Welcome!

News Feed Item

Escalon® Medical Corp. Reports Second Quarter Fiscal 2014 Results; New Product Introductions Underway

ARDMORE, Pa., Feb. 14, 2014 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC) today announced its operating results for the second fiscal quarter and six months ended December 31, 2013. 

For the fiscal second quarter, consolidated product revenue was $3.1 million, flat with the first fiscal quarter of 2014 but down compared to the $3.6 million in the prior year period.  For the six months ended December 31, 2013, consolidated product revenue increased approximately 5% to $6.2 million from $5.9 million in the year ago period.

For the fiscal second quarter ended December 31, 2013, the company reported a net loss of $109,000, or $0.01 per share, and a net loss from continuing operations of $83,000, or $0.01 per share.  This compares to net income of $4.0 million, or $0.53 per share, for the year ago period, which includes a net gain of $4.0 million related to the sale of Drew and related debt settlement.  Net income from continuing operations was $126,527, or $0.02 per share, for the year ago period.  For the first six months of fiscal 2014, the company reported a net loss of $95,000, or $0.01 per share, and a net loss from continuing operations of $44,000.  This compares to net income of $3.6 million, or $0.46 per share, which includes the $4.0 million gain.  The net loss from continuing operations was $497,864, or $0.07 per share, for the first six months of the prior fiscal year.

Year to date in fiscal 2014, margins remained steady at 50.1% compared to 49.7% in the prior year period.  Marketing, general and administrative expenses decreased by 13.9% primarily due to declines in payroll expenses.  As a result of the planned update of existing products as well as the introduction of new products, research and development expenses for the first six months of fiscal 2014 grew by 32.1% to $700,000 from $530,000 in the prior year period.

At December 31, 2013, the Company had $2.6 million of cash and no long term debt and its continuing operations were near breakeven on a cash basis with a net use of cash of $44,433 in the first six months of fiscal 2014.

"We remain committed to reinvesting in our ophthalmic product line to develop and deliver new best-in-class ophthalmic ultrasound solutions," commented Chief Executive Officer, Richard J. DePiano, Jr.  "We have seen a strong reception to our first new product, the VuMAX® HD introduced earlier in calendar 2013, with solid sales both internationally and with several top institutions in the U.S.  Early indications for our next new product, the VuPad™, which was previewed at the annual meeting of the American Academy of Ophthalmology in November, are promising.  We filed a 510(k) pre-market clearance application for the VuPad™ with the US FDA in late January and anticipate clearance in our third fiscal quarter, followed shortly thereafter by approval from other regulatory bodies."

"While we have considerable work ahead of us, we're pleased to have reported growth in sales year over year and are further encouraged given the preliminary market feedback regarding the soon-to-be-released VuPad™ product.  With an improved financial position, we are poised to pursue strategic growth opportunities to leverage our technology and exciting research and development programs."

About Escalon Medical  
Founded in 1987, Escalon Medical Corp. (NASDAQ: ESMC) specializes in the development, marketing and distribution of ophthalmic diagnostic imaging and surgical products branded under the Sonomed Escalon name.  Products include a variety of ophthalmic ultrasound, digital imaging and photography, and image management systems as well as surgical products including intraocular gases, fiber optic light guides and sources, and other surgical vitreoretinal instruments.  The Company seeks to grow its ophthalmic business by further developing and diversifying its product offering through internal development programs, strategic partnerships, and the acquisition of technology so as to best leverage the Company's distribution capabilities. The Company has headquarters in Ardmore, Pennsylvania and research and development, manufacturing and distribution operations in Lake Success, New York, New Berlin, Wisconsin and Stoneham, Massachusetts.  For additional information visit www.escalonmed.com and www.sonomedescalon.com

Forward Looking Statements    
This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. These statements are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to: develop, obtain regulatory clearance of and launch new products, implement its growth and marketing strategies; improve upon the operations of the Company including the ability to make acquisitions and the integration of any acquisitions it may undertake, if any, of which there can be no assurance; grow our remaining ophthalmic business unit; improve our financial position; implement cost reductions; generate cash; and identify, finance and enter into business relationships and acquisitions.  Other factors include uncertainties and risks related to: new product development, commercialization, manufacturing and market acceptance of new products; marketing acceptance of existing products in new markets; research and development activities, including failure to demonstrate clinical efficacy; delays by regulatory authorities, scientific and technical advances by the Company or third parties; introduction of competitive products; ability to reduce staffing and other costs and retain benefit of prior reductions; third party reimbursement and physician training, and general economic conditions.  Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10- K for year ended June 30, 2013, and its other filings with the Securities and Exchange Commission, all of which are available from the Securities and Exchange Commission as well as other sources.

 

--financial tables to follow--

 

ESCALON MEDICAL CORP. AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Operations

 


Six Months Ended


Six Months Ended


December 30,


December 31


2013


2012


2013


2012









Revenues, net

$  3,078,485


$ 3,640,761


$  6,208,568


$5,901,338









Costs and expenses:








    Cost of goods sold

1,510,322


1,776,054


3,066,536


2,972,452

    Marketing, general and administrative

1,280,427


1,488,915


2,493,390


2,894,501

    Research and development

377,042


266,169


700,232


530,367

       Total costs and expenses

3,167,791


3,531,138


6,260,158


6,397,320









(Loss) income from operations

(89,306)


109,623


(51,590)


(486,982)

Other income (expense)








     Other income (expense)

6,535


16,842


7,603


81,623

     Interest income

56


62


117


91

     Interest expense

--


--


--


(92,596)

         Total other income (expense)

6,591


16,904


7,720


(10,882)

Net (loss) income from continuing operations

(82,715)


126,527


(43,870)


(497,864)

Net (loss) income from discontinued

      operations, before tax

(25,834)


3,946,858


(51,439)


4,137,824

Net (loss) income

$   (108,549)


$   3,993,385


$   (95,309)


$   3,559,960

Basic and Diluted Net (Loss) Income per Share








     Continuing operations

$    (0.01)


$      0.02


$             --


$     (0.07)

     Discontinued operations

--


0.51


(0.01)


0.54

      Net income (loss)

$   (0.01)


$      0.53


$      (0.01)


$      0.47

Weighted Average Shares - basic

7,526,430


7,526,430


7,526,430


7,526,430

Weighted Average Shares - diluted 

7,526,430


7,526,430


7,526,430


7,526,430

 

Selected Balance Sheet Data (Unaudited)

 


December 31, 2013

June 30, 2013

Cash and Cash Equivalents

$2,565,156

$2,654,701

Inventory

2,235,488

1,853,686

Working Capital

3,857,328

4,003,293

Total Assets

7,470,302

7,272,165

Total Liabilities

3,732,370

3,443,239

Stockholders' Equity

3,737,932

3,828,926

 

SOURCE Escalon Medical Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products an...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...