Exhibit 99.1
ENCISION REPORTS SECOND FISCAL QUARTER RESULTS
BOULDER, Colo., Oct. 26 /PRNewswire-FirstCall/ -- Encision Inc. (Amex:
ECI), a medical device company with patented surgical technology emerging as a
standard of care in minimally-invasive surgery, reported its financial results
for its second fiscal quarter ended September 30, 2005.
Revenue for the second fiscal quarter ended September 30, 2005 of $2.303
million represented an 11.5 percent increase over prior fiscal year's second
fiscal quarter revenue of $2.066 million. Net loss of $(162) thousand or $(.03)
per share for the second fiscal quarter compares to a net loss of $(56) thousand
or $(.01) per share for last year's second fiscal quarter. Gross Profit Margin
for the second quarter of fiscal year 2006 was 60 percent as compared to 58
percent for the second quarter of fiscal year 2005.
Revenue for the six months ended September 30, 2005 of $4.591 million
represented a 20 percent increase over prior fiscal year's second six months
revenue of $3.829 million. Net loss of $(143) thousand or $(.02) per share for
this fiscal year's six months compares to a net loss of $(347) thousand or
$(.06) per share for last fiscal year's six months. Last year's six months
included a one-time expense of approximately $201,000 (including attorney and
arbitrator fees) for resolution of an arbitration dispute with one of Encision's
distributors. Gross Profit Margin for the six months of fiscal year 2006 was 60
percent as compared to 58 percent for the six months of fiscal year 2005.
"We remain focused on our business and have added personnel to our highly
motivated direct sales staff," said Jack Serino, President and CEO of Encision.
"As previously announced last week, we introduced a new handle, enTouch(TM), for
our articulating instruments. We anticipate that this handle will help us to add
new accounts and retain our ongoing hospital accounts. The launch of this
product resulted in additional marketing and engineering expenses in the second
quarter of fiscal year 2006 versus the second quarter of fiscal year 2005."
Encision Inc. designs and manufactures innovative surgical devices that
allow the surgeon 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(R) 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 revenues 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
ENCISION INC.
Unaudited Condensed Balance Sheets
(In thousands)
September 30, September 30,
2005 2004
------------- -------------
Cash and Cash Equivalents $ 832 $ 1,472
Current Assets 3,459 3,653
Total Assets 4,018 4,107
Current Liabilities 1,104 1,133
Shareholders' Equity 2,914 2,974
Total Liabilities and Shareholders' Equity $ 4,018 $ 4,107
ENCISION INC.
Unaudited Condensed Statement of Operations
(In thousands, except per share amounts)
Three Months Ended
September 30,
------------------------------
2005 2004
------------- -------------
Net Revenue $ 2,303 $ 2,066
Cost of Revenue 926 871
Gross Profit 1,377 1,195
Operating Expenses 1,537 1,252
Operating (Loss) (160) (57)
Net (Loss) $ (162) $ (56)
Net (Loss) per Share $ (.03) $ (.01)
ENCISION INC.
Unaudited Condensed Statement of Operations
(In thousands, except per share amounts)
Six Months Ended
September 30,
------------------------------
2005 2004
------------- -------------
Net Revenue $ 4,591 $ 3,829
Cost of Revenue 1,830 1,618
Gross Profit 2,761 2,211
Operating Expenses 2,907 2,559
Operating (Loss) (146) (348)
Net (Loss) $ (143) $ (347)
Net (Loss) per Share $ (.02) $ (.06)
SOURCE Encision Inc.
-0- 10/26/2005
/CONTACT: Marcia McHaffie of Encision Inc., +1-303-444-2600,
mmchaffie@encision.com /
/Web site: http://www.encision.com /