Lenses
    (ex single-
    use)           661    (1%)       1%       1,319     1%        4%
                ------                     --------
 Total Spheres   1,168    n/c        5%       2,296     1%        8%
                ------                     --------
   Torics          262     4%       (5%)        520     6%       (5%)
   Multifocal       64    17%       14%         123    20%       14%
                ------                     --------
 Soft Contact
  Lenses        $1,494     1%        2%      $2,939     2%        4%
                ======                     ========
   Total
    Silicone
    Hydrogel    $  521    16%       81%      $1,020    19%       94%

   Americas
    Region      $  571    (1%)      (1%)     $1,159     4%        3%
   European
    Region         451     6%        6%         863     5%        6%
   Asia
    Pacific
    Region         472    (1%)       3%         917    (1%)       6%
                ------                     --------
 Worldwide
  Soft Contact
  Lenses        $1,494     1%        2%      $2,939     2%        4%
                ======                     ========

   United
    States      $  503    (1%)      (1%)     $1,028     4%        4%
   Inter-
    national       991     3%        4%       1,911     2%        5%
                ------                     --------
 Worldwide
  Soft Contact
  Lenses        $1,494     1%        2%      $2,939     2%        4%
                ======                     ========

COO-E

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

SOURCE: The Cooper Companies, Inc.

CONTACT:  The Cooper Companies, Inc.
Albert G. White, III, VP, Investor Relations and
Treasurer
Kim Duncan, Director, Investor Relations
ir@coopercompanies.com

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