The Cooper Companies, Inc.
Mar 4, 2010

The Cooper Companies Announces First Quarter 2010 Results

PLEASANTON, Calif., Mar 4, 2010 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal first quarter ended January 31, 2010.

  --  First quarter revenue increased 4% year-over-year to $260.3 million.

  --  First quarter GAAP operating income $37.0 million, up 13% from $32.8
      million in last year's first quarter.  Non-GAAP operating income $40.0
      million, up 22% from $32.8 million in last year's first quarter.
      Non-GAAP operating income excludes charges of $2.3 million, for the 2009
      CooperVision manufacturing restructuring plan, and $0.7 million, for
      acquisitions.  See "Reconciliation of Non-GAAP EPS to GAAP EPS" shown
      below.

  --  First quarter GAAP earnings per share (EPS) 44 cents, down 9 cents from
      last year's first quarter. First quarter non-GAAP EPS 49 cents. See
      "Reconciliation of Non-GAAP EPS to GAAP EPS" shown below.

  --  First quarter free cash flow $43.2 million. Trailing twelve month free
      cash flow $181.6 million.


Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We are pleased with our performance in the first quarter. We enjoyed solid revenue growth, and our operational profits in both our vision and surgical businesses were strong. We also continued to generate significant free cash flow."

Weiss continued, "Within CooperVision, our products continue to gain traction--especially with our silicone hydrogel family of products, which were recently awarded Product of Choice status at Luxottica. Within CooperSurgical, we posted a very strong quarter and have now completed two acquisitions year to date."

First Quarter GAAP Operating Highlights

  --  Revenue $260.3 million, 4% above first quarter 2009.

  --  Gross margin 58% compared with 57% in last year's first quarter. The
      increase in gross margin was attributable to manufacturing efficiency
      gains partially offset by costs related to the 2009 CooperVision
      manufacturing restructuring plan.

  --  Operating margin 14% compared with 13% in last year's first quarter. The
      increase in operating margin was attributable to efficiency gains within
      manufacturing and operations that were partially offset by costs related
      to the 2009 CooperVision manufacturing restructuring plan as well as
      acquisition related costs.

  --  Depreciation and amortization expense $22.9 million.

  --  Interest expense $10.2 million or 4% of sales vs. $11.5 million or 5% of
      sales in last year's first quarter. Interest expense decreased as a
      result of lower debt and lower interest rates.

  --  Total debt decreased $38.2 million to $743.3 million. At quarter end
      there was $378.8 million outstanding under the Company's $650.0 million
      revolver.

  --  Cash provided by operations $56.1 million and capital expenditures $12.9
      million resulted in free cash flow of $43.2 million. Trailing twelve
      month cash provided by operations $254.4 million and capital
      expenditures $72.8 million resulted in free cash flow of $181.6 million.


First Quarter CooperVision (CVI) GAAP Operating Highlights

  --  Revenue $215.9 million, up 2% from last year's first quarter. Revenue
      gains were seen throughout most product categories and geographic
      regions.

  --  Revenue by category:


                                      % of
                             (In       CVI     %
                          millions)  Revenue  chg

                             1Q10     1Q10    y/y
                          ---------  -------  ---
  Toric                      $ 63.5      29%   8%
  Multifocal                   16.7       8%   5%
  Single-use sphere            46.9      22%  11%
  Non single-use sphere,
   other                       88.8      41%
                          ---------  -------  -6%

  Total                     $ 215.9     100%
                          =========  =======   2%

  --  Revenue by geography:


                             % of
                    (In       CVI    %
                 millions)  Revenue  chg

                    1Q10     1Q10    y/y
                 ---------  -------  ---
  Americas          $ 86.0      40%   0%

  EMEA                84.7      39%
                 ---------  -------   3%

  Asia Pacific        45.2      21%
                 ---------  -------   6%

  Total            $ 215.9     100%
                 =========  =======   2%

  --  Selected revenue by material:


                                     % of
                          (In        CVI      %
                          millions)  Revenue  chg

                             1Q10     1Q10     y/y
                          ---------  -------  ----

  Proclear                   $ 61.9      29%   11%
  Silicone hydrogel          $ 40.9      19%  151%

  --  Gross margin 57% compared with 56% in the first quarter of 2009. The
      increase in gross margin was attributable to manufacturing efficiency
      gains partially offset by costs related to the 2009 CooperVision
      manufacturing restructuring plan.

  --  Operating margin 15%, consistent with last year's first quarter.


