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Encision Reports Record Results, Q4 Revenue Up 96%
BOULDER, Colo.--(BW HealthWire)--May 18, 2001--Encision Inc. (OTCBB:ECSN - news) today reported record financial results for its fiscal year ended March 31, 2001.
The Company achieved record net revenues for its fourth quarter ended March 31, 2001, of $1,002,000, a 96 percent increase over revenues of $511,000 for the quarter ended March 31, 2000. The Company reported a net loss of $140,000 or $.03 per share for the current quarter which compares to a net loss of $649,000 or $.12 per share for last year's fourth quarter. Gross Profit Margin in this year's Q4 was 59 percent vs. 25 percent in Q4 last year.
Revenues for the fiscal year ended March 31, 2001, of $3,017,000 represented a 51 percent increase over prior fiscal year's revenues of $2,002,000. Net loss of $990,000 or $.18 per share for the current fiscal year compares to a net loss of $1,966,000 or $.37 per share for the prior fiscal year. Gross Profit Margin for FY 2001 was 54 percent compared to 36 percent in the prior fiscal year.
``The credibility that our proprietary technology is receiving in the marketplace is reflected in our record revenue achievements,'' said James A. Bowman, President and CEO of Encision. ``We converted 26 new hospitals to our AEM® Laparoscopic Instruments in Q4, the largest quarterly number of new AEM conversions in the Company's history.''
``Our record revenue achievements were accomplished while maintaining reduced operating expenses. Our operating results continue to improve and for the first time in the history of the Company we have exceeded our annual goal of 50 percent gross margin,'' stated Mr. Bowman.
``Our market momentum is accented by the continued expansion of the independent clinical endorsements of our patented AEM technology,'' added Mr. Bowman. A panel at the recent National Congress of the Association of Operating Room Nurses advised the audience of Operating Room directors, managers and staff to ``make it a peri-operative objective to convert to active electrode monitoring technology.''
More than three million laparoscopic surgical procedures are performed annually in the U.S. and reports estimate that 85 percent of surgeons utilize electrosurgical instruments in these procedures. Frost & Sullivan reports an annual market of over $500 million for instruments in laparoscopic surgery worldwide.
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® 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.
ENCISION INC.
Results of Operations
For Year Ended March 31,
2001 2000
Net Revenue $ 3,017,384 $ 2,002,119
Cost of Revenue 1,384,628 1,280,923
Gross Profit 1,632,756 721,196
Gross Margin 54.1% 36.0%
Operating Expenses 2,699,860 2,803,875
Operating Loss (1,067,104) (2,082,679)
Net (Loss) $ (990,452) $(1,966,314)
Net (Loss) per Share $ (.18) $ (.37)
ENCISION INC.
Results of Operations
For Fourth Quarter Ended March 31,
2001 2000
Net Revenue $ 1,002,278 $ 510,824
Cost of Revenue 415,493 381,118
Gross Profit 586,785 129,706
Gross Margin 58.5% 25.4%
Operating Expenses 783,676 804,334
Operating Loss (196,891) (674,628)
Net (Loss) $ (140,151) $ (648,970)
Net (Loss) per Share $ (.03) $ (.12)
ENCISION INC.
Condensed Balance Sheets
March 31, March 31,
2001 2000
Cash and Short-Term Investments $ 791,415 $2,173,953
Current Assets 2,297,320 3,076,674
Total Assets 2,543,829 3,391,411
Current Liabilities 567,988 477,985
Shareholders' Equity 1,975,841 2,913,426
Total Liabilities and Shareholders'
Equity $2,543,829 $3,391,411
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Contact:
Encision, Inc., Boulder
Marcia McHaffie, 303/444-2600, ext. 101
mmchaffie@encision.com
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