Full Press Release Details
Oculus Innovative Sciences Reports Financial
Results for First Quarter of Fiscal Year 2017
Conference Call Begins at 4:30pm
PETALUMA, Calif.-(July 28, 2016)-Oculus Innovative
Sciences, Inc. (NASDAQ: OCLS, warrants OCLSW), a specialty pharmaceutical company that develops and markets unique and effective
solutions for the treatment of dermatological conditions and advanced tissue care, today announced financial results for the first
quarter of fiscal year 2017, ended June 30, 2016.
Total revenue was $3.8 million for the first quarter when compared
to $3.7 million for the same period in 2015. Product revenues of $3.5 million were up 20% when compared to the same period last
year, driven by strong growth in dermatology and animal health sales, partly offset by a decrease in revenue for Latin America
due to a 19% decline in the value of the peso, when compared to the same period last year, and a strong 2016 first quarter sales
"We have established a strong foundation in dermatology with
over 20 sales people, a product portfolio of seven products, over 44,000 prescriptions filled since late 2014," said Oculus
CEO Jim Schutz, "and we had our best dermatology quarter to date with 11,700 prescriptions filled, up 37% over the previous
quarter ending March 31, 2016. With this foundation in place, we are focused on balancing continued strong revenue
growth and the control of expenses to maximize our cash as we strive towards breakeven."
Product revenues in the United States for the quarter ended June
30, 2016, of $1.4 million, increased by $586,000, or 74%, when compared to the same period in the prior year. This increase was
the result of higher sales of the company's dermatology and animal health products. Oculus currently has a strong dermatology
product portfolio of seven products for: the treatment of atopic dermatitis, scar management, surgical procedures, an oral anti-infective
for severe acne and, most recently, Ceramax, which utilizes a "state of the art" skin repair technology. In fact, the
prescriptions filled for Ceramax during the June quarter, launched at the end of March, were 1,083, representing the company's
quickest sales ramp, compared to the other six product launches. In addition, sales to a new animal health care partner increased
during the quarter compared to last year.
Product revenue in Europe and the rest of the world for the quarter
ended June 30, 2016, of $1.0 million, increased by $467,000, or 82%, as compared to the same period in the prior year, with increases
in Europe, Asia, the Middle East and India. The revenue in Europe for the quarter ended June 30, 2016, increased 56% in U.S. dollars,
when compared to the same period last year.
Product revenue in Latin America for the quarter ended June 30,
2016, was $1.1 million, down $460,000 or 30%, when compared to the same period in the prior year. This decrease was caused by a
19% decline in the value of the peso from the same period in the prior year, along with a strong quarter, ended June 30, 2015.
The first quarter of fiscal year 2016 included the continued stocking by the new Latin American partner, Sanfer, in order to fill
its expansive pharmacy store network.
For the three months ended June 30, 2016 and 2015, product licensing
fees and royalty revenues were $75,000 and $447,000, respectively. The decrease is primarily related to the lower amortization
of upfront payments from the company's partner, Sanfer, in Latin America. This amortization relating to Sanfer ends in September
Oculus reported gross profit of $1.9 million, or 50% of revenue,
during the three months ended June 30, 2016, compared to a gross profit of $1.9 million, or 51% of revenue when compared to the
same period in the prior year. The gross profit percentage was down compared to last year due to the reduction in higher-margin
license fees and royalty revenue of $372,000, related to Oculus' agreement with Sanfer.
Total operating expenses of $4.5 million for the three months ended
June 30, 2016, increased by $306,000, or 7%, as compared to the same period in the prior year. Operating expenses minus non-cash
expenses during the first quarter of fiscal year 2017 were $4.1 million, up $431,000, as compared to the same period in the prior
year. The increase in operating expenses, minus non-cash expenses, was due to mostly higher sales and marketing expenses in the
United States related to the costs of Oculus' direct sales force in dermatology.
Net loss for the quarter ended June 30, 2016, was $2.6 million,
an increase of $228,000, as compared to net loss of $2.3 million for the same period in the prior year.
As of June 30, 2016, Oculus had unrestricted cash and cash equivalents
of $5 million, as compared with $7.5 million as of March 31, 2016. The company has no debt outstanding.
Oculus' management will hold a conference call today to discuss
first quarter fiscal year 2017 results and 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.
A telephone replay will be available for seven days following the
conclusion of the call by dialing 855-859-2056 for domestic callers, or 404-537-3406 for international callers, and entering conference
code 46082115. A webcast replay will be available on the site at
http://ir.oculusis.com/events.cfm for one year following the call.
About Oculus Innovative Sciences, Inc.
Oculus Innovative Sciences is a specialty pharmaceutical company
that develops and markets unique and effective solutions for the treatment of dermatological conditions and advanced tissue
care. The company's products, which are sold throughout the United States and internationally, have improved outcomes
for more than five million patients globally by reducing infections, itch, pain, scarring and harmful inflammatory responses.
The company's headquarters are in Petaluma, California, with manufacturing operations in the United States and Latin America.
European marketing and sales are headquartered in Roermond, Netherlands. More information can be found at www.oculusis.com.
