MELVILLE, NY--(Marketwired - November 14, 2013) - Bovie Medical Corporation (the "Company") (NYSE MKT: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the third quarter and nine months ended September 30, 2013.
Revenues for the third quarter of fiscal 2013 ended September 30, 2013 decreased 13% to $5.8 million compared to $6.7 million in the same period of fiscal 2012. Net loss for the third quarter of 2013 was $(341,000) or $(.02) per diluted share versus a net loss of $(7,000) or $(.00) per diluted share in the third quarter last year.
For the nine months ended September 30, 2013, sales totaled $17.5 million resulting in a net loss of $(1,870,000) or $(.11) per diluted share. For the nine months of fiscal 2012 sales were $20.8 million resulting in net income of $331,000 or $.02 per diluted share. Included in the 2013 nine-month loss was a litigation-related payment of $1,041,000.
The third quarter and nine-month results were negatively impacted by an overall decline in OEM business, the costs of legal fees and litigation-related payments, and the continued investments in the marketing of J-Plasma®, Bovie's innovative signature technology.
Additionally, the Company's profitability and cash position suffered due to the newly imposed medical device tax of 2.3% on gross sales amounting to $101,000.00 in the third quarter and $284,000.00 for the nine months.
Management's preliminary estimates for 2014 include improved sales, based in part upon gains in the Company's OEM business and increases in revenues from the Company's J-Plasma® technology. The Company is currently actively negotiating three OEM opportunities, with one of the proposed transactions in the contract preparation stage with payments to Bovie already having been made for pre-contract technology work. Management also believes that its core business in the physician office market should experience improvement next year.
Also contributing to a better outlook should be the significant reduction in legal costs for fiscal year 2014.
The Company is currently exploring funding opportunities to enable it to maximize the market opportunities for J-Plasma® in various surgical specialties.
J-Plasma® News - "A New Helium Based Energy"
The Company is pleased to report that earlier today (November 14, 2013) at the AAGL Global Congress in Washington, D.C., renowned gynecological surgeons Dr. Warren Volker and Dr. Melissa Gutierrez gave a video presentation and narration programmed and titled "A New Helium Based Energy Device for Advanced Gynecologic Laparoscopy."
Jeff Rencher, Vice President of Surgical Sales stated: "The impact of Dr. Volker and Dr. Gutierrez's video presentation is a significant development and milestone for J-Plasma®, in what we anticipate will be the first of several positive presentations and documents." The presentation will be posted on Bovie's website at www.boviemed.com.
At the conference (November 10-14) Bovie's large, well-positioned and active booth was staffed by Bovie personnel and prominent surgeons daily, who made J-Plasma® presentations and then spoke to and answered questions from the many surgeons visiting the Bovie booth.
At the conference Bovie displayed its new ergonomic and user-friendly "Pistol Grip" handpiece which should be released for distribution by the end of the first quarter of 2014. The development of the "Pistol Grip," facilitating better ergonomics and function, resulted from customer feedback during this early marketing of J-Plasma®.
Bovie also attended the AUGS (American Urogynecologic Society) Conference in late October where a considerable number of surgeons showed great interest in using J-Plasma®, and several were impressed with J-Plasma's® safety aspect.
Jeff Rencher further stated: "In a laboratory session held before the AUGS meeting and attended by 60 surgeons, we made a positive impression on the surgeons in that we had seven J-Plasma® stations that surgeons rotated through, and were able to use J-Plasma®. Also, in another room with a robot demo and, much to my excitement, they used J-Plasma® through the auxiliary port." Bovie will be working on a robot version of J-Plasma® during fiscal 2014.
Cautionary Note on Forward-Looking Statements
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission including the Company's Report on Form 10-K for the year ended December 31, 2012. For forward-looking statements in this new release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
For further information about the Company's current and new products, please refer to the Investor Relations section of Bovie's website www.boviemed.com.
BOVIE MEDICAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(UNAUDITED) (in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Sales $ 5,794 $ 6,671 $ 17,532 $ 20,843
Cost of sales 3,545 3,777 10,902 12,297
--------- --------- --------- ---------
Gross profit 2,249 2,894 6,630 8,546
--------- --------- --------- ---------
Other costs and expenses 2,724 2,612 9,420 7,628
--------- --------- --------- ---------
Income (loss) from operations (475) 282 (2,790) 918
Change in fair value of
liabilities, net 13 (135) 17 (108)
Interest expense, net (54) (58) (171) (175)
--------- --------- --------- ---------
Income (loss) before income
taxes (516) 89 (2,944) 635
Benefit (provision) for income
taxes, net 175 (96) 1,074 (304)
--------- --------- --------- ---------
Net income (loss) $ (341) $ (7) $ (1,870) $ 331
========= ========= ========= =========
Earnings (loss) per share
Basic $ (0.02) $ -- $ (0.11) $ 0.02
========= ========= ========= =========
Diluted $ (0.02) $ -- $ (0.11) $ 0.02
========= ========= ========= =========
Weighted average number of
shares outstanding - basic 17,678 17,634 17,666 17,628
========= ========= ========= =========
Weighted average number of
shares outstanding - dilutive 17,678 17,634 17,666 17,731
========= ========= ========= =========
For further information contact:
Bovie Medical Investor Relations and Shareholder Information
Joseph M. Vazquez III
Phone: (800) 448-7097
Email: infinityglobalconsulting@gmail.com
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