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Company Contact Investor Relations Contacts
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Michael A. McManus, Jr. Lippert/Heilshorn & Associates, Inc.
President and CEO Kim Sutton Golodetz
Misonix, Inc. (kgolodetz@lhai.com) (212) 838-3777
(631) 694-9555 Bruce Voss (bvoss@lhai.com)
www.misonix.com (310) 691-7100
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MISONIX REPORTS INCREASED REVENUES AND EARNINGS FOR
THE FIRST QUARTER 2005 ENDED SEPTEMBER 30, 2004
FARMINGDALE, N.Y., NOVEMBER 8, 2004 MISONIX, INC. (NASDAQ NM: MSON) today
reported fiscal results for the three months ended September 30, 2004.
Highlights of the first quarter of fiscal 2005 ended September 30, 2004 include:
o Revenues for the three months ended September 30, 2004 increased 22%
over the same period in fiscal 2004, driven by a 29% increase in
medical device product sales and a 14% increase in laboratory and
scientific product sales
o Operating income increased 196% to $488,000 for the three months ended
September 30, 2004
o Net income increased 6% to $416,000 for the three months ended
September 30, 2004
o Successful completion of more than 130 procedures for the treatment of
prostate cancer in Europe
o Agreement with a prominent doctor in Europe to participate in a
six-hospital site study using the Sonablate 500 to treat prostate
cancer
o Successful completion of clinical trials in Europe for the Wound
Debridement product and anticipation of completion of U.S. clinical
trials by June 2005
o Successful completion of several clinical trials for the Ultrasonic
Bone Cutter with the final and conclusive study scheduled to start
December 2004 and be completed by June 2005
Revenues for the three months ended September 30, 2004 were $10.5 million, a 22%
increase compared with revenues of $8.6 million for the same period in fiscal
2004. The Company recorded net income for the first fiscal quarter of 2005 of
$416,000 or $.06 per fully diluted share, compared with net income of $393,000
or $.06 per fully diluted share for the same period in fiscal 2004. Medical
device product revenues increased 29% to $5.9 million and laboratory and
scientific product revenues increased 14% to $4.6 million. The increase in
medical device product revenues was attributed to a 47% increase in therapeutic
medical device revenues to $3.5 million and a 10% increase in diagnostic medical
device revenues to $2.4 million. The increase in laboratory and scientific
product revenues was mainly attributable to a 6% increase in sales of Labcaire
products, primarily endoscopic cleaning and disinfecting units, a 4% increase in
sales of ductless fume enclosures and related products, and a 248% increase in
sales of wet scrubber products, partially offset by a 3% reduction in sales of
ultrasonic laboratory product sales.
Income from operations for the three months ended September 30, 2004 increased
196% to $488,000 from $165,000 for the same period in fiscal 2004, despite a
significant increase in research and development expenditures to $742,000, or
7.1% of revenues from $488,000 or 5.7% of revenues in the prior fiscal year's
first quarter.
The backlog of unfilled orders as of September 30, 2004 was $7.5 million;
medical device product backlog was $4.0 million and laboratory and scientific
product backlog was $3.5 million.
The Company's product inventory increased due to anticipated demands for the
Company's therapeutic medical device products and diagnostic medical device
products.
Michael A. McManus, Jr., President and Chief Executive Officer commented, "We
continue to show good growth in all of our businesses. Sales of our existing
medical devices are continuing as we have discussed. We continue to expect to
complete our clinical work in wound care and the bone cutter in the next few
months.
We are pleased with the good growth in all of our laboratory and scientific
products. Our wet scrubber business has now started to increase both shipments
and backlog.
We have already seen the markets growing acceptance of the use of High Intensity
Focused Ultrasound ("HIFU") in a variety of treatments including fibroids of the
uterus. Our investment in Focus Surgery represents a base of HIFU technology
capable of competing in all of these treatments. Misonix has worldwide rights to
use Focus Surgery's HIFU for treatment of the kidney and liver and we will be
starting on the application for the treatment of breast tissue. We continue to
make good progress in the development of these products. We are looking at the
use of HIFU in other types of treatments. We continue to invest in the research
and development of our ultrasonic platform in new and important therapies.
In Europe, we have seen the continued growth of our distribution network for the
Sonablate 500 together with our neuroaspirator.
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The future of your company looks bright as we continue to become a unique source
of ultrasonic medical devices worldwide.
