Encision Reports Profitable Third Fiscal Quarter Results
BOULDER, Colo., Jan. 28 /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 of fiscal year 2010.
Net sales for the three months ended December 31, 2009 and December 31, 2008 totaled $3.3 million. The Company recorded net income of $149 thousand, or $.02 per share, for the third quarter of fiscal year 2010, compared to a net income of $233 thousand, or $.04 per share, for the third quarter of fiscal year 2009. Gross profit margin for the third quarter of fiscal year 2010 was 61.6%, as compared to 63.6% for the third quarter of fiscal year 2009. The lower gross profit margin for the third quarter of fiscal year 2010 was due to increased sales of lower gross profit margin products.
Net sales for the first nine months ended December 31, 2009 totaled $9.65 million, representing a 1% decrease over net sales of $9.71 million for the prior fiscal year's first nine months. The Company recorded net income of $359 thousand, or $.06 per share, for the first nine months of fiscal year 2010, compared to net income of $144 thousand, or $.02 per share, for the first nine months of fiscal year 2009. Gross profit margin for the first nine months of fiscal year 2010 and fiscal year 2009 was 62%.
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, 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. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's filings with the Securities and Exchange Commission. The Company does 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: Marcia McHaffie, Encision Inc., 303-444-2600, [email protected]
Encision Inc.
Condensed Balance Sheets
(Amounts in thousands)
December 31, March 31,
2009 2009
(Unaudited) (Audited)
----------- ----------
ASSETS
Cash and cash equivalents $47 $85
Accounts receivable, net 1,196 1,264
Inventories, net 2,351 2,505
Prepaid expenses 92 36
----------- ----------
Total current assets 3,686 3,890
----------- ----------
Equipment, net 1,095 840
Patents, net 265 216
Other assets 27 24
----------- ----------
Total assets $5,073 $4,970
----------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $373 $745
Accrued compensation 337 406
Other accrued liabilities 388 367
Line of credit -- 191
----------- ----------
Total current liabilities 1,098 1,709
----------- ----------
Line of credit 275 --
----------- ----------
Common stock and additional paid-in capital 19,640 19,560
Accumulated (deficit) (15,940) (16,299)
----------- ----------
Total shareholders' equity 3,700 3,261
----------- ----------
Total liabilities and shareholders' equity $5,073 $4,970
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Encision Inc.
Condensed Statements of Operations
(Amounts in thousands, except per share information)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
------------------- -------------------
December December December December
31, 31, 31, 31,
2009 2008 2009 2008
-------- -------- -------- --------
Net sales $3,260 $3,271 $9,650 $9,711
Cost of sales 1,251 1,192 3,664 3,715
-------- -------- -------- --------
Gross profit 2,009 2,079 5,986 5,996
-------- -------- -------- --------
Operating expenses:
Sales and marketing 1,146 1,191 3,580 3,887
General and administrative 362 355 1,059 1,080
Research and development 341 286 947 856
-------- -------- -------- --------
Total operating expenses 1,849 1,832 5,586 5,823
-------- -------- -------- --------
Operating income 160 247 400 173
Interest and other income
(expense), net (11) (14) (42) (29)
-------- -------- -------- --------
Income before provision for
income taxes 149 233 359 144
Provision for income taxes –– –– –– ––
-------- -------- -------- --------
Net income $149 $233 $359 $144
======== ======== ======== ========
Net income per share-basic $0.02 $0.04 $0.06 $0.02
======== ======== ======== ========
Net income per share-diluted $0.02 $0.04 $0.06 $0.02
======== ======== ======== ========
Basic weighted average number
of shares 6,455 6,455 6,455 6,453
Diluted weighted average number
of shares 6,461 6,455 6,463 6,453
SOURCE Encision Inc.
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