The Cooper Companies, Inc.
Sep 2, 2010

The Cooper Companies Announces Third Quarter 2010 Results

PLEASANTON, Calif., Sep 2, 2010 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal third quarter ended July 31, 2010.

  --  Revenue increased 4% year-over-year to $295.6 million. CooperVision
      (CVI) revenue up 3% to $249.0 million, and CooperSurgical (CSI) revenue
      up 5% to $46.6 million.

  --  GAAP earnings per share (EPS) 86 cents, up from 48 cents or 79% from
      last year's third quarter.    Non-GAAP EPS 91 cents. See "Reconciliation
      of Non-GAAP EPS to GAAP EPS" shown below.

  --  Third quarter free cash flow $58.4 million.


Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We are very pleased with our performance this quarter. We gained market share within CVI, posted strong margins in CVI and CSI, generated solid EPS growth, and once again delivered significant free cash flow. We are raising our EPS and free cash flow guidance for the remainder of the year and believe we are well positioned to continue delivering strong operating results."

Third Quarter GAAP Operating Highlights

  --  Revenue $295.6 million, 4% above third quarter 2009, 6% in constant
      currency.

  --  Gross margin 60% compared with 51% in last year's third quarter. The
      improvement was driven primarily by manufacturing efficiency gains
      within CVI, offset by costs associated with the 2009 CVI manufacturing
      restructuring plan.

  --  Operating margin 17% compared with 12% in last year's third quarter. The
      higher operating margin was driven by gross margin improvements
      partially offset by higher operating expenses.

  --  Depreciation and amortization expense $23.9 million.

  --  Interest expense $8.7 million or 3% of sales vs. $11.1 million or 4% of
      sales in last year's third quarter. Interest expense decreased primarily
      as a result of lower debt.

  --  Total debt decreased $66.3 million from last quarter to $646.7 million.
      Total availability under the Company's $650.0 million revolver was
      $365.0 million.

  --  Cash provided by operations $75.3 million and capital expenditures $16.9
      million resulted in free cash flow of $58.4 million. Trailing twelve
      month cash provided by operations $281.5 million and capital
      expenditures $60.9 million resulted in free cash flow of $220.6 million.


Third Quarter CooperVision (CVI) GAAP Operating Highlights

  --  Revenue $249.0 million, up 3% from last year's third quarter, up 6% in
      constant currency.

  --  Revenue by category:


                                               Constant
                                               Currency
                                 % of
                        (In       CVI
                     millions)  Revenue  %chg    %chg

                        3Q10     3Q10     y/y     y/y
                     ---------  -------  ----  --------
    Toric               $ 76.1      31%    9%       12%
    Multifocal            18.4       7%   -7%       -4%
    Single-use
     sphere               53.5      22%   10%        8%
    Non single-use
     sphere, other       101.0      40%
                     ---------  -------   -2%        4%

    Total              $ 249.0     100%
                     =========  =======    3%        6%


  *  Revenue by
   geography:

                                               Constant
                                               Currency
                                 % of
                        (In       CVI
                     millions)  Revenue  %chg    %chg

                        3Q10     3Q10     y/y     y/y
                     ---------  -------  ----  --------
    Americas             112.4      45%    6%        7%
    EMEA                  89.6      36%   -1%       10%

    Asia Pacific          47.0      19%
                     ---------  -------    5%       -2%

    Total                249.0     100%
                     =========  =======    3%        6%


  *  Selected
   revenue by
   material:

                                               Constant
                                               Currency
                                 % of
                        (In       CVI
                     millions)  Revenue  %chg    %chg

                        3Q10     3Q10     y/y     y/y
                     ---------  -------  ----  --------

    Proclear            $ 70.8      28%    3%        6%
    Silicone
     hydrogel           $ 58.7      24%   89%       94%

  --  Gross margin 58% compared with 49% in the third quarter of 2009.

  --  Operating margin 19% compared with 12% in last year's third quarter.


Third Quarter CooperSurgical (CSI) GAAP Operating Highlights

  --  Revenue $46.6 million, up 5% from last year's third quarter, organic
      growth 1%.

  --  Revenue by category:


                             % of
                    (In       CSI
                 millions)  Revenue  %chg

                    3Q10     3Q10     y/y
                 ---------  -------  ----
    Office          $ 26.1      56%   -2%
    Hospital          17.0      36%   18%
    Fertility
     Clinic            3.5       8%
                 ---------  -------    5%

    Total           $ 46.6     100%
                 =========  =======    5%

  --  Gross margin 66%, up from 62% in the third quarter of 2009. The higher
      gross margin included the receipt of a one-time settlement of $1.5
      million resolving a vendor dispute.  Without this gain, the gross margin
      would have been comparable to last year.

