Bovie Medical Corporation (the "Company") (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the second quarter and six months ended June 30, 2010.
Revenues for the second quarter ended June 30, 2010 totaled $5,896,909 versus $6,831,578 for the comparable period last year; resulting in net income of $34,063 or $0.00 per diluted share as compared to net income of $206,672 or $.01 per diluted share in the same period last year.
Revenues continued to be affected by a decline in OEM ablator business although somewhat offset by increased international and disposable sales. Net income was impacted by costs associated with the closing of the Company's Canadian facility, new employees, increased professional services and higher expenses related to the development of new products. The Company recorded a gain of approximately $617,165 primarily resulting from the change in value of the warrant liability related to its private placement in April 2010.
Revenues for the six months ended June 30, 2010 were $11,496,016 versus $14,048,901 for the comparable period last year; resulting in net loss of $(170,010) or $(0.01) per diluted share as compared to net income of $605,885 or $.03 per diluted share in the same period in the prior year.
Andrew Makrides, president of Bovie, stated, "During the second quarter significant progress was made in the development of our new products and technologies. We remain focused on bringing these new products to market as quickly as possible. We are encouraged with the progress being made on the J-Plasma™ technology and anticipate a new 510(k) application and patent filings, based on enhancements to our J-Plasma™ system. Marketing clearance was previously granted for its use in general surgery.
NEW PRODUCT ACTIVITIES
The Company timely filed its Answer, Affirmative Defenses and Counterclaims on Monday, August 2, 2010. The case is expected to proceed to discovery according to the judge's case management order. Meanwhile, the Company is evaluating its best course of action in the litigation while continuing to refine and execute its plans for development, manufacture and sales of its sintered steel products. Bovie continues to move forward with its BOSS™ product line primarily targeting orthopedic surgeons performing hip and knee arthroplasty procedures; a market comprised of approximately 1.1 million procedures performed in the US annually. The estimated worldwide market for the sintered steel technology is in excess of $500 million.
The Company continues to progress with the testing necessary to complete the 510(k) submission process. Bipolar vessel sealing and coagulation is one of the fastest growing markets in electrosurgery, estimated to exceed $1.0 billion in revenues worldwide.
Surgeons in diverse specialties are being engaged for testing and feedback for potential use in open and laparoscopic surgical applications for the J-Plasma™ system. We are also exploring possibilities that the J-Plasma™ technology could be useful in promoting wound healing, viral/bacterial mitigation and oncology applications. Management anticipates that J-Plasma™ systems will be commercially available this calendar year.
Coated Blades & Disposable Laparoscopic Instruments
The Resistick II™ and Bovie® branded coated blades have been well received and are currently being sold through distributors and 18 independent sales reps. Initial and follow up orders have exceeded our forecasts.
A new line of disposable laparoscopic instruments are scheduled for introduction in the fourth quarter through the recently developed independent sales rep channel. The new laparoscopic instruments will be used during surgeries that traditionally required a disposable scissor or other jaw-type instrument. The Bovie instrument incorporates previously developed components creating a reusable quality instrument at a disposable price.