Misonix Inc. Reports Fiscal Fourth Quarter and Year-end Results
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Thursday August 19, 9:21 am Eastern Time
Company Press Release
Misonix Inc. Reports Fiscal
Fourth Quarter and Year-end
Results
Core Business Continues Strong
FARMINGDALE, N.Y.--(BUSINESS WIRE)--August 19, 1999--Misonix
Incorporated (Nasdaq: MSON - news) reported its fourth fiscal quarter and
fiscal year-end results for the period ended June 30, 1999.
Revenues for the fourth fiscal quarter were $7.5 million compared to $9.4
million for the same period in fiscal 1998. The Company recorded net income
of $1.2 million for the quarter compared to $2.4 million for the fourth fiscal
quarter of 1998 while diluted earnings per share were $0.18 versus $0.37 for
the same period in fiscal 1998.
For the fiscal year ended June 30, 1999, Misonix reported revenues of $24.8
million compared to $26.8 million for the year ended June 30, 1998. Net
income was $2.0 million or $0.30 diluted earnings per share in fiscal 1999
versus net income of $5.3 million and diluted earnings per share of $0.81 for
fiscal 1998.
The results reflect the absence of revenue from the Soft Tissue Aspirator,
compared to $6.0 million in sales during fiscal 1998 due to the previously
announced termination by the Company of the license agreement with
Medical Device Alliance, and the delayed shipment of pollution control
products from the Mystaire Division. Misonix confirmed that it expects the
Mystaire products to be shipped during the first quarter of fiscal 2000. The
fiscal 1999 results also include the Medical Device Alliance bad debt of $2.1
million. Without the effect of the bad debt write off, the Company would have
reported net income of $3.3 million or $0.50 diluted earnings per share.
Michael A. McManus, Jr., President and Chief Executive Officer, said,
''Fiscal year 1999 presented considerable challenges for Misonix. While we
are not satisfied with our year-end results as compared with 1998, we are
nevertheless pleased with several important developments:
Now that the United States District Court ruled in our favor regarding
the Soft Tissue Aspirator patent dispute, we are free to pursue new
distribution partners worldwide for this product;
We are working with Focus Surgery to develop the next generation
equipment for the treatment of benign prostate tumors and with
Hearing Innovations on devices to treat tinnitus (ringing in the ear)
and the profoundly deaf. In addition, we continue to work on the
development of other new ultrasound products for the medical market,
some of which we hope to begin marketing in calendar 2000. Clearly,
our research and development work is beginning to yield products that
could contribute considerable momentum to our growth;
With regard to the Medical Device Alliance bad debt, we have decided to
aggressively pursue collection of the $2.1 million and have filed a
lawsuit in the State of Nevada;
We are currently in the process of submitting an application to Nasdaq
requesting re-listing on the National Market System; and
We engaged an investor relations firm to assist us in communicating
our story to our stockholders and other potential investors. Misonix has
an exciting future and we want all our constituencies to be aware of our
progress.''
Mr. McManus concluded, ''In fiscal 1999, we established a solid new base for
sustained growth for both revenues and earnings. We continue to examine
strategic acquisitions that would be accretive to earnings and complement our
existing product lines. It is important to note that our balance sheet remains
strong enough to support our growth with approximately $12 million in cash
and cash equivalents and comparatively little debt. We also have the option to
buy back up to 300,000 shares of Misonix stock if we determine that is the best
use of our resources. At Misonix, we intend to continually leverage our
expertise in ultrasound technology along with our solid financial condition to
regularly develop new markets and products to establish ourselves as a
leading provider.''
Misonix, Inc. develops, manufactures, and/or markets medical, scientific, and
industrial ultrasonic and air pollution systems.
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, uncertainties as to the results of research and
development, potential acquisitions, consumer and industry acceptance,
litigation and regulatory risks.
Misonix, Inc and Subsidiaries
Consolidated Statements Of Operations
Three Months Ended Twelve Months Ended
June 30, June 30,
------------------------ ------------------------
1999 1998 1999 1998
------------------------ -------------------------
Net sales $7,523,095 $9,410,354 $24,767,163 $26,764,332
Cost of goods sold 4,003,420 4,131,131 12,649,496 12,236,393
------------------------ -------------------------
Gross profit 3,519,675 5,279,223 12,117,667 14,527,939
Selling,general and
administrative
expenses 1,828,036 1,990,742 7,427,449 7,236,038
Bad debt 15,918 135,000 2,131,218 171,000
Research and
development 175,024 154,838 1,002,084 859,419
------------------------ -------------------------
Total operating
expense 2,018,978 2,280,580 10,560,751 8,266,457
Income from
operations 1,500,697 2,998,643 1,556,916 6,261,482
Total other income 492,238 397,071 1,504,965 1,143,194
------------------------ -------------------------
Income before
minority interest
and income taxes 1,992,935 3,395,714 3,061,881 7,404,676
Minority interest
in the net income
of consolidated
subsidiary (83,350) (4,620) (86,010) (14,159)
------------------------ -------------------------
Income before
income taxes 1,909,585 3,391,094 2,975,871 7,390,517
Income taxes (695,474) (949,333) (1,011,113) (2,062,136)
------------------------ -------------------------
Net income $1,214,111 $2,441,761 $1,964,758 $5,328,381
======================== =========================
Net income per
share-basic $0.20 $0.43 $0.34 $0.94
======================== =========================
Net income per
share-diluted $0.18 $0.37 $0.30 $0.81
======================== =========================
Weighted average
common shares 5,927,470 5,723,944 5,862,445 5,690,160
======================== =========================
Weighted average
common shares and
share equivalents
outstanding 6,718,318 6,573,103 6,624,009 6,562,157
======================== =========================
Contact:
Misonix Incorporated
Michael McManus, Jr.
President & CEO
(516) 694-9555
www.misonix.com
or
Lippert/Heilshorn & Associates, Inc.
Investor Relations:
Lisa D. Lettieri
Vice President
(212) 838-3777
www.lhai.com or lisa@lhai.com
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