FARMINGDALE, N.Y., March 13, 2017 /PRNewswire/ -- Misonix, Inc.
(Nasdaq: MSON), a provider of minimally invasive therapeutic
ultrasonic medical devices that enhance clinical outcomes,
announced today the filing of Forms 10-Q with the Securities and
Exchange Commission for the first quarter of fiscal year 2017,
ended September 30, 2016, and the
second quarter of fiscal 2017, ended December 31, 2016.
For the six months ended December 31,
2016, the Company reported a 29.4% increase in sales of its
consumable products over the comparable six month period of the
previous fiscal year. Domestic consumables sales grew 35.5% in the
same period. Additionally, the Company reported that its domestic
sales now represent 65.6% of total sales, compared with 55.5% in
the prior year.
Q1 2017 Financial Highlights:
- Net sales increased 17.5% to $6.2
million compared to $5.3
million in the first quarter of fiscal 2016. Domestic sales
increased 26.7% during the quarter.
- Consumables revenue increased by 30.2% to $4.5 million, and comprised 73.6% of total
revenue compared with 66.5% in the prior year period.
- Gross profit was 69.0% of sales, up from 66.5% in the first
quarter of fiscal 2016.
- General and administrative expenses increased 7.1% to
$1.9 million primarily driven by:
- a charge of $0.3 million relating
to a severance obligations; and
- $0.5 million in professional fees
relating to the recently completed internal investigation.
- The Company reported a net loss of $0.5
million, or $(0.07) per
diluted share, compared to a net loss of $0.2 million, or $(0.03) per diluted share, in the comparable
quarter of fiscal 2016.
Q2 2017 Financial Highlights:
- For the second quarter of fiscal year 2017 ended December 31, 2016, net sales were essentially
flat at $6.0 million, compared to
$6.0 million in the second quarter of
fiscal 2016.
- Domestic sales increased 28.6% to $4.1
million versus $3.2 million in
second quarter of fiscal 2016.
- Consumable sales in the United
States increased 42.3% to $3.8
million for the quarter, and accounted for 64% of total
quarterly sales compared to 45% in the comparable quarter of
2016.
- Gross profit in the second quarter was 69.8%, up from 67.6% in
the second quarter of fiscal 2016; primarily from a stronger mix of
higher margin consumables revenue.
- General and administrative expenses increased 24.6% to
$2.1 million primarily driven by
professional fees fees of $0.7
million relating to the recently completed internal
investigation.
- The Company reported a net loss of $0.6
million, or $(0.07) per
diluted share, compared to net income of $0.2 million, or $0.02 per diluted share, in the second quarter of
fiscal 2016.
- At December 31, 2016, the Company
maintained cash and cash equivalents of $12.8 million with no long-term debt.
Greater detail on the results of the first and second quarters
of fiscal 2017, ended December 31,
2016, is available in the Forms 10-Q accessible at
www.misonix.com in the Investor Relations section or at
www.sec.gov.
Stavros Vizirgianakis, president
and chief executive officer of Misonix, said, "We are pleased to
complete this process with the filing of the two quarterly reports,
and in regaining full compliance with the SEC and Nasdaq rules.
Throughout this process, we continued to grow revenue – 4% in
fiscal 2016 and 8% in the first half of fiscal 2017. I want to
congratulate the entire Misonix team for a solid performance during
the first half of fiscal 2017. They exhibited great professionalism
in a difficult period and continued to move the Company
forward.
"With the internal investigation behind us, we are now focused
on growing the Company on a consistent basis. In the coming
quarters, we will initiate several strategic changes in the
execution of our business, both domestically and internationally,
as we concentrate on driving sales of our consumable products and
the recurring revenue that those sales generate. We look forward
with great enthusiasm to developing many of the opportunities ahead
in the coming years."
The Company recently completed a voluntary internal
investigation into the business practices of the independent
Chinese entity that previously distributed its products in
China and various internal control
issues. A new distributor in China
was recently appointed and the internal control issues are being
remediated. All of the Company's previous financial reports were
found to be accurate and a restatement of prior financial results
was not required.
