Full Press Release Details
Innovative Sciences Reports Financial Results for Fiscal Second Quarter 2017
Conference Call Begins at 4:30pm
PETALUMA, Calif.-(November 10, 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 second quarter of fiscal year 2017, ended September 30, 2016.
Total revenue was $4.11 million for the second quarter as compared
to $4.05 million for the same period in 2015. Product revenues of $3.8 million were up 12% when compared to the same period last
year, driven by strong growth in dermatology and animal health sales, partly offset by a decrease in international revenue.
"We have established a strong foundation in dermatology
with 22 salespeople, a portfolio of eight prescription products and over 58,000 prescriptions filled at the pharmacy counter since
late 2014," said Jim Schutz, Oculus CEO. "We had our best dermatology sales quarter to date with 13,739 prescriptions
filled, up 17% over the previous quarter. Net revenue for dermatology in the September 2016 quarter was up 56% over the prior quarter.
With this foundation in place, we are focused on maximizing our revenue growth in dermatology as we strive towards breakeven. Also,
due to the recent sale of our Latin American business for $19.5 million of non-dilutive cash, we have more than sufficient cash
to achieve commercial breakeven."
Product revenues in the United States for the quarter ended
September 30, 2016, of $1.7 million, increased by $511,000, or 43%, 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 eight products for the treatment of atopic and seborrheic dermatitis, scar management, surgical procedures,
an oral anti-infective for severe acne and Ceramax, which utilizes a "state of the art" skin repair technology. In
addition, sales to a new animal health care partner increased during the quarter compared to last year, partially offset by a decline
in U.S. wound care revenue.
Product revenue in Europe and the rest of the world for the
quarter ended September 30, 2016, of $920,000, decreased by $32,000 or 3%, as compared to the same period in the prior year, with
decreases in Europe and Asia, partially offset by increases in the Middle East and Singapore.
Product revenue in Latin America for the quarter ended September
30, 2016, was $1.2 million, down $74,000 or 6%, when compared to the same period in the prior year. This decrease was caused by
a 15% decline in the value of the peso from the same period in the prior year, partially offset by a 9% growth in local currency
For the three months ended September 30, 2016 and 2015, product
licensing fees and royalty revenues were $75,000 and $339,000, respectively. The decrease is primarily related to the lower amortization
of upfront payments from the company's partner, Invekra, in Latin America.
Oculus reported gross profit of $2.1 million, or 51% of total
revenue, during the three months ended September 30, 2016, compared to a gross profit of $2.1 million, or 52% of total revenue
when compared to the same period in the prior year. The gross profit percentage was down slightly compared to last year due to
the reduction in higher-margin license fees and royalty revenue of $264,000, related to Oculus' agreement with Invekra.
Total operating expenses of $4 million for the three months
ended September 30, 2016, increased by $74,000, or 2%, as compared to the same period in the prior year. Operating expenses minus
non-cash expenses during the second quarter of fiscal year 2017 were $3.7 million, up $167,000, as compared to the same period
in the prior year. This increase in operating expenses was due mostly to sales, marketing and administrative expenses in the United
States related to the growth in the expenses associated with developing the company's dermatology markets.
Net loss for the quarter ended September 30, 2016, was $1.9
million, an increase of $186,000 as compared to net loss of $1.8 million for the same period in the prior year. The operating loss
minus non-cash expenses was $1.5 million, up $171,000, compared to $1.3 million for the same period last year.
As of September 30, 2016, Oculus had unrestricted cash and cash
equivalents of $3.3 million, as compared with $5 million as of June 30, 2016. The company has no material debt outstanding. Due
to sale of Latin American assets, Oculus's cash position increased $18 million on October 28, 2016 with another $1.5 million
expected in February 2017.
Results for the Six Months Ended September 30, 2016
Total revenues of $7.9 million increased by $185,000, or 2%,
for the six months ended September 30, 2016, as compared to $7.7 million for the six months ended September 30, 2015. Product revenue
of $7.3 million for the six months ended September 30, 2016 increased $1.0 million, or 16%, compared to the same period last year.
This increase in product revenue was driven by strong growth in the United States, up $1.1 million, or 56%, and Europe and rest
of world, up 29%. Latin American revenue was down 19% with an 18% decline in the value of the peso.
Oculus reported gross profit related to sales of its products
of $4 million, or 51% of total revenues, for the six months ended September 30, 2016 and 2015.
Total operating expenses less non-cash expenses increased $598,000,
or 8%, for the six months end September 30, 2016 compared to the same period in the prior year. This increase was primarily due
to higher costs of the direct sales force for dermatology. Operating loss less non-cash expenses (EBITDAS) for the six months ended
September 30, 2016, was $3.6 million, compared to $3.0 million for the same period last year.
Oculus' management will hold a conference call today to
discuss second quarter fiscal year 2017 results and answer questions, beginning at 4:30 p.m. EST. 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 94494840. A webcast replay will be available on the site at http://ir.oculusis.com/events.cfm for one year following
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 "maximizing," "achieve," 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.
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