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.