Full Press Release Details
Oculus Innovative Sciences Reports Financial
Results for the Fourth Quarter of Fiscal Year 2015
PETALUMA, Calif.--(June 11, 2015)--Oculus Innovative
Sciences, Inc. (NASDAQ: common stock OCLS, tradable warrants OCLSW) today announced financial results for the fourth quarter of
fiscal year 2015, which ended on March 31, 2015. Total revenue was $4.0 million for the fourth quarter as compared to $2.9 million
for the same period in 2014. Product revenues were up 41% from the same period last year, driven by increases in Mexico, Europe,
the United States, the Middle East and Singapore, partially offset by decreases in product royalty revenue in the United States
for animal healthcare products.
"We are pleased with the progress we are making as a company,
which is evidenced with our solid fourth quarter results. Going forward, we will continue to implement three key initiatives that
we believe will return us to strong overall revenue growth in conjunction with the continued high growth of our international business,"
said Jim Schutz, Oculus CEO. "First, using our direct sales force, we have launched three human healthcare products in the
United States in the last six months, and have additional new product launches planned for the next six months. Second, building
on our solid sales performance in Europe, along with the recent CE Mark approvals for the treatment of acne, scars, atopic dermatitis
and certain skin procedures, we intend to create a country-specific European dermatology distribution network. Third, we have selected
a highly experienced new partner in the animal healthcare space, and launched the MicrocynAH animal healthcare family of products
in the United States in March 2015."
Results for the Three Months Ended March 31, 2015
Product revenue in Mexico for the three months ended March 31,
2015, of $1.7 million, increased $837,000, or 96%, when compared to the same period in the prior year. During the current quarter
Oculus' partner, More Pharma, was purchased by a significantly larger company, Laboratorios Sanfer ("Sanfer"),
and Sanfer has stocked the products in a number of additional pharmacies, causing a strong growth in the number of units sold.
Separately, for the three months ended March 31, 2015 and 2014, the product licensing revenue was $369,000 and $372,000, respectively,
related to the amortization of upfront license fees paid by More Pharma.
Revenue in Europe and the Rest of the World for the three months
ended March 31, 2015, was $932,000, with an increase of $329,000, or 55%, as compared to the same period in the prior year, with
increases in Europe, Middle East and Singapore, partly offset by a decrease in India. The increase in Europe is largely the result
of multiple new advanced tissue care product line extensions as well as the addition of new European distributors. Sales increased
in the Middle East by $337,000 as a result of winning government bids and the timing of periodic orders.
Total product revenues in the United States were $623,000 for
the three months ended March 31, 2015, as compared to $287,000 in the quarter ended March 31, 2014. Product revenues were up $336,000
from the same period last year due to higher sales in dermatology and acute care products. Separately, the product licensing revenue
was down $416,000 or 48%, primarily related to lower sales in animal healthcare.
In the third quarter of this year, Oculus deployed a direct
sales force focused on dermatology, which has launched three new dermatology products. U.S. dermatology sales for the fourth quarter
were $412,000, up $302,000 from the same period last year as Oculus was launching its Alevicyn and Celacyn products with its direct
sales force along with growth in revenue from Oculus' dermatology partner. Oculus recorded revenue in the amounts of $10,000
and $416,000, for the three months ended March 31, 2015 and 2014, respectively, from Oculus' former animal healthcare partner.
The decrease in revenue was caused by a reduction in the unit volume related to Oculus' transition to a new animal health
care partner. At the end of the quarter ended March 31, 2015, Oculus launched the MicrocynAH animal health care products with
SLA Brands, the company's new animal healthcare partner.
Oculus reported gross profit related to the company's
products of $1.9 million, or 52% of product revenues, during the three months ended March 31, 2015, compared to a gross profit
of $1.4 million, or 52% of product revenues, for the same period in the prior year. Licensing revenues are included in the calculation
of product revenues and gross profit for the quarters ended March 31, 2015 and 2014, which amounted to $369,000 and $372,000, respectively.
Total operating expenses of $3.6 million for the three months
ended March 31, 2015, increased by $155,000, or 4%, as compared to the same period in the prior year. Operating expenses minus
non-cash expenses during the fourth quarter of fiscal year 2015 were $3.3 million, up $101,000, or 3%, as compared to the same
period in the prior year. The increase in operating expenses, minus non-cash expenses, was due to higher sales and marketing expenses
in the United States, partially offset by lower expenses for the company's previously consolidated, wholly owned subsidiary,
Research and development expenses of $374,000 for the three
months ended March 31, 2015, decreased $348,000, or 48%, when compared to the same period in the prior year. The decrease is largely
due to $314,000 incurred during the same period in the prior year by the company's formerly wholly owned subsidiary Ruthigen.
Selling, general and administrative expense for the three months
ended March 31, 2015, increased $503,000, or 18%, when compared for the same period in the prior year. The increase for the three
months ended March 31, 2015, was primarily due to higher sales and marketing expenses in the United States as Oculus added to its
direct sales force in dermatology and acute care, partially offset by a decrease of $266,000 related to expenses incurred by the
company's formerly wholly owned subsidiary, Ruthigen, in the prior period.
Net loss for the three months ended March 31, 2015, was $1.5
million, an increase of $9.0 million, as compared to net income of $7.5 million for the same period in the prior year. The increase
is primarily due to the one-time gain of $11.1 million recorded in the three months ended March 31, 2014, related to Oculus'
investment in Ruthigen.
As of March 31, 2015, Oculus had unrestricted cash and cash
equivalents of $6.1 million, as compared with $5.5 million at March 31, 2014, and the company has no debt outstanding. On January
26, 2015, Oculus closed an underwritten public offering with net proceeds of $5.3 million. On March 16, 2015, Oculus announced
that it sold 350,000 shares of Ruthigen for $962,000 and agreed to sell its remaining 1.65 million Ruthigen shares for $4.5 million
to investors if the merger of Ruthigen is completed.
Results for Twelve Months Ending March 31, 2015
Total revenues were $13.9 million for the twelve months ended
March 31, 2015, as compared to $13.7 million for the same period in the prior year. Product revenues, including product licensing
fees, for the twelve months ended March 31, 2015, were $13.0 million, an increase of $272,000, or 2%, for the same period in the
prior year. The increase in sales is a result of sales growth in Europe, Mexico, the Middle East and Singapore, partially offset
by decreases in the product royalty revenue in the United States related to animal and dermatology products, as well as a decrease
Oculus reported gross profit related to sales of its products
of $7.1 million, or 55% of product revenues, for the twelve months ended March 31, 2015, compared to a gross profit of $8.2 million,
or 65% of product revenues, for the same period in the prior year.
Total operating expenses minus non-cash expenses decreased $649,000
for the twelve months compared to the same period in the prior year. Operating loss minus non-cash expenses (EBITDAS) for the twelve
months ended March 31, 2015, was $4.7 million, compared to $4.6 million for the same period last year.
Oculus' management will hold a conference call today to
discuss fourth quarter fiscal year 2015 results and answer questions, beginning at 4:30 p.m. ET. 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 18697280. 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 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