BOULDER, Colo., July 25, 2012 /PRNewswire/ -- Encision Inc. (ECIA:PK), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, today announced financial results for its fiscal 2013 first quarter ended June 30, 2012.
The Company posted quarterly revenue of $3.1 million and quarterly net profit of $10 thousand, or $0.00 per diluted share. These results compare to revenue of $3.2 million and a net loss of $21 thousand, or $0.00 per diluted share, in the year-ago quarter. Gross margin was 56.4 percent compared to 55.9 percent in the year-ago quarter. In the year-ago quarter, our margin was lower due to a planned manufacturing slowdown that resulted in higher product unit costs, principally of our disposable scissor inserts. The gross profit margin increase from the first quarter of fiscal year 2012 was due to a return to normal production, principally of our disposable scissor inserts.
"We were disappointed in our revenue for the first quarter," said Fred Perner, President and CEO. "The decrease in service revenue is a result of a project that has been phased out by a strategic partner. As a result, and unless we obtain another strategic partner or further commitments from existing partners, we anticipate that future service revenue will be significantly reduced as compared to last fiscal year's service revenue. Despite lower product and service revenue, our first quarter net profit was a result of a slight increase in our gross profit margin and a slight decrease in our operating expenses. Growing revenue will be paramount and we will continue to use financial resources, which were obtained from the recent issuance of our common stock, for sales, marketing, quality programs and product development initiatives to grow future revenue and profitability."
Encision Inc. designs, develops, manufactures and markets innovative surgical devices that allow surgeons to optimize technique and patient safety during a broad range of surgical procedures. Based in Boulder, Colorado, the Company pioneered the development of patented AEM® Laparoscopic Instruments to improve electrosurgery and reduce the chance for patient injury in minimally invasive surgery.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, delay in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's Annual Report on Form 10-K for the year ended March 31, 2012 and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise.
CONTACT: Marcia McHaffie, Encision Inc., 303-444-2600, firstname.lastname@example.org Encision Inc.
Condensed Balance Sheets
(Amounts in thousands)
(Unaudited)June 30, 2012March 31, 2012ASSETSCash and cash equivalents$
565Accounts receivable, net1,2871,428Inventories, net2,3782,489Prepaid expenses15328Total current assets4,2814,510Equipment, net1,6151,619Patents, net276273Other assets77Total assets$ 6,179$ 6,409LIABILITIES AND SHAREHOLDERS' EQUITYAccounts payable$ 452$ 1,040Accrued compensation329283Other accrued liabilities404349Total current liabilities1,1851,672Common stock and additional paid-in capital21,54421,297Accumulated (deficit)(16,550)(16,560)Total shareholders' equity4,9944,737Total liabilities and shareholders' equity$ 6,179$ 6,409 Encision Inc.
Condensed Statements of Operations
(Amounts in thousands, except per share information)
(Unaudited)Three Months EndedJune 30, 2012June 30, 2011Net revenue:Product$ 2,805$ 2,833Service296351Total revenue3,1013,184Cost of revenue:Product1,2041,261Service149144Total cost of revenue1,3531,405Gross profit1,7481,779Operating expenses:Sales and marketing8661,037General and administrative528419Research and development343331Total operating expenses1,7371,787Operating income (loss)11(8)Interest and other income (expense), net(1)(13)Income (loss) before provision for income taxes10(21)Provision for income taxes––––Net income (loss)$$
(21)Net income (loss) per share—basic and diluted$ 0.00$ 0.00Basic weighted average number of shares8,1686,455Diluted weighted average number of shares8,1786,455
|SOURCE Encision Inc.|
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