Misonix Announces Second Quarter Results
Business Wire - February 19, 1999 18:21
FARMINGDALE, N.Y.--(BUSINESS WIRE)--Feb. 19, 1999--Misonix, Inc. (NASDAQ: MSON) today reported results for its fiscal 1999 second quarter and six months ended December 31, 1998.
Revenue for the six-month period ending December 31, 1998 increased 5.4% to $11.4 million, compared to $10.8 million for the same period in fiscal 1998. The results reflect increased demand for the company's industrial and scientific products with a slight decrease in revenue from the medical products. After reserving $2.1 million for possible bad debt, the company recorded a net profit of $185,000 or $.03 diluted earnings per share for the six months ended December 31, 1998, compared to net income of $1,852,000 or $.28 diluted earnings per share. Without the effects of the bad debt reserve, the Company would have reported net income of $1,466,000, or $.22 diluted earnings per share for the six months ended December 31, 1998 as compared to net income of $1,852,000 or $.28 diluted earnings per share.
Revenue for the three-month period ending December 31, 1998 was $5.9 million compared to $5.8 million for the same period in fiscal 1998. After increasing the reserve for bad debt by $385,000, the Company recorded net income of $465,000 for the quarter ending December 31, 1998, compared to $944,000 for the same period in fiscal 1998.
The reserve for bad debt is against accounts receivable due from Medical Device Alliance, Inc. (MDA) and its wholly owned subsidiary, Lysonix, Inc. as Licensees for the Misonix ultrasonic soft tissue aspirator.
The Company, MDA, and MDA's wholly owned subsidiary, Lysonix, Inc., were sued for alleged patent infringement by Mentor Corporation. The case was heard in U.S. District Court in January 1999. On February 5, 1999, the jury found for the plaintiff. As a result of this outcome, the Company and its licensee may be precluded from selling the ultrasonic soft tissue aspirator. The amount of the damages that may be awarded, if any, is still pending. However, management believes that significant defenses against the claim of patent infringement are still sustainable. It is too early to predict the amount of potential loss in the event of a final outcome unfavorable to the Company.
Mr. Michael A. McManus, Jr., President and Chief Executive Officer, stated, "We are obviously disappointed by the jury verdict against us in the Mentor case. We will continue to work to resolve this situation while we consider all options available to us under the law. At the same time, we are extremely pleased at the continued growth of all our other lines of business. We are continuing to focus our efforts and resources on developing new products and seeking strategic acquisitions." |
