Valley Forge Scientific Reports Second Quarter/Six Month Fiscal
2004 Operating Results OAKS, Pa., May 11 /PRNewswire-FirstCall/ --
Valley Forge Scientific Corp. , a leading developer of bipolar
electrosurgical systems, today announced operating results for the
second quarter and first six months of fiscal 2004 ended March 31,
2004. Sales for the quarter of $1,132,771 were 12% less than sales
of $1,289,136 for the second quarter of fiscal 2003. Net income for
the quarter was $7,579, or $0.00 per basic and diluted share, as
compared to $29,593, or $0.00 per basic and diluted share, for the
second quarter of fiscal 2003. Sales for the first six months of
$2,332,240 were slightly greater than sales of $2,309,087 for the
first six months of fiscal 2003. Net income for the first six
months was $80,558, or $0.01 per basic and diluted share, as
compared to $69,732, or $0.01 per basic and diluted share, for the
first six months of fiscal 2003. Sales for the quarter reflect an
increase in sales volume of the Bident(R) Bipolar Tissue Management
System to $118,817, or 11% of sales, from $86,708, or 7% of sales,
for the comparable period in fiscal 2003. For the first six months,
sales volume was $288,866, or 12% of sales, as compared to $86,708,
or 4% of sales for the comparable period in fiscal 2003. For the
quarter, sales to Codman & Shurtleff, Inc. accounted for
$975,012, or 86% of sales, as compared to $1,180,525, or 92% of
sales, for the comparable period of fiscal 2003. For the first six
months, sales to Codman & Shurtleff, Inc. were $2,000,977, or
86% of sales, as compared to $2,192,525, or 95% of sales, for the
first six months of fiscal 2003. Included in sales to Codman &
Shurtleff is a one-time payment of $57,920 that Codman &
Shurtleff made to satisfy its minimum purchase obligation under the
first three month extension of an existing distribution agreement.
For the quarter, gross margin was 55% of sales, as compared to 52%
of sales for the second quarter of fiscal 2003, and gross margin
was 54% of sales for the first six months as compared to 50% of
sales for the comparable period of fiscal 2003. The difference in
gross margin was attributable to $57,920 payment by Codman &
Shurtleff in the second quarter of fiscal 2004, an increase in
sales of dental products, and changes in product mix. Selling,
general and administrative (SG&A) expenses were $470,208, or
42% of sales, as compared to $489,747, or 38% of sales, for the
second quarter of fiscal 2003. For the six months, SG&A
increased to $868,545, or 37% of sales, as compared to $816,050, or
35% of sales, for the comparable period in fiscal 2003. SG&A
expenses reflect increased selling and marketing expenses incurred
in connection with implementing sales and marketing efforts for the
Bident(R) Bipolar Tissue Management System. Research and
development (R&D) expenses were $127,013, or 11% of sales, for
the quarter as compared to $120,169, or 9% of sales, for the second
quarter of the 2003 fiscal year. For the first six months, R&D
expenses were $240,908, or 10% of sales, as compared to $209,507,
or 9% of sales, for the comparable period in fiscal 2003. "In the
first six months of fiscal 2004, sales of our dental products
exceeded the sales levels for the entire 2003 fiscal year. We
expect to continue to make strides in dental sales throughout the
year, however, sales may fluctuate from quarter-to-quarter based on
the timing of orders we receive from distributors and direct sales.
In this regard, while our sales for the second quarter of $118,817
exceeded sales for the comparable quarter in fiscal 2003, they were
less than sales of $170,049 for the first quarter of 2004," said
Jerry Malis, President and CEO of Valley Forge Scientific Corp.
"During the quarter, we entered into a second extension of our
distribution agreement with Codman & Shurtleff, Inc., extending
the term of that agreement until June 30, 2004 in order to provide
more time to continue discussions on the terms of a new
distribution agreement for our current products and the next
generation of our neurosurgical generator and disposable
instrumentation. During the quarter, we also devoted research and
development activities to the development of next generation of
neurosurgical generator and instrumentation and other products."
"We recently received 510(k) approval from the Food and Drug
Administration to market a new product which we have been
developing for Stryker Corporation. We are discussing the
distribution of that product with Stryker Corporation." Management
of Valley Forge Scientific will discuss the second quarter and
first six months of the 2004 fiscal year and financial results on
Tuesday, May 11, 2004 in a conference call scheduled for 10:30 a.m.
