Revenues Increased 7.4%; Net Income of $.05 per Diluted Share
FARMINGDALE, N.Y., Nov. 13 /PRNewswire-FirstCall/ -- Misonix, Inc.
(Nasdaq: MSON), a developer of minimally invasive ultrasonic medical device
technology, which in Europe is used for the ablation of tumors and
worldwide for other acute health conditions, today reported financial
results for its fiscal year 2009 first quarter ended September 30, 2008.
Michael A. McManus, Jr., President and Chief Executive Officer, and Richard
Zaremba, Senior VP and Chief Financial Officer, will host a conference call
at 4:30 p.m. Eastern on Thursday, November 13, 2008 to discuss the
Company's first quarter financial results.
-- Revenues increased 7.4% to $11.3 million
-- Reported net income of $320,000 or $.05 per diluted share
-- The Company reported the following operational achievements:
-- Entered a new, three year exclusive distribution agreement in Russia
for the Sonablate 500(R)
-- Received second FDA approval for the Sonablate 600(R) Soft Tissue
-- Entered a new two year exclusive distribution agreement in Czech
Republic for Sonastar(TM), SonicOne(R) and BoneScalpel(TM)
Revenues for the three months ended September 30, 2008 were $11.3 million, a 7.4% increase, when compared with revenues of $10.5 million for the same period in fiscal 2008. The increase is due to a $621,000 increase in sales of laboratory and scientific products to $5.9 million and a $154,000 increase in medical device products sales to $5.4 million. The increase in sales of medical device products is due to a $173,000 increase in therapeutic medical device products partially offset by a $19,000 decrease in sales of diagnostic medical device products.
The Company reported pre-tax net income of $615,000 for the three months ended September 30, 2008 compared with a $269,000 pre-tax loss for the same period in fiscal 2008. Pre-tax income for the three months ended September 30, 2008 was positively impacted by a $1.5 million gain on the sale of the Company's equity interest and previously written off debt in Focus Surgery, Inc.
The Company reported net income of $320,000 or $.05 per diluted share for the three months ended September 30, 2008, compared with a net loss of $226,000 or $.03 per share for the same period in fiscal 2008. Net income for the three months ended September 30, 2008 was positively impacted by the gain on the sale of the Company's equity interest and previously written off debt in Focus Surgery, Inc.
The Company reported a backlog of unfilled orders as of September 30, 2008 of $8,164,000 compared to $7,221,000 as of September 30, 2007. Medical device products backlog was $4,361,000 and laboratory and scientific products backlog was $3,803,000.
Commenting on Misonix's financial and operating results, Michael A. McManus, Jr., President and Chief Executive Officer, said, "We are pleased with our revenue growth and the significant progress we have made in positioning all of our business segments for growth this fiscal year. Our laboratory and scientific business, as well as our Sonora subsidiary, continued to make important contributions to our revenue growth and we are pleased with the steady improvement in their performance. The sale of our equity position in Focus Surgery strengthened our balance sheet and will enable us to focus our resources on expanding our international distribution capabilities, building customer awareness and brand equity for our medical device business and supporting opportunities in our laboratory and scientific businesses.
"We have been very active in establishing new distributor agreements for our medical device products with high quality organizations that have strong track records selling high tech medical equipment. These new distributors, located primarily in Europe and South America, are expected to sell our innovative Sonastar, BoneScalpel, and SonicOne medical devices. We have also made good progress in building our new sales channel for the United States, which will ultimately consist of approximately twenty-five contract sales agents that will sell Misonix labeled product, on a commission only basis, directly to hospitals and clinics throughout the US. The SonicOne system is the first product sold by this new sales team, and, to date, we have fifteen sales agents that have completed training.
"Our fee per use strategy in Europe for the Sonablate 500 is moving forward throughout the United Kingdom and European Union and we anticipate that the addition of new distribution agreements combined with an intensified sales campaign will expand SB500 utilization in Europe, making the benefits of our HIFU technology increasingly accessible to surgeons and patients alike."
Misonix management will host a conference call and webcast to discuss the Company's first quarter fiscal year 2009 financial results today, at 4:30 p.m. Eastern.
The conference call will be broadcast live via the Investor Relations section of the Company's Web site at http://www.misonix.com. Alternatively, participants may join the conference call by dialing (866) 788-0543 (domestic) or (857) 350-1681 (international) and entering access code 21386797, a few minutes before the start of the call.
For those unable to attend the live results broadcasts, a recording of the live-call will be available approximately 2 hours after the event through November 20, 2008. The dial-in number to listen to the recording is (888) 286 8010 or (617) 801 6888. The replay access code is 80767628. The call will also be archived on the Company's website for at least 90 days.
