FARMINGDALE, N.Y., Feb. 9, 2017 /PRNewswire/ -- Misonix, Inc. (Nasdaq: MSON), a provider of minimally invasive therapeutic ultrasonic medical devices that enhance clinical outcomes, announced today the filing of Form 10-K with the Securities and Exchange Commission for the fiscal year ended June 30, 2016 and provided preliminary results for its second fiscal quarter ended December 31, 2016.
The Company has recently completed a voluntary internal investigation, assisted by outside legal counsel and accounting resources, into the business practices of the independent Chinese entity that previously distributed its products in China and the Company’s knowledge of those business practices, which may have implications under the Foreign Corrupt Practices Act, as well as into various internal control issues identified during the investigation. While the internal investigation is now complete, as previously reported, the Company reported to the SEC and the Department of Justice the business practices that were the subject of the Company’s investigation and the government’s investigation of these matters is on-going. The Company has no information derived from the internal investigation or otherwise to suggest that its previously reported financial statements and results were incorrect. A restatement of prior financial results was not required.
Sales and net loss for fiscal year 2016 were consistent with the Company’s previous disclosure. The Company reported net sales of $23.1 million, an increase of 4.1% over the prior year and a net loss of $1.2 million, or $(0.15) per diluted share, compared with net income of $5.6 million, or $0.69 per diluted share, in the prior fiscal year. The Company’s cash balance at January 31, 2017 was $12.0 million.
Stavros Vizirgianakis, president and chief executive officer of Misonix, Inc., stated, “After an exhaustive internal investigation we are pleased to file Form 10-K for the year ended June 30, 2016. An important conclusion of the investigation is that our financial statements were accurate in all material respects and that a restatement was not necessary. Although the investigation uncovered material weaknesses in our internal control over financial reporting and our disclosure controls and procedures, the Form 10-K describes in detail the remediation measures that we have already taken to address these matters.”
“We are currently working diligently to complete our Form 10-Qs for the quarters ended September 30, 2016 and December 31, 2016, which we intend to file not later than March 13, 2017. While our second quarter 10-Q filing will be delayed, upon the filing of those two Form 10-Qs with the Securities and Exchange Commission, we will conduct a conference call to provide a comprehensive business update and review our vision for the Company in the coming years.”
Preliminary results for the second fiscal quarter ended December 31, 2016 are net sales of $6.0 million, compared with net sales of $6.0 million for the second fiscal quarter ended December 31, 2015. For the six months ended December 31, 2016, preliminary sales are $12.2 million, or 8.0% higher than for the first six months of the prior year of $11.3 million. Due to the delay and internal resource allocation associated with the filing of the Company’s 10-K, the Company is not in a position to provide preliminary net income data for the second fiscal quarter and the six months ended December 31, 2016.
Form 10-K for the fiscal year ended June 30, 2016 can be found on the Investor Relations section of the Misonix website at www.misonix.com.
About Misonix
Misonix, Inc. designs, develops, manufactures and markets therapeutic ultrasonic medical devices. Misonix’s therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated in excess of $1.5 billion annually; Misonix’s proprietary ultrasonic medical devices are used in spine surgery, neurosurgery, orthopedic surgery, wound debridement, cosmetic surgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company’s website at www.misonix.com
With the exception of historical information contained in this press release, content herein may contain “forward looking statements” that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made.
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