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Misonix Reports Fourth Quarter and Fiscal Year 2009 Financial Results

FARMINGDALE, N.Y., Oct. 1 /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, reported financial results for the fourth quarter and fiscal year ended June 30, 2009.

The Company also reported the following financial and operational achievements:

  • A cash payment of $3.5 million was received on April 7, 2009 from the sale of its Ultrasonics Laboratory Products business. Current and prior period results and the gain on the sale of the Ultrasonic Laboratory Products business are reported in the Company's financial statement as discontinued operations
  • Launched two new products into multi-billion dollar market segments
  • Launched a direct sales force in the U.S. for the SonicOne® Wound Cleansing and Debridement System
  • Added 14 new international distributors
  • Reduced inventories by 44% to $6.6 million as of June 30, 2009
  • Reduced accounts payable and accrued expenses and other current liabilities by 37% to $6.5 million
  • Reduced general and administrative expenses by 14% to $9.0 million as of June 30, 2009
  • On August 5, 2009 closed the transaction for the sale of Labcaire Systems, Ltd. to Puricore for up to $5.6 million and is reported as a subsequent event

Revenues for the fourth fiscal quarter ending June 30, 2009 were $10.5 million compared to $10.6 million for the three months ended June 30, 2008. The results reflect only continuing operations as of June 30, 2009 and 2008 as discontinued operations are excluded from such results. Discontinued operations represent the results of and the gain from the sale of the Ultrasonic Laboratory Products business. Revenues were adversely impacted by a reduction in medical device products revenues by $902,000 to $5.5 million, partially offset by an increase in Laboratory and Scientific products revenues of $811,000 to $4.9 million. The decrease in medical device products revenue is primarily due to lower sales of ultrasonic probe repairs, MRI repair, replacement probes and our AutoSonix® product to Covidien. The increase in sales of Laboratory and Scientific products was primarily due to an increase in sales at Labcaire for ISIS product and service.

The Company reported a net loss for the fourth quarter ended June 30, 2009 from continuing operations of $804,000 or $.11 per share compared to a loss from continuing operations of $2.4 million or $.35 per share for the three months ended June 30, 2008. During the fourth fiscal quarter 2009, the Company sold its Ultrasonic Laboratory Products business to a subsidiary of Sonics and Materials Inc. for $3.5 million and reported an after tax gain of $2.7 million on the sale. The Company reported net income including the income and the gain on sale from discontinued operations of $2.2 million or $0.31 income per diluted share for the three months ended June 30, 2009 as compared to a loss of $2.4 million or $0.34 per diluted share.

Revenues for the twelve months ended June 30, 2009 were $39.8 million compared to revenues of $41.1 million for the twelve months ended June 30, 2008. Medical device products revenues were $22.8 million as of June 30, 2009, a decrease of $1.5 million from the same period in fiscal 2008. Laboratory and Scientific products revenues were $17.0 million, an increase of $161,000 from the same period in fiscal 2008.

Net income was $2.8 million or $.40 income per diluted share compared to a net loss of $2.9 million or $.41 per diluted share, which included income and the gain on sale from discontinued operations of $3.4 million and $536,000 for the periods ended June 30, 2009 and 2008, respectively.

Commenting on Misonix's financial and operating results, Michael A. McManus, Jr., President and Chief Executive Officer, said, "During the fiscal year 2009 we accomplished a number of goals to increase shareholder value. During a time of challenging global economic conditions, we deemed it strategically important to focus more of our resources on growing our high gross margin medical device business. We successfully reached an agreement to sell our equity interest in Focus Surgery, Inc., in addition to receiving payment for a portion of our debt. The remaining portion will be paid in January 2010. We also sold our Ultrasonic Laboratory Products business for $3.5 million. The cash from these transactions will enable us to seek opportunities to enhance our value by adding new products, increasing our sales efforts, shorten development times and for general corporate purposes.

Our significant investment in R&D over the last few years has provided us with new medical device products that should enable us to grow more rapidly. This year we launched the SonicOne for wound cleansing and debridement and the BoneScalpel(TM) for spinal surgery. Both products are being sold into very large, multi billion dollar market segments. We introduced our own direct sales managers in the U.S. to supplement our contract sales agent network. These individuals, each with more than 15 years experience, together with our contract sales agents, are selling the SonicOne and SonaStar(TM) directly to doctors, hospitals and clinics. This sales force enables us to focus more on the customer and capture substantially more margin on the sale of our products.

