Misonix Announces Third Quarter Results
Business Wire - May 12, 1999 17:10
FARMINGDALE, N.Y.--(BUSINESS WIRE)--May 12, 1999--Misonix, Inc. (NASDAQ: MSON) today reported results for its fiscal 1999 third quarter and nine months ended March 31, 1999.
Revenue for the nine-month period ending March 31, 1999 decreased 1% to $17.2 million, compared to $17.4 million for the same period in fiscal 1998. The results reflect a slight decrease in revenue from medical products due to a delay in orders received from our licensee, U.S. Surgical, as well as a reduction in shipments of Mystaire Division products due to concentrated efforts on shipments for the fourth quarter and beyond for two major orders. After reserving $2.1 million for possible bad debt, the company recorded a net profit of $751,000 or $.11 diluted earnings per share for the nine months ended March 31, 1999, compared to net income of $2,887,000 or $.43 diluted earnings per share for the same period in fiscal 1998. Without the effects of the bad debt reserve, the Company would have reported net income of $2,117,000, or $.32 diluted earnings per share for the nine months ended March 31, 1999. Revenue for the three-month period ended March 31, 1999 was $5.8 million compared to $6.5 million for the same period in fiscal 1998. The Company recorded net income of $566,000 for the quarter ended March 31, 1999, compared to $1,035,000 for the same period in fiscal 1998.
The reserve for bad debt is against accounts receivable due from Medical Device Alliance, Inc. and its wholly owned subsidiary, LySonix, Inc. as licensees for the Misonix ultrasonic soft tissue aspirator. On May 7, 1999, the Company brought an action against the licensees seeking collection of indebtedness and enforcement of its security interest against the remaining portion of inventory.
Michael A. McManus, Jr., President and Chief Executive Officer, stated: "We are very pleased with the continued growth in our core lines of business. We have to remember that our nine month revenue of $17.2 million did not include any revenue from the soft tissue aspirator, showed delays in orders from U.S. Surgical as they were completing their acquisition by Tyco, and reflected a reduction in shipments in the Mystaire division while it was working on two major orders for shipment in the fourth quarter. We also ended the quarter with a record backlog of $10 million.
Our previously announced settlement with Mentor will allow us to return to the production and sale of the soft tissue aspirator with both our machine and Mentor's unit. Production could begin as soon as this fourth quarter. The liposuction business continues to be one of the fastest growing segments of the cosmetic surgery business and we are pleased to be back in it with Mentor.
We will begin work in the near future on the development of the next generation of equipment for Focus Surgery. They will be paying us to develop with them a new machine for use on benign prostate tumors. Focus hopes to have the approval for use of this machine in the U.S. in mid 2000.
Our recently announced agreement in principle with Hearing Innovations will, when finalized, not only enable us to utilize our expertise in ultrasound to add value in the production of their hearing products, but also to participate with them in the near future in the sale of their tinnitus product to the 12 million severe tinnitus sufferers in the United States.
We expect that each of these developments will add to our continuing growth and income and result in increased value for our shareholders." |
