Bovie Medical reports revenues totalling $6.5M for fourth-quarter 2009

Mar 16 2010

Bovie Medical Corporation (the “Company”) (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the fourth quarter and year ended December 31, 2009.

“Subsequent to receiving 510(K) clearance for our new products, we anticipate commercialization of our proprietary technologies either through agreements with other companies and/or independently.”

Revenues for the quarter ended December 31, 2009 totaled $6,533,177 as compared to $7,137,838 for the comparable period last year, resulting in net income of $27,388 or $.00 per diluted share as compared to net income of $38,767 or $.00 per diluted share during the comparable period in the prior year.

Revenues for the year-ended December 31, 2009 were $26,953,447 as compared to $28,096,510 for the comparable period in 2008. Net income for the year-ended December 31, 2009 totaled $595,222 or $.03 per diluted share compared to net income of $1,831,788 or $.11 per diluted share in the comparable period in 2008.

The decline in revenues during 2009 was primarily attributable to a general slowdown in purchasing by hospitals and physicians’ offices caused by the current economy and political uncertainty surrounding the medical industry. Net income was impacted by a substantial increase in professional fees, litigation expenses (including a one-time settlement payment of $160,000) and expenses related to the occupancy of the Company’s new facility located in Clearwater, Florida. Gross profit margins increased almost 2% in 2009 from 2008, primarily due to stricter cost controls and improved sales mix.

NEW PRODUCT DEVELOPMENT ACTIVITIES DURING YEAR

Resistick II

Resistick II is coating applied to stainless steel which resists eschar (scab or scar tissue caused by burning) during surgery. Since receiving 510(k) clearance at the end of December, the Company has received initial contractual sales commitments. Coated electrodes continue the expansion of the Bovie line of electrosurgical disposables.

Sintered Steel

The proprietary sintered steel technology is a stainless steel sponge that allows saline to flow through it in conjunction with radiofrequency energy creating a stick-resistant coagulation effect minimizing bleeding during surgery. Bovie’s first commercialized sintered device, SEER™ is a single-use monopolar electrosurgical electrode used for dissection and coagulation of soft tissue. Late in 2009, we launched a laparoscopic version of SEER™; procedures using the SEER™ and Lap SEER™ have been performed in both liver and kidney resections in over 20 institutions domestically and internationally with continued positive surgeon feedback.

Bovie submitted a 510k application for marketing of its newest sintered steel product BOSS™, a bipolar sintered steel electrocautery device. The device will be primarily targeted to orthopedic surgeons performing hip and knee arthroplasty procedures; a market comprised of approximately 1.1 million procedures performed in the US annually. The estimated worldwide market for the sintered steel technology is in excess of $500 million.

Vessel Sealing

The Company recently received 510(k) clearance to market its ICON™ VS generator designed to perform vessel sealing procedures, while providing both monopolar and bipolar energy options to the surgeon. The clearance of the ICON™ VS generator allows the Company to complete testing required in support of its previously filed 510(k) for Seal-N-Cut™ vessel sealing instruments.

The Seal-N-Cut™ devices accommodate a wide array of possible applications in either monopolar or bipolar surgeries thereby serving endoscopic needs in multiple endoscopic fields including Endo GYN, general surgeries, pediatric surgery, thoracic endoscopy and urology. Bipolar vessel sealing and coagulation is one of the fastest growing markets in endoscopy, estimated to exceed $1 billion in revenues worldwide. As part of the planning for the manufacturing and the commercialization of the Company’s Seal-N-Cut™ product line, all Canadian operations are being transferred to our new Florida facility.

J-Plasma™

J-Plasma™ technology utilizes a gas ionization process producing a stable thin beam of ionized gas that can be controlled in a wide range of temperatures and intensities, providing the surgeon great precision, and an absence of conductive currents during surgery. The J-Plasma™ portfolio consists of a proprietary generator, which regulates the helium gas flow, while controlling the precise energy and rate of current simultaneously delivered depending on the clinical use. The computer assisted combination of gas flow and energy profile is adjustable to suit a specific clinical use. The J-Plasma™ disposable handpieces are designed for ease of use in all surgical fields allowing expansion into multiple markets.

Potential markets include gynecology, urology, dermatology, plastic surgery, neurology, gastroenterology, and veterinary medicine. Bovie received FDA marketing clearance for J-Plasma™ in the second half of 2009 and continues to perform research on this platform in the areas of soft tissue coagulation in OB/GYN, GI surgery and dermatology.

The manufacturing and development of multiple systems has commenced with the goal of distributing to physicians and surgeons in the above mentioned specialties. Additionally, we are studying the performance of our plasma technology in promoting wound healing, viral eradication and oncologic applications. Bovie expects commercialization of its J-Plasma™ system in 2010.

Andrew Makrides, president of Bovie, stated, “Subsequent to receiving 510(K) clearance for our new products, we anticipate commercialization of our proprietary technologies either through agreements with other companies and/or independently.”