Conference Call
The Company has scheduled a conference
call for Tuesday, March 14, 2017, at
9:00 am ET to review the financial
results.
Interested parties can access the conference call by dialing
(844) 861-5497 or (412) 317-6579 or can listen via a live Internet
webcast, which is available in the Investor Relations section of
the Company's website at www.misonix.com.
A teleconference replay of the call will be available for three
days at (877) 344-7529 or (412) 317-0088, confirmation # 10103113.
A webcast replay will be available in the Investor Relations
section of the Company's website at www.misonix.com for 30
days.
About Misonix
Misonix, Inc. designs, develops, manufactures and markets
therapeutic ultrasonic medical devices. Misonix's therapeutic
ultrasonic platform is the basis for several innovative medical
technologies. Addressing a combined market estimated in excess
of $1.5 billion annually; Misonix's proprietary
ultrasonic medical devices are used in spine surgery, neurosurgery,
orthopedic surgery, wound debridement, cosmetic surgery,
laparoscopic surgery, and other surgical and medical applications.
Additional information is available on the Company's website at
www.misonix.com.
Safe Harbor Statement
With the exception of historical information contained in
this press release, content herein may contain "forward looking
statements" that are made pursuant to the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Investors are
cautioned that forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from the statements made. These factors include general economic
conditions, delays and risks associated with the performance of
contracts, risks associated with international sales and currency
fluctuations, uncertainties as a result of research and
development, acceptable results from clinical studies, including
publication of results and patient/procedure data with varying
levels of statistical relevancy, risks involved in introducing and
marketing new products, potential acquisitions, consumer and
industry acceptance, litigation and/or court proceedings, including
the timing and monetary requirements of such activities, the timing
of finding strategic partners and implementing such relationships,
regulatory risks including approval of pending and/or contemplated
510(k) filings, the ability to achieve and maintain profitability
in the Company's business lines, the impact of the pending
investigation by the Department of Justice and Securities Exchange
Commission, and other factors discussed in the Company's Annual
Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. The Company disclaims any obligation
to update its forward-looking relationships.
Financial Tables to Follow
MISONIX INC. and
Subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
Six Months
|
|
|
|
Six Months
|
|
Three Months
Ended
|
Ended
|
|
Three Months
Ended
|
Ended
|
|
9/30/16
|
12/31/16
|
12/31/16
|
|
9/30/15
|
12/31/15
|
12/31/15
|
|
|
|
|
|
|
|
|
Net sales
|
$
6,171,625
|
$
6,030,380
|
$
12,202,005
|
|
$
5,250,985
|
$
6,039,355
|
$
11,290,340
|
Cost of goods sold,
exclusive of depreciation from consigned product
|
1,912,007
|
1,818,672
|
3,730,679
|
|
1,760,699
|
1,957,900
|
3,718,599
|
Gross
profit
|
4,259,618
|
4,211,708
|
8,471,326
|
|
3,490,286
|
4,081,455
|
7,571,741
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
expenses
|
3,325,687
|
3,271,134
|
6,596,821
|
|
2,656,280
|
2,991,687
|
5,647,967
|
General and
administrative expenses
|
1,931,821
|
2,087,419
|
4,019,240
|
|
1,803,920
|
1,675,090
|
3,479,010
|
Research and
development expenses
|
492,084
|
440,364
