ESMC...23 cents for the 9mo and trading at 1.47 on nasdaq:
B: Escalon(R) Medical Corp. Reports Third Quarter 2002 Results
B: Escalon(R) Medical Corp. Reports Third Quarter 2002 Results
WAYNE, Pa., May 14, 2002 /PRNewswire-FirstCall via COMTEX/ -- Escalon Medical
Corp. (Nasdaq: ESMC) today announced results for its fiscal third quarter ended
March 31, 2002. For the third quarter of fiscal 2002, Escalon Medical reported
net income of $307,971, or $0.091 per diluted share. This compares to net income
of $115,617, or $0.035 per diluted share, in the third quarter of fiscal 2001.
Revenues for the third quarter of fiscal 2002 increased 15.6% to $3,266,088
compared to $2,824,555 in the third quarter of fiscal 2001. For the third
quarter, revenue from Sonomed was up 18.2% to $1,653,000 compared to $1,398,000
in the prior year period. A one-time wholesale transaction with a vendor was
responsible for the majority of the increase. Product revenue in the Vascular
business increased 23.3% to $646,000 in the third quarter of fiscal 2002
compared to $524,000 in the year ago period. The improvement resulted from unit
sales gains as well as improved pricing and margins due to a shift away from
underperforming distributors. Revenue in the Company's Medical / Trek business
declined by 8.0% to $830,000 in the quarter from $902,000 in the third 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 $430,000 in the quarter compared to $623,000 in 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 $137,000 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 60.3% in the current quarter compared
to 65.3% in the year ago period. Impacting the gross margin was the decline in
sales of Silicone Oil, which has no costs associated with it, offset by
year-over-year margin improvements in the Vascular Access business primarily due
to increased sales price per unit. Marketing, general and administrative
expenses continue to be well controlled and benefited from a $219,000 decline in
amortization expense as a result of the implementation of FAS 142.
"We continue to focus the Company on profitable growth and cash flow management,
which can be seen in the improvement in our balance sheet year to date,"
commented Richard J. DePiano, Chairman and Chief Executive Officer. "During the
first nine months of fiscal 2002 we reduced our term loan and line of credit by
over $1.5 million. This was done despite a lackluster economic environment, with
sales up only 3% year to date."
Mr. DePiano continued, "Our long-term growth strategy continues to focus on
expanding our market position overseas and also looking for opportunities to
tailor our existing products to new niche markets. At Sonomed, we expanded
distribution in Latin America in the quarter contributing to the sales gain of
18% in this division."
"We continue to be pleased with our progress in the Vascular business as well,"
added Mr. DePiano. "Having recently redesigned our Doppler-guided I.V. product,
we have been focused on penetrating new markets such as hematology, oncology and
I.V. therapy. We recently announced that we received our first order from the
oncology department of a preeminent medical institution in Philadelphia. Through
our Vice President of Sales and a newly hired clinical specialist, we are
targeting other hospitals in the Northeast to expand penetration. Having
recently exhibited the product at the Oncology Nursing Society 27th Annual
Congress, we believe new markets such as oncology could expand the market
potential for this product line."
Mr. DePiano concluded, "We also began conducting all operations concerning
Escalon Medical Imaging in the quarter, which prior to January 1, 2002 was an
unconsolidated joint venture with Megavision. The revenues and balance sheet
have now been consolidated and while sales continue at an introductory pace, the
division is contributing to our overall profitability."
For the first nine months of fiscal 2002, Escalon Medical reported net income of
$767,717, or $0.230 per diluted share, compared to net income of $421,919, or
$0.126 per diluted share, in the first nine months of fiscal 2001. Revenues for
the first nine months of fiscal 2002 were $9,013,524 compared to $8,721,915 in
the prior year period, an increase of 3.3%.
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. |
