This summary is based on the first quarter fiscal 2008 earnings call conducted by Cooper Companies (COO: chart) on March 6, 2008.

Chief Executive Officer: Robert Weiss
Chief Financial Officer, Senior Vice President: Eugene J. Midlock
Vice President of Investor Relations and Treasury: Albert White

Key Investors Issues

- The earnings per share rose from 12 cents in prior year to 15 cents.
- Quarterly revenue rose 12% over last year to $245 million.
- Biofinity had record manufacturing month in February, with 3.8 million lenses.
- For fiscal 2008, the non-GAAP earnings per share are projected in the range of $2.10 to $2.35.

First Quarter Fiscal 2008 Financial Highlights

The earnings per share were 15 cents, up 25% or 3 cents from last year''s first quarter.

The adjusted EPS was 45 cents and this excludes $14 million in charges.

Revenue increased 12% year-over-year to $245 million, with CooperVision (CVI) up 12% and CooperSurgical (CSI) up 10%.

- Single-use spheres, which is mainly driven by the PC product Proclear, were up 29% in cost and currency.
- Torics, which is the work horse of Cooper and has historically been one of its strong products, is up 5% and comprises 43% of its lens revenue.
- Multifocal’s outpaced the market and grew by 16% and Proclear materials have really continued to grow strong and comprised roughly 25% of our total revenue.

On a regional basis for CVI, there was strong performance in each of the firm’s geographic areas. Asia Pac was up 8% in cost and currency, Europe was up 6% and the America’s were up 5% with the US leading that at 7%. The firm believes that as remarkable performance considering the fact that it had done this without the Silicone/Hydrogel products until very lately and certainly put out a two-week product in the United States.

The gross margin was 58% versus 59% in 2007, a slight decrease that was slightly attributable to product mix.

The increase in single lenses with lower margins grew 41%, which is now 18% of CVI revenue and that was partially offset by strong growth in Multifocal, Proclear and Biofinity. Proclear was up 34% or accounted for 25% of revenue. Adjusting the margins for the call outs or those costs that are not related to the core operating performance, the gross margin was 62%, same as it was last year. CSI’s gross margin was 60% in 2008, also unchanged from 2007.

The operating margin, on a consolidated basis, was 8% for 2008 compared to 7% for Q1 of 2007.

This is comprised of CVIs of 11% versus 13% last year and CSI was 17% versus 5% of last year. But, last year there was a very large charge in Q1 in process research and development attributable to an acquisition. Adjusting for that, Cooper surgical was 17% in 2007 as well, so year on year they were essentially at 17%.

G&A expenses increased by 2% over 2007, but on a non-GAAP basis, they decreased by 6%.

That is due to one time litigation expenses included in those charges in 2008, so the firm had a decrease of 6% year on year. The management is going to continue to monitor those expenses and hopefully reduce them further.

The R&D expense year on year projects somewhat of a misleading result.

It indicates that there was a decrease of 27%. For CVI there was an increase year over year of 14% and for Cooper Surgical, adjusting for the unusual last year Q1 IP&R deep charge, they increased 37%. Consolidated with that adjustment, there was an increase of 18%. The firm would expect in the future R&D growth should exceed the growth in revenue and should equal approximately 3% to 4% of sales.

- The effective income tax rate in Q1 on GAAP basis was 27.5 % versus 21.2% last year.

Management Changes