Full Press Release Details
Innovative Sciences Reports Financial Results for First Quarter of Fiscal Year
2010/2011 Product Pipeline
and Commercialization Plans:
PETALUMA, Calif. (August 5, 2010) -
Oculus Innovative Sciences, Inc. (Nasdaq: OCLS) today announced financial
and operating results for the first quarter of fiscal year 2011, ended June 30,
2010. Total revenue was $2.3 million in the first quarter of fiscal
2011, compared to $1.8 million in the first quarter of fiscal
2010. Product revenue was $2.0 million, up 31% from $1.6 million in
the prior first quarter primarily due to higher sales in the United States,
Europe, China, India and the Middle East, partially offset by a decline in
Mexico, which had recorded abnormally high sales last year as a result of the
swine flu epidemic in Mexico. Operating expenses minus non-cash
expenses for the quarter were down slightly from the same period last
Alimi, founder and CEO of Oculus said, "Two years ago we were a one-compound
company in a Phase II trial, expecting to spend an additional $30-$40 million on
two Phase III trials and burning approximately $18 million per
year. Today, with great pride, we have commercialized more than 18
products in the U.S. alone, and see significant near-term revenue growth
opportunity in the animal healthcare as a result of revenue sharing with our
U.S. animal healthcare partner that commences on July 1, 2011. Also,
we continue to build our other U.S. markets with our 77-person commissioned
sales force and strong pipeline of innovative products. All the
while, we are keeping cash operating expenses flat at $2.8 to $3.0 million per
quarter. Milestones for our shareholders over the next year include
additional U.S. and foreign regulatory clearances, multiple product launches and
the definitive revenue sharing in animal healthcare beginning July 1,
revenue in the United States increased $391,000 to $522,000, up 298%, with
strong increases in animal and human wound care, mostly related to television
advertising and sales initiatives underwritten by partner Innovacyn, Inc. and a
quarterly royalty payment from Union Springs Pharmaceuticals LLC, which markets
MyClyns, a Microcyn-based germ protection spray for the professional and
and rest of world (ROW) revenue increased $297,000 to $525,000, up 130% over the
prior year period, due to higher sales in India, Middle East, China and all
countries in Europe. The $210,000 revenue recorded related to China during the
quarter resulted from the conversion of the exclusive relationship with China
Bao Tai to a non-exclusive relationship and the recognition of deferred revenue
related to an upfront payment from China Bao Tai. This conversion
enables the company to expand its number of Chinese partners.
in Mexico decreased 17% from the prior year period, which had recorded
abnormally high sales last year as a result of the swine flu epidemic in
Mexico. Unit sales of the 240-milliliter consumer-sized presentation,
which is primarily sold to pharmacies in Mexico, decreased 40% from the prior
year to a monthly average of 34,195 units compared to 56,692 in the same period
last year. Sales to hospitals increased 8% with price increases
offsetting a decline in units sold. The company believes that during
the quarter ended June 30, 2009, the swine flu epidemic in Mexico resulted in
sales of $300,000 to $350,000 higher than normal.
revenue in the first quarter decreased $61,000 when compared to the prior year
period due to a decrease in the number of tests provided by the company's
reported gross profit from the Microcyn-based products business of $1.3 million,
or 66% of product revenues, during the three months ended June 30, 2010,
compared to a gross profit of $1.0 million, or 66%, in the prior year period.
The flat gross margins represent higher margins in the United Sates, Europe and
ROW, offset by lower gross margins in Mexico. The higher margins in the United
States are due to improved product mix for certain U.S.
sales. Mexico's margins were 73% during the quarter ended June
30, 2010, compared to 82% in the prior year period, again due to the high volume
last year precipitated by the swine flu epidemic.
Total operating expenses increased
$379,000, or 11%, to $3.8 million for the three months ended June 30, 2010,
compared to $3.4 million in the prior year. Operating expenses minus non-cash
expenses during the quarter were $2.8 million, down slightly from $2.9 million
in the same period last year. Research and development expense declined
$325,000, or 45%, to $396,000 for the three months ended June 30, 2010, compared
to $721,000 in the prior year period. Most of the decrease was
attributable to the reduction in personnel and related expenses, as the company
converted its research and development facility and the related people to operational
manufacturing, supporting the U.S. sales.
general and administrative expense increased $704,000, or 26%, to $3.4 million
during the three months ended June 30, 2010, from $2.7 million during the three
months ended June 30, 2009. Primarily, this increase was due to a higher stock
compensation charge, up by $478,000 and higher compensation costs in the United
States. Bonuses were recorded and paid during the quarter ending June
30, 2010, consisting of stock options and cash. These increases were partially
offset by lower sales and marketing costs in Europe.
for the three months ended June 30, 2010 was $2.4 million, down $1.1 million
from $3.5 million for the same period in the prior year. Stock compensation
expense for the quarter ended June 30, 2010 and 2009 was $968,000 and $465,000,
June 30, 2010, Oculus had unrestricted cash and cash equivalents of $6.7
million, compared with $6.2 million as of March 31, 2010 and $2.1 million on
June 30, 2009. On May 3, 2010, Oculus completed a $2.0 million debt financing
with Western Technology, Inc.
management will hold a conference call today to discuss first quarter results
and to answer questions, beginning at 4:30 p.m. EDT. Individuals interested in
participating in the conference call may do so by dialing 877-303-7607 for domestic callers or
973-638-3203 for international callers. Those interested in listening
to the conference call live via the Internet may do so at
http://ir.oculusis.com/events.cfm. Please log on approximately 30
minutes prior to the presentation in order to register and download the
appropriate software.
telephone replay will be available for 48 hours following the conclusion of the
call by dialing 800-642-1687 for domestic callers, or 706-645-9291 for
international callers, and entering reservation code 85558499. A webcast replay
will be available on the site at http://ir.oculusis.com/events.cfm for one year
Oculus Innovative Sciences
Innovative Sciences is a commercial medical technology
company that designs, produces and markets safe and effective tissue care
products based upon the Microcyn Technology platform, which significantly
reduces the need for antibiotics while reducing infections and accelerating