Misonix, Inc. (Nasdaq: MSON) designs, develops, manufactures and markets therapeutic ultrasonic medical devices and laboratory equipment. Misonix's therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated to be in excess of $3 billion annually, Misonix's proprietary ultrasonic medical devices are used for wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company's Web site at http://www.misonix.com.
With the exception of historical information contained in this press
release, content herein may contain "forward looking statements" that are
made pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations and are subject to uncertainty and changes in
circumstances. Investors are cautioned that forward-looking statements
involve risks and uncertainties that could cause actual results to differ
materially from the statements made. These factors include general economic
conditions, delays and risks associated with the performance of contracts,
risks associated with international sales and currency fluctuations,
uncertainties as a result of research and development, acceptable results
from clinical studies, including publication of results and
patient/procedure data with varying levels of statistical relevancy, risks
involved in introducing and marketing new products, potential acquisitions,
consumer and industry acceptance, litigation and/or court proceedings,
including the timing and monetary requirements of such activities, the
timing of finding strategic partners and implementing such relationships,
regulatory risks including approval of pending and/or contemplated 510(k)
filings, the ability to achieve and maintain profitability in the Company's
business lines, and other factors discussed in the Company's Annual Report
on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K. The Company disclaims any obligation to update its
MISONIX, INC. And Subsidiaries
Consolidated Balance Sheets
September 30, 2008 June 30, 2008
Cash $1,836,591 $1,873,863
less allowance for doubtful
accounts of $312,440 and
$376,998, respectively 6,911,337 7,986,802
Inventories, net 12,319,012 12,651,564
Deferred income taxes 1,246,922 1,562,279
Prepaid expenses and other
current assets 832,981 904,737
Total current assets 23,146,843 24,979,245
Property, plant and equipment, net 3,925,137 4,398,867
Deferred income taxes 952,502 1,280,217
Goodwill 5,754,120 5,784,542
Other assets 856,112 807,203
Total assets $34,634,714 $37,250,074
Liabilities and stockholders' equity
Revolving credit facilities $3,778,487 $4,470,389
Notes payable 119,111 246,888
Accounts payable 4,624,174 5,497,541
Accrued expenses and other
current liabilities 3,947,974 4,760,115
Current maturities of capital
lease obligations 282,028 307,325
Current portion of deferred gain
from sale and leaseback of
building 145,024 159,195
Foreign income taxes payable 606,831 696,791
Total current liabilities 13,503,629 16,138,244
Capital lease obligations 164,232 225,909
Deferred gain from sale and
leaseback of building 1,123,931 1,273,772
Deferred income taxes 246,892 250,514
Deferred income 424,039 371,452
Deferred lease liability 330,000 348,502
Total liabilities 15,792,723 18,608,393
Commitments and contingencies
Minority interest 217,184 199,237
Capital stock, $0.01 par value -
shares authorized 10,000,000;
7,079,169 issued, and 7,001,369
outstanding, respectively 70,792 70,792
Additional paid-in capital 25,105,564 25,052,539
Accumulated deficit (6,310,168) (6,630,170)
Accumulated other comprehensive
income 171,043 361,707
Treasury stock, 77,800 shares (412,424) (412,424)
Total stockholders' equity 18,624,807 18,442,444
Total liabilities and
stockholders' equity $34,634,714 $37,250,074
MISONIX, INC. And Subsidiaries
Consolidated Statements of Operations
Three Months Ended
Net sales $11,306,473 $10,532,237
Cost of goods sold 6,881,043 5,866,443
Gross profit 4,425,430 4,665,794
Selling expenses 1,837,257 1,688,510
General and administrative expenses 2,652,805 2,505,760
Research and development expenses 776,474 710,237
Total operating expenses 5,266,536 4,904,507
Loss from operations (841,106) (238,713)
Total other income (expense) 1,472,351 (21,161)
Income (loss) before minority interest
and income taxes 631,245 (259,874)
Minority interest in net income of
consolidated subsidiaries 16,727 9,444
Income (loss) before income taxes 614,518 (269,318)
Income tax provision (benefit) 294,516 (43,054)
Net Income (loss) $320,002 ($226,264)
Net Income (loss) per share-basic $0.05 ($0.03)
Net income (loss) per share-diluted $0.05 ($0.03)
Weighted average common shares-basic 7,001,369 7,001,369
Weighted average common shares-diluted 7,031,953 7,001,369
Investor Relations Contact:
Cameron Associates, Inc.
|SOURCE Misonix, Inc.|
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