Encision reports 8% decline in first-quarter fiscal 2011 net sales

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 first fiscal quarter ended June 30, 2010.

Net sales for the first quarter of fiscal year 2011, ended June 30, 2010, totaled $2.91 million, representing an 8% decrease from net sales of $3.17 million for the prior fiscal year's first quarter. The Company recorded a net loss of $119 thousand or $(0.02) per share for the first quarter of fiscal year 2011 compared to net income of $163 thousand or $0.03 per share for the first quarter of fiscal year 2010. Gross profit margin for the first quarter of fiscal year 2011 was 63.3% as compared to 64% for the first quarter of fiscal year 2010. The gross profit margin decrease in the first quarter of fiscal year 2011 was the result of higher manufacturing costs per unit of product as a result of decreased sales.

"We were disappointed with the downturn in our sales growth for the first quarter. However, we believe that the downturn is not endemic to Encision. Anecdotally, we understand that the number of laparoscopic and other medical procedures were down during the quarter, therefore resulting in lower sales for us and some of the other medical device companies," said Jack Serino, President and CEO of Encision Inc. "Looking forward, we recently entered an agreement with HealthTrust Purchasing Group, LP, a group purchasing organization and signed distribution agreements with distributors to sell our product lines in the United Kingdom, Ireland and Austria. We believe that at some point soon, the number of laparoscopic procedures will increase, thereby facilitating our path to continued sales growth."

SOURCE Encision Inc.