Full Press Release Details
Innovative Sciences Reports Record Revenue in Second Quarter
2011, Exceeding Guidance
PETALUMA, Calif. (November 4, 2010) -
Oculus Innovative Sciences, Inc. (Nasdaq: OCLS) today announced financial
and operating results for the second quarter of fiscal year 2011, ended
September 30, 2010. Total revenue was $2.5 million in the second
quarter of fiscal 2011, compared to $1.7 million in the second quarter of fiscal
2010. Product revenue was $2.3 million, up 63% from $1.4 million in
the prior first quarter primarily due to higher sales in the United States,
Mexico, India and the Middle East, partially offset by declines in Europe and
China. Operating expenses minus non-cash expenses for the quarter
were $2.8 million, up slightly from $2.6 million in the same period last
Alimi, founder and CEO of Oculus said, "Our main focus is on revenue growth with
an emphasis on achieving profitability. In line with this strategy,
we continue to develop new and promising partnerships, expand into new product
categories, and await the FDA review and potential clearance for an additional
five new Microcyn-based products in oral care, allergy relief and
revenue in the United States increased $758,000 with the majority of growth in
animal health care, resulting from national advertising programs and sales
initiatives sponsored by Oculus' partner, Innovacyn, as well as increases in
human wound care. Oculus also received a quarterly royalty payment
from Union Springs Pharmaceuticals LLC, which sells MyClyns , a germ protection
spray for both the professional and consumer markets.
in Mexico increased 18% from the prior year period with strong price increases,
partially offset by a unit decline in the sale of five-liter units. Last year,
the five-liter unit sales were higher than normal, due to the swine flu epidemic
in Mexico. Sales of the 120- and 240-milliliter presentations, which
are primarily sold to pharmacies in Mexico, increased 11% from the prior year to
a monthly average of 39,000 units compared to 35,000 in the same period last
year. Sales to hospitals increased 21% with strong price increases,
partially offset by a small decline in units sold.
and rest of world revenue decreased $43,000, down 12% over the prior year
period, caused by lower sales in China and Czech Republic, which were partially
offset by increases in India, Middle East, Germany, The Netherlands and
revenue in the second quarter decreased $85,000, 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 its Microcyn-based products business of $1.6 million,
or 72% of product revenues, during the three months ending September 30, 2010,
compared to a gross profit of $802,000, or 57% in the prior year period. The
improved gross margins represent higher margins in the United States and Mexico,
partially offset by lower gross margins in Europe and the rest of world. The
higher margins in the United States are due to improved product mix for certain
U.S. sales. Mexico's margins were 82% during the quarter ended
September 30, 2010, compared to 79% in the prior year period due to better
operating expenses increased $250,000, or 8%, to $3.3 million for the three
months ended September 30, 2010, compared to $3.1 million in the prior year.
Operating expenses minus non-cash expenses during the quarter were $2.8 million,
up from $2.6 million in the same period last year. Research and development
expense declined $30,000, or 5%, to $553,000 for the three months ended
September 30, 2010, compared to $583,000 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 $280,000, or 11%, to $2.8 million
during the three months ended September 30, 2010, from $2.5 million during the
three months ended September 30, 2009. Primarily, this increase was due to a
higher stock compensation charge and higher compensation costs in the United
States. These increases were partially offset by lower sales and
marketing costs in Europe.
for the three months ended September 30, 2010 was $1.6 million, down $244,000
from $1.9 million for the same period in the prior year. Stock compensation
expenses for the quarters ended September 30, 2010 and 2009, were $518,000 and
$441,000, respectively.
September 30, 2010, Oculus had unrestricted cash and cash equivalents of $5.4
million, compared with $6.2 million as of March 31, 2010.
management will hold a conference call today to discuss second 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 conference code 16494121. 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
healing. The Microcyn Technology addresses the need for improved
solutions in multiple markets including dermatology, oral care, cosmeceutical,
wound care and others. It features a biocompatible,
shelf-stable solution that is currently commercialized in the United States,
Europe, India, China and Mexico and select Middle East countries under various
country specific regulatory clearances and approvals. Several solutions derived
from this platform have demonstrated, in a variety of research and
investigational studies, the ability to treat a wide range of pathogens,
including antibiotic-resistant strains of bacteria (including MRSA and VRE),
viruses, fungi and spores; increase blood flow to the wound site; and reduce
both inflammation and pain while assisting in faster wound closure. The
company's headquarters are in Petaluma, California, with manufacturing
operations in the United States and Latin America. More information can be found
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
Company's commercial and technology progress and future financial