|
932,448
|
|
399,994
|
392,068
|
792,062
|
Total operating
expenses
|
5,749,592
|
5,798,917
|
11,548,509
|
|
4,860,194
|
5,058,845
|
9,919,039
|
Loss from
operations
|
(1,489,974)
|
(1,587,209)
|
(3,077,183)
|
|
(1,369,908)
|
(977,390)
|
(2,347,298)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
19
|
19
|
38
|
|
19
|
25
|
44
|
Royalty income
and license fees
|
944,068
|
949,048
|
1,893,116
|
|
988,170
|
1,018,362
|
2,006,532
|
Other
|
(1,996)
|
(6,640)
|
(8,636)
|
|
(6,021)
|
(5,413)
|
(11,434)
|
Total other
income
|
942,091
|
942,427
|
1,884,518
|
|
982,168
|
1,012,974
|
1,995,142
|
|
|
|
|
|
|
|
|
(Loss) / income from
operations before income taxes
|
(547,883)
|
(644,782)
|
(1,192,665)
|
|
(387,740)
|
35,584
|
(352,156)
|
|
|
|
|
|
|
|
|
Income tax
(benefit)/expense
|
(26,000)
|
(30,000)
|
(56,000)
|
|
(168,000)
|
(139,000)
|
(307,000)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(521,883)
|
$
(614,782)
|
$
(1,136,665)
|
|
$
(219,740)
|
$
174,584
|
$
(45,156)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Basic
|
$
(0.07)
|
$
(0.07)
|
$
(0.14)
|
|
$
(0.03)
|
$
0.02
|
$
(0.01)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - Diluted
|
$
(0.07)
|
$
(0.07)
|
$
(0.14)
|
|
$
(0.03)
|
$
0.02
|
$
(0.01)
|
|
|
|
|
|
|
|
|
Weighted average
shares - Basic
|
7,809,385
|
8,374,900
|
8,092,143
|
|
7,748,509
|
7,780,778
|
7,764,644
|
Weighted average
shares - Diluted
|
7,809,385
|
8,374,900
|
8,092,143
|
|
7,748,509
|
8,081,602
|
7,764,644
|
MISONIX INC. and
Subsidiaries
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
December
31,
|
|
June 30,
|
|
|
2016
|
|
2016
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
12,766,120
|
|
$
9,049,327
|
Accounts receivable,
less allowance for doubtful accounts of $96,868 and $98,868,
respectively
|
|
3,770,168
|
|
3,869,427
|
Inventories,
net
|
|
4,986,521
|
|
5,822,935
|
Prepaid expenses and
other current assets
|
|
302,224
|
|
530,564
|
Total current
assets
|
|
21,825,033
|
|
19,272,253
|
|
|
|
|
|
Property, plant and
equipment, net of accumulated amortization and depreciation of
$7,361,655 and $6,976,282, respectively
|
|
3,184,334
|
|
2,492,815
|
Patents, net of
accumulated amortization of $938,119 and $885,394,
respectively
|
|
707,366
|
|
604,916
|
Goodwill
|
|
1,701,094
|
|
1,701,094
|
Intangible and other
assets
|
|
305,421
|
|
266,603
|
Deferred income
tax
|
|
3,454,690
|
|
3,394,690
|
Total
assets
|
|
$
31,177,938
|
|
$
27,732,371
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
1,400,545
|
|
$
1,402,797
|
Accrued expenses and
other current liabilities
|
|
2,270,983
|
|
1,887,337
|
Total current
liabilities
|
|
3,671,528
|
|
3,290,134
|
|
|
|
|
|
Deferred lease
liability
|
|
9,308
|
|
9,262
|
Deferred
income
|
|
7,765
|
|
31,685
|
Total
liabilities
|
|
3,688,601
|
|
3,331,081
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock, $.01
par value-shares authorized 20,000,000; 9,132,203 and 7,948,234
shares issued and 8,993,354 and 7,809,385 outstanding in each
period, respectively
|
|
91,322
|
|
79,482
|
Additional paid-in
capital
|
|
36,715,393
|
|
32,502,521
|
Accumulated
deficit
|
|
(8,218,026)
|
|
(7,081,361)
|
Treasury stock, at
cost, 138,849 shares in each period
|
|
(1,099,352)
|
|
(1,099,352)
|
Total shareholders'
equity
|
|
27,489,337
|
|
24,401,290
|
Total liabilities and
shareholders' equity
|
|
$
31,177,938
|
|
$
27,732,371
|
Corporate
Contact
|
Investor
Contact
|
Joe
Dwyer
|
Joe Diaz
|
Misonix,
Inc.
|
Lytham
Partners
|
631-927-9113
|
602-889-9700
|
jdwyer@misonix.com
|
mson@lythampartners.com
|
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SOURCE Misonix, Inc.