WAYNE, Pa., Feb. 16, 2016 /PRNewswire/ -- Escalon Medical Corp.
(NASDAQ: ESMC) today announced financial results for its second quarter of fiscal 2016, ended December
31, 2015.
For the second quarter of fiscal 2016, consolidated product revenue decreased to $2,989 million
from $3,700 million in the year ago period primarily as a result of a decrease of $639,000 in ultrasound products, a decrease of $109,000 in digital imaging and
Axis image management systems offset by an increase of $37,000 in surgical products. The
Company encountered supply-chain shortages during the quarter that increased back-logged orders to approximately $680,000.
For the second quarter of fiscal 2016, margins remained steady at 49.0%. Marketing, general and administrative expenses
decreased by 9.9% in the quarter primarily due to a reduction in force in October 2015, decreased
hiring expense, travel expense, reduced international consulting fees and advertising costs offset by an increase in
post-retirement expense.
For the quarter ended December 31, 2015, the Company reported a net loss of $265,000 or $0.04 per share. This compares to a net loss of $74,089 for the second quarter of fiscal 2015 or $0.01 per share. For the first
six months of fiscal 2016, the Company reported a net loss of $558,292 or $0.07 per share. This compares to a net loss of $533,048 or $0.07 per share for the first six months of the prior fiscal year.
At December 31, 2015, the Company had $861,000 of cash and no
long-term debt. Inventory stood at $2.4 million at December 31, 2015.
Consolidated marketing, general and administrative expenses from continuing operations decreased $258,000, or 9% to $2,611,000 during the six months ended December 31, 2015, as compared to the same period of the prior fiscal year. The decrease is due a
reduction in force, decreased hiring expense, reduced executive compensation, business tax, travel expense, reduced international
consulting fee and advertising expenses offset by an increase in post-retirement expenses.
"Product revenues were disappointing in the quarter due to the continued issue of unfulfilled sales orders resulting from
supply-chain shortages," commented Chief Executive Officer, Richard J. DePiano, Jr.
Management is fully committed to resolving these supply-chain shortages and anticipates resolution in the coming quarter.
We continue to believe our initiatives to grow sales and enhance operational efficiencies will yield positive results and lead to
improved gross margins in the coming quarters. As we continue the refining of our internal sales organization and
distributor channels we believe our products will have greater penetration in our existing and new markets. Examining the
cost side of the business, our emphasis on improved organizational efficiency is expected to result in lower total operating
expenses in the second half of fiscal 2016."
Mr. DePiano concluded, "The Company maintains a good cash position, carries no long-term debt, and continues to fund
operations from internally generated cash flow. We will work tirelessly to continuing to drive improved operational and financial
results throughout the balance of fiscal 2016."
About Escalon Medical
Founded in 1987, Escalon Medical Corp. (NASDAQ: ESMC) specializes in the development, marketing and distribution of
ophthalmic diagnostic imaging and surgical products branded under the Sonomed Escalon name. Products include a variety of
ophthalmic ultrasound, digital imaging and photography, and image management systems as well as surgical products including
intraocular gases, fiber optic light guides and sources, and other surgical vitreoretinal instruments. The Company seeks to grow
its ophthalmic business by further developing and diversifying its product offering through internal development programs,
strategic partnerships, and the acquisition of technology so as to best leverage the Company's distribution capabilities. The
Company has headquarters in Wayne, Pennsylvania and research and development, manufacturing and
distribution operations in Lake Success, New York, New Berlin,
Wisconsin and Stoneham, Massachusetts. For additional information visit www.escalonmed.com and www.sonomedescalon.com.
