BOULDER, Colo., Oct. 23 /PRNewswire-FirstCall/ -- Encision Inc.
(Pink Sheets: 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 ended September
30, 2008.
Net sales for the second quarter of fiscal year 2009, ended September 30,
2008, totaled $3.35 million, representing an 8% increase over net sales of
$3.09 million for the prior fiscal year's second quarter. The Company recorded
net income of $75 thousand or $.01 per share for the second quarter of fiscal
year 2009 compared to net income of $8 thousand or $.00 per share for the
second quarter of fiscal year 2008. Gross profit margin for the second quarter
of fiscal year 2009 was 61.3% as compared to 62.3% for the second quarter of
fiscal year 2008. The gross profit margin decrease was due to a 0.7% increase
in scrap costs from the second quarter of fiscal year 2008 and increased sales
of lower gross profit margin products. The decrease was partially offset by a
higher gross profit margin from sales of the Company's internally manufactured
disposable scissor inserts and a 0.7% increase to gross profit margin that was
attributed to a decrease in warranty claims.
Net sales for the first six months of fiscal year 2009, ended September
30, 2008, totaled $6.44 million, representing a 12% increase over net sales of
$5.75 million for the prior fiscal year's first six months. The Company
recorded a net loss of $89 thousand or $.01 per share for the first six months
of fiscal year 2009 compared to a net loss of $288 thousand or $.04 per share
for the first six months of fiscal year 2008. Gross profit margin for the
first six months of fiscal year 2009 was 61% as compared to 62% for the first
six months of fiscal year 2008.
'We believe that the major investments we have made in acquiring
manufacturing equipment, expanding our direct sales force and implementing
redesigns to existing products to elevate them to best of class status have
begun to benefit our shareholders during the second quarter that ended
September 30, 2008,' said Jack Serino, President and CEO of Encision Inc.
'During the last month, all disposable scissor inserts sales were from
internally manufactured disposable scissor inserts that generated higher gross
margins.
