ORANGEBURG, N.Y., June 29, 2009 (GLOBE NEWSWIRE) -- Vision-Sciences, Inc., (Nasdaq:VSCI) (Vision-Sciences) today announced results for its fiscal year ended March 31, 2009 (FY 09). For FY 09, revenues were $12.8 million, an increase of $3.2 million, or 34%, over our fiscal year ended March 31, 2008 (FY 08). Loss from operations in FY 09 was $12.7 million, compared to $10.7 million in FY 08, an increase of $2.1 million.
Abbreviated results (in '000), except for per share data, for FY 09 compared to FY 08 are as follows:
FY 09 FY 08 Difference %
---------- ---------- ---------- ----------
Net Sales $ 12,833 $ 9,612 $ 3,221 34%
Loss from operations (12,722) (10,665) (2,057) 19%
Net loss (8,225) (9,343) 1,118 -12%
Net loss per diluted
share $ (0.24) $ (0.27) $ 0.03 -11%
Please refer to the attached balance sheet and profit & loss statement for more detail.
The increase in loss from operations of $2.1 million during FY 09 is mainly attributable to: (i) initial production start-up cost related to our new videoscope products; (ii) initial sales and marketing expenses related to the launching of our videoscope family of products and building our sales force; (iii) higher research and development expenses related to the further development and expansion of our videoscope family of products and development of our new 4000 Series line of fiberscopes; (iv) increased operational expenses to support the anticipated growth of our production capacity for our videoscope and our newly developed 4000 Series fiberscope product lines; and (v) losses on disposal of fixed assets.
As a result of our desire to focus our attention and financial resources on our core business in the medical segment, we sold the assets of our former health services segment (the BEST-DMS assets) in the quarter ended December 31, 2008. The net loss from the former health services segment was classified as discontinued operations in the consolidated statements of operations, and our FY 08 results were adjusted accordingly.
Our net loss for FY 09 was $8.2 million, or $0.24 per share, compared to a net loss of $9.3 million, or $0.27 per share in FY 08. Our net loss for FY 09 was lower than our net loss in FY 08 primarily due to a $5.0 million net gain in FY 09 from the final payments due to us from Medtronic Xomed Inc. (Medtronic) for the sale of our ENT (ear-nose-throat) EndoSheath disposable product line to them in March 2007.
Medical sales grew from $6.9 million in FY 08 to $10.0 million in FY 09, or by 45%, and industrial sales for the same period grew from $2.7 million to $2.8 million, or by 4%. Within medical sales:
* ENT and TNE (trans-nasal esophagoscopy) sales grew by 12%, from $5.3 million to $5.9 million; * Urology sales grew by 259%, from $633 thousand to $2.3 million; and, * Repair, peripheral and accessories sales grew by 88%, from $983 thousand to $1.8 million.
Net sales detail (in '000) for FY 09 compared to FY 08 are as follows:
ENT and TNE $ 5,901 $ 5,291 $ 610 12%
Urology 2,274 633 1,641 259%
Repair, peripheral &
accessories 1,845 983 862 88%
------- ------- ------- -------
Total Medical 10,020 6,907 3,113 45%
Industrial Sales 2,813 2,705 108 0
------- ------- ------- -------
Total Sales $12,833 $9,612 $ 3,221 34%
======= ======= ======= =======
Ron Hadani, our President and CEO, stated, "This fiscal year's net sales represent the start of expected accelerated revenue growth from the introduction of our videoscope family of products. We achieved approximately 260% growth in our urology revenue, and endoscope sales within the ENT/TNE market reached 120% growth. It is important to note that the significant growth in our total medical sales occurred despite the loss of ENT EndoSheath disposable revenue as a result of the sale of our ENT EndoSheath disposable product line to Medtronic. At the time of the sale, such revenue was approximately $3.5 million per year."
"We are very excited about our state-of-the-art pipeline of newly developed products. We have just released our new video bronchoscopy line, the BRS-5000, used by pulmonologists and other physicians for airway management, and our new family of fiberscopes, the 4000 Series, the first model of which has been released to the ENT market. We will roll out other 4000 Series fiberscopes over the course of FY 10."
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
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by 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 also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause 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 SEC. We assume no 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.
All amounts in the financial statements, except for share and per-share data, are reported in ($000's), unless otherwise indicated.
VISION-SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31,
--------------------
2009 2008 *
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 1,975 $ 10,641
Short term investments 7,948 8,062
Accounts receivable, net of allowance
for doubtful accounts of $283 and
$152, respectively 1,818 975
Inventories, net 5,486 4,021
Prepaid expenses and deposits 397 442
Current assets of discontinued
operations 9 135
-------- --------
Total current assets 17,633 24,276
-------- --------
Property and equipment, at cost:
Machinery and equipment 3,069 4,936
Furniture and fixtures 132 391
Leasehold improvements 163 595
-------- --------
3,364 5,922
Property and equipment of
discontinued operations -- 138
Less - Accumulated depreciation and
amortization 1,576 4,260
Less - Accumulated depreciation and
amortization of discontinued
operations -- 23
-------- --------
Total property and equipment, net 1,788 1,777
Other assets, net of accumulated
amortization of $76 and $72,
respectively 65 69
Other assets of discontinued
operations -- 295
-------- --------
Total assets $ 19,486 $ 26,417
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Capital lease obligations $ 61 $ 57
Accounts payable 1,014 1,769
Accrued expenses 1,966 2,416
Current liabilities of discontinued
operations 6 23
-------- --------
Total current liabilities 3,047 4,265
Capital lease obligations, net of
current portion 28 81
-------- --------
Total liabilities 3,075 4,346
-------- --------
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $.01 par value --
Authorized--5,000 shares issued and
outstanding -- none -- --
Common stock, $.01 par value --
Authorized -- 50,000 shares issued
and outstanding -- 36,818 shares
and 35,648 shares at March 31,
2009 and March 31, 2008,
respectively 368 356
Additional paid-in capital 80,031 77,478
Accumulated deficit (63,988) (55,763)
-------- --------
Total stockholders' equity 16,411 22,071
-------- --------
Total liabilities and stockholders'
equity $ 19,486 $ 26,417
======== ========
* Fiscal 2008 results were adjusted, reflecting discontinued
operations of our health services segment
VISION-SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
2009 2008 *
---------- ----------
Net sales $ 12,833 $ 9,612
Cost of sales 10,456 8,327
---------- ----------
Gross profit 2,377 1,285
Selling, general and administrative
expenses 10,226 7,849
Research and development expense 4,831 3,441
Restructuring charge (credit) (98) 660
Loss on disposal of fixed assets 140 --
---------- ----------
Loss from operations (12,722) (10,665)
Interest income 312 1,021
Interest expense (16) (9)
Other income (expense), net 36 95
Gain on sale of product line, net of
direct costs 4,986 1,435
Loss on equity investment -- (1,000)
---------- ----------
Loss before provision for income taxes (7,404) (9,123)
Provision for income taxes 21 --
---------- ----------
Loss before discontinued operations (7,425) (9,123)
Loss from discontinued operations,
including loss on disposal of BEST
DMS in FY 09 of $235 (800) (220)
---------- ----------
Net Loss $ (8,225) $ (9,343)
========== ==========
Basic and diluted loss per common share:
From continued operations $ (0.22) $ (0.26)
From discontinued operations (0.02) (0.01)
---------- ----------
Net loss basic and diluted per common
share $ (0.24) $ (0.27)
========== ==========
Shares used in computing net loss per
common share 36,817,941 35,286,184
========== ==========
* Fiscal 2008 results were adjusted, reflecting discontinued
operations of our health services segment