Full Press Release Details
Oculus Innovative Sciences Announces Fiscal Third
Quarter 2007 Results
CA February 22, 2007 Oculus Innovative Sciences, Inc. (Nasdaq: OCLS) today
announced financial results for the fiscal third quarter ended December 31, 2006.
Revenue for the three months ended December 31, 2006 was $1.05 million, up 81% from $581,000 for
the same period a year ago, higher in all segments but primarily attributable to higher sales to
Mexican hospitals and pharmacies. Gross margins for the quarter were 28% compared to negative
margins in the third quarter of the previous year. The improvement in gross margin resulted from
higher revenue and a reduction of manufacturing expenses in Mexico. Operating expenses were $5.41
million for the third quarter of fiscal 2007, up from $4.62 million in the same period last year.
The stock-based compensation charge for the three months ended December 31, 2006 was $790,000
compared to $224,000 for the same period last year. The third-quarter net loss from continuing
operations was $4.83 million, or $(1.17) per share, compared with a net loss from continuing
operations of $5.67 million, or $(1.35) per share, in the third quarter of fiscal 2006.
Revenue for the nine month period ended December 31, 2006 was $3.38 million, up 103% from $1.66
million for the same period last year. Sales were up in all segments with revenue from India and
Mexico contributing the largest increases. Gross margins for the nine months were 34%, up from
negative margins in the comparable period last year, as a result of having reduced manufacturing
expenses in Mexico and redirecting the efforts in the U.S. from manufacturing to research and
development. Operating expenses were $14.87 million for the nine
months ended December 31, 2006,
up from $13.28 million for the same period last year. The stock-based compensation charge for the
nine months ended December 31, 2006 was $1.06 million compared to $491,000 for the same period last
year. The net loss from continuing operations for the nine months ended December 31, 2006 was
$13.49 million, or $(3.28) per share, down from $15.24 million, or $(3.69) per share, as a result
of higher revenues and lower overall expenses.
On January 24, 2007, during its fourth fiscal quarter, the Company completed an initial public
offering of 3,025,000 shares of common stock providing net proceeds to the Company of $22.3
million. On February 16, 2007, the Company s underwriters partially exercised their over-allotment
option and purchased 328,550 shares of common stock providing net proceeds to the Company of $2.4
Cash and cash equivalents at December 31, 2006 on an actual basis was $2.5 million. Cash and cash
equivalents at December 31, 2006 on a pro forma basis, adjusted to reflect the proceeds from the
initial public offering and exercise of the over allotment (after deducting underwriter s
discounts, commissions and non-accountable expenses) was $27.2 million.
Mr. Hoji Alimi provided highlights from the most recent quarter on Wednesday, February 21, 2007, at
9:30 a.m. Pacific Time, during the Roth Capital Partners 19th Annual OC Conference in
Dana Point, California. A replay of the audio presentation will be available on the Company s web
site at www.oculusis.com/event.cfm for approximately 90 days following the presentation.
Oculus Innovative Sciences, Inc. is a specialty pharmaceutical company focused on the development,
manufacture and marketing of a family of products intended to help prevent and treat infection in
acute and chronic wounds. Oculus products based on its Microcyn Technology have received CE Mark,
or European Union certification, for wound cleaning and reduction of microbial load, three U.S. FDA
510(k) clearances as a medical device in wound cleaning, lubricating, moistening and dressing, and
has been granted additional approvals in Canada, India and Mexico.
Oculus principal operations are in Petaluma, California, and it conducts operations in Europe and
Latin America through its wholly owned subsidiaries, Oculus Innovative Sciences Netherlands B.V.
and Oculus Technologies of Mexico, S.A. de C.V. Our website is www.oculusis.com.
Oculus and Microcyn are trademarks or registered trademarks of Oculus Innovative Sciences, Inc.
| Oculus Innovative Sciences, Inc. | The Ruth Group | |
| Dan McFadden | John Quirk / Sara Ephraim (investors) | |
| Director of Communications and | (646) 536-7029 / 7002 | |
| Investor Relations | jquirk@theruthgroup.com | |
| (425) 753-2105 | sephraim@theruthgroup.com | |
| dmcfadden@oculusis.com | ||
| Jason Rando / Janine McCargo (media) | ||
| (646) 536-7025 / 7033 | ||
| jrando@theruthgroup.com | ||
| jmccargo@theruthgroup.com |
OCULUS INNOVATIVE SCIENCES
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2006 | March 31, 2006 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,520 | $ | 7,448 | ||||
| Accounts receivable, net | 1,612 | 1,076 | ||||||
| Inventory | 423 | 317 | ||||||
| Other current assets | 550 | 1,386 | ||||||
| Property and equipment, net | 2,160 | 1,940 | ||||||
| Other assets | 2,535 | 522 | ||||||
| Total assets | $ | 9,800 | $ | 12,689 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Accounts payable and accrued expenses | $ | 3,249 | $ | 4,460 | ||||
| Debt, capital leases and other obligations | 8,584 | 891 | ||||||
| Total liabilities | 11,833 | 5,351 | ||||||
| Total stockholders equity | (2,033 | ) | 7,338 | |||||
| Total liabilities and stockholders equity | $ | 9,800 | $ | 12,689 |
OCULUS INNOVATIVE SCIENCES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| Three months ended | Nine months ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
| Net sales | $ | 1,052 | $ | 581 | $ | 3,381 | $ | 1,662 | ||||||||
| Cost of sales | 760 | 1,830 | 2,225 | 3,677 | ||||||||||||
| Gross profit (loss) | 292 | (1,249 | ) | 1,156 | (2,015 | ) | ||||||||||
| Operating expense (1) | 5,409 | 4,615 | 14,870 | 13,284 | ||||||||||||
| Loss from operations | (5,117 | ) | (5,864 | ) | (13,714 | ) | (15,299 | ) | ||||||||
| Interest and other income, net | 290 | 197 | 222 | 62 | ||||||||||||
| Loss from continuing operations | (4,827 | ) | (5,667 | ) | (13,492 | ) | (15,237 | ) | ||||||||
| Loss from operations of discontinued business | - | (413 | ) | - | (587 | ) | ||||||||||
| Net loss | (4,827 | ) | (6,080 | ) | (13,492 | ) | (15,824 | ) | ||||||||
| Net loss per share Continued operations | $ | (1.17 | ) | $ | (1.35 | ) | $ | (3.28 | ) | $ | (3.69 | ) | ||||
| Net loss per share Available to shareholders | $ | (1.17 | ) | $ | (1.45 | ) | $ | (3.28 | ) | $ | (3.83 | ) | ||||
| Number of shares used in computing net loss per share | 4,223 | 4,210 | 4,222 | 4,128 |
(1) Amounts include non-cash stock-based compensation expense as follows (in thousands):
| Three months ended | Nine months ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
| Operating expense | $ | 790 | $ | 224 | $ | 1,060 | $ | 491 |
(2) Net loss per share calculation includes preferred stock dividends of $121,000 and $363,000 for the three and nine months ended December 31,