Ballard Medical Products, makers of hospital disposable products, reported a sales increase for the nine months ended June 30, 1988.

Net sales for the first nine months of fiscal 1988 were $11,086,759 compared to $6,729,081 for the first nine months of last year. The company had a nine month net income of $2,068,295 compared to $884,135 for the same period last year. Third quarter sales were $3,966,732 compared with $2,531,253 for fiscal 1987.The third quarter net income was $836,673 compared to $330,139 for the third quarter fiscal 1987. Earnings per share for the nine months were 53 cents compared with 24.9 cents a year ago. Earnings per share for the third quarter were 18.9 cents compared with 9.4 cents. Fiscal year ends Sept. 30, 1988.

Ballard Medical continues to be optimistic about the company's outlook, both for the remainder of this year and over the long term. New products and product improvements will continue to contribute to growth.

Ballard Medical has 3,693,585 shares of common stock outstanding. Year-ago earnings per share are restated.