MELVILLE, N.Y.--()--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, 2011.
Revenues for the year ended December 31, 2011 increased 4.9% to $25.4 million versus $24.2 million for the comparable period the prior year. Net income for FY 2011 totaled $109,000 or $.01 per diluted share compared to a net loss of $(1,535,000) or $(.09) per share in the same period last year. Higher sales resulted from increased demand for Bovie’s electrosurgical generators both domestically and internationally. Newly introduced product lines in medical lighting systems and coated blades also contributed to the revenue increase.
In addition to the condensed statement of operations in accordance with GAAP, we have included a pro-forma of income (loss) from operations excluding the effect of legal settlements in 2011 and the asset impairment in 2010, income (loss) from operations improved to approximately $823,000 and $(1,466,000) in 2011 and 2010 respectively.
Revenues for the quarter ended December 31, 2011 were $6.1 million versus $6.2 million in the same period last year; resulting in net loss of $(876,000) or $(.05) per diluted share compared to net loss of $(1,369,000) or $(.08) per share in the same period last year. In the fourth quarter of fiscal 2011, the Company recognized a $1,591,000 expense for the transfer of inventory and intellectual property related to a legal settlement.
In other developments, the Company announced today that it has signed several interim and related product development agreements with a major multi-national medical device company in anticipation of a final developmental and manufacturing agreement expected to be completed in the second quarter this year.
The Company’s current balance sheet remains strong and management is encouraged by increased first quarter sales, which point to positive sales momentum. Additionally, progress continues on J-Plasma™ following the previously announced FDA 510K clearance to market.
Jeff Rencher, Vice President of Sales and Marketing of Surgical Products heading up the marketing of J-Plasma™ commented that, “After recently presenting J-Plasma™ at the World Robotic Gynecological Congress and the International Society for Gynecologic Endoscopy, we are even more confident in the technology’s potential. The interest demonstrated by surgeons at these trade shows indicates a need for J-Plasma™ and a desire to implement the product in the gynecological surgery space. We will continue to introduce surgeons to J-Plasma™, and Bovie Medical in general, at trade shows throughout the year.
Our plan is to deliver the product in the coming weeks to select surgeons that range from world renowned surgical instructors to surgeons with previous experience in inert gas plasmas, then shortly after offering it to the U.S. surgical marketplace. Although Gynecology is our initial focus, we expect to target additional medical procedures in the General, Plastics and Urology markets as well.”
Cautionary Note on Forward-Looking Statements
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission including the Company’s Report on Form 10-K for the year ended December 31, 2011. For forward-looking statements in this new release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
For further information about the Company’s current and new products, please refer to the Investor Relations section of Bovie’s website www.boviemed.com.
Bovie Medical Corporation
Condensed Statements of Operations
For the Three and twelve-month Periods
(in thousands, except for per share amounts)
Three Months Ended
Year Ended December
31, Pro Forma1
|Cost of Sales||
|Gain (loss) on legal settlement||---||---||750||---||---||---|
|Costs & Expenses||2,457||2,911||9,908||11,454||9,908||11,454|
|Income (loss) from operations||(1,402||)||(1,514||)||(18||)||(2,752||)||823||(1,466||)|
|Other income (expense)|
|Interest (net of expense)||(96||)||(54||)||(237||)||(223||)||(237||)||(223||)|
|Other Gain (loss)||106||(285||)||287||513||287||513|
|Income (loss) before income taxes||(1,392||)||(1,853||)||32||(2,462||)||$||873||$||(1,176||)|
|Income Taxes (Provision) Benefit||516||484||77||927|
|Net Income (loss)||$||(876||)||$||(1,369||)||$||109||$||(1,535||)|
|EPS (loss) Basic||(0.05||)||(.08||)||0.01||(0.09||)|
|EPS (loss) Diluted||(0.05||)||(.08||)||0.01||(0.09||)|
|Weighted average shares Outstanding-Basic||17,614||17,561||17,597||17,367|
|Weighted average shares adjusted for dilutive securities||17,614||17,561||17,669||17,367|
1 In addition to the condensed statement of operations in accordance with GAAP, we have included a pro-forma of income (loss) from operations excluding the effect of legal settlements in 2011 and the asset impairment in 2010, income (loss) from operations improved to approximately $823,000 and $(1,466,000) in 2011 and 2010 respectively.