October 23, 2008
Encision Reports Profitable Second Fiscal Quarter Results
Boulder, Colorado, October 23, 2008 -- Encision Inc. (Pink Sheets: 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 ended September 30, 2008.
Net sales for the second quarter of fiscal year 2009, ended September
30, 2008, totaled $3.35 million, representing an 8% increase over net
sales of $3.09 million for the prior fiscal year’s second quarter.
The Company recorded net income of $75 thousand or $.01 per share for
the second quarter of fiscal year 2009 compared to net income of $8 thousand
or $.00 per share for the second quarter of fiscal year 2008. Gross profit
margin for the second quarter of fiscal year 2009 was 61.3% as compared
to 62.3% for the second quarter of fiscal year 2008. The gross profit
margin decrease was due to a 0.7% increase in scrap costs from the second
quarter of fiscal year 2008 and increased sales of lower gross profit
margin products. The decrease was partially offset by a higher gross
profit margin from sales of the Company’s internally manufactured
disposable scissor inserts and a 0.7% increase to gross profit margin
that was attributed to a decrease in warranty claims.
Net sales for the first six months of fiscal year 2009, ended September
30, 2008, totaled $6.44 million, representing a 12% increase over net
sales of $5.75 million for the prior fiscal year’s first six months.
The Company recorded a net loss of $89 thousand or $.01 per share for
the first six months of fiscal year 2009 compared to a net loss of $288
thousand or $.04 per share for the first six months of fiscal year 2008.
Gross profit margin for the first six months of fiscal year 2009 was
61% as compared to 62% for the first six months of fiscal year 2008.
“We believe that the major investments we have made in acquiring
manufacturing equipment, expanding our direct sales force and implementing
redesigns to existing products to elevate them to best of class status
have begun to benefit our shareholders during the second quarter that
ended September 30, 2008,” said Jack Serino, President and CEO
of Encision Inc. “During the last month, all disposable scissor
inserts sales were from internally manufactured disposable scissor inserts
that generated higher gross margins. We will see the full effect of higher
gross profit margins beginning in the third quarter ending December 31,
2008, when all disposable scissor inserts sales made in the quarter will
be sales from internally manufactured disposable scissor inserts. Also,
during the quarter, we reduced our cost structure as it relates to engineering
projects and we will see the full effect of these savings beginning in
the third quarter ending December 31, 2008.”
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.
CONTACT: Marcia McHaffie, Encision Inc.,
303-444-2600, mmchaffie@encision.com

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