Misonix Inc. (NSDQ: MSON) posted second-quarter sales of $3.4 million for the three months ended Dec. 31, 2009, down 31 percent compared with $4.9 million during the same period in fiscal 2009. Net losses were $367,000, compared with net income of $194,000 during Q2 2009:
Press Release
Misonix Reports Second Quarter Fiscal 2010 Financial Results
FARMINGDALE, N.Y., Feb. 16 /PRNewswire-FirstCall/ — Misonix, Inc. (Nasdaq: MSON), a developer of minimally invasive ultrasonic medical device technology, which is used in Europe for the ablation of tumors and worldwide for acute health conditions, today reported financial results for the second fiscal quarter 2010 ending December 31, 2009. Michael A. McManus Jr., President and Chief Executive Officer, and Richard Zaremba, Senior VP and Chief Financial Officer, will host a conference call Tuesday, February 16, 2010 at 4:30 pm to discuss the Company’s second quarter and six months results.
The Company also reported the following financial and operational achievements:
- A 23% increase in revenue from Q-1 to Q-2 for fiscal 2010
- Gross margin as a percentage of revenues increased to 51.2% in the second fiscal quarter 2010 from 40.9% in the first fiscal quarter 2010 and 41.9% from the second fiscal quarter 2009
- Sold the assets of Sonora Medical Systems (“Sonora”) for $8.0 million in cash
- Hired and trained 9 direct sales people and 65 contract and sales agents in the USA
- Hired and trained 3 direct sales people, 2 contract sales agents and 30 specialty distributors for export sales
Revenues for the three months ended December 31, 2009 were $3.4 million, a decrease of $1.5 million when compared with $4.9 million for the same period in fiscal 2009. Medical device product sales decreased $1.3 million to $2.7 million and laboratory and scientific product sales decreased $200,000 to $654,000 for the three months ended December 31, 2009.
Gross profit as a percentage of sales increased to 51.2% for the three months ended December 31, 2009 from 41.9% for the three months ended December 31, 2008. The increase in gross profit percentage is primarily attributable to increased margins from the Company’s BoneScalpel and SonicOne® platforms, which in part are sold through the Company’s direct sales force and carry higher margins as opposed to sales to distributors.
The Company reported a net loss from continuing operations for the three months ended December 31, 2009 of $437,000 or $.06 per share compared with a loss from continuing operations of $91,000 or $.01 per share for the same period in fiscal 2009. During the second quarter fiscal 2010, the Company sold substantially all of its assets of Sonora for a cash payment of $8,000,000 (subject to a future adjustment based on net working capital at the closing). Misonix also purchased at the closing of the transaction, utilizing $1.2 million of the proceeds the remaining outstanding 5% of Sonora shares. The Company reported a net loss for the three months ended December 31, 2009 of $367,000 or $.05 per share including income from discontinued operations of $83,000 or $.01 per share compared to net income of $194,000 or $.03 per share for the three months ended December 31, 2008.
Revenue for the six months ended December 31, 2009 was $6.1 million, a decrease of $1.9 million when compared with $8.0 million for the same period in fiscal 2009. The difference in net sales is due to a decrease in sales of medical device products of $1.7 million to $4.8 million and a decrease of $.2 million in laboratory and scientific product sales to $1.3 million. The decrease in sales of medical device products was primarily attributable to reduced sales of the Company’s SonaStar™ surgical aspirator, European Sonablate® sales and the Company’s AutoSonix® platform, partially offset by an increase in sales of the Company’s BoneScalpel™ and Lysonix® product lines.
Gross profit as a percentage of revenue increased to 46.6% for the six months ended December 31, 2009 from 40.8% from the same period in fiscal 2009. The increase in gross profit percentage is primarily attributable to increased margins from the Company’s BoneScalpel™ SonicOne® products, which in part are sold through the Company’s direct sales force and carry higher margins as opposed to sales to distributors.
The Company reported a net loss from continuing operations for the six months ended December 31, 2009 of $1.6 million or $.23 per share, compared to income from continuing operations of $17,000 for the same period in fiscal 2009. During the first fiscal quarter 2010, the Company sold all of the issued and outstanding share capital of Labcaire Systems Limited (“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 in certain Labcaire sales and licenses made through December 13, 2013 not to exceed $1 million in the aggregate. During the second fiscal quarter, the Company sold substantially all of its assets of Sonora for a cash payment of $8,000,000 (subject to a future adjustment based on net working capital at the closing). Misonix also purchased at the closing of the transaction, utilizing $1.2 million of the proceeds the remaining outstanding 5% of Sonora shares. The Company reported a net loss for the six months ended December 31, 2009, including income from discontinued operations of $1.1 million or $.16 per share compared to net income of $514,000 or $.07 per share for the six months ended December 31, 2008.
Commenting on Misonix’s financial and operating results, Michael A. McManus, Jr., President and Chief Executive Officer, said, “Even though our sales growth has been slower then expected, we are pleased with our increase in profit margins as the restructuring of our distribution takes hold. Our direct sales force is successfully building the Misonix brand as a world leader in ultrasonic surgical devices. We expect further expansion of our worldwide distribution organization in the months to come with new partners in Asia, the Middle East, Europe and Latin America. We have also experienced rapid clinical acceptance of our BoneScalpel™ platform for spinal surgery applications, which has resulted in strong demand and should result in sales growth as the year progresses. The closing of the Sonora transaction enables our team to be exclusively focused on growing our high margin medical device business with the support of a strengthened balance sheet with almost $10 million in cash.”