ORANGEBURG, N.Y., Nov. 12, 2009 (GLOBE NEWSWIRE) -- Vision-Sciences, Inc., (Nasdaq:VSCI) today announced results for its second quarter and first half of fiscal 2010, ended September 30, 2009. For the second quarter of fiscal 2010, revenues were $2.9 million, an increase of $0.1 million, or 4%, over the second quarter of fiscal 2009, ended September 30, 2008. For the first half of fiscal 2010, revenues were $6.2 million, an increase of $0.7 million, or 13%, over the first half of fiscal 2009. Loss from operations in the second quarter of fiscal 2010 was $3.1 million compared to $3.7 million in the second quarter of fiscal 2009, a decrease of $0.6 million. Loss from operations in the first half of fiscal 2010 was $5.6 million compared to $7.0 million in the first half of fiscal 2009, a decrease of $1.4 million.
Abbreviated results (in thousands, except for per share data and percentages) for the second quarter and first half of fiscal 2010 and 2009 were as follows:
Three Months Six Months
Ended Ended
September 30, September 30,
--------------- Differ- ---------------- Differ-
2009 2008 ence % 2009 2008 ence %
------ ------- ------ --- ------- ------- ------- ----
Net
sales $2,889 $ 2,785 $ 104 4% $ 6,207 $ 5,481 $ 726 13%
Loss
from
opera-
tions (3,139) (3,738) 599 16% (5,619) (6,979) 1,360 19%
Net
loss (3,170) (2,473) (697) -28% (5,638) (2,616) (3,022) -116%
Net
loss
per
share
-
basic
and
diluted $(0.09) $ (0.07) $(0.02) -29% $ (0.15) $ (0.07) $ (0.08) -114%
Please refer to the attached balance sheet and statement of operations for more detail.
The decrease in loss from operations of $0.6 million in the second quarter of fiscal 2010 was primarily attributable to a reduction in research and development ("R&D") expenses of $0.6 million. The decrease in loss from operations of $1.4 million in the first half of fiscal 2010 was primarily attributable to a reduction of R&D expenses of $1.0 million and an increase in gross profit of $0.4 million due to higher sales.
Net loss for the second quarter of fiscal 2010 was $3.2 million, or $0.09 per basic and diluted share, compared to a net loss of $2.5 million, or $0.07 per basic and diluted share, in the second quarter of fiscal 2009. The increase in net loss for the second quarter of fiscal 2010 was primarily attributable to the receipt of payments from Medtronic Xomed Inc. ("Medtronic") and recognition of an associated gain of $1.8 million, net of direct costs, in the second quarter of fiscal 2009 for the sale of our ENT (ear-nose-throat) EndoSheath(R) disposable product line to them in March 2007. The reduction in R&D expenses of $0.6 million in the second quarter of fiscal 2010 partially offset the favorable impact of the gain on the results for the second quarter of fiscal 2009. Net loss for the first half of fiscal 2010 was $5.6 million, or $0.15 per diluted share, compared to a net loss of $2.6 million, or $0.07 per diluted share, in the first half of fiscal 2009. The increase in net loss for the first half of fiscal 2010 was primarily attributable to the receipt of payments from Medtronic and recognition of an associated gain of $5.0 million, net of direct costs, in the first half of fiscal 2009 for the sale of our ENT EndoSheath disposable product line. The reduction in R&D expenses of $1.0 million and the increase in gross profit of $0.4 million in the first half of fiscal 2010 partially offset the favorable impact of the gain on the results for the first half of fiscal 2009.
Medical sales grew from $2.1 million in the second quarter of fiscal 2009 to $2.2 million in the second quarter of fiscal 2010, or by 5%, while industrial sales for the same period remained flat at $0.6 million. Within medical sales:
* ENT and TNE (trans-nasal esophagoscopy) sales decreased from $1.2 million to $1.0 million, or by 19%; * Urology sales decreased from $0.7 million to $0.5 million, or by 28%; * Bronchoscopy sales were $0.1 million (the video bronchoscope was launched at the end of the first quarter of fiscal 2010); and, * Repairs, peripherals, and accessories sales increased from $0.2 million to $0.6 million, or by 236%.
Medical sales grew from $4.1 million in the first half of fiscal 2009 to $4.9 million in the first half of fiscal 2010, or by 17%, and industrial sales for the same period grew from $1.3 million to $1.4 million, or by 1%. Within medical sales:
* ENT and TNE sales remained flat at $2.2 million; * Urology sales decreased from $1.4 million to $1.3 million, or by 7%; * Bronchoscopy sales were $0.3 million (the video bronchoscope was launched at the end of the first quarter of fiscal 2010); and, * Repairs, peripherals, and accessories sales increased from $0.6 million to $1.1 million, or by 83%.
Net sales detail (in thousands, except for percentages) for the second quarter and first half of fiscal 2010 and 2009 were as follows:
Three Months Six Months
Ended Ended
September 30, September 30,
------------- Differ ------------- Differ
Market/Category 2009 2008 -ence % 2009 2008 -ence %
------------------- ------ ------ ----- --- ------ ------ ----- ---
ENT and TNE $1,007 $1,249 $(242) -19% $2,194 $2,201 $ (7) 0%
Urology 520 718 (198) -28% 1,258 1,356 (98) -7%
Bronchoscopy 136 -- 136 100% 332 -- 332 100%
Repairs,
peripherals, and
accessories 585 174 411 236% 1,069 584 485 83%
------ ------ ----- --- ------ ------ ----- ---
Total medical
sales 2,248 2,141 107 5% 4,853 4,141 712 17%
------ ------ ----- --- ------ ------ ----- ---
Borescopes 411 446 (35) -8% 971 905 66 7%
Repairs 230 198 32 16% 383 435 (52) -12%
------ ------ ----- --- ------ ------ ----- ---
Total industrial
sales 641 644 (3) 0% 1,354 1,340 14 1%
------ ------ ----- --- ------ ------ ----- ---
Total sales $2,889 $2,785 $ 104 4% $6,207 $5,481 $726 13%
====== ====== ===== === ====== ====== ===== ===
Warren Bielke, our new interim Chief Executive Officer, stated, "While revenue grew in the most recent quarter and the first six months over comparable prior year periods, my focus on increased sales and marketing is aimed at benefiting both top line growth and bottom line improvement."
