Full Press Release Details
Oculus Innovative Sciences Reports Record
Revenues of $4.1 Million for the First Quarter of Fiscal 2013
Conference Call Begins at 4:30 p.m. (EDT)
PETALUMA, Calif. (August 2, 2012) - Oculus Innovative
Sciences, Inc. (Nasdaq: OCLS) today announced financial results for the first quarter of fiscal year 2013, ended June 30, 2012.
Total revenues were $4.1 million for the first quarter ended June 30, 2012, compared to $2.9 million in the prior year period.
Product revenues increased $1.1 million, or 41%, with increases in the United States, Middle East and Singapore, partly offset
by declines in Europe, India and China.
"This is perhaps one of the most vital and active quarters
in the history of Oculus," said Hoji Alimi, Oculus CEO and founder. "In addition to generating quarterly record revenues
of over four million dollars-which brings us close to EBITDAS
breakeven for the quarter-our dermatology partners have successfully
introduced three new Microcyn-based products into the U.S. dermatology market for management of atopic dermatitis and other dermatoses.
And looking forward, we also announced finalization of our acne drug agreement with AmDerma; concluded site selection and initiated
patient recruitment for our FDA-reviewed clinical trial for management of scars and now have our team busy preparing for the development
and regulatory approval of Microcyn-based surgical products. We believe future product developments can be funded via partner milestone
payments thereby reducing the need for additional capital raises."
Product revenue in the United States for the quarter ended June
30, 2012, increased $1.2 million, or 142%, as compared to the same period in the prior year due equally to 1) increased royalty
fees received from Oculus' partner Innovacyn, Inc. and higher unit growth in its sales, and 2) unit growth related to new
product launches into the U.S. dermatology market by Oculus' partners. Revenue growth attributed to Oculus' dermatology
partners reflected strong unit growth and heavy sampling as three new products were launched in the prior quarter.
Revenue in Mexico for the quarter ended June 30, 2012 decreased
slightly from the same period in the prior year. However, when adjusted for the impact of foreign currency fluctuation, revenue
in Mexico for the quarter ended June 30, 2012 increased 15% as compared to the same period in the prior year.
Revenue in Europe and Rest of World for the quarter ended June
30, 2012 decreased $85,000, or 17% as compared to the prior year period, primarily as the result of decreases in sales in Europe,
India, and China, partially offset by increases in the Middle East and Singapore.
Oculus reported gross profit related to its Microcyn -based
products of $2.8 million or 74% of product revenues, during the quarter ended June 30, 2012, compared to a gross profit of $1.9
million or 71%, for the same period in the prior year. The improved gross profit is primarily the result of higher gross profit
margins for products sold in the United States. Margins in Mexico were 77% during the quarter ended June 30, 2012, compared to
81% for the same period in the prior year.
Total operating expenses decreased by $588,000, or 15%, to $3.4
million for the quarter ended June 30, 2012, compared to $4.0 million for the same period last year. Operating expenses minus non-cash
expenses during the quarter ended June 30, 2012 were $3.0 million, down from $3.1 million in the same period last year. Research
and development expense increased $96,000, or 22%, to $532,000 for the quarter ended June 30, 2012, compared to $436,000 for the
same period in the prior year, mostly due to the initiation of a study for the treatment of scars. Selling, general and administrative
expense decreased $684,000, or 19%, to $2.8 million during the quarter ended June 30, 2012, from $3.5 million for the same period
last year. This decrease in the quarter ended June 30, 2012 was primarily due to lower stock compensation expenses of $428,000
and lower salary-related costs.
Loss from operations minus non-cash expenses (EBITDAS) for the
quarter ending June 30, 2012 was $22,000, compared to $1.1 million for the same period last year.
During the quarter ended June 30, 2012, Oculus recorded a decrease
in the fair value of its derivative liabilities of $1.2 million and as a result, it recorded this amount as a non-cash gain. The
change in the fair value of our derivative liability for the quarter ended June 30, 2012, as compared to the same period last year,
was primarily the result of decreases in the company's stock price, and the issuance of warrants in connection with its $3
million funding completed in April 2012. Interest expense increased $126,000 during the quarter ended June 30, 2012, as compared
to the same period last year.