To further broaden our sales footprint, we have aggressively expanded into international markets by the signing of 14 new distributors and agencies. We have also hired a new, direct manager to handle Latin American sales and distribution. We continue to work on our European distribution for the Sonablate500®, which uses HIFU for the treatment of prostate cancer in Europe. We have expanded our sales force and added to our distribution network in Italy, Russia, Portugal, Romania, and Bulgaria.

As you know, we have been developing expertise in the exciting new area of High Intensity Focused Ultrasound ("HIFU"). To continue to be a leader in this field, we purchased HIFU related intellectual property that we believe will enable us to develop and manufacture new HIFU transducers. With the development of new transducers, we may be able to increase the type of tissue we can affect beyond our present rights in kidney, liver and breast.

We are continuing to complete clinical evaluation procedures using HIFU for the treatment of kidney tumors at the University of Vienna in Austria. We have received our second 510k in the United States for this treatment.

We are excited about the growth opportunities for our innovative ultrasonic medical device business. With a strengthened balance sheet, exciting new products, a new direct salesforce and broad based international distribution we believe that fiscal year 2010 will be one of growth and expansion for your Company."

Conference Call

Misonix management will host a conference call and webcast on Thursday, October 1, 2009 at 4:30 pm ET to discuss the Company's fourth quarter fiscal 2009 financial results.

The conference call will be broadcast live via the Investor Relations section of the Company's Web site at Alternatively, participants may join the conference call by dialing (866) 515-2909 (domestic) or (617) 399-5123 (international) and entering access code 61977194, 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 October 8, 2009. The dial-in number to listen to the recording is (888) 286 8010 or (617) 801 6888. The replay access code is 35358896. The call will be archived on the Company's website for at least 90 days.

About Misonix:

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

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 forward-looking relationships.

    Investor Relations Contact:
    Kevin McGrath / Cameron Associates, Inc.
    MISONIX, INC. And Subsidiaries
    Consolidated Balance Sheets
    Derived from Audited Financial Statements

                                              June 30, 2009  June 30, 2008
                                              -------------  -------------
    Current Assets:
      Cash                                       $3,691,022     $1,873,863
      Accounts receivable, less allowance
       for doubtful accounts of
       $440,077 and $376,998, respectively        8,658,560      7,986,802
      Inventories, net                            6,627,316     11,906,091
      Deferred income taxes                       1,235,902      1,562,279
      Prepaid expenses and other current
       assets                                     1,174,106        904,737
      Assets of discontinued operations                   0        745,473
                                                    -------        -------
    Total current assets                         21,386,906     24,979,245

    Property, plant and equipment, net            5,546,694      4,371,373
    Deferred income taxes                         1,299,388      1,280,217
    Goodwill                                      5,765,698      5,784,542
    Other assets                                  1,164,720        807,203
    Assets of discontinued operations                     0         27,494
                                                     ------         ------
    Total assets                                $35,163,406    $37,250,074
                                                ===========    ===========
    Liabilities and stockholders' equity
    Current liabilities:
      Revolving credit facilities                $4,453,950     $4,470,389
      Notes payable                                 261,485        246,888
      Accounts payable                            2,978,509      5,497,541
      Accrued expenses and other current
       liabilities                                3,498,670      4,760,115
      Current maturities of capital lease
       obligations                                  180,970        307,325
      Current portion of deferred gain from
       sale and leaseback of building             1,054,543        159,195
      Foreign income taxes payable                  797,533        696,791
                                                    -------        -------
    Total current liabilities                    13,225,660     16,138,244

    Capital lease obligations                        27,716        225,909
    Deferred gain from sale and
     leaseback of building                                0      1,273,772
    Deferred income taxes                           343,454        250,514
    Deferred income                                 308,287        371,452
    Deferred lease liability                        274,501        348,502
                                                    -------        -------
    Total liabilities                            14,179,618     18,608,393

