Female Health Co. (FHCO) Sees Decline in Revs for Q3; Declares $0.05 Quarterly Dividend; 3.8% Yield

The Female Health Company (Nasdaq: FHCO), today provided information regarding its financial expectations for the third quarter of FY2010. The Company announced that it expects to report a significant decline in unit sales for the three months ended June 30, 2010, resulting in a modest net loss for the quarter. The decline in unit sales is due to timing issues involving the receipt and shipment of substantial orders. Prior to this quarter, the Company has recorded positive operating income, excluding restructuring costs, for thirteen consecutive quarters. The Company has routinely noted in its SEC filings and earnings releases, that there is the possibility of significant quarter-to-quarter sales variations due to the timing and shipment of large orders. The Company will report its operating results for the three and nine months ended June 30, 2010 on August 6, 2010. The Company's Chairman and Chief Executive Officer, O.B. Parrish, commented, "We believe that the decline in our third quarter unit sales results from the timing and shipment of large orders and does not represent any fundamental change in the Company's underlying business trends. With the global AIDS pandemic continuing unabated, the need for prevention remains strong, as does demand for the FC2 Female Condom. Management and the Board believe the long term outlook for the Company remains positive." The Female Health Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.05 per share, $0.20 annualized. The dividend is payable August 11, 2010 to stockholders of record as of August 4, 2010. The ex-dividend date is August 2, 2010. Yield on the dividend is 3.8%. "The Company's Board of Directors and management team believes that the payment of cash dividends allows shareholders to participate directly in the Company's success," stated O.B. Parrish. "Our annual profitability has continued to improve during the past couple of years, we remain debt-free, and we continue to generate cash from operations that exceeds the Company's capital spending requirements. We believe that utilizing some of our excess cash flow to pay cash dividends is in the best interests of our shareholders." Any future quarterly dividends and the record date for any such dividend will be approved each quarter by the Company's Board of Directors and announced by the Company. Payment of future dividends is in the discretion of the Board of Directors and the Company may not have sufficient cash flows to continue to pay dividends.... Read more

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