ESMC Nasdaq 1.84...here are 9mo numbers...net inc $.23..waiting on year end:
(PR NEWSWIRE) Escalon(R) Medical Corp. Reports Third Quarter 2002 Results
Escalon(R) Medical Corp. Reports Third Quarter 2002 Results
WAYNE, Pa., May 14 /PRNewswire-FirstCall/ -- Escalon Medical Corp.
(Nasdaq: ESMC) today announced results for its fiscal third quarter ended
March 31, 2002. For the third quarter of fiscal 2002, Escalon Medical
reported net income of $307,971, or $0.091 per diluted share. This compares
to net income of $115,617, or $0.035 per diluted share, in the third quarter
of fiscal 2001.
Revenues for the third quarter of fiscal 2002 increased 15.6% to
$3,266,088 compared to $2,824,555 in the third quarter of fiscal 2001. For
the third quarter, revenue from Sonomed was up 18.2% to $1,653,000 compared to
$1,398,000 in the prior year period. A one-time wholesale transaction with a
vendor was responsible for the majority of the increase. Product revenue in
the Vascular business increased 23.3% to $646,000 in the third quarter of
fiscal 2002 compared to $524,000 in the year ago period. The improvement
resulted from unit sales gains as well as improved pricing and margins due to
a shift away from underperforming distributors. Revenue in the Company's
Medical / Trek business declined by 8.0% to $830,000 in the quarter from
$902,000 in the third quarter of fiscal 2001. Included in this figure is
revenue earned in connection with the sale of the license and distribution
rights of Silicone Oil. Revenue from Silicone Oil was $430,000 in the quarter
compared to $623,000 in the year ago period. Additional consideration, which
is based upon future sales of Silicone Oil by Bausch & Lomb, is expected to
continue through fiscal 2005. Revenue in the Digital business unit was
$137,000 for the quarter as a result of Escalon Digital taking over all the
operations related to the CFA Digital Imaging System. Prior to January 1,
2002, all revenues had been recognized by the joint venture between the
Company and Megavision.
The gross margin as a percent of sales was 60.3% in the current quarter
compared to 65.3% in the year ago period. Impacting the gross margin was the
decline in sales of Silicone Oil, which has no costs associated with it,
offset by year-over-year margin improvements in the Vascular Access business
primarily due to increased sales price per unit. Marketing, general and
administrative expenses continue to be well controlled and benefited from a
$219,000 decline in amortization expense as a result of the implementation of
FAS 142.
"We continue to focus the Company on profitable growth and cash flow
management, which can be seen in the improvement in our balance sheet year to
date," commented Richard J. DePiano, Chairman and Chief Executive Officer.
"During the first nine months of fiscal 2002 we reduced our term loan and line
of credit by over $1.5 million. This was done despite a lackluster economic
environment, with sales up only 3% year to date."
Mr. DePiano continued, "Our long-term growth strategy continues to focus
on expanding our market position overseas and also looking for opportunities
to tailor our existing products to new niche markets. At Sonomed, we expanded
distribution in Latin America in the quarter contributing to the sales gain of
18% in this division."
"We continue to be pleased with our progress in the Vascular business as
well," added Mr. DePiano. "Having recently redesigned our Doppler-guided I.V.
product, we have been focused on penetrating new markets such as hematology,
oncology and I.V. therapy. We recently announced that we received our first
order from the oncology department of a preeminent medical institution in
Philadelphia. Through our Vice President of Sales and a newly hired clinical
specialist, we are targeting other hospitals in the Northeast to expand
penetration. Having recently exhibited the product at the Oncology Nursing
Society 27th Annual Congress, we believe new markets such as oncology could
expand the market potential for this product line."
Mr. DePiano concluded, "We also began conducting all operations concerning
Escalon Medical Imaging in the quarter, which prior to January 1, 2002 was an
unconsolidated joint venture with Megavision. The revenues and balance sheet
have now been consolidated and while sales continue at an introductory pace,
the division is contributing to our overall profitability."
