WAYNE, Pa., Oct. 13 /PRNewswire-FirstCall/ -- Escalon Medical Corp. (Nasdaq: ESMC) today announced results for its fiscal fourth quarter and fiscal year ended June 30, 2009.
For the fiscal year ended June 30, 2009, financial results were heavily affected by the non-recurring, non-cash, goodwill impairment expense at the Company's Sonomed business unit of $9,526,000, recorded in the fourth quarter of fiscal 2009, resulting from the requirement under SFAS 142 in connection with the Company's impairment test of intangible assets and goodwill valuations. The revaluation of goodwill, as required by GAAP, resulted in the Sonomed's goodwill being revalued to zero, generating a non-cash $9,526,000 impairment charge.
Consolidated product revenue for fiscal 2009 increased approximately 14.9% to $34,468,000, compared with $29,990,000 in the prior fiscal year. The increase is primarily related to strong sales in the Company's Drew and EMI business units, which increased approximately 35.7% and 17.9%, respectively, offset by sales decreases in the Sonomed, Vascular and Trek business units of 2.1%, 6.1% and 10.5%, respectively.
The Company reported a fiscal 2009 net loss of $(12,965,000), or $(1.82) per diluted share, compared with net loss of $(15,060,000), or $(2.36) per diluted share, in the prior year period. The net loss of 2009 includes a non-cash goodwill impairment of $9,526,000, or $(1.33) per share, as previously noted. In accordance with Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, the Company tests goodwill for possible impairment on an annual basis for each of its operating segments. Based on this analysis, the Company concluded that $9,526,000 of the goodwill recorded at the Sonomed business unit was impaired. This analysis, based on prescribed accounting rules,
|SOURCE Escalon Medical Corp.|
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