October 29, 2009
Encision Reports Profitable
Second Fiscal Quarter Results
Boulder, Colorado, October 29, 2009 -- Encision
Inc. (OTCBB: ECIA), 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 second quarter of
fiscal year 2010.
Net sales for the three months ended September 30, 2009 totaled
$3.22 million, representing a 4% decrease over net sales of $3.35
million for the prior fiscal year’s second quarter. The Company
recorded net income of $46 thousand, or $.01 per share, for the second
quarter of fiscal year 2010, compared to a net income of $75 thousand,
or $.01 per share, for the second quarter of fiscal year 2009. Gross
profit margin for the second quarter of fiscal year 2010 was 60.5%,
as compared to 61.3% for the second quarter of fiscal year 2009.
The higher gross profit margin for the second quarter of fiscal year
2009 was due to a reduction of warranty accrual which increased the
gross profit margin by 0.7%.
Net sales for the first six months ended September 30, 2009 totaled
$6.39 million, representing a 1% decrease over net sales of $6.44
million for the prior fiscal year’s first six months. The Company
recorded net income of $210 thousand, or $.03 per share, for the
first six months of fiscal year 2010, compared to a net loss of $89
thousand, or ($.01) per share, for the first six months of fiscal
year 2009. Gross profit margin for the first six months of fiscal
year 2010 was 62.2%, as compared to 60.8% for the first six months
of fiscal year 2009, a 1.4% increase resulting from an increase to
inventory which resulted in a higher absorption of overhead costs
to inventory and a decrease to cost of sales.
“In our second half of fiscal year 2010, we will focus on
introducing several new instruments and a number of product line
enhancements and are looking forward to exiting this recession and
returning to our expected double digit annual growth rates,” said
Jack Serino, President and CEO of Encision Inc. “During our
second quarter ended September 30, 2009, in continuing with our manufacturing
vertical integration, we have brought in-house some additional manufacturing
processes.”
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® 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. Readers are encouraged to review the risk
factors and other disclosures appearing in the Company’s
filings with the Securities and Exchange Commission. The Company
does not undertake any obligation to update publicly any forward-looking
statements, whether as a result of the receipt of new information,
future events, or otherwise.
CONTACT: Marcia McHaffie, Encision Inc., 303-444-2600,
mmchaffie@encision.com |
