Encision fourth-quarter net sales increase 3.6% to $3.19 million

May 20 2010

Encision Inc. (OTC Bulletin Board: ECIA), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, reported its financial results for its fourth quarter and fiscal year ended March 31, 2010.

Net sales for the fourth quarter of fiscal year 2010, ended March 31, 2010, totaled $3.19 million, representing a 3.6% increase over net sales of $3.08 million for the prior fiscal year's fourth quarter. The Company recorded a net loss of $94 thousand or $(0.01) per share for the fourth quarter of fiscal year 2010 compared to net income of $16 thousand or $.00 per share for the fourth quarter of fiscal year 2009. Gross profit margin for the fourth quarter of fiscal year 2010 was 59% as compared to 64% for the fourth quarter of fiscal year 2009. The gross profit margin decrease in the fourth quarter of fiscal year 2010 was the result of an inventory reserve increase of $96 thousand relating to the removal of product from inventory and increased sales of lower gross margin products.

Net sales for the fiscal year ended March 31, 2010 totaled $12.84 million, representing a 0.4% increase over net sales of $12.79 million for the prior fiscal year. The Company recorded net income of $265 thousand or $.04 per share for fiscal year 2010 compared to net income of $160 thousand or $.02 per share for fiscal year 2009. Gross profit margin for fiscal year 2010 was 61.3%, compared to 62.3% for fiscal year 2009 due to the same factors as above.

"Our fourth quarter of fiscal year 2010 was a disappointment to us, especially after achieving a number of profitable quarters previously. During the quarter, we found that, after conducting tests on a product, the product did not meet our standards. This led to our decision to remove selected lots of the product from our and our customers' inventory, which resulted in a $96 thousand charge," said Jack Serino, President and CEO of Encision Inc. "Our fiscal year 2010 was a challenge for us and others in the medical device industry. However, I am pleased that in this fiscal year we were able to generate record earnings under a tough economic environment."

SOURCE Encision Inc.