Navigation Links
Escalon(R) Reports First Quarter Fiscal 2008 Results

WAYNE, Pa., Nov. 14 /PRNewswire-FirstCall/ -- Escalon Medical Corp. (Nasdaq: ESMC) today announced results for its fiscal first quarter ended September 30, 2007.

For the first quarter of fiscal 2008, the Company reported net revenue of $6,893,271, a 4% decrease from the $7,168,160, reported in the prior year period. This decrease was primarily due to decreased sales at the Company's Sonomed and Vascular business units, which decreased 3% and 2%, respectively, compared with the same period last fiscal year. The decrease was also attributable to decreased royalties received from the IntraLase License Agreement as a result of the Company's previously announced settlement agreement.

These decreases were offset by strong sales in the Company's Drew, Medical/Trek and Escalon Digital Solutions (EMI) business units, which increased approximately 9%, 5% and 33%, respectively, compared with the same period last fiscal year. Product revenue increased approximately $289,000, or 4%, to $6,833,000 during the three-month period ended September 30, 2007 compared with the three-month period ended September 30, 2006.

For the first quarter of fiscal 2008, the Company reported a net loss of ($828,791), or ($0.13) per diluted share, compared with a net loss of ($714,117), or ($0.11) per diluted share, in the first quarter of fiscal 2007. Cost of goods sold as a percentage of product revenue increased to approximately 57% of revenues during the three-month period ended September 30, 2007, as compared with approximately 55% of product revenue for the same period last fiscal year. Additionally, operating expenses decreased approximately 17% during the three-month period ended September 30, 2007, compared with the same period in the prior fiscal year. This was attributable to increased operating efficiencies at the Drew business, as well as higher than usual legal costs incurred during the prior year period that were related to the then ongoing IntraLase litigation.

Recap of Fiscal First Quarter 2008

Richard J. DePiano, Chairman and Chief Executive Officer, commented, "During the fiscal first quarter of 2008, we began to realize the full effect of our initiatives to streamline operations implemented during September 2006 with respect to the Drew business. We are very pleased with the performance at Drew and continue to look for additional opportunities to reduce our operating costs and expand operating margins throughout the entire organization."

Mr. DePiano added, "Turning to our operating performance for the first quarter of fiscal 2008, product revenue was $6,833,000 an increase of approximately $289,000, or 4%, during the three-month period ended September 30, 2007 compared with the same period last fiscal year. In the Drew business unit, product revenue was $3,036,000 an increase of approximately $250,000, or 9%, compared with the same period last fiscal year. The increase is primarily due to the introduction of the new FDA Trilogy instrument, international sales of the new D3 instrument and increased reagent revenues generated from Drew's United Kingdom facility. We anticipate that Drew's new D3 instrument will be ready for sale in the United States in the second quarter of fiscal 2008."

"At our Sonomed business unit, product revenue was $2,233,000 a decrease of approximately $60,000, or 3%, compared with last the fiscal year. The primary reason for this was a large increase in lower margin international sales combined with an overall decrease in unit sales in the higher margin domestic market on the VuMax II. Product revenue decreased $13,000, or 2%, to $804,000 from $817,000 in the Vascular business unit compared with the same period last fiscal year, primarily from a decrease in direct sales to end users by our domestic sales team. Overall sales have remained stable and we anticipate introducing a visual ultrasound vascular access product at Vascular during the second half of fiscal 2008."

"In our Medical/Trek business unit, product revenue increased $18,000, or 5%, to $383,000 as compared with last year, which is attributable to an increase in the sale of Medical/Trek's mature product line of Ispan Intraocular gases and fiber optic light sources. Additionally, product revenue increased $94,000, or 33% in our EMI business unit, when compared with last year. This increase is due to the sale of digital imaging systems. The EMI division is realizing the benefits of obtaining proprietary products and the successful expansion of its sales effort and product offerings."

Mr. DePiano concluded, "We are pleased with the sales progress at our Drew, Medical/Trek and EMI units, and anticipate that Drew will submit its new DS-360 Analyzer for FDA approval in the second half of fiscal 2008. Our profitability in the Vascular unit continues to be strong, and we are looking forward to introducing our new visual ultrasound product in this business during the second half of fiscal 2008. We continue to strengthen our business platform and expect to continue this momentum throughout the remainder of fiscal 2008."

Non-GAAP Measures

To supplement the Company's consolidated financial statements presented in accordance with GAAP, the Company has begun providing certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net loss and non-GAAP loss per fully diluted share.

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 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 depreciation and amortization and the adoption of the new accounting standard FAS 123R.

The non-GAAP measures and the reconciliation to the most directly comparable GAAP measure of all non-GAAP measures are as follows:

Three Months Ended September 30,

2007 2006

Net loss $(828,791) $(714,117)

Non-GAAP adjustments:

Stock-based compensation $12,934 $ -

Depreciation and amortization $145,083 $135,279

Total adjustments $158,017 $135,279

Non-GAAP adjusted loss $(670,774) $(578,838)

Shares used in computing

basic and fully diluted

earnings per share 6,388,086 6,344,657

Non-GAAP adjusted loss per fully

diluted share $(0.11) $(0.09)

Founded in 1987, Escalon develops markets and distributes ophthalmic diagnostic and surgical products as well as vascular access devices. Drew, 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 Escalon's distribution capabilities. Escalon has headquarters in Wayne, Pennsylvania and manufacturing operations in Long Island, New York, New Berlin, Wisconsin, Dallas, Texas, Oxford, Connecticut and Barrow-in-Furness, U.K.

