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Misonix Reports Financial Results for First Half of Fiscal 2013

       Misonix Reports Financial Results for First Half of Fiscal 2013

Six Month Revenue Up 19%; International Revenue Up 31%

PR Newswire

FARMINGDALE, N.Y., Feb. 7, 2013

FARMINGDALE, N.Y., Feb. 7, 2013 /PRNewswire/ --Misonix, Inc. (NASDAQ: MSON),
a surgical device company that designs, manufactures and markets innovative
therapeutic ultrasonic products worldwide for spine surgery, cranial maxillo –
facial surgery, neurosurgery, wound debridement, cosmetic surgery,
laparoscopic surgery and other surgical applications, today reported financial
results for the six-months and the second quarter of fiscal year 2013, ended
December 31, 2012.

Highlights for the quarter and the six-month period include:

  oRevenue for the six months increased 19% to $8.0 million compared to $6.8
    million in the first six months of 2012. Second quarter revenue was $3.5
    million comparable to $3.6 million in the second quarter of 2012.
  oExcluding revenue from legacy products, BoneScalpel, SonicOne and SonaStar
    revenue increased 46% and 12% respectively for the first half and the
    three months of fiscal 2013, ended December 31, 2012.
  oU.S. revenue for the six months increased 9%, International revenue
    increased 31% compared to the comparable six months of fiscal 2012. U.S.
    second quarter revenue decreased 12.6%, including a 59% reduction in
    Lysonix and Autosonix revenue, International second quarter revenue
    increased 9.6% versus the year ago second quarter.
  oBoneScalpel™ revenue increased 99% and 33%, respectively, for the six
    months and the second quarter versus the comparable periods in 2012.
  oSonicOne™ revenue increased 82% and 70%, respectively, for the six months
    and the second quarter versus the comparable periods in 2012.
  oSonaStar™ revenue for the six months was comparable to 2012 six month
    revenues and decreased 20% in the second quarter of 2013 versus the 2012
    second quarter.
  oFor the six months the Company reported a net loss of $609,000, or $(0.09)
    per share, compared to net income of $136,000, or $0.02 per share, which
    included a gain of $712,000 for the sale of the Company's Laboratory and
    Forensic Safety Products Business in the first half of 2012.
  oCash and cash equivalents totaled $6.9 million at December 31, 2012 with
    no long-term debt.
  oIncreased the number of independent representatives from 19 to 42 in
    neurospine for the three months ended December 31, 2012.
  oIncreased the number of independent representatives for wound care from 5
    to 15 for the three months ended December 31, 2012.
  oTerminated the non-exclusive Aesculap Agreement as of December 31, 2012,
    which among other things should result in increased direct sales to
    customers at a higher margin.

Q2 2013 Financial Results:

For the second quarter of fiscal 2013, revenue was $3.5 million, comparable to
$3.6 million in the second quarter of 2012. BoneScalpel revenues for the
quarter increased 33% to $1.6 million compared to $1.2 million in the
comparable quarter of fiscal 2012. BoneScalpel units sold/placed for the
quarter were 33. SonicOne revenues increased 70% to $528,249 compared to
$309,812 in the second quarter last year. SonicOne units sold/placed for the
quarter were 16. SonaStar revenues decreased 20% to $1.1 million compared to
$1.3 in the second quarter last year. SonaStar units sold/placed for the
quarter were 13. The number of BoneScalpel consumables sold increased 119% to
9,041 units for the quarter, SonicOne consumables sold increased 24% to 3,302
units, and SonaStar consumables sold decreased 40% to 1,985 units.

As expected, other revenue, which includes legacy products Autosonix and
Lysonix sold by outside distribution partners, decreased 59% as these late
stage products approach end-of-life. Excluding all other revenue, BoneScalpel,
SonicOne and SonaStar revenue increased 12% for the three months ended
December 31, 2012.

For the quarter, royalty income received predominantly from Covidien increased
177% to $502,000.

Gross margin for the second quarter of fiscal 2013 was 53.2%, primarily
attributable to an unfavorable mix of low and high margin product deliveries
in addition to the $188,000 amount due to Puricore International Limited under
the terms of our contract. Operating expenses for the second fiscal quarter
increased 16%, as the Company continued to invest in expanding its sales,
marketing and customer support capabilities.

For the second quarter of fiscal year 2013, the Company reported a net loss of
$(654,000), or $(0.09) per diluted share, compared to net income of $1.0
million, or $0.15 per diluted share, in the second quarter of 2012, which
included income from discontinued operations of $792,000 for the sale of the
Company's Laboratory and Forensic Safety Products Business in October 2011.

