Misonix, Inc. Announces Fourth Quarter and Fiscal Year 2013 Financial Results

Misonix, Inc. Announces Fourth Quarter and Fiscal Year 2013 Financial Results

BoneScalpel™ Sales Increase 33%

PR Newswire

FARMINGDALE, N.Y., Sept. 24, 2013

FARMINGDALE, N.Y., Sept. 24, 2013 /PRNewswire/ -- Misonix, Inc. (NASDAQ:
MSON), an international surgical device company that designs, manufactures and
markets innovative therapeutic ultrasonic products for spine surgery, skull
based surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic
surgery and other surgical applications, today announced financial results for
the fourth quarter and fiscal year 2013 ended June 30, 2013.

Highlights for the quarter and the fiscal year included:

  oBoneScalpel revenue for the fiscal year 2013 increased 33% to $6.3 million
    when compared to fiscal 2012.
  oBoneScalpel units sold or placed increased to 165 units in fiscal 2013
    from 121 units in fiscal 2012. Placed units in the United States were 38
    units in fiscal 2013 compared to 11 units in fiscal 2012.
  oBoneScalpel disposable revenue increased 65% to $4 million in fiscal 2013
    from $2.4 million in fiscal 2012.
  oSonicOne® revenue increased 43% to $1.9 million in fiscal 2013; units
    increased to 46 units in fiscal 2013 vs. 23 units in fiscal 2012.
  oSonicOne disposable revenue increased 115% to $315,000 in fiscal 2013.
  oSonaStar® revenue decreased 9.7% to $5.3 million in fiscal 2013.
  oRevenue from the BoneScalpel, SonicOne and SonaStar increased 13.1% to
    $13.5 million for the fiscal year 2013 compared to $11.9 million for
    fiscal 2012.
  oReceived regulatory approval in China to sell SonaStar and BoneScalpel.
  oBoneScalpel units placed in the 4^th quarter fiscal 2013 were 17 units
    compared to 5 units in fiscal 2012.
  oBoneScalpel domestic disposables increased 167% in the 4^th quarter fiscal
    2013 to $339,000.

Full-year 2013 Financial Results

Net sales decreased 5% to $14.8 million for the full year ended June 30, 2013,
as sales from legacy products continue to trail off as they approach end of
life. This compares with fiscal year 2012 revenue of $15.7 million.
BoneScalpel revenue for the full year increased 33% to $6.3 million compared
to $4.8 million in the previous year. SonicOne revenue increased 43% in
fiscal 2013 to $1.9 million compared to $1.3 million in fiscal 2012. SonaStar
revenue decreased 9.7% in fiscal 2013 to $5.3 million from $5.9 million in
fiscal 2012.

The financial results in fiscal 2013 included an additional $1.7 million
investment in sales and marketing. Additionally, the Company recorded reserves
totaling $850,000 against Anika and Soma inventory and the Soma minimum gross
profit accrual of $440,000.

The Company reported a loss of $2.7 million or $.38 diluted earnings per share
compared to net income of $366,000 or $.05 per diluted share in fiscal 2012.
Excluding the impact of the reserve from inventory, accrual from the Soma
minimum gross profit and the increased investment in sales and marketing, the
Company would have reported approximately $0.04 full-year diluted earnings per

Fourth Quarter Fiscal 2013 Financial Results

Revenue for the three months ended June 30, 2013 was $3.8 million, a 29%
decrease when compared to $5.3 million for the same period in fiscal 2012.
BoneScalpel revenue was $1.5 million, SonaStar revenue was $1.4 million and
SonicOne revenue was $430,000 for the fiscal fourth quarter 2013, a 14%
decrease when compared to the results in fiscal 2012.

There were 17 BoneScalpel units placed during the fourth quarter fiscal 2013
compared to 5 BoneScalpel units placed during fiscal 2012. BoneScalpel
domestic disposable sales increased 167% during the fourth quarter fiscal 2013
compared to the same period in fiscal 2012.

The Company reported a net loss of $1.5 million or $.22 diluted per share
compared to net income of $445,000 or $.06 earnings per share in fiscal 2012.
The Company recorded during its fourth fiscal quarter 2013 reserves of
$850,000 million for the Anika and Soma inventory and the minimum gross profit
requirement on the Soma product of $188,000.

Michael A. McManus, Jr., President and CEO, stated, "Our flagship BoneScalpel,
SonicOne and SonaStar products did very well in fiscal 2013. BoneScalpel and
SonicOne did particularly well with solid double-digit growth in both the U.S.
and internationally. As expected, revenue from our legacy products including
the AutoSonix®and the LySonix®continue to trail off as they approach end of
life status. For the year these products were down $2.4 million. Excluding
legacy products, revenue from our core medical devices increased by 13% in a
difficult selling environment. Our products continue to be well accepted by
the surgical community around the world."

