Encision Reports Fourth Quarter Fiscal Year 2018 Results

BOULDER, Colo., May 7, 2018 /PRNewswire/ -- Encision Inc. (OTC:ECIA), a medical device company owning patented surgical technology that prevents dangerous stray electrosurgical burns in minimally invasive surgery, today announced financial results for its fiscal 2018 fourth quarter that ended March 31, 2018.

The Company posted quarterly net revenue of $2.04 million for a quarterly net loss of $18 thousand, or $0.00 per diluted share. These results compare to net revenue of $2.21 million for a quarterly net loss of $115 thousand, or $(0.01) per diluted share, in the year-ago quarter. Net revenue for the current quarter included net revenue of $68 thousand from an order for non-AEM product. Gross margin on net revenue was 57% in the fiscal 2018 fourth quarter and 52% in the fiscal 2017 fourth quarter. Gross margin on net revenue was higher in the current quarter as a result of product mix. Gross margin on net revenue was lowered further in last year's fourth quarter by applying overhead costs to faster turnover inventory.

The Company posted twelve months net revenue of $8.75 million for a twelve months net income of $336 thousand, or $0.03 per diluted share. These results compare to net revenue of $8.87 million for a twelve months net loss of $729 thousand, or $(0.07) per diluted share, in the year-ago twelve months. Net revenue for the current twelve months included net revenue of $492 thousand from an order for non-AEM product. Gross margin on net revenue was 57% in the fiscal 2018 twelve months and 50% in the fiscal 2017 twelve months. Gross margin on net revenue was higher in the current twelve months as a result of product mix. Gross margin on net revenue was lowered further in the fiscal 2017 twelve months by higher slow moving and obsolete inventory costs and applying overhead costs to faster turnover inventory.

Net cash of $420 thousand was generated by operating activities in the current twelve months compared to $23 thousand of cash generated by operating activities in last year's twelve months.

"This past year has been a turning point for Encision," said Greg Trudel, President and CEO of Encision. "We delivered new levels of operational excellence, launched new products and delivered black ink on the bottom line for the first time in recent history. Our focus going forward will be to grow the top line. To that effect, we have already strengthened our sales channel with direct sales representation to fill strategic gaps in the marketplace and to eliminate underperforming distribution relationships. We have a number of products in development and we are always open to partnering on OEM opportunities and licensing. We look forward to advancing the awareness of the risks of Stray Energy and to driving increased deployment of life saving AEM® Technology."

Encision Inc. designs and markets a portfolio of high performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures. For additional information about all our products, please visit www.encision.com.

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 develop new or enhanced products and have such products accepted in the market, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, 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 Annual Report on Form 10-K for the year ended March 31, 2017 and subsequent filings with the Securities and Exchange Commission. We do 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:            Mala Ray, Encision Inc., 303-444-2600, [email protected]

SOURCE Encision Inc.

Related Links

http://www.encision.com