May 19, 2009
Encision Reports Fourth Quarter and Fiscal Year 2009 Results
Boulder, Colorado, May 19, 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 fourth quarter and fiscal year ended March 31, 2009.
Net sales for the fourth quarter of fiscal year 2009, ended March 31, 2009, totaled $3.1 million, representing a 3% decrease over net sales of $3.2 million for the prior fiscal year’s fourth quarter. The Company recorded net income of $16 thousand or $.00 per share for the fourth quarter of fiscal year 2009 compared to net income of $49 thousand or $.01 per share for the fourth quarter of fiscal year 2008. Gross profit margin for the fourth quarter of fiscal year 2009 was 64% as compared to 63.5% for the fourth quarter of fiscal year 2008.
Net sales for the fiscal year ended March 31, 2009 totaled $12.8 million, representing a 6% increase over net sales of $12.1 million for the prior fiscal year. The Company recorded net income of $160 thousand or $.02 per share for the fiscal year 2009 compared to a net loss of $179 thousand or $.03 per share for the fiscal year 2008. Gross profit margin for the fiscal year 2009 was 62.3% as compared to 63% for the fiscal year 2008.
“Overall, our fiscal year 2009 was satisfactory given the challenges that the medical device industry has faced during the most recent quarters. This fiscal year was our first profitable fiscal year since fiscal year 2004,” said Jack Serino, President and CEO of Encision Inc. “We look forward to the coming fiscal year, especially after entering a sales representation agreement with Caldera Medical and signing a non-exclusive manufacturing, supply and licensing agreement with Intuitive Surgical.”
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 our filings with the Securities and Exchange Commission. We do 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
Encision Inc.
Condensed Balance Sheets
(Amounts in thousands)
(Audited)
| | | March 31, 2009 | | | March 31,2008 | |
| ASSETS | | | | | | |
| Cash and cash equivalents | | $ | 85 | | | $ | 71 | |
| Accounts receivable, net | | | 1,264 | | | | 1,453 | |
| Inventories, net | | | 2,505 | | | | 2,271 | |
| Prepaid expenses | | | 36 | | | | 99 | |
Total current assets | | | 3,890 | | | | 3,894 | |
| Equipment, net | | | 840 | | | | 798 | |
| Patents, net | | | 216 | | | | 199 | |
| Other assets | | | 24 | | | | 53 | |
Total assets | | $ | 4,970 | | | $ | 4,944 | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Accounts payable | | $ | 745 | | | $ | 537 | |
| Accrued compensation | | | 406 | | | | 392 | |
| Other accrued liabilities | | | 367 | | | | 481 | |
| Line of credit | | | 191 | | | | -- | |
Total current liabilities | | | 1,709 | | | | 1,410 | |
| Long-term debt | | | -- | | | | 606 | |
| Common stock and additional paid-in capital | | | 19,560 | | | | 19,387 | |
| Accumulated (deficit) | | | (16,299 | ) | | | (16,459 | ) |
Total shareholders’ equity | | | 3,261 | | | | 2,928 | |
Total liabilities and shareholders’ equity | | $ | 4,970 | | | $ | 4,944 | |
Encision Inc.
Condensed Statements of Operations
(Amounts in thousands, except per share information)
| | | (Unaudited) Three Months Ended | | | (Audited) Fiscal Years Ended | |
| | | March 31, 2009 | | | March 31, 2008 | | | March 31, 2009 | | | March 31, 2008 | |
| Net sales | | $ | 3,078 | | | $ | 3,183 | | | $ | 12,789 | | | $ | 12,066 | |
| Cost of sales | | | 1,108 | | | | 1,163 | | | | 4,823 | | | | 4,464 | |
| Gross profit | | | 1,970 | | | | 2,020 | | | | 7,966 | | | | 7,602 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
Sales and marketing | | | 1,279 | | | | 1,328 | | | | 5,166 | | | | 5,084 | |
General and administrative | | | 374 | | | | 352 | | | | 1,454 | | | | 1,405 | |
Research and development | | | 283 | | | | 279 | | | | 1,139 | | | | 1,268 | |
Total operating expenses | | | 1,936 | | | | 1,959 | | | | 7,759 | | | | 7,757 | |
| Operating income (loss) | | | 34 | | | | 61 | | | | 207 | | | | (155 | ) |
| Interest and other income (expense), net | | | (18 | ) | | | (12 | ) | | | (47 | ) | | | (24 | ) |
| Income (loss) before provision for income taxes | | | 16 | | | | 49 | | | | 160 | | | | (179 | ) |
| Provision for income taxes | | | –– | | | | –– | | | | –– | | | | –– | |
| Net income (loss) | | $ | 16 | | | $ | 49 | | | $ | 160 | | | $ | (179 | ) |
| Net income (loss) per share—basic and diluted | | $ | 0.00 | | | $ | 0.01 | | | $ | 0.02 | | | $ | (0.03 | ) |
| Basic and diluted weighted average number of shares | | | 6,455 | | | | 6,447 | | | | 6,453 | | | | 6,441 | |
