ORLANDO, Fla., July 29, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has issued a first quarter 2008 research update for Bovie Medical Corp. (AMEX:BVX), a company engaged in manufacturing and marketing medical products and developing related technologies.
Neha Bhargava, MBA, RedChip Research Analyst, reported:
"Bovie plans to reduce its reliance on original equipment manufacturer (OEM) customers and focus on launching new product lines. These new products will provide huge potential for increasing the Company's future revenue base, fostering a solid foundation for increasing shareholder value.
"BVX might experience slower growth for several months as it incurs higher costs associated with the introduction of new products; however, we believe ongoing efforts to implement this new strategy will serve as a base for future revenue growth. Also, in view of the aging population and large spending on healthcare, especially electrosurgical medical products, we believe the market environment will improve further for BVX's products."
Bhargava continued: "As BVX now plans to shift to a strategy of relying less on OEM customers, we believe the time is near when BVX will be recognized as a leading medical device company. We consider the magnification of BVX's market presence in European markets and a focus on the distribution of new products as supporting factors to such a changed strategy. The Company presents a robust financial background with a comfortable cash position, no long-term debt and additional borrowing capacity."
"We continue to maintain our 'Buy' rating," Bhargava concluded.
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Disclosure
Neither RedChip Companies nor the analyst has received any compensation from Bovie Medical Corp. or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities.