MINNEAPOLIS, Aug. 10, 2015 /PRNewswire/ -- Cogentix Medical, Inc. (NASDAQ: CGNT), a global medical device company with innovative and proprietary products serving urology and airway management markets, today announced results for the fiscal first quarter ended June 30, 2015.

First Quarter Fiscal 2016 Overview

• Revenue of $11.2 million increased 75% from $6.4 million reported in the year-ago period (79% on a constant currency basis)
• Revenue of $11.2 million increased 10% from the pro forma combined revenue of Uroplasty and Vision-Sciences in the same period last year (13% on a constant currency basis)
• U.S. Urgent® PC product revenue increased 25% from the year ago period
• U.S. revenue from endoscopes and EndoSheath technology (inclusive of service and peripherals revenue) increased 79% from the pro forma revenue in the year ago period
• Gross margin for the quarter was 67.2%, up from pro forma combined gross margin of 66.5% in the year ago period
• Operating costs (excluding amortization and merger related costs) for the quarter of $9.6 million, compared to pro forma non-GAAP operating costs of $10.8 million one year ago

"We are pleased with our overall results for the quarter as our team executed on the revenue and cost synergies consistent with our merger integration strategy," said Rob Kill, President and CEO of Cogentix Medical. "Certainly, the highlight of the first quarter was the performance of our U.S. sales team, which delivered overall domestic revenue growth of 28% on a pro forma basis.  Our innovative technologies address critical needs for our physician customers, and favorable market fundamentals should continue to drive demand for our products.  For these reasons, today we are reaffirming our guidance for fiscal 2016."

First Quarter Financial Results

For the fiscal first quarter of 2016, total revenue of $11.2 million represented an increase of 75% as compared to $6.4 million in the prior year period, primarily attributable to the merger of Uroplasty and Vision-Sciences that was completed on March 31, 2015.  In accordance with GAAP, the reported financials in the first quarter of fiscal 2015 only include the results of Uroplasty, Inc.  On a pro forma combined basis, revenue increased 10% over the first quarter of last year.  The negative impact of changes in foreign currency exchange rates reduced fiscal first quarter total revenue by $0.3 million. On a constant currency basis, overall pro forma combined revenue growth was 13% in the first quarter.  Global revenue from Urgent PC totaled $4.7 million, up $0.6 million or 15% from the year ago period.  Global revenue from endoscopes and EndoSheath technology (inclusive of service and peripherals revenue) totaled $3.8 million, up $0.8 million or 26% from the year ago period.  Global Macroplastique revenue totaled $1.9 million, down $0.1 million or 7% from the year ago period. 

Gross margin in the first quarter was 67.2%, an increase from 66.5% in the year ago period on a pro forma non-GAAP basis.  Excluding intangible amortization and merger related expenses, operating expenses in the quarter totaled $9.6 million, down $1.2 million from the pro forma combined operating expenses of $10.8 million last year.  In the current quarter, intangible amortization was $0.6 million and merger related expenses totaled $0.5 million.   Excluding all non-cash items and merger related costs, cash operating loss was $1.7 million for the first quarter of fiscal 2016 compared to pro forma combined loss of $3.3 million in the first quarter of last year. Loss per share was $0.14 in the first quarter of fiscal 2016, compared to a reported loss per share of $0.14 in the year ago period.  The company's cash balance totaled $6.0 million as of June 30, 2015. 

Outlook

The Company is reaffirming the following guidance, initially provided on May 14, 2015:

• Total revenue in the range of $49.0 million to $51.0 million in fiscal 2016
• Cost synergies of approximately $3.0 million in fiscal 2016, exclusive of non-cash purchase price accounting adjustments such as amortization of identifiable intangibles
• Cash operating loss, excluding merger-related costs, in the range of $2.0 million to $3.0 million in fiscal 2016
• Cash flow positive from operations for the fiscal year ended March 31, 2017

Conference Call

Cogentix Medical will host a conference call and webcast today at 4:30 p.m. Eastern Time (3:30 p.m. Central Time). Rob Kill, President and Chief Executive Officer, and Brett Reynolds, Chief Financial Officer, will host the event. Individuals wishing to participate in the conference call should dial 866-410-4406 with the conference ID number 98473477. To access a live webcast of the call, go to the investor relations section of Cogentix Medical's website at ir.cogentixmedical.com.

An audio replay will be available for 30 days following the call at 855-859-2056 with the conference ID number 98473477. An archived webcast will also be available at ir.cogentixmedical.com.

About Cogentix Medical

Cogentix Medical, Inc., headquartered in Minnetonka, Minnesota, with additional operations in New York, Massachusetts, The Netherlands and the United Kingdom, is a global medical device company.  We design, develop, manufacture and market products for flexible endoscopy with our unique product lines featuring a streamlined visualization system and proprietary sterile disposable microbial barrier, known as EndoSheath technology, providing users with efficient and cost effective endoscope turnover while enhancing patient safety. 

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