Forward-Looking Statements
Except for historical information herein, matters set forth
in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including statements about the commercial and technology progress and future financial performance
of Oculus Innovative Sciences, Inc. and its subsidiaries (the "Company"). These forward-looking statements are identified
by the use of words such as "balancing," "control," and "strive," among others. Forward-looking
statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could
cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific
data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical
results may not be replicated in actual patient settings, protection offered by the Company's patents and
patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company's products
will not be as large as expected, the Company's common stock and warrants may be delisted from NASDAQ, the Company's products
will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund further development and
clinical studies, the Company may not meet its future capital needs, the Company may not be able to obtain additional funding,
as well as uncertainties relative to varying product formulations and a multitude of diverse regulatory and marketing requirements
in different countries and municipalities, and other risks detailed from time to time in the Company's filings with the Securities
and Exchange Commission including its annual report on Form 10-K for the fiscal year ended March 31, 2016. The Company disclaims
any obligation to update these forward-looking statements, except as required by law.
Oculus and Microcyn Technology
are trademarks or registered trademarks of Oculus Innovative Sciences, Inc. All other trademarks and service marks are the property
of their respective owners.
Media and Investor Contact:
Oculus Innovative Sciences, Inc.
VP of Public and Investor Relations
OCULUS INNOVATIVE SCIENCES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
| June 30, | March 31, | |||||||
| 2016 | 2016 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,970 | $ | 7,469 | ||||
| Accounts receivable, net | 2,593 | 2,274 | ||||||
| Inventories, net | 1,992 | 1,640 | ||||||
| Prepaid expenses and other current assets | 942 | 1,505 | ||||||
| Total current assets | 10,497 | 12,888 | ||||||
| Property and equipment, net | 764 | 850 | ||||||
| Other assets | 59 | 65 | ||||||
| Total assets | $ | 11,320 | $ | 13,803 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,368 | $ | 1,337 | ||||
| Accrued expenses and other current liabilities | 1,442 | 1,526 | ||||||
| Deferred revenue | 656 | 574 | ||||||
| Current portion of long-term debt | 66 | 114 | ||||||
| Total current liabilities | 3,532 | 3,551 | ||||||
| Deferred revenue, less current portion | 38 | 112 | ||||||
| Total liabilities | 3,570 | 3,663 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity | ||||||||
| Convertible preferred stock, $0.0001 par value; 142,857 shares authorized, none issued and outstanding at June 30, 2016 and March 31, 2016, respectively | - | - | ||||||
| Common stock, $0.0001 par value; 12,000,000 shares authorized at June 30, 2016 and March 31, 2016, 4,200,756 and 4,196,659 shares issued and outstanding at June 30, 2016 and March 31, 2016, respectively | 1 | 1 | ||||||
| Additional paid-in capital | 166,779 | 166,368 | ||||||
| Accumulated deficit | (154,943 | ) | (152,375 | ) | ||||
| Accumulated other comprehensive loss | (4,087 | ) | (3,854 | ) | ||||
| Total stockholders' equity | 7,750 | 10,140 | ||||||
| Total liabilities and stockholders' equity | $ | 11,320 | $ | 13,803 |
OCULUS INNOVATIVE SCIENCES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive
(In thousands, except per share amounts)
| Three Months Ended June 30, | ||||||||
| 2016 | 2015 | |||||||
| Revenues | ||||||||
| Product | $ | 3,509 | $ | 2,916 | ||||
| Product licensing fees and royalties | 75 | 447 | ||||||
| Service | 227 | 317 | ||||||
| Total revenues | 3,811 | 3,680 | ||||||
| Cost of revenues | ||||||||
| Product | 1,707 | 1,516 | ||||||
| Service | 185 | 291 | ||||||
| Total cost of revenues | 1,892 | 1,807 | ||||||
| Gross profit | 1,919 | 1,873 | ||||||
| Operating expenses | ||||||||
| Research and development | 360 | 467 | ||||||
| Selling, general and administrative | 4,130 | 3,717 | ||||||
| Total operating expenses | 4,490 | 4,184 | ||||||
| Loss from operations | (2,571 | ) | (2,311 | ) | ||||
| Interest expense | (1 | ) | - | |||||
| Interest income | 1 | - | ||||||
| Loss due to change in fair value of derivative liabilities | - | (59 | ) | |||||
| Other income | 3 | 30 | ||||||
| Net loss | (2,568 | ) | (2,340 | ) | ||||
| Net loss per common share: basic and diluted | $ | (0.61 | ) | $ | (0.77 | ) | ||
| Weighted-average number of shares used in common share calculations: | ||||||||
| Basic and diluted | 4,198 | 3,034 | ||||||
| Other comprehensive loss | ||||||||
| Net loss | $ | (2,568 | ) | $ | (2,340 | ) | ||
| Foreign currency translation adjustments | (233 | ) | (71 | ) | ||||
| Comprehensive loss | $ | (2,801 | ) | $ | (2,411 | ) |
OCULUS INNOVATIVE SCIENCES, INC. AND SUBSIDIARIES