Escalon® Medical Corp. Reports Profitability in Fiscal 2014 First Quarter PR Newswire ARDMORE, Pa., Nov. 13, 2013 ARDMORE, Pa., Nov. 13, 2013 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC) today announced its operating results for the first quarter of fiscal 2014 ended September 30, 2013, including a small profit and positive cash flow. The company reported net income of $13,241, or $0.00 per share, and net income from continuing operations of $38,846, or $0.00 per share, for the fiscal first quarter ended September 30, 2013. This compares to a net loss of $433,436, or $0.06 per share, and a net loss from continuing operations of $624,396, or $0.08 per share, for the year ago period. Cash from operations was $143,250 in the first quarter of fiscal 2014 compared to a use of cash of $271,003 in the year ago quarter. The company ended the quarter with $2.8 million of cash and no long term debt. Growth in the Company's Sonomed Escalon ultrasound products, digital imaging systems, and AXIS™ image management systems helped drive consolidated product revenue up 37.9% for the first quarter of fiscal 2014 to $3.1 million from $2.3 million in the first quarter of fiscal 2013. Margins increased to 50.3% in the current period as compared to 47.3% in the same period last year. Marketing, general and administrative expenses decreased by 13.7% primarily due to declines in payroll expenses. As a result of a planned update of existing products as well as the introduction of new products, research and development expenses grew by 22.3% to $323,000 from $264,000 in the prior year period. "I am pleased we were able to reach breakeven in the first quarter with a renewed focus on research and development," commented Chief Executive Officer, Richard J. DePiano Jr. "Next week we are introducing our second new product of 2013 at the annual meeting of the American Academy of Ophthalmology, one of several new products and upgrades we have planned as we refocus on our core Sonomed Escalon ophthalmic business. While we have considerable work ahead of us, with an improved financial position, we are poised to pursue strategic growth opportunities to leverage our technology and exciting research and development programs." About Escalon Medical Founded in 1987, Escalon Medical Corp. (NASDAQ: ESMC) specializes in the development, marketing and distribution of ophthalmic diagnostic imaging and surgical products branded under the Sonomed Escalon name. Products include a variety of ophthalmic ultrasound, digital imaging and photography, and image management systems as well as surgical products including intraocular gases, fiber optic light guides and sources, and other surgical vitreoretinal instruments. The Company seeks to grow its ophthalmic business by further developing and diversifying its product offering through internal development programs, strategic partnerships, and the acquisition of technology so as to best leverage the Company's distribution capabilities. The Company has headquarters in Ardmore, Pennsylvania and research and development, manufacturing and distribution operations in Lake Success, New York, New Berlin, Wisconsin and Stoneham, Massachusetts. For additional information visit www.escalonmed.com and www.sonomedescalon.com Forward Looking Statements This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. These statements are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to: implement its growth and marketing strategies, improve upon the operations of the Company including the ability to make acquisitions and the integration of any acquisitions it may undertake, if any, of which there can be no assurance; grow our remaining ophthalmic business unit; improve our financial position; implement cost reductions; generate cash; and identify, finance and enter into business relationships and acquisitions. Other factors include uncertainties and risks related to: new product development, commercialization, manufacturing and market acceptance of new products; marketing acceptance of existing products in new markets; research and development activities, including failure to demonstrate clinical efficacy; delays by regulatory authorities, scientific and technical advances by the Company or third parties; introduction of competitive products; ability to reduce staffing and other costs and retain benefit of prior reductions; third party reimbursement and physician training, and general economic conditions. Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10- K for year ended June 30, 2013, and its other filings with the Securities and Exchange Commission, all of which are available from the Securities and Exchange Commission as well as other sources. --financial tables to follow-- ESCALON MEDICAL CORP. AND SUBSIDIARY Unaudited Condensed Consolidated Statements of Operations Three Months Ended September 30, 2013 2012 Revenues, net $ 3,130,083 $ 2,269,577 Costs and expenses: Cost of goods sold 1,556,214 1,196,398 Marketing, general and administrative 1,212,962 1,405,586 Research and development 323,190 264,198 Total costs and expenses 3,092,366 2,866,182 Income (loss) from operations 37,717 (596,605) Other income (expense) Other income (expense) 1,068 64,781 Interest income 61 24 Interest expense -- (92,596) Total other income (expense) 1,129 (27,791) Net income (loss) from continuing operations 38,846 (624,396) Net (loss) income from discontinued (25,605) 190,960 operations, net of tax Net income (loss) $ 13,241 $ (433,436) Basic and Diluted Net Loss per Share Continuing operations $ -- $ (0.08) Discontinued operations -- 0.02 Net income (loss) $ -- $ (0.06) Weighted Average Shares - basic 7,526,430 7,526,430 Weighted Average Shares - diluted 7,558,097 7,526,430 Selected Balance Sheet Data (Unaudited) September 30, 2013 June 30, 2013 Cash & Cash Equivalents $2,793,608 $2,654,701 Inventory 2,160,292 1,853,686 Working Capital 3,996,940 4,003,293 Total Assets 7,488,485 7,272,165 Total Liabilities 3,644,161 3,443,239 Stockholders' Equity 3,844,324 3,828,926 SOURCE Escalon Medical Corp. Website: http://www.escalonmed.com Contact: Richard J. DePiano, Jr, President and CEO, 610-688-6830, Alison Ziegler, Cameron Associates, 212-554-5469
Escalon® Medical Corp. Reports Profitability in Fiscal 2014 First Quarter
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