WAYNE, Pa., Feb. 14 /PRNewswire-FirstCall/ --
Escalon Medical Corp. (Nasdaq: ESMC) today announced results for its fiscal
second quarter ended December 31, 2002. For the second quarter of fiscal
2003, Escalon Medical reported net income of $347,673, or $0.103 per diluted
share, a 36.1% gain over net income of $255,428, or $0.077 per diluted share,
in the second quarter of fiscal 2002.
Revenues for the second quarter of fiscal 2003 increased 15.4% to
$3,267,178 compared to $2,831,721 in the second quarter of fiscal 2002. For
the second quarter, product revenue from Sonomed increased 9.5% to $1,629,000
compared to $1,488,000 in the prior year period. The improvement at Sonomed
was related primarily to improvement in the domestic market. Product revenue
in the Vascular business increased 10.5% to $675,000 in the second quarter of
fiscal 2003 compared to $611,000 in the year ago period. Revenue in the
Company's Medical / Trek business increased by 12.4% to $823,000 in the
quarter from $733,000 in the second quarter of fiscal 2002. The increase
primarily resulted from a $67,000 royalty payment related to the licensing of
its intellectual laser technology. Revenue from Silicone Oil was $450,000 in
the quarter compared to $418,000 in the year ago period. Additional
consideration, which is based upon future sales of Silicone Oil by Bausch &
Lomb, is expected to continue through fiscal 2005. This revenue will likely
fluctuate depending on the demand of the Bausch & Lomb product. Revenue in
the Digital business unit was $139,000 for the quarter as a result of Escalon
Digital taking over all the operations related to the CFA Digital Imaging
System.
The gross margin as a percent of product sales was 53.5% in the current
quarter compared to 58.8% in the year ago period. Marketing, general and
administrative expenses declined to 39.1% of sales in the second quarter from
45.7% of sales in the year ago period due to higher levels of general and
administrative expenses last year, primarily as a result of legal and
reincorporation expenses.
For the first six months of fiscal 2003, Escalon Medical reported a 32.0%
gain in net income to $606,831, or $0.178 per diluted share, from net income
of $459,747, or $0.139 per diluted share, in the first six months of fiscal
2002. Revenues for the first six months of fiscal 2002 were $6,275,518
compared to $5,747,436 in the prior year period, a 9.2% gain.
"We were pleased by our strong performance in the quarter, including
record revenues, solid cash flow generation and our ability to continue to pay
down debt, despite what continues to be an uncertain domestic and European
economic environment," commented Richard J. DePiano, Chairman and Chief
Executive Officer.
Mr. DePiano continued, "At Sonomed, we continue to focus on our
international markets. We achieved strong growth in Asia in the quarter, with
revenues up 17%, and we continue to work on getting our products registered in
Japan. On the flip side, South America exhibited continued weakness due to
economic conditions, despite having our distribution network fully in place.
Mexico, however, remains a bright spot in the region. Europe remains a top
priority and we continue to look for ways to expand our presence in this
market. Although European sales were down 20% in the quarter, we recently
added management support to the region to help turn things around."
"In our Vascular segment, while our PD Access(TM) and Smart Needle(TM)
business performed nicely in the quarter, we continue to focus on the
potential we see for our Doppler Guided IV Needle, particularly in the
oncology and anesthesia markets. To this end, we are in the process of
expanding our sales team to increase trial and usage in the Northeast region."
Mr. DePiano concluded, "We remain committed to reinvesting in our
business, including our targeted research and development programs, and
continue to make good progress operationally and financially to position
Escalon to take advantages of the growth opportunities we see ahead in our
niche markets."
Founded in 1987, Escalon develops, markets and distributes ophthalmic
diagnostic, surgical and pharmaceutical products as well as vascular access
devices. 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. Escalon has headquarters in
Wayne, Pennsylvania and manufacturing operations in Long Island, New York and
New Berlin, Wisconsin.
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. They 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 improve upon
the operations of the Company's business units, generate cash and identify,
finance and enter into business relationships and acquisitions, uncertainties
and risks related to new product development, manufacturing and market
acceptance of new products, 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, third party reimbursement and physician training as well as 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, and its
other filings with the Securities and Exchange Commission, all of which are
available from the Commission as well as other sources.
ESCALON MEDICAL CORP. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three months Ended Six Months Ended
December 31, December 31,
2002 2001 2002 2001
Product revenue $2,749,368 $2,413,266 $5,262,877 $4,884,504
Other revenue 517,810 418,455 1,012,631 862,932
Revenues, net 3,267,178 2,831,721 6,275,518 5,747,436
Costs and expenses:
Cost of goods sold 1,279,044 992,668 2,357,963 2,220,930
Research and development 183,736 132,483 374,053 255,270
Marketing, general
and administrative 1,278,014 1,295,245 2,566,142 2,440,838
Total costs and
expenses 2,740,794 2,420,396 5,298,158 4,917,038
Income from operations 526,384 411,325 977,360 830,398
Other income and (expenses):
Equity in income (loss) of
unconsolidated joint venture -- 20,967 -- 12,365
Interest income 828 466 1,478 1,356
Interest expense (179,540) (177,330) (372,007) (384,372)
Total other income and
(expense) (178,712) (155,897) (370,529) (370,651)
Net income 347,673 255,428 606,831 459,747
Basic net income per share $0.104 $0.078 $0.181 $0.140
Diluted net income per share $0.103 $0.077 $0.178 $0.139
Weighted average
shares - basic 3,345,851 3,292,184 3,345,851 3,292,184
Weighted average
shares - diluted 3,390,122 3,318,740 3,409,933 3,318,740
SELECTED BALANCE SHEET DATA: December 31, June 30,
2002 2002
(unaudited) (audited)
Cash, cash equivalents and investments $296,163 $220,826
Total current assets 4,470,208 4,287,590
Total assets 16,874,207 16,912,441
Current liabilities 5,313,097 4,527,697
Long-term debt 3,760,927 5,191,393
Total shareholders' equity 7,800,183 7,193,351
SOURCE Escalon Medical Corp.
 back to top
CONTACT:
Richard J. DePiano, Chairman and CEO of
Escalon Medical Corp., +1-610-688-6830, or Alison Ziegler of FRB
Weber Shandwick, +1-212-445-8432
|
