Encision Inc., a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, reported profitable financial results for its third fiscal quarter ended December 31, 2010.
The Company recorded net income of $234,000 or $0.04 per share for the third quarter of fiscal year 2011 on net sales of $2.917 million, representing a slight increase in net sales from our second quarter ended September 30, 2010, and a 10.5% decrease from net sales of $3.260 million for the third quarter of fiscal year 2010. The Company's net income compared favorably to the $149,000 or $0.02 per share for the third quarter of fiscal year 2010.
Gross profit margin for the third quarter of fiscal year 2011 grew to 62.4% as compared to 61.6% for the third quarter of fiscal year 2010. The gross profit margin increase in the third quarter of fiscal year 2011 was the result of an increase, as a percentage of net sales, of higher gross margin net sales, especially our disposable scissor inserts.
"We managed to become profitable in our third quarter by aligning our costs to net sales. We trimmed staffing levels, eliminated certain outside services, and reduced executive salaries and board of directors' fees," said Jack Serino, President and CEO of Encision Inc. "During the third quarter, we implemented a new sales strategy that we believe will result in greater sales in our future quarters."
Mr. Serino also noted, "We issued a press release last week which addressed how our patented AEM technology may have prevented a patient's injuries from a defective laparoscopic device, Jury Awards Patient $2.2 Million in Defective Laparoscopic Instrument Design Verdict; Encision's Patented AEM Laparoscopic Surgical Devices Can Mitigate Such Injuries. The press release may be found on Encision's website, under the Media Room tab, at www.encision.com. And, last week, we filed a Form 8-K with the Security and Exchange Commission to report that we and Boston Scientific Corporation entered into a Development, License and Non-Commercial Supply Agreement."
Mr. Serino added, "We are very encouraged by the judicial confirmation of the value of our AEM technology, as witnessed by the recent jury verdict and, with our agreement with Boston Scientific and our new sales strategy, the potential positive impact on our revenue."
Net sales for the nine months ended December 31, 2010 totaled $8.695 million, representing a 10% decrease from net sales of $9.650 million for the nine months ended December 31, 2009. The Company recorded a net loss of $30,000 or $0.00 per share for the nine months ended December 31, 2010 compared to net income of $359,000 or $0.06 per share for the nine months ended December 31, 2009. Gross profit margin for the nine months ended December 31, 2010 was 63.2% as compared to 62% for the nine months ended December 31, 2009. The gross profit margin increase in the nine months ended December 31, 2010 was the result of an increase, as a percentage of net sales, of higher gross margin net sales.
Bariatric surgery outperforms traditional treatments for long-term diabetes control