Vision-Sciences will host a conference call on November 13, 2009 at 8:30 am EST to provide an update on its activities and to discuss second quarter and first half results. The toll-free dial-in number for the call is 888.500.6973. Please dial in five minutes prior to the call to register. A recording of the call will be available through November 20, 2009. The toll free replay dial-in is 888.203.1112. The replay pass code is 3034974. The call may also be accessed via a live audio webcast available in the investor relations section of our website at www.visionsciences.com. The audio webcast of the call will be archived and available for replay through the website.
Vision-Sciences, Inc. designs, develops, manufactures and markets unique flexible endoscopic products utilizing sterile disposable sheaths, the Slide-On EndoSheath System, which provide the users quick, efficient product turnover while ensuring the patient a contaminant-free product.
The Vision-Sciences, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3876
Except for the historical information provided, the matters discussed in this release include forward-looking statements for the purposes of the safe harbor protections under The Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Vision-Sciences or its management "believes," "expects," "allows," "anticipates," or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions, or goals are also forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially from those in forward-looking statements. Other risk factors are detailed in our most recent annual report and other filings with the Securities and Exchange Commission. We do not assume any obligation to update any forward-looking statements as a result of new information or future events or developments.
Vision-Sciences owns the registered trademarks Vision Sciences(R), Slide-On(R), EndoSheath(R) and The Vision System(R). Information about Vision-Sciences' products is available at www.visionsciences.com.
VISION-SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
Sept. 30, March 31,
------------------
2009 2009
-------- --------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 661 $ 1,975
Short-term investments 4,431 7,948
Accounts receivable, net of allowance for
doubtful accounts of $310 and $283,
respectively 1,851 1,818
Inventories, net 5,349 5,486
Prepaid expenses and other current assets 404 397
Current assets of discontinued operations -- 9
-------- --------
Total current assets 12,696 17,633
-------- --------
Property and equipment, at cost:
Machinery and equipment 3,227 3,069
Furniture and fixtures 226 132
Leasehold improvements 343 163
-------- --------
3,796 3,364
Less-accumulated depreciation and amortization 1,878 1,576
-------- --------
Total property and equipment, net 1,918 1,788
Other assets, net of accumulated amortization
of $81 and $76, respectively 85 65
-------- --------
Total assets $ 14,699 $ 19,486
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Capital lease obligations $ 46 $ 61
Accounts payable 1,088 1,014
Accrued expenses 1,807 1,966
Current liabilities of discontinued operations -- 6
-------- --------
Total current liabilities 2,941 3,047
Capital lease obligations, net of current
portion 28 28
-------- --------
Total liabilities 2,969 3,075
-------- --------
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $0.01 par value--
Authorized--5,000 shares
issued and outstanding--none -- --
Common stock, $0.01 par value--
Authorized--50,000 shares
issued and outstanding--36,854,001 shares and
36,817,941 shares at September 30, 2009 and
March 31, 2009, respectively 369 368
Additional paid-in capital 80,987 80,031
Accumulated deficit (69,626) (63,988)
-------- --------
Total stockholders' equity 11,730 16,411
-------- --------
Total liabilities and stockholders' equity $ 14,699 $ 19,486
======== ========
VISION-SCIENCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
------------------------ ------------------------
2009 2008* 2009 2008*
----------- ----------- ----------- -----------
Net sales $ 2,889 $ 2,785 $ 6,207 $ 5,481
Cost of sales 2,424 2,560 4,954 4,607
----------- ----------- ----------- -----------
Gross profit 465 225 1,253 874
Selling, general,
and
administrative
expenses 2,707 2,575 5,189 5,266
Research and
development
expenses 897 1,514 1,683 2,685
Restructuring
charge reversal -- (126) -- (98)
----------- ----------- ----------- -----------
Loss from
operations (3,139) (3,738) (5,619) (6,979)
Interest income 21 72 71 151
Interest expense (46) (2) (46) (16)
Other, net -- 26 (28) 26
Gain on sale of
product line,
net of direct
costs -- 1,755 -- 4,985
----------- ----------- ----------- -----------
Loss before
provision for
income taxes (3,164) (1,887) (5,622) (1,833)
Provision for
income taxes 6 -- 16 9
----------- ----------- ----------- -----------
Net loss from
continuing
operations (3,170) (1,887) (5,638) (1,842)
Net loss from
discontinued
operations -- (586) -- (774)
----------- ----------- ----------- -----------
Net loss $ (3,170) $ (2,473) $ (5,638) $ (2,616)
=========== =========== =========== ===========
Net loss per
common share -
basic and
diluted:
Continuing
operations $ (0.09) $ (0.05) $ (0.15) $ (0.05)
Discontinued
operations -- (0.02) -- (0.02)
----------- ----------- ----------- -----------
Net loss per
common share -
basic and
diluted $ (0.09) $ (0.07) $ (0.15) $ (0.07)
=========== =========== =========== ===========
Shares used in
computing net
loss per common
share 36,854,001 36,700,766 36,851,220 36,012,908
=========== =========== =========== ===========
* The condensed consolidated statements of operations for the
three and six months ended September 30, 2008 have been
reclassified to reflect discontinued operations of our health
services segment.