Misonix, Inc. Announces First Quarter Fiscal Year 2014 Financial Results

   Misonix, Inc. Announces First Quarter Fiscal Year 2014 Financial Results

PR Newswire

FARMINGDALE, N.Y., Nov. 7, 2013

FARMINGDALE, N.Y., Nov. 7, 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 first quarter of fiscal year 2014 ended September 30, 2013.

Highlights for the quarter included:

  oNet sales for the quarter were $3.1 million compared to $4.6 million as
    the Company continues to transition to a unit consignment strategy to
    drive recurring revenue.
  oBoneScalpel™ units sold or placed totaled 36 world-wide in first quarter
    fiscal 2014.
  oBoneScalpel units placedor sold in the United States during the quarter
    totaled 15 compared to 7 in the first quarter of fiscal 2013; excluding
    sales to Aesculap.
  oBoneScalpel disposable sales in Latin America increased 110% in Q1 fiscal
    2014.
  oU.S. BoneScalpel disposable revenue increased 74% driven by a 65% increase
    in disposable utilization; excluding Aesculap.
  oAcross all businesses, recurring revenue for all products world-wide, for
    the quarter accounted for 53% of total sales during the quarter; compared
    to 40% in fiscal first quarter 2013.
  oArrangements to roll-out BoneScalpel and SonaStar® in China are
    progressing after receiving regulatory approval.

First Quarter Fiscal 2014 Financial Results

Revenue for the three months ended September 30, 2013 was $3.1 million, a 33%
decrease when compared to $4.6 million for the same period in fiscal 2013.
Part of the decrease was attributable to the approximate $363,000 lower
revenue from Aesculap and lower stocking sales to international markets as
compared to the same quarter in fiscal 2013.

BoneScalpel revenue was $1.3 million, SonaStar revenue was $1.1 million and
SonicOne®revenue was $469,000 for the first quarter 2014.

There were 36 BoneScalpel units sold or placed during the first quarter fiscal
2014 compared to 57 BoneScalpel units sold or placed during the first quarter
of fiscal 2013. BoneScalpel domestic disposable sales increased 74% during
the first quarter fiscal 2014 compared to the same period in fiscal 2013,
excluding Aesculap.

The Company reported a net loss of $884,002, or ($.12) diluted loss per share,
compared to net income of $44,834, or $0.01 earnings per share, in fiscal
2013.

Michael A. McManus, Jr., President and CEO, stated, "This was another quarter
for progress for your Company. You will remember our strategy of consigning
units in conjunction with purchases of our disposable blade. The result of
this formula shows continued high margins and an increase of BoneScalpel units
in the U.S. BoneScalpel revenue from disposables increased 74% in the U.S.,
excluding Aesculap, resulting from an increase of 65% in disposable units from
the first quarter of fiscal 2013. Total recurring revenue from disposables
increased to 53% of total sales for the quarter. These results are all
indicators of growth and surgeons continued acceptance and use of our unique
technology. The acceptance of the significant benefits to doctor, patient and
hospital are consistently increasing. We expect to see growth across all
products and in all markets over the coming quarter."

"We are excited about the reception we are receiving at prominent trade shows
and professional conferences. We are experiencing considerable traffic from
both surgeons and potential new distributors. Testimony from prominent
surgeons at these meetings is particularly encouraging and has been reported
in recent press releases."

Mr. McManus concluded, "We are executing on our strategy to deliver more
predictable revenue streams from high margin sales. We are seeing indications
for expected growth across the upcoming quarters."

Conference Call:

The Company has scheduled a conference call today, Thursday, November 7, 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 # 10036674. 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
www.misonix.com.

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
                                         September 30, 2013  June 30, 2013
                                         (Unaudited)         (derived from
                                                             audited financial
                                                             statements)
Assets
Current Assets:
 Cash and cash equivalents              $4,653,513          $5,806,437
 Accounts receivable, less
allowancefor doubtful accounts of       2,799,336           2,974,641
$229,641 and $214,641, respectively
 Inventories, net                       4,157,193           4,034,477
 Prepaid expenses and other current     294,079             387,371
assets
Total current assets                     11,904,121          13,202,926
Property, plant and equipment, net       1,185,038           1,326,586
Goodwill                                 1,701,094           1,701,094
Intangible and other assets              1,073,996           1,129,321
Total assets                             $15,864,249         $17,359,927
Liabilities and stockholders' equity
Current liabilities:
 Accounts payable                       $1,601,445          $2,208,999
 Accrued expenses and other current     1,024,844           1,276,963
liabilities
Total current liabilities                2,626,289           3,485,962
Deferred income                          61,881              72,934
Deferred lease liability                 22,012              23,811
Total liabilities                        2,710,182           3,582,707
Commitments and contingencies
Stockholders' equity:
 Capital stock, $0.01 par value -
shares authorized 20,000,000, 7,267,096
and 7,233,884 shares issued and          72,671              72,339
7,189,536 and 7,156,324 shares
outstanding, respectively
 Additional paid-in capital             27,250,076          26,989,559
 Accumulated deficit                    (13,757,687)        (12,873,685)
 Treasury stock, at cost, 77,560        (410,993)           (410,993)
shares
Total stockholders' equity               13,154,067          13,777,220
Total liabilities and stockholders'      $15,864,249         $17,359,927
equity

MISONIX, INC. And Subsidiaries
Condensed Consolidated Statements of Operations
Unaudited
                                                        Three Months Ended
                                                        September 30
                                                        2013        2012
Net sales                                               $3,075,584  $4,570,525
Cost of goods sold                                      1,345,330   1,843,899
Gross profit                                            1,730,254   2,726,626
Selling expenses                                        1,828,830   1,458,564
General and administrative expenses                     1,221,315   1,042,332
Research and development expenses                       472,888     397,131
Total operating expenses                                3,523,033   2,898,027
Loss from operations                                    (1,792,779) (171,401)
Total other income                                      906,552     211,417
(Loss) income from continuing operations before income (886,227)   40,016
taxes
Income tax expense                                      2,750       1,500
Net (loss) income from continuing operations            (888,977)   38,516
Net income from discontinued operations, net of tax     4,975       6,318
Net (loss) income                                      ($884,002)  $44,834
Net (loss) income per share from continuing             ($0.12)     $0.01
operations-Basic
Net income per share from discontinued operations-Basic 0.00        0.00
Net (loss) income per share-Basic                       ($0.12)     $0.01
Net (loss) income per share from continuing             ($0.12)     $0.01
operations-Diluted
Net income per share from discontinued                  0.00        0.00
operations-Diluted
Net (loss) income per share-Diluted                     ($0.12)     $0.01
Weighted average common shares-basic                    7,182,866   7,005,360
Weighted average common shares-diluted                  7,182,866   7,297,690

SOURCE Misonix, Inc.

Website: http://www.misonix.com
 
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