Six Months 2012 Financial Results:

Net sales increased 19% to $8.0 million for the six months ended December 31,
2012 from $6.8 million in the six months ended December 31, 2011. BoneScalpel
revenues for the six months increased 99% to $3.7 million compared to $1.9
million in the comparable quarter of fiscal 2012. BoneScalpel units
sold/placed for the six months were 90. SonicOne revenues increased 82% to
$1.0 million compared to $564,199 in the six-month period of the prior year.
SonicOne units sold/placed for the six months were 27. SonaStar revenues were
$2.6 million comparable to six-month 2012 revenue. SonaStar units sold/placed
for the six-months were 34.The number of BoneScalpel consumables sold
increased 110% to 17,818 units for the six months ending December 31, 2012 and
SonicOne consumables increased 20.6% to 6,138 units.

As expected, other revenue, which includes legacy products Autosonix and
Lysonix sold by outside distribution partners, decreased 60% as these late
stage products approach end-of-life. Excluding all other revenue, BoneScalpel,
SonicOne and SonaStar revenue increased 46% for the six months ended December
31, 2012.

For the six months, royalty income received predominantly from Covidien
increased 128% to $714,000.

Gross margin for the six months ended December 31, 2012 was 56.9%, primarily
attributable to an unfavorable mix of low and high margin product deliveries
in addition to the $360,000 amount due to Puricore International Limited under
the terms of our contract. Operating expenses for the six month period
increased 13% as the Company continued to invest in expanding its sales,
marketing and customer support capabilities.

For the six months of fiscal year 2013, the Company reported a net loss of
$(609,000), or $(0.09) per diluted share, compared to net income of $136,000,
or $0.02 per diluted share, in the six months of fiscal 2012, which included
income from discontinued operations ofr $712,000 for the sale of the Company's
Laboratory and Forensic Safety Products Business in October 2011.

Michael A. McManus Jr., President and Chief Executive Officer of Misonix,
commented, "Top-line results for the first half of fiscal 2013 are solid.
Revenue for the six months increased 19%. We are particularly pleased with the
31% increase in international revenue for the first half of the year. We
achieved strong revenue growth across our major product lines including
BoneScalpel revenue that increased 99% and SonicOne revenue that increased
82%. Sales of our SonaStar product in the first half of 2013 were comparable
to those of the same period last year. We are very pleased with the continuing
acceptance by the surgical community worldwide of our BoneScalpel and SonicOne
products. There were four abstracts submitted on the clinical benefits of
using the BoneScalpel in spine surgery and three abstracts with regards to the
benefits of utilizing our SonicOne product for wound healing during the first
half and second fiscal quarter of 2013 respectively. On a cumulative basis, if
we exclude declining revenue from our legacy products, BoneScalpel, SonicOne
and SonaStar revenue increased 46% for the six months ended December 31, 2012.
We are pleased with that performance."

"Bottom-line results were impacted by an unfavorable product mix of low and
high margin product deliveries, additional headcount as we continue to invest
in our sales and marketing team, and increased selling expenses as more
distributors become engaged in selling our products. We expect that these
impacts will be offset as we continue to grow revenues in the coming
quarters."

Mr. McManus concluded, "The financial base of the Company continues to be
strong with $6.9 million in cash and equivalents and zero long-term debt. We
continue to make progress in expanding our business both domestically and
internationally. While we are still in the early stages of executing on our
plan as a focused medical device company, we are pleased with the progress
made to date."

Conference Call:

Michael A. McManus Jr., President and Chief Executive Officer, and Richard
Zaremba, Senior Vice President and Chief Financial Officer, will host a
conference call Thursday, February 7, 2013 at 4:30 pm ET to discuss the
financial results of the first half of fiscal 2013.

Shareholders and other interested parties can access the conference call by
dialing (877) 317-6789 or (412) 317-6789 or can listen via a live Internet
webcast, which is available in the Investor Relations section of the Company's
website at www.misonix.com.

A teleconference replay of the call will be available for three days at (877)
344-7529 or (412) 317-0088, confirmation # 10024916. A webcast replay will be
available in the Investor Relations section of the Company's website at
www.misonix.com for 30 days.

About Misonix:

Misonix, Inc. designs, manufactures and markets therapeutic ultrasonic medical
devices. Misonix's therapeutic ultrasonic platform is the basis for several
innovative medical technologies. Addressing a combined market estimated to be
in excess of $3 billion annually; Misonix's proprietary ultrasonic medical
devices are used for wound debridement, cosmetic surgery, neurosurgery,
laparoscopic surgery, and other surgical and medical applications. Additional
information is available on the Company's Web site at www.misonix.com.

With the exception of historical information contained in this press release,
content herein may contain "forward looking statements" that are made pursuant
to the Safe Harbor Provisions of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations and
are subject to uncertainty and changes in circumstances. Investors are
cautioned that forward looking statements involve risks and uncertainties that
could cause actual results to differ materially from the statements made.
These factors include general economic conditions, delays and risks associated
with the performance of contracts, risks associated with international sales
and currency fluctuations, uncertainties as a result of research and
development, acceptable results from clinical studies, including publication
of results and patient/procedure data with varying levels of statistical
relevancy, risks involved in introducing and marketing new products, potential
acquisitions, consumer and industry acceptance, litigation and/or court
proceedings, including the timing and monetary requirements of such
activities, the timing of finding strategic partners and implementing such
relationships, regulatory risks including approval of pending and/or
contemplated 510(k) filings, the ability to achieve and maintain profitability
in the Company's business lines, and other factors discussed in the Company's
Annual Report on Form 10 K, subsequent Quarterly Reports on Form 10 Q and
Current Reports on Form 8 K. The Company disclaims any obligation to update
its forward looking relationships.