First Quarter CooperSurgical (CSI) GAAP Operating Highlights

  --  Revenue $44.4 million, up 11% from last year's first quarter, with
      organic growth of 10%.

  --  Sales of products marketed directly to hospitals increased 15%
      year-over-year to $15.8 million and now represent 36% of CSI's total
      revenue vs. 34% in last year's first quarter.

  --  Gross margin 61%, down from 62% in last year's first quarter.  Lower
      gross margin was primarily due to the currency impact of materials
      purchased internationally.

  --  Operating margin 23%, consistent with last year's first quarter.


2010 Guidance

The Company amends its full-year 2010 guidance. Guidance is summarized as follows:


               FY10 Guidance     FY10 Guidance
                     Old               New
              ----------------  ----------------
  Revenue
   (In
   millions)
   CVI            $925 -- $975      $925 -- $975
   CSI*           $175 -- $185      $185 -- $195
   Total      $1,100 -- $1,160  $1,110 -- $1,170
  EPS
   GAAP         $2.17 -- $2.27    $2.17 -- $2.27
   Non-GAAP*
   *            $2.45 -- $2.55    $2.45 -- $2.55
  Free Cash
   Flow (In
   millions)      $120 -- $140      $130 -- $150

* Reflects the impact of CooperSurgical acquisitions.

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

Reconciliation of Non-GAAP EPS to GAAP EPS

To supplement our financial results and guidance presented on a GAAP basis, we use non-GAAP measures, indicated in the table below, which exclude restructuring costs and costs related to acquisitions, that we believe are helpful in understanding our results. We exclude restructuring costs and costs related to acquisitions because we do not consider them reflective of our ongoing operating performance. Our non-GAAP financial results and guidance are 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 operating income, net income and diluted EPS results and guidance exclude costs related to the 2009 CooperVision manufacturing restructuring plan announced in August 2009 and costs related to CooperSurgical acquisitions. Non-GAAP net income and diluted EPS for the fiscal first quarter of 2010 excluded related costs of $2.0 million or 5 cents per share. We did not incur similar costs in the fiscal first quarter of 2009. The restructuring costs, primarily severance and costs associated with assets, related to the pending closure of the Norfolk manufacturing plant and are primarily recorded in cost of sales. We expect to recognize total pre-tax restructuring charges under this plan of approximately $24.0 million. We recognized $5.1 million in fiscal 2009 and $2.3 million in the fiscal first quarter of 2010 with the remaining $16.6 million spread over fiscal 2010. The acquisition costs, primarily legal and other due diligence costs, are primarily recorded in selling, general and administrative expense. We believe it is useful for investors to understand the effects of these restructuring and acquisition costs on our total operating results.


                             Three Months Ended January 31,
                            -------------------------------

                              2010                   2010
                              GAAP    Adjustments  Non-GAAP
                            --------  -----------  --------

  Operating income           $36,979       $2,983   $39,962
  Income before income
   taxes                     $24,426       $2,983   $27,409
  Provision for income
   taxes                      $4,003         $975    $4,978
  Net income                 $20,423       $2,008   $22,431

  Diluted EPS                  $0.44        $0.05     $0.49



                               Fiscal 2010 EPS Guidance
                            -------------------------------

                              2010                   2010
                              GAAP    Adjustments  Non-GAAP
                            --------  -----------  --------

                            $2.17 -                $2.45 -
  Diluted EPS               $2.27           $0.28  $2.55

Conference Call and Webcast

The Company will host a conference call today at 5:00 p.m. ET to discuss its first quarter 2010 financial results. The dial in number in the United States is +1-800-884-5695 and outside the United States is +1-617-786-2960. The passcode is 29168902. There will be a replay available approximately two hours after the call ends until Thursday, March 11, 2010. 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 87281284. 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; and Hamble and Hampshire, UK.

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, Pasadena, CA, 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 guidance, 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, including the risk of an adverse decision or settlement related to claims involving our securities class action and derivative 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; dilution to earnings per share from acquisitions or issuing stock 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, 2009, 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     October
                                31,         31,
                                2010        2009
                             ----------  ----------

     ASSETS

  Current assets:
   Cash and cash
    equivalents                  $1,822      $3,932
   Trade receivables, net       174,945     170,941
   Inventories                  251,842     260,846
   Deferred tax assets           25,339      23,360

   Other current assets          42,460      44,799
                             ----------  ----------

    Total current assets        496,408     503,878
                             ----------  ----------
  Property, plant and
   equipment, net               586,716     602,568
  Goodwill                    1,254,767   1,257,029
  Other intangibles, net        114,963     114,700
  Deferred tax assets            25,027      27,781