We recognize the value of our shareholders and are looking at all ways to
enhance the value of your participation in our continued growth."
With respect to guidance for fiscal 2005, the Company said that it expects
revenues to increase by 10-15% and earnings by 30% over fiscal year 2004
results.
As previously announced, the Company has scheduled a conference call to discuss
this announcement beginning at 4:30 p.m. Eastern Time today. To participate in
the call, a few minutes prior to the start time, please dial (888) 803-7638 in
the U.S. or (706) 634-1218 for international callers. Those unable to
participate are invited to listen to a recording of the call and Question and
Answer session that will be available from 5:30 p.m. Eastern Time today through
11:59 p.m. Eastern Time, Wednesday, November 10th by dialing (800) 642-1687 in
the U.S. or (706) 645-9291 for international callers and 1955420. Alternatively,
individuals may listen to the call by visiting the investor relations section of
the Company's website at www.misonix.com. To listen to the live call, please go
to the website 15 minutes prior to its start to register, download, and install
the necessary audio software. A replay will begin shortly after the call has
ended and will be available for 14 days.
Misonix develops, manufactures, and/or markets medical, scientific and
industrial ultrasonic and air pollution systems and maintains a minority equity
position in Focus Surgery as its exclusive manufacturer of the Sonablate 500.
Forward Looking Statements: Statements in this news release looking forward in
time are made pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that forward-looking
statements involve risks and uncertainties, including general economic
conditions, delays and risks associated with the performance of contracts,
uncertainties as a result of research and development, potential acquisitions,
consumer and industry acceptance, litigation and/or court proceedings, and
regulatory risks including approval of pending and/or contemplated 510K filings.
(Tables to follow)
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MISONIX, INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED AUDITED
SEPTEMBER 30, 2004 JUNE 30, 2004
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ASSETS
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Current Assets:
Cash and cash equivalents $3,821,751 $4,839,866
Accounts receivable, net of allowance
for doubtful accounts of $390,525 and
$457,016, respectively 7,642,846 7,601,693
Inventories 11,563,808 10,944,572
Deferred income taxes 664,611 645,381
Prepaid expenses and other current assets 1,561,544 1,114,546
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Total current assets 25,254,560 25,146,058
Property, plant and equipment, net 3,853,763 3,892,920
Deferred income taxes 412,201 412,201
Goodwill 4,473,713 4,473,713
Other assets 310,972 316,220
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Total assets $34,305,209 $34,241,112
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Revolving credit facilities 1,670,745 1,373,681
Accounts payable 4,237,979 4,507,476
Accrued expenses and other current liabilities 1,416,885 1,857,097
Income taxes payable 36,189 107,282
Current maturities of long-term debt and capital
lease obligations 282,207 302,932
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Total current liabilities 7,644,005 8,148,468
Long-term debt and capital lease obligations 1,248,475 1,264,480
Deferred income 873,374 769,033
Minority interest 331,395 315,955
Stockholders' equity:
Capital stock, $0.01 par - shares authorized 10,000,000; 6,826,253 and
6,816,253 issued and 6,748,453 and 6,738,453 outstanding, respectively 68,263 68,163
Additional paid-in capital 23,163,502 23,116,602
Retained earnings 1,081,728 665,461
Treasury stock, 77,800 shares (412,424) (412,424)
Accumulated other comprehensive income 306,891 305,374
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Total stockholders' equity 24,207,960 23,743,176
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Total liabilities and stockholders' equity $34,305,209 $34,241,112
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MISONIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
THREE MONTHS ENDED
SEPTEMBER 30,
2004 2003
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Net sales $10,500,066 $8,619,898
Cost of goods sold 6,089,326 4,954,203
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Gross profit 4,410,740 3,665,695
Selling expenses 1,439,809 956,533
General and administrative expenses 1,740,894 2,055,768
Research and development expenses 741,768 488,480
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Total operating expenses 3,922,471 3,500,781
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Income from operations 488,269 164,914
Total other income 203,339 511,949
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Income before minority interest and
income taxes 691,608 676,863
Minority interest in net income of
consolidated subsidiaries 15,439 14,026
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Income before income taxes 676,169 662,837
Income tax expense 259,902 269,095
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Net income $416,267 $393,742
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Net income per share-basic $0.06 $0.06
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Net income per share-diluted $0.06 $0.06
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Weighted average common shares-basic 6,741,786 6,655,865
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Weighted average common shares-diluted 6,959,540 6,725,580
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