Misonix Contact:    Investor Relations Contact:
Richard Zaremba     Joe Diaz, Lytham Partners
631 694 9555        602 889 9700
invest@misonix.com mson@lythampartners.com





MISONIX, INC. And Subsidiaries
Consolidated Balance Sheets
                                     December 31, 2012   June 30, 2012
                                     (Unaudited)         (derived from audited
                                                         financial statements)
Assets
Current Assets:
 Cash and cash equivalents          $6,855,047          $6,273,015
 Accounts receivable, less
allowance
 for doubtful accounts of
$184,641 and
 $155,739, respectively        2,328,533           3,158,084
 Inventories, net                   4,372,582           4,380,841
 Prepaid expenses and other         195,533             306,691
current assets
 Note receivable                    -                   198,117
Total current assets                 13,751,695          14,316,748
Property, plant and equipment, net   778,572             891,822
Goodwill                             1,701,094           1,701,094
Intangible and other assets          1,276,866           1,403,173
Total assets                         $17,508,227         $18,312,837
Liabilities and stockholders'
equity
Current liabilities:
 Accounts payable                   $1,270,734          $1,507,695
 Accrued expenses and other         873,082             1,074,932
current liabilities
Total current liabilities            2,143,816           2,582,627
Deferred income                      95,041              117,147
Deferred lease liability             23,403              22,996
Total liabilities                    2,262,260           2,722,770
Commitments and contingencies
Stockholders' equity:
 Capital stock, $0.01 par value - shares authorized
20,000,000, 7,108,845 and
 7,082,920 shares issued and 7,031,285 and 7,005,360
shares
 outstanding, respectively          71,088              70,829
 Additional paid-in capital         26,397,527          26,132,951
 Accumulated deficit                (10,811,655)        (10,202,720)
 Treasury stock, at cost, 77,560    (410,993)           (410,993)
shares
Total stockholders' equity           15,245,967          15,590,067
Total liabilities and                $17,508,227         $18,312,837
stockholders' equity





MISONIX, INC. And Subsidiaries
Consolidated Statements of Operations
Unaudited
                             Three Months Ended   Six Months Ended
                            December 31,               December 31,
                            2012          2011         2012        2011
Net sales                   $3,474,231    $3,550,535   $8,044,756  $6,767,734
Cost of goods sold          1,626,965     1,281,561    3,470,864   2,734,968
Gross profit                1,847,266     2,268,974    4,573,892   4,032,766
Selling expenses            1,545,585     1,194,045    3,004,149   2,374,297
General and administrative  1,092,726     1,082,385    2,135,058   2,250,205
expenses
Research and development    366,257       303,702      763,388     613,676
expenses
Total operating expenses    3,004,568     2,580,132    5,902,595   5,238,178
Loss from operations        (1,157,302)   (311,158)    (1,328,703) (1,205,412)
Total other income          502,387       331,871      713,804     427,099
(Loss)/income from
continuing operations       (654,915)     20,713       (614,899)   (778,313)
before income taxes
Income tax                  2,329         (207,233)    3,829       (202,273)
expense/(benefit)
Net (loss)/income from      (657,244)     227,946      (618,728)   (576,040)
continuing operations
Discontinued operations:
Gain from sale of
discontinued operations net
of tax expense of           0             918,358      0           918,358
$0,$532,268, $0 and
$532,268, respectively
Net income (loss) from
discontinued operations,
net of a tax benefit of $0, 3,475         (126,225)    9,793       (206,181)
$130,517, $0 and a tax
benefit of $130,517,
respectively
Net income from             3,475         792,133      9,793       712,177
discontinued operations
Net (loss)/income          ($653,769)    $1,020,079   ($608,935)  $136,137
Net (loss)/income per share
from continuing             ($0.09)       $0.03        ($0.09)     ($0.08)
operations-Basic
Net income per share from
discontinued                0.00          0.11         0.00        0.10
operations-Basic
Net (loss)/income per       ($0.09)       $0.15        ($0.09)     $0.02
share-Basic
Net (loss)/income per share
from continuing             ($0.09)       $0.03        ($0.09)     ($0.08)
operations-Diluted
Net income per share from
discontinued                0.00          0.11         0.00        0.10
operations-Diluted
Net (loss)/income per       ($0.09)       $0.15        ($0.09)     $0.02
share-Diluted
Weighted average common     7,020,107     7,001,370    7,012,734   7,001,370
shares-basic
Weighted average common     7,020,107     7,001,370    7,012,734   7,001,370
shares-diluted



SOURCE Misonix, Inc.

Website: http://www.misonix.com