Home Diagnostics, Inc. (HDIX) announced Tuesday that first quarter 2008 financial results beat management guidance. Now the Fort Lauderdale, Florida-based manufacturer of diabetes monitoring systems is increasing its annual revenue guidance to between $124 million and $127 million from between $123 million and $126 million. In addition, Home Diagnostics is reaffirming its full year 2008 diluted earnings per share guidance to be in the range of $0.50 to $0.52.

First quarter 2008 revenue was $25.1 million, down from $28.1 million in the prior year. And while retail channel sales decreased by 0.9%, they were positively impacted by the co-brand product launch at Rite Aid. Operating income dipped to $400,000 from $3.3 million the prior-year period. Net income was $700,000 and diluted earnings per share were $0.04.

“We are particularly pleased with the initial shipments of our TRUEtrack product to Rite Aid, following the co-branding agreement we signed with them in January,” Chief Executive J. Richard Damron, Jr. said. “This is a significant win for Home Diagnostics, and we expect it to continue to contribute to revenues going forward. We also remain on track for the successful launch of our TRUEtest product platform in the second half of the year. We are beginning to execute our marketing plans to drive TRUEtest demand and are in the final stages of scaling our manufacturing operations in order to meet this demand.”

Home Diagnostics saw an uptick in research and development expenses to $2.4 million during the first quarter from $2.0 million the prior-year period. Research and development focus continues to be on investments in new product development and the final testing of new manufacturing equipment for the TRUEtest(TM) product platform, according to management.

Shares of Home Diagnostics were up $0.06 at $7.87 during midday trading Tuesday.

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