ESMC PR...price at 1.60:
(COMTEX) B: Escalon(R) Medical Corp. Reports Fourth Quarter and Fiscal 2
B: Escalon(R) Medical Corp. Reports Fourth Quarter and Fiscal 2002 Results
WAYNE, Pa., Sep 26, 2002 /PRNewswire-FirstCall via COMTEX/ -- Escalon Medical
Corp. (Nasdaq: ESMC) today announced results for its fiscal fourth quarter and
year ended June 30, 2002. For the fourth quarter of fiscal 2002, Escalon Medical
reported net income of $211,140, or $0.063 per diluted share. This compares to
net income of $170,281, or $0.052 per diluted share, in the fourth quarter of
fiscal 2001, which was prior to the company's adoption of Statement of Financial
Accounting Standards No. 142 ("SFAS 142").
Revenues for the fourth quarter of fiscal 2002 declined 3.1% to $3,060,408
compared to $3,158,102 in the fourth quarter of fiscal 2001. For the fourth
quarter, revenue from Sonomed was down 6.9% to $1,402,789 compared to $1,506,283
in the prior year period. The softness was related primarily to weakness in the
domestic market. Product revenue in the Vascular business increased 18.2% to
$718,592 in the fourth quarter of fiscal 2002 compared to $608,071 in the year
ago period. The improvement resulted from unit sales gains as well as a
continuing shift toward sales achieved through our internal sales force. Revenue
in the Company's Medical / Trek business declined by 22.6% to $808,013 in the
quarter from $1,043,748 in the fourth 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 $461,594 in
the quarter compared to $725,526 in the year ago period. This decrease is
largely due to the fulfillment of a backorder situation during 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 $131,014 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 63.4% in the current quarter compared
to 59.2% in the year ago period. Benefiting the gross margin was the
year-over-year margin improvements in the Vascular business primarily due to
increased sales price per unit, offset by the decline in sales of Silicone Oil,
which has no costs associated with it. Marketing, general and administrative
expenses increased slightly in the quarter and benefited from a $205,186 decline
in amortization expense year over year as a result of the implementation of SFAS
142.
For fiscal 2002, Escalon Medical reported net income of $978,857, or $0.291 per
diluted share, compared to net income of $592,200, or $0.179 per diluted share,
in fiscal 2001. Revenues for fiscal 2002 were $12,073,932 compared to
$11,880,017 in fiscal 2001, an increase of 1.6%. Revenues were led by a 24.4%
increase in the Vascular business, which contributed $2,634,000 in fiscal 2002.
Revenues in the Sonomed business increased by 1.4% in fiscal 2002 to $6,071,000.
In the Medical / Trek business, revenues declined 17.8% to $3,102,000 for the
year, largely due to a $500,000 decrease in revenue earned in connection with
Silicone Oil. The Digital business contributed $267,000 to revenues in fiscal
2002.
"Despite a lackluster economic environment, we saw sales increase modestly
during the year, largely on the gains in our Vascular business," commented
Richard J. DePiano, Chairman and Chief Executive Officer. "Importantly, we
remained profitable and generated strong cash flow, which allowed us to reduce
our term loan and line of credit by over $2.0 million in fiscal 2002."
Mr. DePiano continued, "In addition to the top line gains in the Vascular
business, we have made good strides reducing costs through improved
manufacturing efficiencies. This led to an improvement in Vascular's gross
margin from 52.0% of sales in fiscal 2001 to 62.5% of sales in fiscal 2002. We
made progress during the quarter introducing our Doppler Guided IV Needle into
new institutions in the Philadelphia market and feedback continues to be
positive on its use in oncology. We remain focused on penetrating new markets
such as hematology, and I.V. therapy and look to slowly build our sales force to
increase usage."
"At Sonomed, sales were weaker than expected in the fourth quarter, although
they were up for the year. While international sales continued to benefit from
our entry into Latin America, domestic sales were soft. International markets
such as the Far East will be a particular focus in 2003."
Mr. DePiano concluded, "Our long-term growth strategy remains consistent, we
will focus on expanding our market position overseas and also look for
opportunities to tailor our existing products to new niche markets. While the
economy remains uncertain, we continue to expect to see sales gains in 2003 and
continue to manage the business to remain profitable."
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 the Company's
business units, 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 Year Ended
June 30, June 30,
2002 2001 2002 2001
Product revenues, net $3,060,408 $3,158,102 $12,073,932 $11,880,017
Costs and expenses:
Cost of goods sold 1,120,875 1,289,427 4,640,325 4,296,525
Research and development 155,017 130,392 554,760 491,582
Marketing, general and
administrative 1,345,997 1,335,588 5,096,994 5,430,813
Total costs and
expenses 2,621,889 2,755,407 10,292,079 10,218,920
Income from operations 438,519 402,695 1,781,853 1,661,097
Other income and (expenses):
Loss from termination
of joint venture (23,434) -- (23,434) --
Equity in income (loss)
of unconsolidated
joint venture -- (3,760) 8,848 (19,164)
Interest income 542 (632) 2,347 2,297
Interest expense (204,487) (228,022) (790,757) (1,052,030)
Total other income and
(expense) (227,379) (232,414) (802,996) (1,068,897)
Net income :
Reported net income 211,140 170,281 978,856 592,200
Add: FAS 142 adjustment -- 205,186 -- 856,679
Adjusted net income 211,140 375,467 978,856 1,448,879
Basic net income per share:
Reported net income $0.063 $0.052 $0.293 $0.180
Add: FAS 142 adjustment -- 0.062 -- 0.260
Adjusted net income $0.063 $0.114 $0.293 $0.440
Diluted net income per share:
Reported net income $0.063 $0.052 $0.291 $0.179
Add: FAS 142 adjustment -- 0.062 -- 0.259
Adjusted net income $0.063 $0.114 $0.291 $0.438
Weighted average shares -
basic 3,345,851 3,292,184 3,345,851 3,292,184
Weighted average shares -
diluted 3,360,492 3,307,986 3,360,492 3,307,986
SELECTED BALANCE SHEET DATA: June 30, June 30,
2002 2001
(audited) (audited)
Cash, cash equivalents and investments $220,826 $80,830
Total current assets 4,287,590 4,185,152
Total assets 16,912,441 17,642,462
Current liabilities 4,527,697 7,032,888
Long-term debt 5,191,393 4,502,325
Total shareholders' equity 7,193,351 6,107,249
MAKE YOUR OPINION COUNT - Click Here
tbutton.prnewswire.com
SOURCE Escalon Medical Corp.
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)
prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.
-0-
KEYWORD: Pennsylvania
INDUSTRY KEYWORD: MTC
SUBJECT CODE: ERN
*** end of story *** |