"The present healthcare procurement environment makes it more attractive for
us to consign our products in the U.S. in conjunction with a commitment to
purchase a set number of disposables," continued Mr. McManus. "This sales
strategy results in lower early revenues but sets the stage for more
consistent recurring revenue growth, which generate higher margins, in the
future. In that regard, we look to expand the number of instruments placed in
the field as our lead indicator for growth. More units in the field will yield
greater recurring revenue at higher margins."

"During fiscal 2013 we announced that the BoneScalpel was finally approved for
sale in China and we are very excited about the potential for the product in
that new market in the coming years. We also continued investment in the
marketing and sales of our products worldwide during the fiscal year. In that
regard, we hired Scott Ludecker as our VP of Worldwide Sales with the goal of
upgrading our worldwide sales team and driving more consistent revenue growth.
The number of trained distributors both domestically and internationally was
expanded. We added line extensions in blades, participated in the production
of six clinical studies, conducted an increasing number of cadaver training
labs and continued active participation in professional shows and conferences
worldwide. All in all, fiscal 2013 was a solid foundational year that sets the
stage for improving operational and financial results in the coming years,"
concluded Mr. McManus.

Conference Call:
The Company has scheduled a conference call today, Tuesday, September 24,
2013, at 4:30 pm ET to review the results. 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 # 10033492. 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, develops, 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

Safe Harbor Statement
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.

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

Financial Tables to Follow

MISONIX, INC. And Subsidiaries
Consolidated Balance Sheets
                                                  June 30, 2013  June 30, 2012
Current Assets:
 Cash and cash equivalents                       $5,806,437     $6,273,015
 Accounts receivable, less allowance
 for doubtful accounts of $214,641 and
 $155,739, respectively                     2,974,641      3,158,084
 Inventories, net                                4,034,477      4,380,841
 Prepaid expenses and other current assets       387,371        306,691
 Note receivable                                 -              198,117
Total current assets                              13,202,926     14,316,748
Property, plant and equipment, net                1,326,586      891,822
Goodwill                                          1,701,094      1,701,094
Intangible and other assets                       1,129,321      1,403,173
Total assets                                      $17,359,927    $18,312,837
Liabilities and stockholders' equity
Current liabilities:
 Accounts payable                                $2,208,999     $1,507,695
 Accrued expenses and other current liabilities  1,276,963      1,074,932
Total current liabilities                         3,485,962      2,582,627
Deferred income                                   72,934         117,147
Deferred lease liability                          23,811         22,996
Total liabilities                                 3,582,707      2,722,770
Commitments and contingencies
Stockholders' equity:
 Capital stock, $0.01 par value - shares authorized
20,000,000, 7,233,884 and
 7,082,920 shares issued and 7,156,324 and
 outstanding, respectively                       72,339         70,829
 Additional paid-in capital                      26,989,559     26,132,951
 Accumulated deficit                             (12,873,685)   (10,202,720)
 Treasury stock, at cost, 77,560 shares          (410,993)      (410,993)
Total stockholders' equity                        13,777,220     15,590,067
Total liabilities and stockholders' equity        $17,359,927    $18,312,837

Condensed Consolidated
Statements of Operations
                          Three Months Ended   Twelve Months Ended
                         June 30,                   June 30,
                         2013          2012         2013          2012
Net sales                $3,758,983    $5,300,520   $14,827,226   $15,678,000
Cost of goods sold       2,474,054     2,240,933    7,427,247     6,467,126
Gross profit             1,284,929     3,059,587    7,399,979     9,210,874
Selling expenses         2,007,337     1,411,752    6,776,204     5,031,831
General and              1,155,818     1,102,320    4,446,489     4,376,554
administrative expenses
Research and development 352,769       345,241      1,496,058     1,292,225
Total operating expenses 3,515,924     2,859,313    12,718,751    10,700,610
(Loss) income from       (2,230,995)   200,274      (5,318,772)   (1,489,736)
Total other income       683,414       136,768      2,396,829     686,189
(Loss) income from
continuing operations    (1,547,581)   337,042      (2,921,943)   (803,547)
before income taxes
Income tax (benefit)     (19,899)      93,353       (75,196)      (194,782)
Net (loss) income from   (1,527,682)   243,689      (2,846,747)   (608,765)
continuing operations
Net (loss) income from
discontinued operations, (6,018)       201,124      175,782       975,090
net of tax
Net (loss) income       ($1,533,700)  $444,813     ($2,670,965)  $366,325
Net (loss) income per
share from continuing    ($0.22)       $0.03        ($0.40)       ($0.09)
Net (loss) income per
share from discontinued  0.00          0.03         0.02          0.14
Net (loss) income per    ($0.22)       $0.06        ($0.38)       $0.05
Net (loss) income per
share from continuing    ($0.22)       $0.03        ($0.40)       ($0.09)
Net (loss) income per
share from discontinued  0.00          0.03         0.02          0.14
Net (loss) income per    ($0.22)       $0.06        ($0.38)       $0.05
Weighted average common  7,115,557     7,001,404    7,050,423     7,001,930
Weighted average common  7,115,557     7,001,404    7,050,423     7,001,930

SOURCE Misonix, Inc.

Website: http://www.misonix.com
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