Vision-Sciences, Inc. Reports Financial Results Of Second Quarter And First Half Fiscal 2015

ORANGEBURG, N.Y., Nov. 5, 2014 (GLOBE NEWSWIRE) -- Vision-Sciences, Inc. (Nasdaq: VSCI), a leading provider of unique flexible endoscopic products utilizing its proprietary sterile disposable EndoSheath® technology, today announced financial results for the second quarter and first six months of fiscal (FY) 2015, ended September 30, 2014. Highlights include:

  • Second quarter of FY 2015 net sales of $4.1 million, a 4% increase as compared with $4.0 million in second quarter of FY 2014. Sequentially, net sales in the second quarter increased by 9% from the first quarter of FY 2015. For the first half of FY 2015, net sales increased by 3% to $7.9 million as compared with $7.6 million in the first half of FY 2014;
  • Medical sales of $3.3 million and $6.3 million for the second quarter and first half of FY 2015, respectively, a decrease of 4% and 2% respectively, over the corresponding prior-year periods. Excluding sales to Stryker Corporation, medical sales of $2.9 million and $5.5 million for the second quarter and first half of FY 2015, respectively, an increase of 32% and 36%, respectively, over the corresponding prior-year periods; in May 2014 the Company decided not to renew an agreement with Stryker for the sale of Vision-Sciences' cystoscopy products.
  • International sales of medical products were $1.4 million and $2.9 million for the second quarter and first half of FY 2015, respectively, an increase of 37% and 33%, respectively, over the corresponding prior-year periods;
  • Net loss of $(1.5) million in the second quarter of FY 2015 as compared with $(1.3) million in the prior-year quarter. Net loss improved by 6% to $(3.5) million for the first half of FY 2015 as compared with $(3.8) million in the prior-year period. Net loss per basic and diluted common share was unchanged at $(0.03) and $(0.08) for the second quarters and first halves, respectively, of FY 2015 and FY 2014;
  • Net cash used in operating activities was $1.8 million for the first half of FY 2015, a significant improvement from $3.2 million in the prior-year period; and,
  • Successfully launched two new products in September 2014: the BRS-5100 Video Bronchoscope in Europe and the world's smallest video laryngoscope, the ENT-7000, in the U.S.

"Since implementing our strategic initiatives almost a year ago, our driving goal has been to deliver profitable growth. We are focused on building sales of higher-margin products to support our goal. The significant growth realized by all of our businesses, excluding sales to Stryker, has shown that this strategy is beginning to have a positive impact. In addition, for the last three quarters, we have continued to reduce our operating and net loss while simultaneously reducing net cash used in operating activities," commented Howard Zauberman, President and Chief Executive Officer of Vision-Sciences, Inc.

"Following our strategic decision in May to regain the sales of our cystoscopy line from Stryker, we have worked diligently to transform this formerly dilutive product line to one of profitability. To date, we have converted approximately 90% of the active Stryker customer base to Vision-Sciences' customers. We believe that by focusing on the office based small and large group urology practices and ambulatory surgery centers, where most cystoscopies are performed, we will achieve our goal.

"Going forward, we will continue to expand and round out our product line, and broaden our sales focus, with the goal of becoming cash-flow neutral to positive in the foreseeable future," concluded Mr. Zauberman.

Results of Operations

Net sales in the second quarter of fiscal (FY) 2015 increased by 4% to $4.1 million as compared with $4.0 million in the same period one year ago. Higher sales in our urology and ENT markets were offset in part by lower sales in our TNE and pulmonology markets. Excluding sales to Stryker Corporation, sales in our medical business were $2.9 million, an increase of 32% compared with the same period one year ago.

Net sales in the first half of FY 2015 increased by 3% to $7.9 million compared with $7.6 million in the prior-year period, as higher sales in our urology, ENT and pulmonology markets were offset in part by lower sales in our TNE market.

Industrial sales in the second quarter of FY 2015 increased by 48% to $0.8 million compared with $0.6 million in the same period one year ago. In the first half of FY 2015, industrial sales increased by 29% to $1.5 million as compared with $1.2 million in the first half of FY 2014. Growth in both periods was primarily due to the addition of new customers.

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