Escalon(R) Reports Second Quarter Fiscal 2009 Results
For the second quarter of fiscal 2009, the Company reported increased net revenue of
The Company continued to experience strong customer demand across most of its core businesses, reporting 2009 second quarter product revenue growth at its Drew, Sonomed and Vascular business units of approximately 19%, 1.2% and 2.5%, respectively, compared with the same period last fiscal year. This growth was slightly offset by decreased 2009 second quarter sales in the Medical/Trek and EMI business units of 6.3% and 3.6%, respectively.
For the six-month period ended
For the second quarter of fiscal 2009, the Company reported a net loss of
The Company reported a net loss for the six months ended
Expanded Product Offering and Strengthened Balance Sheet
Consistent with its commitment to expand its product offering, leverage cross-selling as well as identify new revenue growth opportunities, the Company acquired the hematology business of Biocode Hycel, the French subsidiary of Immunodiagnostic Systems plc, a provider of in vitro diagnostic products on
Focused on strengthening its balance sheet and securing additional working capital for general corporate purposes during this time of economic crisis, on
Recap of First Half of Fiscal 2009
Mr. DePiano added, "Product revenue increased approximately 17.1% during the 2009 six-month period and 8.2% during the second quarter of fiscal 2009. Within our Drew business segment, fiscal 2009 second quarter product revenue increased
"At Sonomed, second quarter 2009 product revenue increased
"Product revenue decreased
Mr. DePiano concluded, "Overall, we continue to take steps to diversify our product portfolio, enhance our market position as well as take advantage of potential growth opportunities we see ahead in our niche markets."
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the Company has begun providing certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net loss and non-GAAP loss per fully diluted share.
The Company's reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors overall understanding of the Company's current financial performance and provide further information for comparative purposes due to the adoption of the new accounting standard FAS 123R.
Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, the Company believes non-GAAP measures that exclude stock-based compensation expense enhance the comparability of results against prior periods. The non-GAAP measures and the reconciliation to the most directly comparable GAAP measure of all non-GAAP measures are as follows:
Three Months Ended Six Months Ended December 31, December 31, 2008 2007 2008 2007 Net Loss $(696,995) $(639,346) $(1,177,857) $(1,468,137) Non-GAAP adjustments: Stock based compensation $ 37,444 $ 159,977 $ 186,312 $ 172,911 Depreciation and amortization $ 165,316 $ 151,245 $ 332,414 $ 296,328 Total adjustments $ 202,760 $ 311,222 $ 518,726 $ 469,239 Non-GAAP adjusted loss $(494,235) $(328,124) $ (659,131) $ (998,898) Shares used in computing basic and fully diluted earnings per share 6,858,374 6,389,315 6,636,152 6,388,701 Non-GAAP adjusted loss per fully diluted share $ (0.08) $ (0.05) $ (0.10) $ (0.16)
Founded in 1987, the Company (http://www.escalonmed.com) develops markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. Drew Scientific, which operates as a separate business unit, provides instrumentation and consumables for the diagnosis and monitoring of medical disorders in the areas of diabetes, cardiovascular diseases and hematology, as well as veterinary hematology and blood chemistry. The Company seeks to utilize strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the Company's distribution capabilities, although such partnerships or acquisitions may not occur. The Company has headquarters in
Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. These statements are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to:
- implement its growth and marketing strategies, improve upon the operations of the Company business units, including the ability to make acquisitions and the integration of any acquisitions it may undertake, if any, of which there can be no assurance,
- implement cost reductions,
- generate cash,
- identify, finance and enter into business relationships and acquisitions, and make timely payments for any financing, and
- new product development, commercialization, manufacturing and market acceptance of new products,
Other factors include uncertainties and risks related to:
- marketing acceptance of existing products in new markets,
- research and development activities, including failure to demonstrate clinical efficacy,
- delays by regulatory authorities, scientific and technical advances by the Company or third parties,
- introduction of competitive products,
- ability to reduce staffing and other costs and retain benefit of prior reductions,
- third party reimbursement and physician training, and
- general economic conditions.
Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10-K for year ended
ESCALON MEDICAL CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Six Months Ended December 31, Ended December 31, 2008 2007 2008 2007 Net revenues: Product revenue $8,060,859 $7,449,626 $16,730,024 $14,282,976 Other revenue 37,723 45,454 66,001 105,375 Revenues, net 8,098,582 7,495,080 16,796,025 14,388,351 Costs and expenses: Cost of goods sold 4,635,641 3,951,607 9,479,782 7,874,193 Marketing, general and administrative 3,341,204 3,372,353 6,646,321 6,312,261 Research and development 892,836 876,750 1,939,001 1,800,111 Total costs and expenses 8,869,681 8,200,710 18,065,104 15,986,565 Income (loss) from operations (771,099) (705,630) 1,269,079) (1,598,214) Other (expense) and income: Equity in Ocular Telehealth Management, LLC (13,051) (16,611) (34,051) (50,722) Gain on sale of assets 91,871 - 91,871 - Interest income 3,127 85,391 50,653 187,088 Interest expense (7,843) (2,496) (17,251) (6,289) Total other income 74,104 66,284 91,222 130,077 Net (loss) before taxes (696,995) (639,346) (1,177,857) (1,468,137) Provision for Income taxes 0 0 0 0 Net (loss) $ (696,995) $ (639,346) $(1,177,857) $(1,468,137) Basic net (loss) per share $ (0.10) $ (0.10) $ (0.18) $ (0.23) Diluted net income (loss) per share $ (0.10) $ (0.10) $ (0.18) $ (0.23) Weighted average shares - basic 6,858,374 6,389,315 6,636,152 6,388,701 Weighted average shares - diluted 6,858,374 6,389,315 6,636,152 6,388,701
ESCALON MEDICAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, June 30, 2008 2008 Cash and cash equivalents $2,164,519 $3,708,456 Total assets $36,447,986 $31,896,020 Total current liabilities 5,490,366 6,025,676 Long-term debt, net of current portion 5,885,665 250,871 Total long-term liabilities 6,972,665 1,337,871 Accumulated deficit (44,445,320) (43,267,466) Total shareholders' equity (44,445,320) 24,532,473 Total liabilities and shareholders' equity $36,447,986 $31,896,020
SOURCE Escalon Medical Corp.