  --  Operating margin 25%, up from 24% in last year's third quarter. The
      improvement was driven by the one-time settlement gain offset by higher
      sales and marketing costs.


2010 Guidance

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


               YTD 2010A     4Q10 Guidance     New FY10 Guidance    Old FY10 Guidance
              ----------  ------------------  -------------------  -------------------
  Revenues
   (In
   millions)
    CVI          $707        $245 -- $255        $952 -- $962         $925 -- $975
    CSI          $138         $47 -- $52         $185 -- $190         $185 -- $195
    Total        $845        $292 -- $307      $1,137 -- $1,152     $1,110 -- $1,170
  EPS
    GAAP         $1.40      $0.82 -- $0.90       $2.22 -- $2.30       $1.76 -- $1.86
    Non-GAAP
    *            $2.01      $0.82 -- $0.90       $2.83 -- $2.91       $2.50 -- $2.60
  Free Cash
   Flow (In
   millions)     $162        $15 -- $25**        $177 -- $187         $140 -- $160

* Excludes the impact of the litigation settlement and related charges, the 2009 CooperVision manufacturing restructuring plan and CooperSurgical acquisition costs. See "Reconciliation of Non-GAAP EPS to GAAP EPS" shown below.

** Reflects the fiscal fourth quarter payment of $27.0 million for the litigation settlement.

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 that we believe are helpful in understanding our results. As indicated in the table below, the non-GAAP measures exclude the securities class action litigation settlement and related charges, restructuring costs and costs related to acquisitions. We exclude these items 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 securities class action litigation settlement, the 2009 CooperVision manufacturing restructuring plan announced in August 2009, and costs related to CooperSurgical acquisitions. Non-GAAP diluted EPS for the fiscal third quarter of 2010 excluded related costs of 5 cents per share. We incurred costs in the fiscal third quarter of 2009 related to the 2009 CooperVision manufacturing restructuring plan of 6 cents per share.

The settlement costs associated with the securities class action litigation are recognized as a pre-tax litigation settlement charge of $27.0 million along with related $0.4 million in YTD pre-tax unreimbursed legal fees. The restructuring costs, primarily severance and costs associated with assets, related to the pending closure of the Norfolk manufacturing plant are recorded primarily 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, $12.6M in the first three fiscal quarters of 2010 ($2.3 million in fiscal Q1, $3.6 million in fiscal Q2, and $6.7 million in fiscal Q3), and anticipate approximately $3.4 million in the fourth fiscal quarter of 2010 and approximately $2.9 million in the first fiscal quarter of 2011. The acquisition costs, principally 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 litigation, restructuring and acquisition costs on our total operating results.

We also report revenue growth using the non-GAAP financial measure of constant currency revenue. Management presents and refers to constant currency information so that revenue results may be evaluated excluding the effect of foreign currency rate fluctuations. To present this information, current period revenue for entities reporting in currencies other than United States dollars are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year.


                            Three Months Ended July 31,
                         ----------------------------------

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

  Operating income         $ 51,396      $ 6,966   $ 58,362
  Income before income
   taxes                  $  43,652      $ 6,966   $ 50,618
  Provision for income
   taxes                    $ 3,925      $ 4,278    $ 8,203
  Net income               $ 39,727     $  2,688   $ 42,415

  Diluted EPS                $ 0.86       $ 0.05     $ 0.91



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

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

                          $0.82 --                 $0.82 --
  4Q10 Diluted EPS          $0.90         --        $0.90
                          $2.22 --                 $2.83 --
  FY10 Diluted EPS          $2.30       $0.61       $2.91

Conference Call and Webcast

The Company will host a conference call today at 5:00 PM ET to discuss its fiscal third quarter 2010 financial results. The dial in number in the United States is +1-800-638-4817 and outside the United States is +1-617-614-3943. The passcode is 41313567. There will be a replay available approximately two hours after the call ends until Thursday, September 9, 2010. The dial in number for the replay in the United States is +1-888-286-8010 and outside the United States is +1-617-801-6888. The replay passcode is 65426351. 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) is a global medical products company that serves the specialty healthcare market through its subsidiaries CooperVision and CooperSurgical. Corporate offices are in Pleasanton, CA.

CooperVision (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, presbyopia and ocular dryness. Headquartered in Pleasanton, CA, it manufactures in: Juana Diaz, Puerto Rico; Norfolk, VA; Rochester, NY; Adelaide, Australia; and Hamble and Hampshire, UK.

