Misonix Reports First Quarter Fiscal 2010 Financial Results
The Company also reported the following financial and operational achievements:
-- On August 5, 2009, we closed the transaction for the sale of our
Labcaire Systems Ltd. subsidiary ("Labcaire") to PuriCore International,
Limited for up to $5.6 million.
-- On October 2, 2009, we closed a transaction for the sale of
substantially all of the assets of Sonora to Medical Imaging Holdings,
Inc. for a cash payment of $8 million which is reported as assets held
for sale on the Company's Consolidated Balance Sheets as of September
30, 2009.
First Quarter Fiscal 2010 vs. First Quarter Fiscal 2009 Financial Results
Revenue was $2.7 million, a decrease of $.4 million compared to $3.1 million for the first quarter of 2009. The decrease in revenue for the first quarter of 2010 was due to a decrease of $.4 million in medical device products sales to $2.1 million. Reduced sales of the Company's Lysonix(TM) Ultrasonic Assisted Liposuction, SonaStarA Ultrasonic Surgical Aspirator and AutosonixA Cutting and Coagulating System were partially offset by an increase in sales of the SonicOneA Wound Debridement System and Bone Scalpel(TM).
Net loss from continuing operations for the first quarter of 2010 was $1.2 million, or $.17 per share, compared to income from continuing operations of $108,000, or $.02 per share, for the first quarter of 2009. During the first fiscal quarter 2010, the Company sold all of its issued and outstanding share capital of Labcaire for an aggregate consideration consisting of (i) a cash payment of $3.6 million, (ii) a promissory note in the amount of $1 million payable over 4 years and (iii) commissions on certain Labcaire sales and licenses made through December 13, 2013 not to exceed $1 million in the aggregate. The Company reported a net loss for the first quarter of 2010, including the income from discontinued operations of $448,000, or $.06 per share of $776,000, or $.11 per share compared to net income of $320,000, or $.05 per share, for the first quarter of 2009.
At September 30, 2009, the Company had approximately $5.7 million in cash as compared to $3.4 million in cash as of June 30, 2009.
Commenting on Misonix's financial and operating results, Michael A. McManus, Jr., President and Chief Executive Officer, said, "Our first quarter results showed the continuing effect of the difficult global economic conditions as both Misonix and its partners experienced slower sales. We believe our new product launches and new direct and indirect sales force organization will be successful in growing sales going forward. Our sales force enables us to better control both our sales and margin while also building the Misonix brand as a world leader in Ultrasonic surgical devices.
"Both the Bone Scalpel(TM) for spinal surgery and the SonicOne for wound cleansing and debridement are developing good traction in the market place. We believe the initiatives being implemented with our distribution partners will result in stronger growth for our products in both the cosmetic surgery and neuro surgery markets.
"The transactions we successfully completed over the past few months have created a more focused surgical company, with a stronger balance sheet. These steps, combined with the establishment of a new direct sales force and broad based international distribution, will be key contributors to our future growth."
Conference Call/Webcast Information
Misonix management will host a conference call and webcast on Monday, November 16, 2009 at 4:30 pm ET to discuss the Company's first quarter fiscal 2010 financial results.
The conference call will be broadcast live via the Investor Relations section of the Company's Web site at www.misonix.com. Alternatively, participants may join the conference call by dialing (866) 711-8198 (domestic) or (617) 597-5327 (international) and entering access code 95855392, a few minutes before the start of the call.
For those unable to attend the live results broadcasts, a recording of the live-call will be available approximately 2 hours after the event through November 23, 2009. The dial-in number to listen to the recording is (888) 286-8010 or (617) 801-6888. The replay access code is 44023008. The call will also be archived on the Company's website for at least 90 days.