Net income for the quarter ended June 30, 2012 was $445,000,
an increase of $2.6 million from a net loss of $2.2 million for the same period in the prior year. Stock
compensation charges were $400,000 and $812,000 for the quarters ended June 30, 2012 and 2011, respectively.
As of June 30, 2012, Oculus had unrestricted cash and cash equivalents
of $4.4 million, compared with $3.4 million as of March 31, 2012. The company's total debt position was $4.2 million as of
June 30, 2012, compared with $4.6 million as of March 31, 2012.
Oculus 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 877-303-7020 for domestic callers or 973-409-9604 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 96400246. A webcast replay will be available on the site at http://ir.oculusis.com/events.cfm for one year following
About Oculus Innovative Sciences
Oculus Innovative Sciences is a commercial healthcare
company that designs, produces and markets innovative, safe and effective healthcare products. Oculus is pioneering innovative
solutions in multiple markets including dermatology, oral care, surgical, wound care, animal healthcare and others, and has commercialized
products in the United States, Europe, India, China and Mexico and select Middle East countries. The company's headquarters are
in Petaluma, California, with manufacturing operations in the United States and Latin America. More information can be found at
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 Company's commercial and technology
progress and future financial performance. These forward-looking statements are identified by the use of words such as
"preparing," "funded," and "reducing," 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 products are subject to recalls and restrictions even after receiving United States or foreign regulatory
clearance or approval, the Company's third-party contractors may fail to perform their responsibilities to comply with
FDA rules and regulations, 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, and its ability 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 the annual report on Form 10-K for the year ended March 31, 2012. Oculus Innovative
Sciences disclaims any obligation to update these forward-looking statements except as required by law.
Oculus and Microcyn are trademarks or registered
trademarks of Oculus Innovative Sciences, Inc. All other trademarks and service marks are the property of their respective owners.
Oculus Innovative Sciences, Inc.
Director of Marketing/Communications
OCULUS INNOVATIVE SCIENCES, INC. AND
Condensed Consolidated Balance Sheets
(In thousands, except share and per share
| June 30, 2012 | March 31, 2012 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,399 | $ | 3,351 | ||||
| Accounts receivable, net | 3,272 | 2,151 | ||||||
| Inventories, net | 818 | 953 | ||||||
| Prepaid expenses and other current assets | 380 | 505 | ||||||
| Total current assets | 8,869 | 6,960 | ||||||
| Property and equipment, net | 753 | 806 | ||||||
| Other assets | 71 | 72 | ||||||
| Total assets | $ | 9,693 | $ | 7,838 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 692 | $ | 816 | ||||
| Accrued expenses and other current liabilities | 826 | 844 | ||||||
| Deferred revenue | 1,629 | 1,619 | ||||||
| Current portion of long-term debt, net of debt discount of $641 and $624 at June 30, 2012 (unaudited) and March 31, 2012, respectively | 1,481 | 1,415 | ||||||
| Derivative liabilities | 1,155 | 55 | ||||||
| Total current liabilities | 5,783 | 4,749 | ||||||
| Deferred revenue | 126 | 133 | ||||||
| Long-term debt, net of debt discount of $602 and $769 at June 30, 2012 (unaudited) and March 31, 2012, respectively, less current portion | 1,442 | 1,824 | ||||||
| Put warrant liability | 2,000 | 2,000 | ||||||
| Total liabilities | 9,351 | 8,706 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity (Deficiency): | ||||||||
| Convertible preferred stock, $0.0001 par value; 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2012 (unaudited) and March 31, 2012 | - | - | ||||||
| Common stock, $0.0001 par value; 100,000,000 shares authorized, 32,553,662 and 29,007,903 shares issued and outstanding at June 30, 2012 (unaudited) and March 31, 2012, respectively | 3 | 3 | ||||||
| Additional paid-in capital | 135,381 | 134,496 | ||||||
| Accumulated other comprehensive loss | (3,173 | ) | (3,053 | ) | ||||
| Accumulated deficit | (131,869 | ) | (132,314 | ) | ||||
| Total stockholders' equity (deficiency) | 342 | (868 | ) | |||||
| Total liabilities and stockholders' equity (deficiency) | $ | 9,693 | $ | 7,838 |
OCULUS INNOVATIVE SCIENCES, INC. AND