Click here to close now.

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
In his session at 16th Cloud Expo, Simone Brunozzi, VP and Chief Technologist of Cloud Services at VMware, reviewed the changes that the cloud computing industry has gone through over the last five years and shared insights into what the next five will bring. He also chronicled the challenges enterprise companies are facing as they move to the public cloud. He delved into the "Hybrid Cloud" space and explained why every CIO should consider ‘hybrid cloud' as part of their future strategy to achie...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet condit...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.
"We have a tagline - "Power in the API Economy." What that means is everything that is built in applications and connected applications is done through APIs," explained Roberto Medrano, Executive Vice President at Akana, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations migh...
WebRTC converts the entire network into a ubiquitous communications cloud thereby connecting anytime, anywhere through any point. In his session at WebRTC Summit,, Mark Castleman, EIR at Bell Labs and Head of Future X Labs, will discuss how the transformational nature of communications is achieved through the democratizing force of WebRTC. WebRTC is doing for voice what HTML did for web content.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
"A lot of the enterprises that have been using our systems for many years are reaching out to the cloud - the public cloud, the private cloud and hybrid," stated Reuven Harrison, CTO and Co-Founder of Tufin, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies drivi...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud envir...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...