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. They 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 implement its growth and marketing strategies, improve upon the operations of the Company's business units, including the integration of Drew's and MRP's operations and any acquisitions it may undertake, if any, of which there can be no assurance, implement cost reductions, generate cash and identify, finance and enter into business relationships and acquisitions, uncertainties and risks related to new product development, commercialization, manufacturing and market acceptance of new products, marketing acceptance of existing products in new markets, the continuity of royalty revenue, litigation and non-recurring expenses, research and development activities, including failure to demonstrate clinical efficacy, delays by regulatory authorities, scientific and technical advances by Escalon or third parties, introduction of competitive products, third party reimbursement and physician training as well as general economic conditions. Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10- K, and its other filings with the Securities and Exchange Commission, all of which are available from the Commission as well as other sources.




Three Months Ended September 30,

2007 2006

Net revenues:

Product revenue $6,833,350 $6,543,586

Other revenue $59,921 624,574

Revenues, net 6,893,271 7,168,160

Costs and expenses:

Cost of goods sold $3,922,586 3,630,380

Research and development $923,361 713,605

Marketing, general and

administrative $2,939,908 3,555,900

Total costs and expenses 7,785,855 7,899,885

Loss from operations (892,584) (731,725)

Other (expense) and income:

Equity in Ocular Telehealth

Management, LLC (34,111) (18,543)

Interest income 101,697 45,436

Interest expense (3,793) (9,285)

Total other income 63,793 17,608

Net (loss) before taxes (828,791) (714,117)

Provision for income taxes 0 0

Net (loss) $(828,791) $(714,117)

Basic net (loss) per share $(0.13) $(0.11)

Diluted net (loss) per share $(0.13) $(0.11)

Weighted average shares - basic 6,388,086 6,344,657

Weighted average shares - diluted 6,388,086 6,344,657


September 30, June 30,

2007 2007

Cash, cash equivalents and Investments $7,628,173 $8,879,462

Total current assets $19,890,626 $21,763,012

Total assets $43,259,117 $45,017,213

Current liabilities $3,570,805 $4,524,607

Long-term debt $ - $ -

Total shareholders' equity $38,601,312 $39,405,606

SOURCE Escalon Medical Corp.
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. Escalon(R) Reports Financial Results for 2007 Fiscal Year
2. New Study Reports High Injury Rates for Hotel Workers, Even Higher Rates for Women and Nonwhites
3. Haemacure Reports Third Quarter 2007 Results
4. First-Ever List of the 5,000 Fastest-Growing Businesses Reports Total Revenue of $194.5 Billion
5. Consumer Reports Analysis: Drugs for Nerve Pain, Fibromyalgia Effective, But Not Always Best
6. MDS Reports Third Quarter 2007 Results
7. Allied Healthcare Reports Strong Fourth Quarter, Flat Net Income for Fiscal 2007 vs. 2006
8. AtriCure Reports First Human Implant of the Cosgrove-Gillinov Left Atrial Appendage Occlusion System
9. NMHC Reports Fourth Quarter and Fiscal Year 2007 Financial Results
10. Blue Cross and Blue Shield of Florida Reports Eighteenth Consecutive Year of Positive Performance
11. ReBuilder Medical Technologies, Inc. Reports International Sales Expansion
Post Your Comments:
(Date:11/24/2015)... , ... November 24, 2015 , ... DMG Productions announced ... Begley Jr., airing first quarter 2016 via Discovery Channel. Dates and show times TBA. ... Province, and is in the business of producing and supplying medical marijuana pursuant to ...
(Date:11/24/2015)... ... November 24, 2015 , ... Preparing for the LDT Regulation:, CLIA Won’t ... , FDA has long asserted that design and manufacture of Laboratory ... tests and do not meet the device regulations. , Come up short in an ...
(Date:11/24/2015)... ... November 24, 2015 , ... The ... waive paid entry and parking fees at several of their most popular properties, ... Great Barrington in support of REI’s Black Friday #OptOutside Campaign. The Trustees encourage ...
(Date:11/24/2015)... Port Richey, FL (PRWEB) , ... November 24, 2015 , ... ... it deems a growing epidemic as deaths from prescription opioids in the United States ... heroin and cocaine. In 2013 alone, opioids were involved in 37 percent of all ...
(Date:11/24/2015)... (PRWEB) , ... November 24, 2015 , ... ... gather to share their knowledge and experiences at a live taping of the ... Ruesch Center for the Cure of Gastrointestinal Cancers 2015 Symposium at Georgetown University ...
Breaking Medicine News(10 mins):
(Date:11/24/2015)... November 24, 2015   ... dietician deliver s advice and insights on ... More than 50% of Dubai ... healthy according to the DHA   femMED launches comprehensive solutions ...    Dubai residents are not consuming enough to ...
(Date:11/24/2015)... , Nov. 24, 2015 Abaxis, Inc. (NasdaqGS: ... instruments and consumables for the medical, research, and veterinary ... Chief Financial Officer, will present at the 27 th ... 1, 2015 at 11:30 a.m. ET. The conference will ... New York City . ...
(Date:11/24/2015)... 2015 Edelris announce today that they ... Inserm, Poxel, CNRS, UCBL and ENS-Lyon on a new treatment ... --> Hepatitis B virus (HBV) infection is a major ... infected worldwide, 20 to 40% of them being at risk ... the existence of an effective preventive vaccine, the HBV infection ...
Breaking Medicine Technology: