Vision-Sciences Inc. (NSDQ:VSCI) posted third-quarter sales of $2.6 million for the three months ended Dec. 31, 2009, down 28 percent compared with $3.6 million during the same period in 2008. Net losses widened 5.6 percent to $3.2 million, compared with $3.1 million during Q3 2008:
Press Release
Vision-Sciences, Inc. Announces $8.8 Million in Revenue for the First Nine Months of Fiscal 2010
ORANGEBURG, N.Y., Feb. 11, 2010 (GLOBE NEWSWIRE) — Vision-Sciences, Inc., (Nasdaq:VSCI) today announced results for its third quarter and first nine months of fiscal 2010, ended December 31, 2009. For the third quarter of fiscal 2010, revenues were $2.6 million, a decrease of $1.0 million, or 28%, from the third quarter of fiscal 2009, ended December 31, 2008. For the first nine months of fiscal 2010, revenues were $8.8 million, a decrease of $0.3 million, or 3%, from the first nine months of fiscal 2009. Loss from operations in the third quarter of fiscal 2010 was $3.2 million compared to $3.1 million in the third quarter of fiscal 2009, an increase of $0.1 million. Loss from operations in the first nine months of fiscal 2010 was $8.8 million compared to $10.1 million
in
the first nine months of fiscal 2009, a decrease of $1.3 million.
Abbreviated results (in thousands, except for per share data and percentages) for the third quarter and first nine months of fiscal 2010 and 2009 were as follows:
Three Months Ended | Nine Months Ended | |||||||
December 31, | December 31, | |||||||
2009 | 2008 | Difference | % | 2009 | 2008 | Difference | % | |
Net sales |
$ 2,600 | $ 3,610 | $ (1,010) | -28% | $ 8,807 | $ 9,091 | $ (284) |
-3% |
Loss from operations | (3,228) | (3,140) | (88) | -3% | (8,847) | (10,119) | 1,272 | 13% |
Net loss |
(3,234) | (3,063) | (171) | -6% | (8,872) | (5,679) | (3,193) | -56% |
Net loss per share – basic and diluted | $ (0.09) | $ (0.08) | $ (0.01) |
-13% |
$ (0.24) | $ (0.16) | $ (0.08) | -50% |
Please refer to the attached balance sheet and statement of operations for more detail.
The increase in loss from operations of $0.1 million in the third quarter of fiscal 2010 was primarily attributable to lower gross profit of $0.4 million and one-time termination costs for our former Chief Executive Officer (“CEO”) of $0.5 million, offset by a reduction in research and development (“R&D”) expenses of $0.8 million. The decrease in loss from operations of $1.3 million in the first nine months of fiscal 2010 was primarily attributable to a reduction in R&D expenses of $1.8 million.
Net loss for the third quarter of fiscal 2010 was $3.2 million, or $0.09 per basic and diluted share, compared to a net loss of $3.1 million, or $0.08 per basic and diluted share, in the third quarter of fiscal 2009. The increase in net loss for the third quarter of fiscal 2010 was primarily attributable to lower gross profit and one-time termination costs of our former CEO, offset by a reduction in R&D expenses, as listed above. Net loss for the first nine months of fiscal 2010 was $8.9 million, or $0.24 per diluted share, compared to a net loss of $5.7 million, or $0.16 per diluted share, in the first nine months of fiscal 2009. The increase in net loss for the first nine months of fiscal 2010 was primarily attributable to the receipt of payments from Medtronic Xomed Inc. (“Medtronic”) and recognition of an associated gain of $5.0 million, net of direct costs, in
the first nine months of fiscal 2009 for the sale of our ENT (ear-nose-throat) EndoSheath® disposable product line to them in March 2007. The reduction in R&D expenses of $1.8 million in the first nine months of fiscal 2010 partially offsets the favorable impact of the gain on the results for the first nine months of fiscal 2009.
