Encision fourth quarter revenue increases to $3.370 million

Encision Inc. (ECIA:PK), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, today announced financial results for its fiscal 2012 fourth quarter and fiscal year ended March 31, 2012. 

The Company posted quarterly revenue of $3.370 million and quarterly net profit of $40 thousand, or $0.01 per diluted share. These results compare to revenue of $2.921 million and net profit of $35 thousand, or $0.01 per diluted share, in the year-ago quarter. Gross margin was 57.5 percent compared to 58.7 percent in the year-ago quarter. Gross margin decreased from the year-ago due to higher labor costs on service revenue, which was offset slightly by lower unit overhead costs as a result of higher product revenue volume.

The Company posted fiscal year revenue of $12.989 million and fiscal year net loss of $531 thousand, or $(0.08) per diluted share. These results compare to revenue of $11.617 million and net profit of $5 thousand, or $0.00 per diluted share, in the year-ago fiscal year. Gross margin was 54.1 percent compared to 62.1 percent in the year-ago fiscal year. Gross margin decreased from the year-ago due to higher material costs, higher unit overhead costs as a result of lower product revenue volume, and a one-time charge of $430,000, which occurred in the second quarter ended September 30, 2011, for a voluntary recall of certain electrode product, and higher labor costs on service revenue.

"Our fourth quarter net profit was a result of increased revenue and selected expense reductions," said Fred Perner, President and CEO. "On March 30 and April 16, 2012, we completed a private placement of 1,755,000 shares of our common stock at $1.00 a share and raised $1,755,000, before costs. The net proceeds from the sale of the shares were partially used to pay down our line of credit, and, as we announced previously, will be used for sales, marketing and quality programs and needed product development to enable us to execute our business plan and grow revenues and profitability in the future. However, in the short-term, as we aggressively implement the plan and spend resources for these initiatives, we expect that, at least for the first and second quarters of the current fiscal year, we will not be profitable."

SOURCE Encision Inc.