Encision Reports 10% Product Revenue Increase in Third Quarter of Fiscal Year 2013 Results
Encision Inc. (ECIA:PK), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, today announced financial results for its fiscal 2013 third quarter ended December 31, 2012.
The Company posted quarterly product revenue of $2.955 million and quarterly service revenue of $100 thousand for a quarterly net loss of $82 thousand, or $(0.01) per share. These results compare to product revenue of $2.689 million and service revenue of $479 thousand for a net loss of $81 thousand, or $(0.01) per share, in the year-ago quarter. Gross margin was 54.5 percent compared to 55 percent in the year-ago quarter.
The Company posted nine months product revenue of $8.566 million and nine months service revenue of $464 thousand for a nine months net loss of $337 thousand, or $(0.04) per share. These results compare to product revenue of $8.352 million and service revenue of $1.266 million for a net loss of $570 thousand, or $(0.09) per share, in the year-ago nine months. Gross margin was 56 percent compared to 53 percent in the year-ago nine months. In the year-ago nine months, our margin was lower due to a one-time charge of $430 thousand for a voluntary recall of a certain electrode product.
"We were pleased that our product revenue grew ten percent for the third quarter over last year's third quarter and five percent over this year's second quarter," said Fred Perner, President and CEO. "As we previously announced, our service revenue continues to lag last year's pace due to a project that was phased out by a strategic partner at the beginning of this fiscal year. Additionally, we continued to make investments in our quality platform and product development initiatives. In the third quarter, our inventory levels increased as we expect to introduce new products in our fourth quarter." Encision Inc. designs, develops, manufactures and markets innovative surgical devices that allow surgeons to optimize technique and patient safety during a broad range of surgical procedures. Based in Boulder, Colorado, the Company pioneered the development of patented AEM@ Laparoscopic Instruments to improve electrosurgery and reduce the chance for patient injury in minimally invasive surgery.
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, 2012 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, email@example.com Encision Inc.
Condensed Balance Sheets (Amounts in thousands) (Unaudited) December 31, 2012 March 31, 2012 ASSETS Cash and cash equivalents $ 473 $ 565 Accounts receivable, net 1,096 1,428 Inventories, net 2,622 2,489 Prepaid expenses 100 28 Total current assets 4,291 4,510 Equipment, net 1,660 1,619 Patents, net 228 273 Other assets 9 7 Total assets $ 6,188 $ 6,409 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ 694 $ 1,040 Accrued compensation 405 283 Other accrued liabilities 421 349 Total current liabilities 1,520 1,672 Common stock and additional paid-in capital 21,565 21,297 Accumulated (deficit) (16,897) (16,560) Total shareholders' equity 4,668 4,737 Total liabilities and shareholders' equity $ 6,188 $ 6,409 Encision Inc.
Condensed Statements of Operations (Amounts in thousands, except per share information) (Unaudited) Three Months Ended Nine Months Ended December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 Net revenue: Product $ 2,955 $ 2,689 $8,566 $ 8,352 Service 100 478 464 1,266 Total revenue 3,055 3,167 9,030 9,618 Cost of revenue: Product 1,317 1,195 3,692 3,981 Service 72 231 311 551 Total cost of revenue 1,389 1,426 4,003 4,532 Gross profit 1,666 1,741 5,027 5,086 Operating expenses: Sales and marketing 903 1,058 2,716 3,308 General and administrative 385 407 1,352 1,289 Research and development 461 338 1,294 1,011 Total operating expenses 1,749 1,803 5,362 5,608 Operating loss (83) (62) (335) (522) Interest and other expense, net 1 (19) (2) (48) Loss before provision for income taxes (82) (81) (337) (570) Provision for income taxes - - - - - - - - Net loss $ (82) $ (81) $ (337) $ (570) Net loss per share-basic and diluted $ (0.01) $ (0.01) $ (0.04) $ (0.09) Basic and diluted weighted average number of shares 8,210 6,455 8,197 6,455 SOURCE Encision Inc.
-0- 01/28/2013 /Web Site: http://www.encision.com (OTC-BB:ECIA / OTC-PINK:ECIA) / CO: Encision Inc.
ST: Colorado IN: HEA MEQ OTC SU: ERN PRN -- LA48243 -- 0000 01/28/2013 12:00:00 EDT http://www.prnewswire.c