Encision Reports First Fiscal Quarter Results
July 31 2008 - 6:52AM
PR Newswire (US)
BOULDER, Colo., July 31 /PRNewswire-FirstCall/ -- Encision Inc.
(AMEX:ECI), a medical device company owning patented surgical
technology that is emerging as a standard of care in
minimally-invasive surgery, reported its financial results for its
first quarter ended June 30, 2008. Net sales for the first quarter
of fiscal year 2009, the three-months period ended June 30, 2008,
totaled $3.09 million, representing a 16% increase over net sales
of $2.66 million for the prior fiscal year's first quarter. The
Company recorded a net loss of $164 thousand or $.03 per share for
the first quarter of fiscal year 2009 compared to a net loss of
$295 thousand or $.05 per share for the first quarter of fiscal
year 2008. Gross profit margin for the first quarter of fiscal year
2009 was 60.3% as compared to 61.2% for the first quarter of fiscal
year 2008. The gross profit margin decrease was primarily due to
increased scrap costs of 0.9% and increased sales of lower gross
profit margin products. The decrease was partially offset by a
higher gross profit margin for our internally manufactured
disposable scissor inserts. "Over the past two years, we have made
major investments in our company to increase long-term value for
our shareholders," said Jack Serino, President and CEO of Encision
Inc. "We have made a major investment in manufacturing equipment,
thereby reducing manufacturing costs, expanding our manufacturing
capabilities, and opening the possibility of original equipment
manufacturing. Additionally, we have made a major investment in
expanding our direct sales force to provide a focused selling
effort for our patented patient safety technology and to provide
improved customer service. Finally, we have made a major investment
in developing disposable product alternatives for all of our
reusable products and implementing redesigns to existing products
to elevate them to best of class status. It is our belief that the
major investments we have made will begin to benefit our
shareholders in our current fiscal year." 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(R) 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, insufficient quantity of new
account conversions, insufficient cash to fund operations, scale up
production to meet delivery obligations, 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. CONTACT: Marcia McHaffie, Encision Inc.,
303-444-2600, Encision Inc. Condensed Statements of Operations
(Unaudited) (Amounts in thousands, except per share information)
June 30, June 30, Three Months Ended 2008 2007 NET SALES $3,094
$2,659 COST OF SALES 1,229 1,031 GROSS PROFIT 1,865 1,628 OPERATING
EXPENSES: Sales and marketing 1,374 1,214 General and
administrative 367 372 Research and development 289 330 Total
operating expenses 2,030 1,916 OPERATING LOSS (165) (288) Interest
and other income (expense), net 1 (7) LOSS BEFORE PROVISION FOR
INCOME TAXES (164) (295) Provision for income taxes -- -- NET LOSS
$(164) $(295) Net loss per share-basic and diluted $(0.03) $(0.05)
Encision Inc. Condensed Balance Sheets (Amounts in thousands) June
30, March 31, 2008 2008 (unaudited) (audited) ASSETS Cash and cash
equivalents $46 $71 Accounts receivable, net 1,274 1,453
Inventories, net 2,050 2,271 Prepaid expenses 147 99 Total current
assets 3,517 3,894 Equipment, net 800 798 Patents, net 200 199
Other assets 46 53 TOTAL ASSETS $4,563 $4,944 LIABILITIES AND
SHAREHOLDERS' EQUITY Accounts payable $611 $537 Accrued
compensation 267 392 Other accrued liabilities 437 481 Total
current liabilities 1,315 1,410 Long-term debt 433 606 Common stock
and additional paid-in capital 19,438 19,387 Accumulated (deficit)
(16,623) (16,459) Total shareholders' equity 2,815 2,928 TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $4,563 $4,944 DATASOURCE:
Encision Inc. CONTACT: Marcia McHaffie of Encision Inc.,
+1-303-444-2600, Web site: http://www.encision.com/
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