ET. Those who wish to participate in the conference call may do so
by calling (877) 356-9134 approximately 10 minutes prior to the
start time and providing confirmation code 7292412 to the
conference operator. For callers outside the United States, the
number is (706) 643-3775. An audiotape replay will be available by
telephone at (800) 642-1687, confirmation code 7292412,
approximately two hours following the conclusion of the call
through May 25, 2004. International callers can access this replay
at (706) 645-9291. Valley Forge Scientific has established itself
as a leading developer and manufacturer of bipolar electrosurgical
systems and related instrumentation. Based on its DualWave(TM)
technology, these systems provide surgeons with the ability to
safely cut and coagulate tissue in the most critical areas of the
brain and spinal cord. Based on technology developed in conjunction
with Leonard I. Malis, MD, Professor and Chairman Emeritus of the
Mount Sinai School of Medicine Department of Neurosurgery, our
bipolar electrosurgery systems are considered to be the gold
standard worldwide for use in the central nervous system. For more
information on DualWave(TM) technology, our bipolar electrosurgery
systems, or other Valley Forge Scientific products, please visit
our Web site at http://www.vlfg.com/. VALLEY FORGE SCIENTIFIC CORP.
Financial Highlights Unaudited For the Three For the Six Months
Ended Months Ended 3/31/04 3/31/03 3/31/04 3/31/03 Net Sales
$1,132,771 $1,289,136 $2,332,240 $2,309,078 Gross Profit $620,907
$655,733 $1,265,072 $1,152,088 Selling, general and administrative
expenses $470,208 $489,747 $868,545 $816,050 Research and
development expenses $127,013 $120,169 $240,908 $209,507 Operating
Income $13,612 $45,742 $135,470 $106,381 Provision for Income Taxes
$11,402 $22,972 $65,950 $52,461 Net Income $7,579 $29,593 $80,558
$69,732 Basic income per share $0.00 $0.00 $0.01 $0.01 Diluted
income per share $0.00 $0.00 $0.01 $0.01 Common shares outstanding:
Basic 7,913,712 7,976,926 7,913,712 7,995,604 Diluted 7,977,448
7,992,841 7,971,722 8,018,553 Sales Highlights Unaudited For the
Three For the Six Months Ended Months Ended 3/31/04 3/31/03 3/31/04
3/31/03 Generators, Irrigation and Accessory Products Neurosurgery
$441,235 $577,030 $1,048,626 $1,076,800 Dental $104,590 $80,420
$256,630 $80,420 Other $15,000 $15,000 Total: $560,825 $657,450
$1,320,256 $1,157,220 Disposable Products Neurosurgery $433,139
$560,930 $804,724 $989,305 Dental $14,227 $6,288 $32,237 $6,288
Total: $447,366 $567,218 $836,961 $995,593 Forward-Looking
Statements Statements in this press release regarding our
expectations for products we are developing or have developed,
introduction of products into the marketplace, acceptance of our
products in the marketplace, new products and alliances, and any
other statements in this press release that refers to Valley Forge
Scientific's estimated or anticipated future results are
forward-looking statements. All forward-looking statements in this
press release reflect Valley Forge Scientific's current analysis of
existing trends and information and represent Valley Forge
Scientific's judgment only as of the date of this press release.
Actual results may differ from current expectations based on a
number of factors affecting Valley Forge Scientific's business,
including but not limited to competitive, regulatory and market
conditions; the performance of new products and the continued
acceptance of current products; the execution of strategic
initiatives and alliances; the market penetration by third parties
who distribute and sell Valley Forge Scientific's products; Valley
Forge Scientific's ability to maintain a sufficient supply of
products; product liability claims; and the uncertainties
associated with intellectual property protection for these
products. In addition, matters generally affecting the domestic and
global economy can affect Valley Forge Scientific's results.
Therefore, the reader is cautioned not to rely on these
forward-looking statements. Valley Forge Scientific disclaims any
intent or obligation to update these forward-looking statements.
Additional information concerning these and other risk factors may
be found in Valley Forge Scientific's public periodic filings with
the Securities and Exchange Commission, including Valley Forge
Scientific's Form 10-K for the year ended September 30, 2003. FROM:
Todd Forte Sr. Vice President MCS (800) 477-9626 COMPANY CONTACT:
Jerry Malis CEO and President 136 Green Tree Rd., Ste. 100 P.O. Box
1179 Oaks, PA 19456 E-MAIL: PHONE: (610) 666-7500 FAX: (610)
666-7565 NASDAQ: VLFG BSE: VLF DATASOURCE: Valley Forge Scientific
Corp. CONTACT: Todd Forte, Sr. Vice President of MCS,
1-800-477-9626, for Valley Forge Scientific Corp.; or Jerry Malis,
CEO and President of Valley Forge Scientific Corp.,
+1-610-666-7500, or fax, +1-610-666-7565, Web site:
http://www.vlfg.com/
Copyright
Valley Forge Scientific (NASDAQ:VLFG)
Historical Stock Chart
From Jan 2025 to Feb 2025
Valley Forge Scientific (NASDAQ:VLFG)
Historical Stock Chart
From Feb 2024 to Feb 2025