Forward Looking Statements
This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act
of 1995, including statements about the Company's future prospects. These statements are based on the Company's current
expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties
and risks include whether the Company is able to: develop, obtain regulatory clearance of and launch new products, implement its
growth and marketing strategies; improve upon the operations of the Company including the ability to make acquisitions and the
integration of any acquisitions it may undertake; grow our remaining ophthalmic business unit; improve our financial position;
implement cost reductions; generate cash; and identify, finance and enter into business relationships and acquisitions, if any,
of which there can be no assurance. Other factors include uncertainties and risks related to: new product development,
commercialization, manufacturing and market acceptance of new products; marketing acceptance of existing products in new markets;
research and development activities, including failure to demonstrate clinical efficacy; delays by regulatory authorities,
scientific and technical advances by the Company or third parties; introduction of competitive products; ability to reduce
staffing and other costs and retain benefit of prior reductions; ability to refine our internal sales organization and
distributor channels; ability to fund operations from internally generated cash flow, and general economic conditions.
Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10-K for
year ended June 30, 2014, and its other filings with the Securities and Exchange Commission, all of
which are available from the Securities and Exchange Commission as well as other sources.
--financial tables to follow--
ESCALON MEDICAL CORP. AND SUBSIDIARY
Condensed Consolidated Statements of Operations
|
|
|
For Three months Ended
|
|
For Six months Ended
|
|
December 31,
|
|
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
Revenues, net
|
$ 2,988,835
|
|
$3,699,654
|
|
$ 5,770,157
|
|
$6,329,974
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
Cost of goods sold
|
1,526,440
|
|
1,903,074
|
|
2,974,486
|
|
3,269,971
|
Marketing, general and administrative
|
1,344,746
|
|
1,489,627
|
|
2,611,482
|
|
2,869,008
|
Research and development
|
382,766
|
|
383,727
|
|
708,004
|
|
708,004
|
Total costs and
expenses
|
3,253,952
|
|
3,776,428
|
|
6,846,983
|
|
6,328,486
|
|
|
|
|
|
|
|
|
Loss from operations
|
(265,117)
|
|
(76,774)
|
|
(517,009)
|
|
(558,329)
|
Other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
17
|
|
26
|
|
65
|
|
37
|
Total other
income
|
17
|
|
26
|
|
65
|
|
37
|
Net loss from continuing operations
|
(265,100)
|
|
(76,748)
|
|
(516,944)
|
|
(558,292)
|
Net income (loss) from discontinued operations, before tax
|
--
|
|
2,659
|
|
(16,104)
|
|
--
|
Income tax expense
|
--
|
|
--
|
|
--
|
|
--
|
Net income (loss) from discontinued operations, net of tax
|
|
|
2,059
|
|
(16,104)
|
|
(558,292)
|
Net loss
|
$ (265,100)
|
|
$ (74,089)
|
|
$ (533,048)
|
|
$ (558,292)
|
Net (loss) income per share, basic and diluted
|
|
|
|
|
|
|
|
Continuing operations
|
$ ( 0.04)
|
|
$ (0.01)
|
|
$ ( 0.07)
|
|
(0.07)
|
Discontinued operations
|
--
|
|
--
|
|
--
|
|
--
|
Net loss
|
$ (0.04)
|
|
$ (0.01)
|
|
$ (0.07)
|
|
$ (0.07)
|
Weighted average shares – basic
|
7,526,430
|
|
7,526,430
|
|
7,526,430
|
|
7,526,430
|
Weighted average shares –
diluted
|
7,526,430
|
|
7,526,430
|
|
7,526,430
|
|
7,526,430
|
Selected Balance Sheet Data (Unaudited)
|
|
|
December 31, 2015
|
June 30, 2015
|
Cash and Cash Equivalents
|
$860,862
|
$1,516,761
|
Inventory
|
2,444,909
|
2,219,615
|
Working Capital
|
2,455,681
|
3,006,130
|
Total Assets
|
5,770,793
|
6,549,070
|
Total Liabilities
|
3,317,439
|
3,559,125
|
Stockholders' Equity
|
2,453,354
|
2,989,945
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/escalon-medical-corp-reports-second-quarter-fiscal-2016-results-300221043.html
SOURCE Escalon Medical Corp.