WAYNE, Pa., Nov. 9 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC)
today announced record results for its fiscal first quarter ended September
30, 1998.
For the first quarter of fiscal 1999, Escalon Medical reported net income
of $167,069, or $0.041 per diluted share, compared to net income of $30,942,
or $0.012 per diluted share, in the first quarter of fiscal 1998, an increase
of 440%. All share amounts have been adjusted to reflect the one-for-four
reverse stock split effective November 24, 1997 and the subsequent conversions
of preferred stock.
Revenues in the first quarter of fiscal 1999 increased 23% to $1,685,422
from $1,371,164 in the first quarter of fiscal 1998. The revenue growth
reflects continued growth in unit sales of Adatosil(R)5000 Silicone Oil,
Betadine(R)5% Sterile Ophthalmic Prep Solution and ISPAN(TM) Intraocular
Gases. In the quarter, the Company experienced sales increases across its
entire product line.
The Company's gross margin improved to 58% in the first quarter from 56%
in last year's first quarter. Escalon Medical continued to experience a
favorable impact from foreign currency fluctuations related to the purchase of
its primary product, Adatosil(R) 5000 Silicone Oil. The on-going emphasis on
cost control in its production activities also contributed to this
improvement.
To further focus its product line, management elected to discontinue
production of one of its disposable products in the quarter due to
insufficient revenue levels. As a result, the Company wrote off patent costs
of approximately $24,800 associated with the product in the quarter. Escalon
Medical also saw rising research and development costs in the quarter as a
result of ISO/CE certification and prototype development, leading to a total
increase in research and development costs of 61% over the first quarter of
fiscal 1998.
Richard J. DePiano, the Company's Chairman and Chief Executive Officer,
said, "We are pleased to report our fifth consecutive quarter of
profitability. By focusing on our core surgical and pharmaceutical product
lines, we have been able to maximize our profits and control our costs. We
will continue our plan to develop niche product lines to supplement our core
ophthalmic product business and take advantage of our contract manufacturing
capabilities. Our recently announced letter of intent to acquire the Vascular
Access Business Unit of CardioVascular Dynamics clearly demonstrates our focus
on diversification and the acquisition of profitable new product lines."
Mr. DePiano continued, "We continue to move forward with our plans to
develop and commercialize povidone-iodine 2.5% solution, a broad spectrum
antimicrobial for the prevention of neonatal conjunctivitis, and our Ocufit
SR(R) ophthalmic drug delivery device. We expect to file INDs on both
products in fiscal 1999. The development of these products will be funded
internally as well as through the continuing use of strategic partnerships."
Mr. DePiano concluded, "Our balance sheet continues to improve, with over
$3.5 million of working capital and no long-term debt. This is an exciting
time at Escalon Medical and we look forward to reporting on our progress in
the quarters to come."
Founded in 1987, Escalon develops, markets and distributes ophthalmic
surgical and pharmaceutical products which provide a base of positive cash
flow to fund a targeted research and development effort. The Company utilizes
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, Pa., and manufacturing
operations near Milwaukee, Wis.
Note: This news release contains certain forward looking statements that
are subject to risks and uncertainties that could cause actual results to
differ materially from those projected or forecasted. Such risks and
uncertainties include, but are not limited to, those disclosed in the
Company's Form 10-K for fiscal year 1998, which has been filed with the
Securities and Exchange Commission.
ESCALON MEDICAL CORP. and SUBSIDIARY
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
1998 1997
Product revenues $1,685,422 $1,371,164
Cost of goods sold 716,856 606,015
Gross margin 968,566 765,149
Costs and Expenses:
Marketing, general and
administrative 682,963 664,319
Research and development 155,437 96,389
Total costs and expenses 838,400 760,708
Income from operations 130,166 4,441
Other Income and Expenses:
Interest income 36,928 26,603
Interest expense (25) (102)
Total other income and expense 36,903 26,501
Net income $167,069 $30,942
Basic earnings per share $0.051 $0.012
Diluted earnings per share $0.041 $0.012
Weighted average shares - basic 3,040,152 2,629,375
Weighted average shares - diluted 4,114,879 2,629,375
SELECTED BALANCE SHEET DATA:
September 30, September 30,
1998 1997
Cash, cash equivalents and investments $2,523,497 $1,943,151
Current assets 4,372,408 3,087,037
Total assets 6,877,138 5,751,545
Current liabilities 791,795 922,151
Total shareholders' equity 6,085,343 4,829,394
SOURCE Escalon Medical Corp.
 back to top
CONTACT:
Richard J. DePiano, Chairman and CEO of
Escalon, 610-688-6830; or Alison Ziegler, General Info., Nicole
Salas, Analyst Info., or Marty Gitlin, Media Info., 212-661-8030,
all of The Financial Relations Board
NOTE TO EDITORS: To receive additional information on Escalon
Medical Corp., via fax, at no charge, dial 1-800-PRO-INFO and
enter code ESMC.
|
