WAYNE, Pa., May 19 /PRNewswire-FirstCall/ -- Escalon Medical Corp. today announced results for its fiscal third quarter ended March 31, 2009.
For the third quarter of fiscal 2009, the Company reported increased net revenue of $9,205,000, compared with $8,188,000 in the third quarter of fiscal 2008. This included product revenue of $9,174,000 for the third quarter of fiscal 2009, a 12.7% increase, compared with $8,139,000 in the prior year’s third quarter.
The Company experienced continued customer demand at its Drew and EMI business units, which reported 2009 third quarter product revenue growth of 41.4% and 88.5%, respectively, compared with the same period last fiscal year. This growth was offset by decreased 2009 third quarter sales in the Sonomed, Vascular and Medical/Trek business units of 11.9%, 30% and 4%, respectively.
For the nine-month period ended March 31, 2009, the Company reported net revenue of $26,001,000, compared with $22,576,000 in the prior year comparable period. Product revenue increased approximately 15.5% to $25,904,000 during the nine-month period ended March 31, 2009, compared with $22,422,000 in the same period last fiscal year. The growth was driven by increased product revenue within three of the Company’s business units, highlighted by 33.8% at Drew, primarily related to the acquisition of JAS Diagnostics in May 2008 and Biocode Hycel in December 2008. Sonomed and EMI product revenue increased 1.1% and 32.5%, respectively.
For the third quarter of fiscal 2009, the Company reported a net loss of $(683,173), or $(0.09) per diluted share, compared with net loss of $(1,942,622), or $(0.30) per diluted share, in the third quarter of fiscal 2008. Operating results were impacted by lower cost of goods sold, which totaled approximately $4,729,000, or 51.5% of product revenue, for the three-month period ended March 31, 2009, as compared to $4,913,000, or 60.4% of product revenue, for the same period last fiscal year.
The Company reported a net loss for the nine months ended March 31, 2009 of $(1,861,000), or $(0.27) per diluted share, compared with a net loss of $(3,410,759), or $(0.53) per diluted share, in the prior year period. Cost of goods sold as a percentage of product revenue decreased to approximately 54.8% during the nine-month period ended March 31, 2009, as compared to approximately 57.0% for the same period last fiscal year. Additionally, operating expenses increased approximately 2.7% during the nine-month period ended March 31, 2009, compared to the same period in the prior fiscal year. The increase is related to the acquisition of JAS Diagnostics in May 2008 and Biocode Hycel in December 2008.
Richard J. DePiano, Chairman and Chief Executive Officer, commented, “We produced solid revenue growth through the first nine months of fiscal 2009 and, despite increasing operating and research and development expenses, lowered our net loss. While we are still disappointed with our net loss, we are encouraged by the trend our clinical diagnostics division has been experiencing. Mr. DePiano concluded, “Overall, we continue to take steps to diversify our product portfolio, enhance our market position and seek potential growth opportunities we see ahead in our niche markets.”
Non-GAAP Measures
To supplement the Company’s consolidated financial statements presented in accordance with GAAP, the Company provides certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net loss and non-GAAP loss per fully diluted share.
The Company’s reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance and provide further information for comparative purposes due to the adoption of the new accounting standard FAS 123R.
Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, the Company believes non-GAAP measures that exclude stock-based compensation expense enhance the comparability of results against prior periods. The non-GAAP measures and the reconciliation to the most directly comparable GAAP measure of all non-GAAP measures are as follows:
Founded in 1987, the Company (http://www.escalonmed.com) develops, markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. Drew Scientific, which operates as a separate business unit, provides instrumentation and consumables for the diagnosis and monitoring of medical disorders in the areas of diabetes, cardiovascular diseases and hematology, as well as veterinary hematology and blood chemistry. The Company seeks to utilize strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the Company’s distribution capabilities, although such partnerships or acquisitions may not occur. The Company has headquarters in Wayne, Pennsylvania and operations in Long Island, New York, New Berlin, Wisconsin, Lawrence, Massachusetts, Dallas, Texas, Waterbury, Connecticut, Miami, Florida, Barrow-in-Furness, U.K. and Le Rheu, France.
Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company’s future prospects. These statements are based on the Company’s current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to:
Other factors include uncertainties and risks related to:
Further information about these and other relevant risks and uncertainties may be found in the Company’s report on Form 10-K for year ended June 30, 2008, subsequent quarterly reports filed on Form 10-Q and the Company’s other filings with the Securities and Exchange Commission, all of which are available from the Securities and Exchange Commission as well as other sources.
CONTACT: Richard J. DePiano, Chairman and CEO of Escalon Medical Corp.,
+1-610-688-6830
Web site: http://www.escalonmed.com/