    Commitments and contingencies

    Minority interest                               246,947        199,237

    Stockholders' equity:
      Capital stock, $0.01 par value -
       shares authorized 20,000,000;
       7,079,169 issued, and
       7,001,369 outstanding, respectively           70,792         70,792
      Additional paid-in capital                 25,251,412     25,052,539
      Accumulated deficit                        (3,824,003)    (6,630,170)
      Accumulated other comprehensive income       (348,936)       361,707
      Treasury stock, 77,800 shares                (412,424)      (412,424)
                                                   --------       --------
    Total stockholders' equity                   20,736,841     18,442,444
                                                 ----------     ----------
    Total liabilities and stockholders' equity  $35,163,406    $37,250,074
                                                ===========    ===========

    MISONIX, INC. And Subsidiaries
    Consolidated Statements of Operations

                                                         Derived from audited
                                     Unaudited           financial statements
                                Three Months Ended       Twelve Months Ended
                                      June 30,                  June 30,
                                 2009         2008         2009         2008
                                 ----         ----         ----         ----
    Net sales             $10,464,809  $10,555,488  $39,790,155  $41,144,139

    Cost of goods sold      6,312,135    6,368,618   23,786,201   23,378,587
                            ---------    ---------   ----------   ----------
    Gross profit            4,152,674    4,186,870   16,003,954   17,765,552

    Selling expenses        2,335,044    2,041,159    6,764,338    7,314,684
    General and
     expenses               2,061,944    2,922,326    9,009,280   10,518,550
    Research and
     development expenses     553,640      583,024    2,450,010    2,758,737
    Litigation expense        174,000            -      278,000            -
                              -------       ------      -------       ------
    Total operating
     expenses               5,124,628    5,546,509   18,501,628   20,591,971
                            ---------    ---------   ----------   ----------
    Operating loss from
     operations              (971,954)  (1,359,639)  (2,497,674)  (2,826,419)

    Total other income
     (loss)                   235,510      (32,366)   1,816,618      105,584
                              -------      -------    ---------      -------
    Loss from
     operations before
     minority interest
     and income taxes        (736,444)  (1,392,005)    (681,056)  (2,720,835)

    Minority interest in
     net income (loss) of
     subsidiaries              10,911       (1,404)      43,878       46,176
                               ------       ------       ------       ------
    Loss from continuing
     operations before
     income taxes            (747,355)  (1,390,601)    (724,934)  (2,767,011)

    Income tax provision
     (benefit)                 56,196    1,023,149     (178,483)     656,712
                               ------    ---------     --------      -------

    Net loss from
     operations              (803,551)  (2,413,750)    (546,451)  (3,423,723)
                             --------   ----------     --------   ----------
    Income from
     net of tax               298,986       63,421      670,858      535,912
    Gain on sale of
     inclusive of a tax
     benefit                2,681,760            0    2,681,760            0
                            ---------       ------    ---------       ------
    Net income from
     operations, net of
     tax                    2,980,746       63,421    3,352,618      535,912
    Net income (loss)      $2,177,195  ($2,350,329)  $2,806,167  ($2,887,811)
                           ==========  ===========   ==========  ===========

    Loss per share-Basic
     from continuing
     operations                ($0.11)      ($0.35)      ($0.08)      ($0.50)
    Income per share-
     Basic from
     operations                  0.43         0.01         0.48         0.09
    Net income (loss) per
     share-basic                $0.31       ($0.34)       $0.40       ($0.41)
                                =====       ======        =====       ======

    Loss per share-
     Diluted from
     operations                ($0.11)      ($0.35)      ($0.08)      ($0.50)
    Income per share-
     Diluted from
     operations                  0.42         0.01         0.48         0.09
    Net income (loss) per
     share-Diluted              $0.31       ($0.34)       $0.40       ($0.41)
                                =====       ======        =====       ======

    Weighted average
     common shares-basic    7,001,369    7,001,369    7,001,369    7,001,369
                            =========    =========    =========    =========

    Weighted average
     common shares-
     diluted                7,001,369    7,001,369    7,001,369    7,001,369
                            =========    =========    =========    =========

SOURCE Misonix, Inc.

SOURCE Misonix, Inc.
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