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Escalon(R) Reports First Quarter Fiscal 2009 Results
Date:11/13/2008

Escalon Reports on Discussions Regarding Potential Acquisition of

Haematology Business Assets

WAYNE, Pa., Nov. 13 /PRNewswire-FirstCall/ -- Escalon Medical Corp. (Nasdaq: ESMC) today announced results for its fiscal first quarter ended September 30, 2008.

For the first quarter of fiscal 2009, the Company reported increased net revenue of $8,697,000 compared with $6,893,000 in fiscal 2007. This included product revenue of $8,669,000 for the first quarter of fiscal 2009, a 27% increase compared with $6,833,000 in the prior year. The increase in fiscal 2009 net revenue was primarily due to higher product revenues.

The Company experienced strong customer demand across most of its core businesses, reporting 2009 first quarter product revenue growth at its Drew, Sonomed, Vascular and EMI business units of approximately 40%, 15%, 24% and 39%, respectively, compared with the same period last fiscal year. This growth was slightly offset by decreased 2009 first quarter sales in the Medical/Trek business unit of 16%.

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Focused on expanding its competitive positioning and building its product portfolio, the Company's 2009 first quarter profitability was impacted by increased operating, research and development and sales and marketing expenses. Cost of goods sold as a percentage of product revenue decreased slightly to approximately 56% of product revenues, compared to approximately 57% of product revenue for the 2008 first quarter, and operating expenses increased approximately 11.3% during the 2009 first quarter. This increase was primarily related to increased research and development expenses at the Sonomed division for the development of three new products. Operat
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SOURCE Escalon Medical Corp.
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