Escalon® Medical Corp. Reports Profitability in Fiscal 2014 First Quarter

  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
 
Press spacebar to pause and continue. Press esc to stop.