Medical sales decreased from $2.8 million in the third quarter of fiscal 2009 to $1.8 million in the third quarter of fiscal 2010, or by 34%, while industrial sales for the same period remained relatively flat at $0.8 million. Within medical sales:
- ENT and TNE (trans-nasal esophagoscopy) sales decreased from $1.9 million to $0.6 million, or by 71%;
-
Urology sales increased from $0.2 million to $0.4 million, or by 87%;
- Bronchoscopy sales were $0.1 million (the video bronchoscope was launched at the end of the first quarter of fiscal 2010);
- We recorded $0.2 million in connection with the milestone achievement for delivery of the first working prototype of the SpineView spinoscope; and,
- Repairs, peripherals, and accessories sales decreased from $0.6 million to $0.5 million, or by 18%.
Medical sales decreased from $6.9 million in the first nine months of fiscal 2009 to $6.7 million in the first nine months of fiscal 2010, or by 3%, and industrial sales for the same period decreased from $2.2 million to $2.1 million, or by 3%. Within medical sales:
-
ENT and TNE sales decreased from $3.9 million to $2.7 million, or by 29%;
- Urology sales increased from $1.5 million to $1.7 million, or by 10%;
- Bronchoscopy sales were $0.4 million (the video bronchoscope was launched at the end of the first quarter of fiscal 2010);
- We recorded $0.2 million in connection with the milestone achievement for delivery of the first working prototype of the SpineView spinoscope; and,
- Repairs, peripherals, and accessories sales increased from $1.5 million to $1.6 million, or by 7%.
Net sales detail (in thousands, except for percentages) for the third quarter and first nine months of fiscal 2010 and 2009 were as follows:
Three Months Ended | Nine Months Ended | ||||||||
December 31, | December 31, | ||||||||
Market/Category | 2009 | 2008 | Difference | % | 2009 | 2008 | Difference | % | |
ENT and TNE |
$ 550 | $ 1,894 | $ (1,344) | -71% | $ 2,744 | $ 3,880 | $ (1,136) |
-29% |
|
Urology | 444 | 237 | 207 | 87% | 1,702 | 1,543 | 159 | 10% | |
Bronchoscopy |
94 | — | 94 | 100% | 426 | — | 426 | 100% | |
SpineView milestone | 225 | — | 225 |
100% |
225 | — | 225 | 100% | |
Repairs, peripherals, and accessories | 529 | 645 | (116) | -18% | 1,598 | 1,494 | 104 |
7% |
|
Total medical sales | 1,842 | 2,776 | (934) | -34% | 6,695 | 6,917 | (222) | -3% | |
Borescopes | 610 | 664 | (54) |
-8% |
1,581 | 1,569 | 12 | 1% | |
Repairs | 148 | 170 | (22) | -13% | 531 | 605 | (74) |
-12% |
|
Total industrial sales | 758 | 834 | (76) | -9% | 2,112 | 2,174 | (62) | -3% | |
Total sales | $ 2,600 | $ 3,610 | $(1,010) | -28% | $ 8,807 | $ 9,091 | $ (284) | -3% | |
Within the ENT area, we manufacture ENT endoscopes and have sold these scopes exclusively to Medtronic for use by ENT physicians. Medtronic will no longer serve as the distributor for our ENT endoscopes. Medtronic and we have agreed to a transition period through April 1, 2010 during which time we will continue to support the Medtronic sales force and Medtronic will assist us in transitioning Medtronic’s customer service needs directly to us, among other items. After April 1, 2010, we will sell our ENT endoscopes through our direct sales force in the U.S. and through distributors internationally.
Warren Bielke, our interim Chief Executive Officer stated, “We had a challenging quarter with respect to sales; however, with our strong product portfolio we are positioned to transform Vision-Sciences from an R&D-focused company to a sales and marketing-driven company with revenue growth and improved margins. With the end of the exclusive Medtronic distribution agreement, we will sell our ENT endoscopes directly to end users which should have an additional positive impact on our top- and bottom-line results.”