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

however, is currently being enhanced and is expected to contribute to revenue during the second half of 2010." Mr. DePiano commented that, "the large decrease in VascuView sales were offset by increased volume in Vascular's core needle business of approximately $274,000."

Product revenue increased $316,000, or 17.9%, in the EMI business segment when compared to the last fiscal year. The EMI product offering of digital imaging systems continues to expand and has seen increased market acceptance during the year ended June 30, 2009.

In the Medical/Trek business unit, product revenue decreased $148,000, or 10.5%, to $1,262,000 during the year ended June 30, 2009 as compared to the last fiscal year. The decrease is related to the continued aging of Medical/Trek's product offerings.

Non-GAAP Measures

To supplement the Company's consolidated financial statements presented in accordance with GAAP, the Company is providing certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net loss and non-GAAP loss per fully diluted share.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, the Company believes non-GAAP measures that exclude stock-based compensation expense enhance the comparability of results against prior periods.

The Company reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors' overall understanding of the Company current financial performance and provide further information for comparative purposes due to depreciation and amortization and the adoption of accounting
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SOURCE Escalon Medical Corp.
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