Encision Reports Third Fiscal Quarter Results; Net Income Increases 295%
27 Gennaio 2009 - 12:52PM
PR Newswire (US)
BOULDER, Colo., Jan. 27 /PRNewswire-FirstCall/ -- Encision Inc.
(OTC Bulletin Board: ECIA), 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 third quarter ended December 31, 2008. Net sales for the third
quarter of fiscal year 2009, ended December 31, 2008, totaled $3.27
million, representing a 4% increase over net sales of $3.13 million
for the prior fiscal year's third quarter. The Company recorded net
income of $233 thousand or $.04 per share for the third quarter of
fiscal year 2009, representing a 295% increase, compared to net
income of $59 thousand or $.01 per share for the third quarter of
fiscal year 2008. Gross profit margin for the third quarter of
fiscal year 2009 was 64% as compared to 65% for the third quarter
of fiscal year 2008. The gross profit margin decrease from the
third quarter of fiscal year 2008 was due to increased sales of
lower gross profit margin products and a 0.8% increase to gross
profit margin that was attributed to a decrease in warranty claims
in the third quarter of fiscal year 2008. Net sales for the first
nine months of fiscal year 2009, ended December 31, 2008, totaled
$9.7 million, representing a 9% increase over net sales of $8.9
million for the prior fiscal year's first nine months. The Company
recorded net income of $144 thousand or $.02 per share for the
first nine months of fiscal year 2009 compared to a net loss of
$228 thousand or $.04 per share for the first nine months of fiscal
year 2008. Gross profit margin for the first nine months of fiscal
year 2009 was 62% as compared to 63% for the first nine months of
fiscal year 2008. "All disposable scissor inserts sales made in the
third quarter ending December 31, 2008 were sales from internally
manufactured disposable scissor inserts and resulted in higher
gross profit margins from the second quarter ended September 30,
2008. Also, we saw during this third quarter the savings effect of
our reduced cost structure as it relates to engineering projects,"
said Jack Serino, President and CEO of Encision Inc. "We are
pleased with our net income increase of 295% and are cautiously
optimistic that the results for the last three months of fiscal
year 2009 will be positive." 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, Encision Inc. Condensed Statements of Operations
(Unaudited) (Amounts in thousands, except per share information)
Three Months Ended Nine Months Ended Dec. 31, Dec. 31, Dec. 31,
Dec. 31, 2008 2007 2008 2007 NET SALES $3,271 $3,131 $9,711 $8,883
COST OF SALES 1,192 1,103 3,715 3,301 GROSS PROFIT 2,079 2,028
5,996 5,582 OPERATING EXPENSES: Sales and marketing 1,191 1,305
3,887 3,755 General and administrative 355 331 1,080 1,053 Research
and development 286 325 856 989 Total operating expenses 1,832
1,961 5,823 5,797 OPERATING INCOME (LOSS) 247 67 173 (215) Interest
and other income (expense), net (14) (8) (29) (13) INCOME (LOSS)
BEFORE PROVISION FOR INCOME TAXES 233 59 144 (228) Provision for
income taxes -- -- -- -- NET INCOME (LOSS) $233 $59 $144 $(228) Net
income (loss) per share-basic and diluted $0.04 $0.01 $0.02 $(0.04)
Encision Inc. Condensed Balance Sheets (Amounts in thousands) Dec.
31, March 31, 2008 2008 (unaudited) (audited) ASSETS Cash and cash
equivalents $72 $71 Accounts receivable, net 1,433 1,453
Inventories, net 2,098 2,271 Prepaid expenses 102 99 Total current
assets 3,705 3,894 Equipment, net 811 798 Patents, net 218 199
Other assets 32 53 TOTAL ASSETS $4,766 $4,944 LIABILITIES AND
SHAREHOLDERS' EQUITY Accounts payable $673 $537 Accrued
compensation 293 392 Other accrued liabilities 393 481 Line of
credit 199 -- Total current liabilities 1,558 1,410 Long-term debt
-- 606 Common stock and additional paid-in capital 19,523 19,387
Accumulated (deficit) (16,315) (16,459) Total shareholders' equity
3,208 2,928 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,766
$4,944 DATASOURCE: Encision Inc. CONTACT: Marcia McHaffie of
Encision Inc., +1-303-444-2600, Web Site: http://www.encision.com/
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