For the first nine months of fiscal 2002, Escalon Medical reported net
income of $767,717, or $0.230 per diluted share, compared to net income of
$421,919, or $0.126 per diluted share, in the first nine months of fiscal
2001. Revenues for the first nine months of fiscal 2002 were $9,013,524
compared to $8,721,915 in the prior year period, an increase of 3.3%.
Founded in 1987, Escalon develops, markets and distributes ophthalmic
diagnostic, surgical and pharmaceutical products as well as vascular access
devices. The Company seeks to utilize strategic partnerships to help finance
its development programs and is also seeking acquisitions to further diversify
its product line to achieve critical mass in sales and take better advantage
of the Company's distribution capabilities. Escalon has headquarters in
Wayne, Pennsylvania and manufacturing operations in Long Island, New York and
New Berlin, Wisconsin.
Note: This press release contains statements that are forward-looking,
including statements about the Company's future prospects. They 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 improve upon
the operations of Sonomed, Trek, the vascular access business and Escalon
Medical Imaging, generate cash and identify, finance and enter into business
relationships and acquisitions, uncertainties and risks related to new product
development, 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, third party reimbursement
and physician training as well as 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, and its other filings with the
Securities and Exchange Commission, all of which are available from the
Commission as well as other sources.
ESCALON MEDICAL CORP. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
March 31, March 31,
2002 2001 2002 2001
Product revenues, net $3,266,088 $2,824,555 $9,013,524 $8,721,915
Costs and expenses:
Cost of goods sold 1,298,521 979,007 3,519,450 3,007,098
Research and
development 144,474 160,586 399,743 361,190
Marketing, general and
administrative 1,310,156 1,318,920 3,750,997 4,095,225
Total costs and
expenses 2,753,151 2,458,513 7,670,190 7,463,513
Income from operations 512,937 366,042 1,343,334 1,258,402
Other income and (expenses):
Equity in income (loss)
of unconsolidated joint
venture (3,518) 14,565 8,848 (15,404)
Interest income 450 -- 1,805 2,929
Interest expense (201,898) (264,990) (586,270) (824,008)
Total other income
and (expense) (204,966) (250,425) (575,617) (836,483)
Net income:
Reported net income 307,971 115,617 767,717 421,919
Add: FAS 142 adjustment -- 219,230 -- 651,493
Adjusted net income 307,971 334,847 767,717 1,073,412
Basic net income per share:
Reported net income $0.094 $0.035 $0.233 $0.128
Add: FAS 142 adjustment -- 0.067 -- 0.198
Adjusted net income $0.094 $0.102 $0.233 $0.326
Diluted net income per share:
Reported net income $0.091 $0.035 $0.230 $0.126
Add: FAS 142 adjustment -- 0.066 -- 0.195
Adjusted net income $0.091 $0.101 $0.230 $0.321
Weighted average shares
- basic 3,292,184 3,292,184 3,292,184 3,292,184
Weighted average shares
- diluted 3,385,263 3,334,727 3,339,627 3,340,713
SELECTED BALANCE SHEET DATA: March 31, 2002
June 30, 2001
(unaudited) (audited)
Cash, cash equivalents and investments $59,264 $ 80,830
Total current assets 4,376,186 4,185,152
Total assets 17,182,172 17,798,422
Current liabilities 4,525,578 7,188,848
Long-term debt 5,781,626 4,502,325
Total shareholders' equity 6,874,968 6,107,249
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SOURCE Escalon Medical Corp.
-0- 05/14/2002
/CONTACT: Richard J. DePiano, Chairman and CEO, of Escalon Medical Corp.,
+1-610-688-6830; or Alison Ziegler of FRB Weber Shandwick, +1-212-445-8432/
(ESMC)
CO: Escalon Medical Corp.
ST: Pennsylvania
IN: MTC
SU:
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