Encision announces financial results for its second quarter of fiscal year 2010

Encision Inc.Oct 29 2009

Encision Inc. (OTC Bulletin Board: ECIA), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, reported its financial results for its second quarter of fiscal year 2010.

Net sales for the three months ended September 30, 2009 totaled $3.22 million, representing a 4% decrease over net sales of $3.35 million for the prior fiscal year's second quarter. The Company recorded net income of $46 thousand, or $.01 per share, for the second quarter of fiscal year 2010, compared to a net income of $75 thousand, or $.01 per share, for the second quarter of fiscal year 2009. Gross profit margin for the second quarter of fiscal year 2010 was 60.5%, as compared to 61.3% for the second quarter of fiscal year 2009. The higher gross profit margin for the second quarter of fiscal year 2009 was due to a reduction of warranty accrual which increased the gross profit margin by 0.7%.

Net sales for the first six months ended September 30, 2009 totaled $6.39 million, representing a 1% decrease over net sales of $6.44 million for the prior fiscal year's first six months. The Company recorded net income of $210 thousand, or $.03 per share, for the first six months of fiscal year 2010, compared to a net loss of $89 thousand, or ($.01) per share, for the first six months of fiscal year 2009. Gross profit margin for the first six months of fiscal year 2010 was 62.2%, as compared to 60.8% for the first six months of fiscal year 2009, a 1.4% increase resulting from an increase to inventory which resulted in a higher absorption of overhead costs to inventory and a decrease to cost of sales.

"In our second half of fiscal year 2010, we will focus on introducing several new instruments and a number of product line enhancements and are looking forward to exiting this recession and returning to our expected double digit annual growth rates," said Jack Serino, President and CEO of Encision Inc. "During our second quarter ended September 30, 2009, in continuing with our manufacturing vertical integration, we have brought in-house some additional manufacturing processes."