Liberator Sales Shoot Up 31 Percent

STUART, Fla. — Liberator Medical announced last week that
sales for its second fiscal quarter ended March 31 increased 31
percent to $12.64 million compared to $9.65 million for the three
months ended March 31, 2010. The increase was primarily due to
continued emphasis on its direct response advertising campaign, the
company said in a May 13 release. Advertising expenses for the
quarter were more than $2 million, with the majority of those
expenses associated with the amortization of previously capitalized
direct response advertising costs, the company said.

Gross profit for the three months increased 27.3 percent to
$7.97 million from $6.26 million in same period last year.

“The second quarter of our fiscal year is typically a
challenging quarter for us each year due to the annual renewal of
our customers’ insurance coverage, primarily Medicare Part B
coverage, and calendar year deductibles that must be met by the
majority of our customers at the beginning of each calendar year,”
said Mark Libratore, president and CEO. “In spite of these
challenges, we were able to increase our sales for the twelfth
consecutive quarter. The outlook for demand for our products and
services is favorable, as there should be an increase in newly
diagnosed patients requiring the medical supplies that we provide.
We expect solid revenues growth over the next two quarters of
fiscal year 2011 due to our aggressive advertising and marketing
programs.”

Liberator’s revenue comes primarily from mail-order supply of
general medical supplies, diabetes, urological, ostomy and
mastectomy products.