PLEASANTON, Calif.—The Cooper Companies (COO) reported that revenue increased 11 percent year-over-year, and 6 percent pro forma, to $514.7 million for the fiscal third quarter ended July 31, 2016. CooperVision (CVI) revenue rose 6 percent to $409.9 million. CooperSurgical (CSI) revenue climbed 38 percent to $104.8 million.

“I am pleased to report another solid quarter for the company, including record revenues at both our business units,” said Robert S. Weiss, Cooper’s president and chief executive officer. “We are very encouraged by our business trends and believe we are well positioned to continue producing strong results.”

Cooper Companies’ gross margin was 62 percent compared with 59 percent in last year’s third quarter. On a non-GAAP basis, gross margin was 64 percent versus 62 percent last year. Gross margin was positively impacted primarily by product mix and favorable currency which was partially offset by lower margin acquisitions at CooperSurgical, the company said.

Operating margin was 20 percent compared with 11 percent in last year’s third quarter. On a non-GAAP basis, operating margin was 26 percent versus 23 percent last year. The increase was the result of improved gross margins and leveraging operating expenses, according to Cooper Companies.

CooperVision (CVI) reported a gross margin of 62 percent compared with 58 percent in last year’s third quarter. On a non-GAAP basis, gross margin was 64 percent versus 62 percent last year. Gross margin was positively impacted primarily by product mix and currency, the company said.

CooperSurgical (CSI) reported a gross margin of 61 percent, compared with 65 percent in third quarter 2015. On a non-GAAP basis, gross margin was 61 percent versus 65 percent last year. Gross margin was negatively impacted primarily by lower margin acquisitions.

Cooper Companies updated its fiscal year 2016 guidance. The company projects that fiscal 2016 total revenue will rise to $1,944 million to $1,957 million. CVI revenue is projected to increase to $1,555 million to $1,565 million, and CSI revenue is projected to reach $389 million to $392 million.