Encision Reports First Fiscal Quarter Results |
BOULDER, Colo., July 31 /PRNewswire-FirstCall/ -- Encision Inc. (Amex:
ECI), a medical device company owning patented surgical technology that is
emerging as a standard of care in minimally-invasive surgery, reported its
financial results for its first quarter ended June 30, 2008.
Net sales for the first quarter of fiscal year 2009, the three-months
period ended June 30, 2008, totaled $3.09 million, representing a 16%
increase over net sales of $2.66 million for the prior fiscal year's first
quarter. The Company recorded a net loss of $164 thousand or $.03 per share
for the first quarter of fiscal year 2009 compared to a net loss of $295
thousand or $.05 per share for the first quarter of fiscal year 2008. Gross
profit margin for the first quarter of fiscal year 2009 was 60.3% as
compared to 61.2% for the first quarter of fiscal year 2008. The gross
profit margin decrease was primarily due to increased scrap costs of 0.9%
and increased sales of lower gross profit margin products. The decrease was
partially offset by a higher gross profit margin for our internally
manufactured disposable scissor inserts.
"Over the past two years, we have made major investments in our company
to increase long-term value for our shareholders," said Jack Serino,
President and CEO of Encision Inc. "We have made a major investment in
manufacturing equipment, thereby reducing manufacturing costs, expanding
our manufacturing capabilities, and opening the possibility of original
equipment manufacturing. Additionally, we have made a major investment in
expanding our direct sales force to provide a focused selling effort for
our patented patient safety technology and to provide improved customer
service. Finally, we have made a major investment in developing disposable
product alternatives for all of our reusable products and implementing
redesigns to existing products to elevate them to best of class status. It
is our belief that the major investments we have made will begin to benefit
our shareholders in our current fiscal year."
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(R)
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,
insufficient quantity of new account conversions, insufficient cash to fund
operations, scale up production to meet delivery obligations, 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.
CONTACT: Marcia McHaffie, Encision Inc., 303-444-2600,
mmchaffie@encision.com
Encision Inc.
Condensed Statements of Operations
(Unaudited)
(Amounts in thousands, except per share information)
June 30, June 30,
Three Months Ended 2008 2007
NET SALES $3,094 $2,659
COST OF SALES 1,229 1,031
GROSS PROFIT 1,865 1,628
OPERATING EXPENSES:
Sales and marketing 1,374 1,214
General and administrative 367 372
Research and development 289 330
Total operating expenses 2,030 1,916
OPERATING LOSS (165) (288)
Interest and other income (expense), net 1 (7)
LOSS BEFORE PROVISION FOR INCOME TAXES (164) (295)
Provision for income taxes -- --
NET LOSS $(164) $(295)
Net loss per share-basic and diluted $(0.03) $(0.05)
Encision Inc.
Condensed Balance Sheets
(Amounts in thousands)
June 30, March 31,
2008 2008
(unaudited) (audited)
ASSETS
Cash and cash equivalents $46 $71
Accounts receivable, net 1,274 1,453
Inventories, net 2,050 2,271
Prepaid expenses 147 99
Total current assets 3,517 3,894
Equipment, net 800 798
Patents, net 200 199
Other assets 46 53
TOTAL ASSETS $4,563 $4,944
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $611 $537
Accrued compensation 267 392
Other accrued liabilities 437 481
Total current liabilities 1,315 1,410
Long-term debt 433 606
Common stock and additional paid-in capital 19,438 19,387
Accumulated (deficit) (16,623) (16,459)
Total shareholders' equity 2,815 2,928
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,563 $4,944
SOURCE Encision Inc.
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CONTACT:
Marcia McHaffie of Encision Inc.,
+1-303-444-2600, mmchaffie@encision.com
