Escalon(R) Reports Third Quarter Fiscal 2009 Results
For the third quarter of fiscal 2009, the Company reported increased net revenue of
The Company experienced continued customer demand at its Drew and EMI business units, which reported 2009 third quarter product revenue growth of 41.4% and 88.5%, respectively, compared with the same period last fiscal year. This growth was offset by decreased 2009 third quarter sales in the Sonomed, Vascular and Medical/Trek business units of 11.9%, 30% and 4%, respectively.
For the nine-month period ended
For the third quarter of fiscal 2009, the Company reported a net loss of
The Company reported a net loss for the nine months ended
To supplement the Company's consolidated financial statements presented in accordance with GAAP, the Company provides 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 Nine Months Ended March 31, March 31, 2009 2008 2009 2008 Net (loss) $(683,173) $(1,942,622) $(1,861,030) $(3,410,759) Non-GAAP adjustments: Stock based compensation $37,444 $142,454 $223,756 $203,367 Depreciation and amortization $193,238 $137,774 $525,652 $434,101 Total adjustments $230,682 $280,228 $749,408 $637,468 Non-GAAP adjusted (loss) $(452,491) $(1,662,394) $(1,111,622) $(2,773,291) Shares used in computing basic and fully diluted earnings per share 6,435,106 6,255,665 6,895,411 6,388,905 Non-GAAP adjusted (loss) per fully diluted share $(0.07) $(0.27) $(0.16) $(0.43)
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 INCOME (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2009 2008 2009 2008 Net revenues: Product revenue $9,173,876 $8,138,627 $25,903,900 $22,421,603 Other revenue 31,122 48,940 97,123 154,315 Revenues, net 9,204,998 8,187,567 26,001,023 22,575,918 Costs and expenses: Cost of goods sold 4,729,430 4,912,381 14,209,211 12,786,574 Marketing, general and administrative 4,212,994 4,097,401 10,859,315 10,409,662 Research and development 810,130 1,040,116 2,749,131 2,840,227 Total costs and expenses 9,752,554 10,049,898 27,817,657 26,036,463 (Loss) from operations (547,556) (1,862,331) (1,816,635) (3,460,545) Other (expense) and income: Equity in Ocular Telehealth Management, LLC (31,336) (14,013) (65,387) (64,735) Gain on sale of assets - - 91,871 - Interest income 285 78,189 50,938 265,277 Interest expense (104,566) (17,987) (121,817) (24,276) Total other income (135,617) 46,189 (44,395) 176,266 Net (loss) before taxes (683,173) (1,816,142) (1,861,030) (3,284,279) Provision for income taxes 0 126,480 0 126,480 Net (loss) $(683,173) $(1,942,622) $(1,861,030) $(3,410,759) Basic net (loss) per share $(0.09) $(0.30) $(0.27) $(0.53) Diluted net (loss) per share $(0.09) $(0.30) $(0.27) $(0.53) Weighted average shares - basic 7,413,930 6,389,315 6,895,411 6,388,905 Weighted average shares - diluted 7,413,930 6,389,315 6,895,411 6,388,905 ESCALON MEDICAL CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, June 30, 2009 2008 ASSETS Current assets: Cash and cash equivalents $1,222,647 $3,708,456 Accounts receivable, net 6,351,066 3,896,297 Inventory, net 10,327,981 8,670,160 Note receivable 80,000 - Other current assets 404,863 297,807 Total current assets 18,386,557 16,572,720 Furniture and equipment, net 952,721 1,078,839 Goodwill 11,590,786 11,590,786 Trademarks and trade names 694,006 694,006 Patents, net 2,517,638 157,883 Covenant not to compete, customer list and other intangibles, net 1,546,055 1,691,610 Other assets 27,577 110,176 Total assets $35,715,340 $31,896,020 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $376,314 $501,752 Accounts payable 3,343,379 2,628,004 Accrued expenses 1,868,815 2,895,920 Deferred revenue 305,332 - Total current liabilities 5,893,840 6,025,676 Long-term debt, net of current portion 5,514,174 250,871 Accrued post-retirement benefits 1,087,000 1,087,000 Total long-term liabilities 6,601,174 1,337,871 Total liabilities 12,495,014 7,363,547 Shareholders equity: Preferred stock,, $0.001 par value; 2,000,000 shares authorized; no shares issued - - Common stock, $0.001 par value; 35,000,000 share authorized; 7,413,930 and 6,413,930 issued and outstanding at March 31, 2009 and June 30, 2008, respectively 7,414 6,414 Common stock warrants 1,733,460 1,601,346 Additional paid-in capital 67,418,884 66,299,242 Accumulated deficit (45,128,496) (43,267,466) Accumulated other comprehensive (loss) income (810,936) (107,063) Total shareholders' equity 23,220,326 24,532,473 Total liabilities and shareholders' equity $35,715,340 $31,896,020 ESCALON MEDICAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, 2009 2008 Cash and cash equivalents $1,222,647 $3,708,456 Total assets $35,715,340 $31,896,020 Long-term debt, net of current portion $376,314 $501,752 Total long-term liabilities $6,601,174 $1,337,871 Accumulated deficit $(45,128,496) $(43,267,466) Total Shareholders' equity $23,220,326 $24,532,473 Total liabilities and shareholders' equity $35,715,340 $31,896,020
SOURCE Escalon Medical Corp.
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