MELVILLE, NY--(Marketwired - August 14, 2013) - Bovie Medical Corporation (the "Company") (NYSE MKT: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the second quarter and six months ended June 30, 2013.
For the second quarter of fiscal 2013 ended June 30, 2013, revenues totaled $6.04 million, resulting in a net loss of $(1.12) million or a loss of $(0.06) per diluted share. In the comparable period last year revenues were $7.44 million, resulting in net income of $152,000 or $0.01 per diluted share.
For the first-half of fiscal 2013, ended June 30, 2013, the Company reported revenues of $11.74 million and a net loss of $(1,529) million or a loss of $(0.09) per diluted share. For the first six months of fiscal 2012, revenues were $14.17 million, resulting in net income of $339,000 or $0.02 per diluted share.
Second quarter sales were negatively impacted by the completion of two large multi-year OEM contracts in 2012, a new medical device tax imposed under the Affordable Care Act of 2010, a legal award, costs relating to ongoing litigations, increasing expenses relating to the marketing of J-Plasma® as well as challenges and time delays encountered in the hospital purchasing committee process. While J-Plasma® remains our main focus, talks continue with several potential OEM customers.
Following a jury trial on August 8, 2013, a jury awarded Leonard Keen severance and reinstatement of 110,000 stock options. In addition, Mr. Keen was awarded attorney's fees in an amount to be determined by the Court, and we have accrued $1,041 million as an estimate of the entire total. The Company is presently reviewing its options as they pertain to the verdict.
J-Plasma® Update
The Company's initial entry in the Gynecology market is for surgical procedures targeting Endometriosis. There are over 600,000 surgeries performed annually. Furthermore, it has been demonstrated that C-Section procedures are positively impacted by the usage of J-Plasma®.
Dr. Marcus Vennart, a noted women's care surgeon, who has also used J-Plasma® on other surgical cases including laparoscopy, performed a C-Section procedure in Las Vegas, NV and remarked, "I just saw the C-Section patient back and the incision looks great. The muscle really came down nice with J-Plasma® considering she was a previous C-Section."
C-Sections are estimated to be performed on 32.8% of women resulting in over 1.5M procedures annually in the U.S. Rob Saron, President of Bovie Medical Corporation stated, "Over the last several months, we have successfully proven the benefits of J-Plasma® in the Gynecology market with Endometriosis, ovarian cysts and several other procedures. However, we have always suspected that C-Sections would be ideal procedures for the technology due to its ability to control the amount of tissue damage, when compared to conventional methods; as well as the surgeons' desire to be able to cut, coagulate and dissect tissue with one device. Now it's been confirmed through its use in this procedure. We continue to execute our plan and expect to report successful outcomes from many different procedures and specialties in the near future."
Additionally, surgical papers and case studies on J-Plasma® are expected to be completed in coming months.
As previously reported, teaching courses for surgeons and sales representatives continue twice monthly and interest continues strong with nearly all participants requesting the use of J-Plasma® for their upcoming surgical procedures.
Management believes that the increasing number of successful J-Plasma® surgeries performed in several surgical specialties will result in hospital purchasing committee approval for J-Plasma's® purchase and use, and increased sales. The overwhelming surgeon acceptance of J-Plasma®, combined with its demonstrated superior outcomes for patients and hospital cost-cutting, bolster our confidence that J-Plasma® will be a major success for patients and Bovie stockholders.
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 SIX MONTHS PERIODS ENDED JUNE 30, 2013 AND 2012
(UNAUDITED) (in thousands except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Sales $ 6,042 $ 7,440 $ 11,738 $ 14,173
Cost of sales 3,812 4,584 7,357 8,521
--------- --------- --------- ---------
Gross profit 2,230 2,856 4,381 5,652
--------- --------- --------- ---------
Legal Award 1,041 -- 1,041 --
--------- --------- --------- ---------
Other costs and expenses 2,839 2,616 5,655 5,016
--------- --------- --------- ---------
Income (loss) from operations (1,650) 240 (2,315) 636
Other income (expense):
Change in fair value of
derivative liabilities, net 37 44 4 27
Interest expense, net (60) (58) (116) (116)
--------- --------- --------- ---------
Income (loss) before income
taxes (1,673) 226 (2,427) 547
Benefit (provision) for income
taxes, net 554 (74) 898 (208)
--------- --------- --------- ---------
Net income (loss) $ (1,119) $ 152 $ (1,529) $ 339
========= ========= ========= =========
Earnings (loss) per share
Basic $ (0.06) $ 0.01 $ (0.09) $ 0.02
========= ========= ========= =========
Diluted $ (0.06) $ 0.01 $ (0.09) $ 0.02
========= ========= ========= =========
Weighted average number of
shares outstanding- basic 17,669 17,629 17,660 17,625
========= ========= ========= =========
Weighted average number of
shares Adjusted for dilutive
securities 17,669 17,768 17,660 17,769
========= ========= ========= =========
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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