Encision Reports Third Fiscal Quarter Results
January 29 2008 - 6:52AM
PR Newswire (US)
BOULDER, Colo., Jan. 29 /PRNewswire-FirstCall/ -- Encision Inc.
(AMEX:ECI), a medical device company owning patented surgical
technology that is emerging as a standard of care in
minimally-invasive surgery, reported its financial results for its
third fiscal quarter ended December 31, 2007. Net sales for the
third quarter of fiscal year 2008, ended December 31, 2007, totaled
$3.13 million, representing a 12% increase over net sales of $2.79
million for the prior fiscal year's third quarter. The Company
recorded net income of $59 thousand or $.01 per share for the third
quarter of fiscal year 2008 compared to a net loss of $49 thousand
or $.01 per share for the third quarter of fiscal year 2007. Net
loss for the third quarter of fiscal year 2007 included a one-time
expense of $73 thousand, or $.01 per share, relating to the costs
of obtaining equity capital financing, a project that was
subsequently abandoned after the Company obtained a $2 million line
of credit facility from SVB Silicon Valley Bank. Gross profit
margin for the third quarter of fiscal year 2008 was 65% as
compared to 62% for the third quarter of fiscal year 2007. Gross
profit margin for the third quarter of fiscal year 2008 included an
approximately 1% increase from the third quarter of fiscal year
2007 gross profit margin that was attributed to a decrease in
accrued liabilities related to warranty claims and an approximately
1/2% increase in gross profit margin that was attributed to a
limited shipment of our internally manufactured scissor inserts.
"Our improvement in net income in the third quarter ended December
31, 2007 was aided by an increase in gross profit margin from our
internal scissor insert manufacturing project," said Jack Serino,
President & CEO of Encision Inc. "We began transitioning some
customers to our lower cost of goods disposable scissor inserts
during the past quarter and are starting to see the impact on our
bottom line. We expect to be shipping all Encision-made disposable
scissor inserts by the middle of our fiscal year that ends March
31, 2009." Net sales for the first nine months of fiscal year 2008,
ended December 31, 2007, totaled $8.88 million, representing an 8%
increase over net sales of $8.19 million for the prior fiscal
year's first nine months. The Company recorded a net loss of $228
thousand or $.04 per share for the first nine months of fiscal year
2008 compared to net income of $87 thousand or $.01 per share for
the first nine months of fiscal year 2007. Gross profit margin for
the first nine months of fiscal year 2008 was 63% as compared to
63% for the first nine months of fiscal year 2007. Encision Inc.
designs, develops, manufactures and markets innovative surgical
devices that allow surgeons to optimize technique and patient
safety during a broad range of surgical procedures. Based in
Boulder, Colorado, the Company pioneered the development of
patented AEM(R) Laparoscopic Instruments to improve electrosurgery
and reduce the chance for patient injury in minimally invasive
surgery. In accordance with the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, the Company notes
that statements in this press release and elsewhere that look
forward in time, which include everything other than historical
information, involve risks and uncertainties that may cause actual
results to differ materially from those indicated by the
forward-looking statements. Factors that could cause the Company's
actual results to differ materially include, among others, its
ability to increase net sales through the Company's distribution
channels, insufficient quantity of new account conversions,
insufficient cash to fund operations, scale up production to meet
delivery obligations, delay in developing new products and
receiving FDA approval for such new products and other factors
discussed in the Company's filings with the Securities and Exchange
Commission. CONTACT: Marcia McHaffie, Encision Inc., 303-444-2600,
ENCISION INC. Condensed Statements of Operations (Amounts in
thousands, except per share information) (Unaudited) (Unaudited)
Three Months Ended Nine Months Ended December 31, December 31,
December 31, December 31, 2007 2006 2007 2006 Net sales $3,131
$2,787 $8,883 $8,192 Cost of sales 1,103 1,054 3,301 3,055 Gross
profit 2,028 1,733 5,582 5,137 Operating expenses 1,961 1,794 5,797
5,089 Operating income (loss) 67 (61) (215) 48 Other income
(expense) (8) 12 (13) 39 Net income (loss) $59 $(49) $(228) $87 Net
income (loss) per share $0.01 $(0.01) $(0.04) $0.01 ENCISION INC.
Condensed Balance Sheets (Amounts in thousands) (Unaudited)
(Audited) December 31, March 31, 2007 2007 Cash and cash
equivalents $99 $436 Current assets 3,543 3,637 Total assets 4,627
4,388 Current liabilities 1,775 1,464 Shareholders' equity 2,852
2,923 Total liabilities and shareholders' equity $4,627 $4,388
DATASOURCE: Encision Inc. CONTACT: Marcia McHaffie of Encision
Inc., +1-303-444-2600, Web site: http://www.encision.com/
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