Misonix, Inc. Reports Fiscal Third Quarter 1998 Results; Records
Highest Quarterly and Nine-Month Revenues Ever
FARMINGDALE, N.Y. (April 28) BUSINESS WIRE -April 28, 1998--Misonix,
Inc. (Nasdaq: MSON), today reported results for its fiscal 1998 third
quarter and nine months ended March 31, 1998.
Revenue for the quarter increased 27.7% to a record $6.5 million,
compared with $5.1 million in the third quarter of 1997. Pretax income
was $1.4 million versus a loss of $2.9 million in the comparable period
in 1997. Net income for the quarter was $1.0 million, compared with a
loss of $2.9 million in the prior year's period. Diluted earnings per
share were $0.16 for the quarter versus a loss of $0.58 in the
comparable 1997 period, on a 31% increase in common shares and share
equivalents outstanding, reflecting the February 1997 exercise of
publicly issued redeemable warrants. Included in results for the
year-ago period was a $4.4 million non-cash, non-recurring compensation
charge. Excluding this charge, net income for the three months ended
March 31, 1997, was $1.5 million, or $0.40 per diluted share.
For the nine-month period, revenue increased 50.8% to a record $17.4
million, compared with $11.5 million in the comparable year-ago period.
Pretax income was $4.0 million versus a loss of $1.9 million in the
comparable period in 1997. Net income was $2.9 million, compared to a
loss of $1.9 million in the prior year's nine-month period. Diluted
earnings per share were $0.43 for the nine-month period versus a loss
of $0.43 in the comparable year-ago period, on a 47% increase in common
shares and share equivalents outstanding. Excluding the non- cash,
non-recurring compensation charge referred to above, net income for the
nine months ended March 31, 1997, was $2.4 million, or $0.77 per
diluted share.
Dr. Joseph Librizzi, President and Chief Executive Officer, said, "We
are pleased with the strong growth in the Company's revenue and
earnings for both the third quarter and nine-month periods. The
achievement of record revenues in both periods reflects not only strong
performance in our medical products division, where sales increased
53.8% and 165.1% in the quarter and nine months, respectively, but also
in our core scientific and industrial products division, which once
again posted solid performance with sales increasing 15.2% and 18.2%,
respectively, over the year-ago periods."
Dr. Librizzi continued, "A majority of the growth in our medical
products division during the third quarter resulted from our exclusive
agreement with United States Surgical Corporation (NYSE: USS), as the
bulk of our shipments thus far to USS took place in the third quarter.
The most recent order of $1.6 million for ultrasonic generators and
transducers, which are the main components of USS's AutoSonix(a)
ultrasonic cutting system, indicates the increasing demand for this
product. We are very pleased with the relationship with U.S. Surgical
based upon orders received to date of $6.9 million."
Dr. Librizzi added, "As part of our ongoing product development
efforts, we recently introduced a new product line from our core
scientific and industrial products division, Aura Ductless Fume
Enclosures, which are used in laboratories and research facilities.
This new product line, which we believe is the most sophisticated
safety product line of its kind available in the market today, has
already received significant favorable response from the marketplace."
Dr. Librizzi concluded, "In the fourth quarter, we look forward to
delivering a $1.1 million gas treatment system for a new semiconductor
gas production plant. This order, which was received in October 1997,
marked a milestone for Misonix, as it not only is the single largest
air pollution system order ever received by our Mystaire Air Pollution
Control division, but it also reflects our ability to penetrate the
growing air pollution abatement market."
Misonix, Inc. develops, manufactures, and/or markets medical,
scientific, and industrial ultrasonic and air pollution systems.
(a)Trademark of United States Surgical Corporation. Forward
Looking Statements: Statements in this news release looking forward in
time are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
forward-looking statements involve risks and uncertainties, including
general economic conditions, delays and risks associated with the
performance of contracts, consumer and industry acceptance, and
regulatory risks.
MISONIX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1998 1997
Net sales $ 6,516,470 $ 5,102,599
Cost of goods sold 3,209,656 2,119,785
Gross profit 3,306,814 2,982,814
Selling, general and
administrative expenses 1,887,492 1,539,637
Research and development 256,878 92,816
Non-cash compensation charge -- 4,359,600
Total operating expenses 2,144,370 5,992,053
Income (loss) from
operations 1,162,444 (3,009,239)
Other income 259,986 147,327
Income (loss) before
minority interest and
income taxes 1,422,430 (2,861,912)
Minority interest in net
income of consolidated
subsidiary (64) (15,097)
Income (loss) before income
taxes 1,422,366 (2,877,009)
Income taxes 387,572 (29,029)
Net income (loss) $ 1,034,794 $ (2,906,038)
Net income (loss) per
share- Basic $ 0.18 $ (0.58)
Net income (loss) per
share - Diluted $ 0.16 $ (0.58)
Weighted average common
shares 5,677,622 5,004,177
Weighted average common
shares and share
equivalents outstanding 6,587,427 5,004,177
Nine Months Ended
March 31,
1998 1997
Net sales $ 17,353,978 $ 11,505,876
Cost of goods sold 8,105,262 5,233,925
Gross profit 9,248,716 6,271,951
Selling, general and
administrative expenses 5,281,296 3,903,953
Research and development 704,581 191,178
Non-cash compensation charge -- 4,359,600
Total operating expenses 5,985,877 8,454,731
Income (loss) from
operations 3,262,839 (2,182,780)
Other income 746,123 303,486
Income (loss) before
minority interest and
income taxes 4,008,962 (1,879,294)
Minority interest in net
income of consolidated
subsidiary (9,539) (22,508)
Income (loss) before income
taxes 3,999,423 (1,901,802)
Income taxes 1,112,803 (29,029)
Net income (loss) $ 2,886,620 $ (1,930,831)
Net income (loss) per
share- Basic $ 0.51 $ (0.43)
Net income (loss) per
share - Diluted $ 0.43 $ (0.43)
Weighted average common
shares 5,675,392 4,541,171
Weighted average common
shares and share
equivalents outstanding 6,667,868 4,541,171
-0- db/ny*
CONTACT: Misonix, Inc.
Peter Gerstheimer
Vice President and CFO
(516) 694-9555
or
Investor Relations:
Cheryl Schneider/Tessa Lavender
Press: Michael McMullan
Morgen-Walke Associates, Inc.
(212) 850-5600
KEYWORD: NEW YORK INDUSTRY KEYWORD: ENVIRONMENT ENMED MEDICINE
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