Escalon(R) Reports First Quarter Fiscal 20...(imarily from a decreasein direct sales t...),Health

"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 st
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