Misonix, Inc. (NASDAQ: MSON), a surgical device company that designs, manufactures and markets innovative therapeutic ultrasonic products worldwide for spine surgery, cranial maxillo – facial surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic surgery and other surgical applications, today reported financial results for the six-months and the second quarter of fiscal year 2013, ended December 31, 2012.
Highlights for the quarter and the six-month period include:
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Revenue for the six months increased 19% to $8.0 million compared to $6.8 million in the first six months of 2012. Second quarter revenue was $3.5 million comparable to $3.6 million in the second quarter of 2012.
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Excluding revenue from legacy products, BoneScalpel, SonicOne and SonaStar revenue increased 46% and 12% respectively for the first half and the three months of fiscal 2013, ended December 31, 2012.
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U.S. revenue for the six months increased 9%, International revenue increased 31% compared to the comparable six months of fiscal 2012. U.S. second quarter revenue decreased 12.6%, including a 59% reduction in Lysonix and Autosonix revenue, International second quarter revenue increased 9.6% versus the year ago second quarter.
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BoneScalpel™ revenue increased 99% and 33%, respectively, for the six months and the second quarter versus the comparable periods in 2012.
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SonicOne™ revenue increased 82% and 70%, respectively, for the six months and the second quarter versus the comparable periods in 2012.
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SonaStar™ revenue for the six months was comparable to 2012 six month revenues and decreased 20% in the second quarter of 2013 versus the 2012 second quarter.
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For the six months the Company reported a net loss of $609,000, or $(0.09) per share, compared to net income of $136,000, or $0.02 per share, which included a gain of $712,000 for the sale of the Company's Laboratory and Forensic Safety Products Business in the first half of 2012.
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Cash and cash equivalents totaled $6.9 million at December 31, 2012 with no long-term debt.
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Increased the number of independent representatives from 19 to 42 in neurospine for the three months ended December 31, 2012.
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Increased the number of independent representatives for wound care from 5 to 15 for the three months ended December 31, 2012.
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Terminated the non-exclusive Aesculap Agreement as of December 31, 2012, which among other things should result in increased direct sales to customers at a higher margin.
Q2 2013 Financial Results:
For the second quarter of fiscal 2013, revenue was $3.5 million, comparable to $3.6 million in the second quarter of 2012. BoneScalpel revenues for the quarter increased 33% to $1.6 million compared to $1.2 million in the comparable quarter of fiscal 2012. BoneScalpel units sold/placed for the quarter were 33. SonicOne revenues increased 70% to $528,249 compared to $309,812 in the second quarter last year. SonicOne units sold/placed for the quarter were 16. SonaStar revenues decreased 20% to $1.1 million compared to $1.3 in the second quarter last year. SonaStar units sold/placed for the quarter were 13. The number of BoneScalpel consumables sold increased 119% to 9,041 units for the quarter, SonicOne consumables sold increased 24% to 3,302 units, and SonaStar consumables sold decreased 40% to 1,985 units.
As expected, other revenue, which includes legacy products Autosonix and Lysonix sold by outside distribution partners, decreased 59% as these late stage products approach end-of-life. Excluding all other revenue, BoneScalpel, SonicOne and SonaStar revenue increased 12% for the three months ended December 31, 2012.
For the quarter, royalty income received predominantly from Covidien increased 177% to $502,000.
Gross margin for the second quarter of fiscal 2013 was 53.2%, primarily attributable to an unfavorable mix of low and high margin product deliveries in addition to the $188,000 amount due to Puricore International Limited under the terms of our contract. Operating expenses for the second fiscal quarter increased 16%, as the Company continued to invest in expanding its sales, marketing and customer support capabilities.
For the second quarter of fiscal year 2013, the Company reported a net loss of $(654,000), or $(0.09) per diluted share, compared to net income of $1.0 million, or $0.15 per diluted share, in the second quarter of 2012, which included income from discontinued operations of $792,000 for the sale of the Company's Laboratory and Forensic Safety Products Business in October 2011.
Six Months 2012 Financial Results:
Net sales increased 19% to $8.0 million for the six months ended December 31, 2012 from $6.8 million in the six months ended December 31, 2011. BoneScalpel revenues for the six months increased 99% to $3.7 million compared to $1.9 million in the comparable quarter of fiscal 2012. BoneScalpel units sold/placed for the six months were 90. SonicOne revenues increased 82% to $1.0 million compared to $564,199 in the six-month period of the prior year. SonicOne units sold/placed for the six months were 27. SonaStar revenues were $2.6 million comparable to six-month 2012 revenue. SonaStar units sold/placed for the six-months were 34.The number of BoneScalpel consumables sold increased 110% to 17,818 units for the six months ending December 31, 2012 and SonicOne consumables increased 20.6% to 6,138 units.