Encision Reports Fourth Quarter and Fiscal Year 2008 Results
May 20 2008 - 7:00AM
PR Newswire (US)
BOULDER, Colo., May 20 /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
fourth quarter and fiscal year ended March 31, 2008. Net sales for
the fourth quarter of fiscal year 2008, ended March 31, 2008,
totaled $3.18 million, representing a 13% increase over net sales
of $2.82 million for the prior fiscal year's fourth quarter. The
Company recorded net income of $49 thousand or $.01 per share for
the fourth quarter of fiscal year 2008 compared to a net loss of
$177 thousand or $.03 per share for the fourth quarter of fiscal
year 2007. Gross profit margin for the fourth quarter of fiscal
year 2008 was 63.5% as compared to 62.7% for the fourth quarter of
fiscal year 2007. Net sales for the fiscal year ended March 31,
2008 totaled $12.1 million, representing a 10% increase over net
sales of $11 million for the prior fiscal year. The Company
recorded a net loss of $179 thousand or $.03 per share for the
fiscal year 2008 compared to a net loss of $90 thousand or $.01 per
share for the fiscal year 2007. Net loss for the 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 credit facility from SVB Silicon Valley Bank. Gross
profit margins were 63% for both fiscal years 2008 and 2007. "While
we had sales growth that was modest, but sustainable, when compared
to last fiscal year, we made significant strides toward setting a
new course of action for our company during the fiscal year ended
March 31, 2008," said Jack Serino, President and CEO of Encision
Inc. "In the second half of fiscal year 2008, we began shipping
limited numbers of our internally manufactured disposable scissor
inserts. Disposable scissor inserts represent approximately 50% of
our total sales. Our proprietary manufacturing technology will
enable us to achieve cost improvements and will enhance the quality
and consistency of our scissor inserts. Inventory of externally
produced disposable scissor inserts is expected to be depleted by
late summer 2008. Thereafter, all sales of our disposable scissor
inserts will be internally manufactured, which will help to improve
our gross profit margin." "In addition, we launched our new line of
disposable hand-switching fixed tip electrodes in late fiscal year
2008 as part of our pledge to offer the market disposable and
reusable alternatives for each of our major product groups. Also,
during fiscal year 2008, we launched a new line of handles that are
used for advanced laparoscopic procedures that incorporate stiffer
shafts and ergonomic features. And, in fiscal year 2008, we
continued to expand our direct sales force with the addition of
three direct sales representatives." 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)
(Audited) Three Months Ended Fiscal Years Ended March 31, March 31,
March 31, March 31, 2008 2007 2008 2007 Net sales $3,183 $2,817
$12,066 $11,010 Cost of sales 1,163 1,050 4,464 4,106 Gross profit
2,020 1,767 7,602 6,904 Operating expenses 1,959 1,947 7,757 7,035
Operating income (loss) 61 (180) (155) (131) Other income (expense)
(12) 3 (24) 41 Net income (loss) $49 $(177) $(179) $(90) Basic net
income (loss) per share $0.01 $(0.03) $(0.03) $(0.01) ENCISION INC.
Condensed Balance Sheets (Audited) (Amounts in thousands) March 31,
March 31, 2008 2007 Cash and cash equivalents $71 $436 Current
assets 3,894 3,637 Total assets 4,944 4,388 Current liabilities
2,016 1,464 Shareholders' equity 2,929 2,923 Total liabilities and
shareholders' equity $4,944 $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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