  Other assets                   43,519      45,951
                             ----------  ----------

                             $2,521,400  $2,551,907
                             ==========  ==========


    LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
   Short-term debt              $19,140      $9,844
   Other current
    liabilities                 159,667     165,570
                             ----------  ----------
    Total current
     liabilities                178,807     175,414
                             ----------  ----------
  Long-term debt                724,178     771,630
  Other liabilities              51,313      48,065

  Deferred tax liabilities       15,046      16,456
                             ----------  ----------

    Total liabilities           969,344   1,011,565
                             ----------  ----------

  Stockholders' equity        1,552,056   1,540,342
                             ----------  ----------

                             $2,521,400  $2,551,907
                             ==========  ==========



      THE COOPER COMPANIES, INC. AND SUBSIDIARIES

      Consolidated Condensed Statements of Income
  ---------------------------------------------------
   (In thousands, except earnings per share amounts)
                      (Unaudited)



                                   Three Months Ended

                                      January 31,
                                   ------------------


                                     2010      2009
                                   --------  --------
  Net sales                        $260,258  $251,142

  Cost of sales                     110,495   109,007
                                   --------  --------
  Gross profit                      149,763   142,135
  Selling, general and
   administrative expense           100,578    94,992
  Research and development
   expense                            7,626     7,232
  Restructuring costs                   363     2,954

  Amortization of intangibles         4,217     4,177
                                   --------  --------
  Operating income                   36,979    32,780
  Interest expense                   10,225    11,457

  Other (expense) income, net       (2,328)     8,145
                                   --------  --------
  Income before income taxes         24,426    29,468

  Provision for income taxes          4,003     5,595
                                   --------  --------

  Net income                        $20,423   $23,873
                                   ========  ========


  Diluted earnings per share          $0.44     $0.53
                                   ========  ========

  Number of shares used to
   compute earnings per share        46,123    45,141
                                   ========  ========



Soft Contact Lens Revenue Update

Worldwide Market vs. CooperVision (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. This data is compiled using gross product sales at foreign exchange rates set by CLI. It therefore excludes items such as discounts, rebates, currency, hedges and freight reimbursements.

  Worldwide Manufacturers' Soft Contact
   Lens Revenue
  (U.S. dollars in millions; constant
   currency; unaudited)




                          ------------------------  ------------------------  ------

                                                                              Fiscal
                               Calendar 4Q09             Calendar 2009         1Q10
                          ------------------------  ------------------------  ------

                                    Market                    Market
                                             CVI                       CVI     CVI
                           Market   Change  Change   Market   Change  Change  Change
                          --------  ------  ------  --------  ------  ------  ------
  Sales by Category
   Spheres                 $ 1,131      2%      4%   $ 4,652      2%      7%      8%
   Torics                      255      9%      6%     1,049      7%    (2%)      9%

   Multifocal                   66                       253
                          --------     24%      7%  --------     21%     17%      8%
   WW Soft Contact
    Lenses                 $ 1,452                   $ 5,954
                          ========      4%      5%  ========      3%      5%      8%


  Sales by Modality
   Single Use                $ 509      2%      8%   $ 2,011      1%     14%     10%

   Other                       943                     3,943
                          --------      6%      4%  --------      4%      3%      7%
   WW Soft Contact
    Lenses                 $ 1,452                   $ 5,954
                          ========      4%      5%  ========      3%      5%      8%


  Sales by Material
   Hydrogel                  $ 931    (3%)    (6%)   $ 3,846    (4%)    (3%)    (5%)

   Silicone Hydrogel           521                     2,108
                          --------     20%    126%  --------     20%    112%    153%
   WW Soft Contact
    Lenses                 $ 1,452                   $ 5,954
                          ========      4%      5%  ========      3%      5%      8%


  Sales by Geography
   Americas                  $ 524      6%      4%   $ 2,294      5%      4%     11%
   EMEA                        435      6%      9%     1,755      6%      7%      8%

   Asia Pacific                493                     1,905
                          --------      1%    (2%)  --------    (1%)      3%      1%
   WW Soft Contact
    Lenses                 $ 1,452                   $ 5,954
                          ========      4%      5%  ========      3%      5%      8%

   United States             $ 451      5%      3%   $ 2,014      4%      4%     10%

   International             1,001                     3,940
                          --------      4%      6%  --------      3%      5%      6%
   WW Soft Contact
    Lenses                 $ 1,452                   $ 5,954
                          ========      4%      5%  ========      3%      5%      8%

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
925-460-3663
ir@coopercompanies.com

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