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
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning 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 busin...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...