Encision announces financial results for Q1 fiscal year 2016

Encision Inc.Aug 3 2015

Encision Inc. (PK:ECIA), a medical device company owning patented surgical technology that prevents dangerous stray electrosurgical burns in minimally invasive surgery, today announced financial results for its fiscal 2016 first quarter that ended June 30, 2015.

The Company posted quarterly net revenue of $2.454 million for a quarterly net loss of $213 thousand, or $(0.02) per share. These results compare to net revenue of $2.476 million for a net loss of $202 thousand, or $(0.02) per share, in the year-ago quarter. Gross margin on net revenue was 47.8 percent in the fiscal 2016 first quarter and 49.3 percent in the fiscal 2015 first quarter. Gross margin on net revenue was lower in the fiscal 2016 first quarter as a result of higher material costs that was partially offset by a mix of products sold.

"Our sequential revenue for the first quarter of this fiscal year increased by six percent as compared to last fiscal year's fourth quarter. This was a good start to our fiscal year and we expect that we will continue to improve upon this," said Greg Trudel, President and CEO. "We continue to refine our manufacturing process and we will initiate a product price increase in the second quarter to mitigate our higher material costs. Therefore, we expect to see a higher gross profit margin starting in the second quarter. We continue to be vigilant in monitoring our operations to drive further cost reductions and efficiencies."

"We are executing to our plan of increasing market awareness of the devastating clinical and economic risk potential of stray energy and of driving customer demand through education and awareness. The implementation of CMS HAC (Hospital Acquired Condition) penalties is a market tailwind that is driving increased awareness and momentum, as more and more hospitals turn to our AEM^® Technology as a solution to stray energy incidents. The leadership talents that we have brought on board are delivering results and we expect to deliver improved profit margins and compliance achievements in the coming quarters. We continue to expand and refine our U.S. sales channel and have begun discussions with potential international partners. Our disposable monitor in a cord, the AEM EndoShield^® Burn Protection System, continues to make progress in the market with increasing results. We are looking forward to driving the sales momentum that started in the first quarter of our current fiscal year," added Greg Trudel.