BOULDER, Colo., Jan. 29 Encision Inc.(Amex: ECI), a medical device company owning patented surgical technology thatis emerging as a standard of care in minimally-invasive surgery, reported itsfinancial results for its third fiscal quarter ended December 31, 2007.
Net sales for the third quarter of fiscal year 2008, ended December 31,2007, totaled $3.13 million, representing a 12% increase over net sales of$2.79 million for the prior fiscal year's third quarter. The Company recordednet income of $59 thousand or $.01 per share for the third quarter of fiscalyear 2008 compared to a net loss of $49 thousand or $.01 per share for thethird quarter of fiscal year 2007. Net loss for the third quarter of fiscalyear 2007 included a one-time expense of $73 thousand, or $.01 per share,relating to the costs of obtaining equity capital financing, a project thatwas subsequently abandoned after the Company obtained a $2 million line ofcredit facility from SVB Silicon Valley Bank. Gross profit margin for thethird quarter of fiscal year 2008 was 65% as compared to 62% for the thirdquarter of fiscal year 2007. Gross profit margin for the third quarter offiscal year 2008 included an approximately 1% increase from the third quarterof fiscal year 2007 gross profit margin that was attributed to a decrease inaccrued liabilities related to warranty claims and an approximately 1/2%increase in gross profit margin that was attributed to a limited shipment ofour internally manufactured scissor inserts.
"Our improvement in net income in the third quarter ended December 31,2007 was aided by an increase in gross profit margin from our internal scissorinsert manufacturing project," said Jack Serino, President & CEO of EncisionInc. "We began transitioning some customers to our lower cost of goodsdisposable scissor inserts during the past quarter and are starting to see theimpact on our bottom line. We expect to be shipping all Encision-madedisposable scissor inserts by the middle of our fiscal year that ends March31, 2009."
Net sales for the first nine months of fiscal year 2008, ended December31, 2007, totaled $8.88 million, representing an 8% increase over net sales of$8.19 million for the prior fiscal year's first nine months. The Companyrecorded a net loss of $228 thousand or $.04 per share for the first ninemonths of fiscal year 2008 compared to net income of $87 thousand or $.01 pershare for the first nine months of fiscal year 2007. Gross profit margin forthe first nine months of fiscal year 2008 was 63% as compared to 63% for thefirst nine months of fiscal year 2007.
Encision Inc. designs, develops, manufactures and markets innovativesurgical devices that allow surgeons to optimize technique and patient safetyduring a broad range of surgical procedures. Based in Boulder, Colorado, theCompany pioneered the development of patented AEM(R) Laparoscopic Instrumentsto improve electrosurgery and reduce the chance for patient injury inminimally invasive surgery.
In accordance with the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995, the Company notes that statements in this pressrelease and elsewhere that look forward in time, which include everythingother than historical information, involve risks and uncertainties that maycause actual results to differ materially from those indicated by theforward-looking statements. Factors that could cause the Company's actualresults to differ materially include, among others, its ability to increasenet sales through the Company's distribution channels, insufficient quantityof new account conversions, insufficient cash to fund operations, scale upproduction to meet delivery obligations, delay in developing new products andreceiving FDA approval for such new products and other factors discussed inthe Company's filings with the Securities and Exchange Commission.CONTACT: Marcia McHaffie, Encisi