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Escalon(R) Reports Fourth Quarter and Fiscal 2009 Results
Date:10/13/2009

ppointing to us, we are encouraged by the trend our clinical diagnostics division has been experiencing. The enhancement of our position within the IVD reagent market is evident with the May 30, 2008 acquisition of JAS Diagnostics and Biocode Hycel in December 2008".

"Sonomed business segment, like most in the capital equipment business, is experiencing a decrease in volume which is related to the global economic downturn." Mr. DePiano further stated that, "Sonomed's traditional customer base is hard pressed to add additional or upgraded capital equipment at this time. These troubling economic conditions have also led to increased sales discounts to Sonomed's distributors in order to entice end users to purchase or to compete with toughening competition."

"In the last three years, however, Sonomed has successfully secured FDA market clearances for six new products." Mr. DePiano continued, "These new products further diversify our product portfolio and enhance our market position in ophthalmology."

"In the Drew business unit, product revenue increased $4,753,000, or 35.7%, as compared to last fiscal year. The increase is primarily due to the acquisition of JAS on May 29, 2008 and of Biocode Hycel on December 31, 2008 which combined increased revenue by $4,405,000. The remainder of the increase is primarily due to strong sales of Drew's D3 instrument which received FDA clearance on December 18, 2008," Mr. DePiano stated.

"Turning to our Vascular unit, product revenue decreased $251,000, or 6.1%, to $3,868,000 in the Vascular business segment during the year ended June 30, 2009 as compared to last fiscal year." Mr. DePiano continued, "The decrease was primarily caused by the introduction of the VascuView instrument in February 2008 which generated a $550,000 one time sale during the prior year, however current year sales of the VascuView were not material do to certain limitations in its functionality. The VascuView,
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SOURCE Escalon Medical Corp.
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