CooperSurgical (www.coopersurgical.com) develops, manufactures and markets medical devices, diagnostic products, and surgical instruments and accessories used primarily by gynecologists and obstetricians. CooperSurgical is a leader in the U.S. Ob-Gyn market, and its major manufacturing and distribution facilities are located 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, integration of any acquisition, and litigation 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 from 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; 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)



                                          October
                              July 31,      31,
                                2010        2009
                             ----------  ----------

                       ASSETS

  Current assets:
    Cash and cash
     equivalents                 $3,240      $3,932
    Trade receivables, net      190,055     170,941
    Inventories                 234,315     260,846
    Deferred tax assets          29,906      23,360

    Other current assets         33,754      44,799
                             ----------  ----------

       Total current assets     491,270     503,878
                             ----------  ----------
  Property, plant and
   equipment, net               569,748     602,568
  Goodwill                    1,256,488   1,257,029
  Other intangibles, net        118,528     114,700
  Deferred tax assets            25,725      27,781

  Other assets                   41,281      45,951
                             ----------  ----------

                             $2,503,040  $2,551,907
                             ==========  ==========


         LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
    Short-term debt             $22,298      $9,844
    Accrued litigation
     settlement                  27,000          --
    Other current
     liabilities                174,878     165,570
                             ----------  ----------
       Total current
        liabilities             224,176     175,414
                             ----------  ----------
  Long-term debt                624,373     771,630
  Other liabilities              45,175      48,065

  Deferred tax liabilities       15,205      16,456
                             ----------  ----------

       Total liabilities        908,929   1,011,565
                             ----------  ----------

  Stockholders' equity        1,594,111   1,540,342
                             ----------  ----------

                             $2,503,040  $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   Nine Months Ended
                                        July 31,            July 31,
                                   ------------------  ------------------

                                     2010      2009      2010      2009
                                   --------  --------  --------  --------
  Net sales                        $295,635  $285,230  $845,165  $796,966

  Cost of sales                     119,649   138,835   355,923   359,380
                                   --------  --------  --------  --------
  Gross profit                      175,986   146,395   489,242   437,586
  Selling, general and
   administrative expense           111,265   100,038   323,183   288,735
  Research and development
   expense                            8,588     7,737    24,788    25,032
  Restructuring costs                    14       462       424     3,416

  Amortization of intangibles         4,723     4,233    13,439    12,490
                                   --------  --------  --------  --------
  Operating income                   51,396    33,925   127,408   107,913
  Interest expense                    8,729    11,085    28,684    33,372
  Litigation settlement charge            0         0    27,000         0

  Other income (expense), net           985     (155)   (1,174)     8,249
                                   --------  --------  --------  --------
  Income before income taxes         43,652    22,685    70,550    82,790

  Provision for income taxes          3,925       777     5,945    12,360
                                   --------  --------  --------  --------

  Net income                        $39,727   $21,908   $64,605   $70,430
                                   ========  ========  ========  ========


  Diluted earnings per share          $0.86     $0.48     $1.40     $1.55
                                   ========  ========  ========  ========

  Number of shares used to
   compute earnings per share        46,402    45,694    46,232    45,368
                                   ========  ========  ========  ========

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)



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

                                Calendar 2Q10            Calendar YTD 2010
                          -------------------------  -------------------------

                                     Market   CVI               Market   CVI
                           Market    Change  Change   Market    Change  Change
                          ---------  ------  ------  ---------  ------  ------
  Sales by Category
    Spheres                 $ 1,239      3%      6%    $ 2,445      4%      7%
    Torics                      295      8%     16%        589     10%     16%

    Multifocal                   78                        152
                          ---------     20%    (2%)  ---------     21%      4%
    WW Soft Contact
     Lenses                 $ 1,612                    $ 3,186
                          =========      5%      8%  =========      5%     10%


  Sales by Modality
    Single Use                $ 577      8%     10%    $ 1,109      9%     12%

    Other                     1,035                      2,077
                          ---------      3%      7%  ---------      4%      9%
    WW Soft Contact
     Lenses                 $ 1,612                    $ 3,186
                          =========      5%      8%  =========      5%     10%


  Sales by Material
    Hydrogel                  $ 964    (4%)    (6%)    $ 1,922    (3%)    (5%)

    Silicone Hydrogel           648                      1,264
                          ---------     21%     99%  ---------     21%    116%
    WW Soft Contact
     Lenses                 $ 1,612                    $ 3,186
                          =========      5%      8%  =========      5%     10%


  Sales by Geography
    Americas                  $ 619      7%      8%    $ 1,255      6%     11%
    EMEA                        499      4%     11%        971      6%     11%

    Asia Pacific                494                        960
                          ---------      3%      3%  ---------      4%      3%
    WW Soft Contact
     Lenses                 $ 1,612                    $ 3,186
                          =========      5%      8%  =========      5%     10%

    United States             $ 533      7%      8%    $ 1,087      6%     11%

    International             1,079                      2,099
                          ---------      4%      8%  ---------      5%      9%
    WW Soft Contact
     Lenses                 $ 1,612                    $ 3,186
                          =========      5%      8%  =========      5%     10%

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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