Encision Reports First Quarter Fiscal Year 2016 Results

Aug 03, 2015, 07:00 ET from Encision Inc.

BOULDER, Colo., Aug. 3, 2015 /PRNewswire/ -- Encision Inc. (PK:ECIA), a medical device company owning patented surgical technology that prevents dangerous stray electrosurgical burns in minimally invasive surgery, today announced financial results for its fiscal 2016 first quarter that ended June 30, 2015.

The Company posted quarterly net revenue of $2.454 million for a quarterly net loss of $213 thousand, or $(0.02) per share. These results compare to net revenue of $2.476 million for a net loss of $202 thousand, or $(0.02) per share, in the year-ago quarter. Gross margin on net revenue was 47.8 percent in the fiscal 2016 first quarter and 49.3 percent in the fiscal 2015 first quarter. Gross margin on net revenue was lower in the fiscal 2016 first quarter as a result of higher material costs that was partially offset by a mix of products sold.

"Our sequential revenue for the first quarter of this fiscal year increased by six percent as compared to last fiscal year's fourth quarter. This was a good start to our fiscal year and we expect that we will continue to improve upon this," said Greg Trudel, President and CEO. "We continue to refine our manufacturing process and we will initiate a product price increase in the second quarter to mitigate our higher material costs. Therefore, we expect to see a higher gross profit margin starting in the second quarter. We continue to be vigilant in monitoring our operations to drive further cost reductions and efficiencies."

"We are executing to our plan of increasing market awareness of the devastating clinical and economic risk potential of stray energy and of driving customer demand through education and awareness. The implementation of CMS HAC (Hospital Acquired Condition) penalties is a market tailwind that is driving increased awareness and momentum, as more and more hospitals turn to our AEM® Technology as a solution to stray energy incidents. The leadership talents that we have brought on board are delivering results and we expect to deliver improved profit margins and compliance achievements in the coming quarters. We continue to expand and refine our U.S. sales channel and have begun discussions with potential international partners. Our disposable monitor in a cord, the AEM EndoShield® Burn Protection System, continues to make progress in the market with increasing results.  We are looking forward to driving the sales momentum that started in the first quarter of our current fiscal year," added Greg Trudel.

Encision Inc. designs and markets a portfolio of high performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, CO, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, delay in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's Annual Report on Form 10-K for the year ended March 31, 2015 and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise.

CONTACT:           Mala Ray, Encision Inc., 303-444-2600, mray@encision.com

Encision Inc.

Condensed Balance Sheets

(Amounts in thousands)

(Unaudited)








June 30, 2015


March 31, 2015

ASSETS





Cash and cash equivalents


$   125


$   259

Accounts receivable, net


909


965

Inventories, net


2,195


2,338

Prepaid expenses


159


109

    Total current assets


3,388


3,671

Equipment, net


701


777

Patents, net


255


258

Other assets


16


20

    Total assets


$ 4,360


$ 4,726

LIABILITIES AND SHAREHOLDERS' EQUITY





Accounts payable


498


676

Accrued compensation


290


262

Other accrued liabilities


313


325

Lease and deferred rent payable – short-term


30


30

Line of credit – short-term


64


    Total current liabilities


1,195


1,293

Line of credit – long-term



64

Lease and deferred rent payable – long-term


93


101

    Total liabilities


1,288


1,458

Common stock and additional paid-in capital


23,625


23,608

Accumulated (deficit)


(20,553)


(20,340)

    Total shareholders' equity


3,072


3,268

    Total liabilities and shareholders' equity


$ 4,360


$ 4,726

 

Encision Inc.

Condensed Statements of Operations

(Amounts in thousands, except per share information)

(Unaudited)




Three Months Ended



June 30, 2015


June 30, 2014

Net revenue


$2,454


$2,476

Cost of revenue


1,280


1,254

Gross profit


1,174


1,222

Operating expenses:





    Sales and marketing


696


683

    General and administrative


367


370

    Research and development


284


315

        Total operating expenses


1,347


1,368

Operating loss


(173)


(146)

Interest and other expense, net


(40)


(56)

Loss before provision for income taxes


(213)


(202)

Provision for income taxes


––


––

Net loss


$(213)


$ (202)

Net loss per share—basic and diluted


$(0.02)


$ (0.02)

Weighted average number of shares—basic and diluted


10,673


10,673






 

SOURCE Encision Inc.



RELATED LINKS

http://www.encision.com