About Misonix:
Misonix, Inc. (Nasdaq: MSON) designs, develops, manufactures and markets therapeutic ultrasonic medical devices and laboratory equipment. 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, INC. And Subsidiaries
Consolidated Balance Sheets
Derived from
Audited Financial
Unaudited__ Statements
September 30, 2009__ June 30, 2009
------------------__ -------------
Assets
------
Current Assets:
Cash__ $5,680,200__ $3,415,813
Accounts receivable, less
allowance for doubtful accounts of
$378,543 and $334,399, respectively__ 2,291,613__ 3,301,551
Inventories, net__ 3,799,061__ 3,678,743
Deferred income taxes__ 1,014,262__ 762,429
Prepaid expenses and other
current assets__ 740,012__ 715,589
Current assets of discontinued
operations - Labcaire__ 0__ 5,460,052
Current assets held for sale - Sonora__ 3,526,543__ 3,659,383
---------__ ---------
Total current assets__ 17,051,691__ 20,993,560
Property, plant and equipment, net__ 546,489__ 588,191
Deferred income taxes__ 221,344__ 128,183
Goodwill__ 2,020,838__ 2,016,941
Other assets__ 1,558,571__ 757,551
Assets of discontinued
operations - Labcaire__ 0__ 6,937,810
Assets held for sale - Sonora__ 3,717,198__ 3,741,170
---------__ ---------
Total assets__ $25,116,131__ $35,163,406
===========__ ===========
Liabilities and stockholders' equity
-----------------------------
Current liabilities:
Revolving credit facilities__ $1,609,122__ $2,633,059
Notes payable__ 132,031__ 261,485
Accounts payable__ 936,682__ 690,004
Accrued expenses and other
current liabilities__ 655,254__ 807,691
Current maturities of capital
lease obligations__ 13,769__ 13,523
Foreign income taxes payable__ 37,459__ 10,363
Current liabilities of
discontinued operations - Labcaire__ 0__ 8,097,279
Current liabilities related to
assets held for sale - Sonora__ 674,751__ 712,256
-------__ -------
Total current liabilities__ 4,059,068__ 13,225,660
Capital lease obligations__ 24,161__ 27,716
Deferred income taxes__ 405,776__ 405,776
Deferred income__ 195,129__ 201,207
Deferred lease liability__ 28,956__ 38,607
Liabilities related to assets held
for sale - Sonora__ 253,930__ 280,652
-------__ -------
Total liabilities__ 4,967,020__ 14,179,618
---------__ ----------
Commitments and contingencies
Stockholders' equity:
Misonix, Inc. stockholders equity:
Capital stock, $0.01 par value -
shares authorized 20,000,000;
7,079,169 issued, and 7,001,369
outstanding, respectively__ 70,792__ 70,792
Additional paid-in capital__ 25,284,215__ 25,251,412
Accumulated deficit__ (4,600,393)__ (3,824,003)
Accumulated other
comprehensive loss__ (467,658)__ (348,936)
Treasury stock, 77,800 shares__ (412,424)__ (412,424)
--------__ --------
Total Misonix, Inc.
stockholders' equity__ 19,874,532__ 20,736,841
Noncontrolling interests__ 274,579__ 246,947
-------__ -------
Total stockholders' equity__ 20,149,111__ 20,983,788
----------__ ----------
Total liabilities and
stockholders' equity__ $25,116,131__ $35,163,406
===========__ ===========
MISONIX, INC. And Subsidiaries
Consolidated Statements of Operations
Unaudited
Three Months Ended
September 30,
2009__ 2008
----__ ----
Net sales__ $2,746,684__ $3,143,199
Cost of goods sold__ 1,624,543__ 1,913,674
---------__ ---------
Gross profit__ 1,122,141__ 1,229,525
Selling expenses__ 949,413__ 798,326
General and administrative expenses__ 1,345,256__ 1,503,601
Research and development expenses__ 422,469__ 320,632
-------__ -------
Total operating expenses__ 2,717,138__ 2,622,559
---------__ ---------
Operating loss from continuing operations__ (1,594,997)__ (1,393,034)
Total other income__ 152,727__ 1,650,056
-------__ ---------
(Loss) income from continuing operations
before income taxes__ (1,442,270)__ 257,022
Income tax (benefit) provision__ (245,764)__ 149,436
--------__ -------
Net (loss) income from continuing operations__ (1,196,506)__ 107,586
----------__ -------
Discontinued operations:
Net income from discontinued operations,
net of tax of $0 and $85,901 - Ultrasonics__ 0__ 118,624
Net income from discontinued operations,
net of tax of $32,429 and $33,329 - Sonora__ 128,987__ 46,026
Net income from discontinued operations,
net of tax of $437,968 and $25,850 - Labcaire__ 514,477__ 60,316
Net loss on sale of Labcaire, inclusive of
a tax benefit of $100,163__ (195,716)__ 0
--------__ -
Net income from discontinued operations__ 447,748__ 224,966
-------__ -------
Net (loss) income__ ($748,758)__ $332,552
Net income attributable to noncontrolling
interests__ $27,632__ $12,550
-------__ -------
Net (loss) income attributable to Misonix,
Inc. shareholders__ ($776,390)__ $320,002
=========__ ========
(Loss) income per share-basic from
continuing operations__ ($0.17)__ $0.02
Income per share-basic from
discontinued operations__ 0.06__ 0.03
Net (loss) income per share-basic__ ($0.11)__ $0.05
======__ =====
Loss per share-diluted from
continuing operations__ ($0.17)__ $0.02
Income per share-diluted from
discontinued operations__ 0.06__ 0.03
Net (loss) income per share-diluted__ ($0.11)__ $0.05
======__ =====
Weighted average common shares-basic__ 7,001,369__ 7,001,369
=========__ =========
Weighted average common shares-diluted__ 7,001,369__ 7,031,953
=========__ =========
Investor Relations Contact:
Kevin McGrath / Cameron Associates, Inc.
212-245-4577
Kevin@cameronassoc.com
SOURCE: Misonix, Inc.
Originally published by Misonix, Inc..
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