Full Press Release Details
Oculus Innovative Sciences Reports Revenues
of $15.5 Million for Fiscal Year 2013, Product Revenue up 23 Percent
Conference Call Begins at 4:30 p.m.
PETALUMA, Calif.--(June 13, 2013)--Oculus
Innovative Sciences, Inc. (Nasdaq: OCLS) today announced financial results for the fourth quarter of fiscal year 2013, ended March
31, 2013. Total revenues were $3.3 million for the fourth quarter ended March 31, 2013, compared to $3.4 million for the same period
in the prior year. Product revenues, including product licensing fees, were flat for the fourth quarter ended March 31, 2013, as
compared to the same period in the prior year, with increases in Europe, China, India and Singapore offset by declines in the
United States and Mexico. The flat quarterly revenue growth was the result of two factors: 1) the More Pharma transaction reduced
Oculus' short-term revenue growth despite a 49% increase in unit volume sales, while improving operating profitability and
long-term revenue growth prospects, and 2) the delayed seasonal purchasing in the ranch and farm animal market of the Vetericyn
animal healthcare products due to late winter storms.
"Our most important near term goal
is to support our wholly owned subsidiary, Ruthigen, in its intended initial public offering. We believe Ruthigen will enable
us to develop our next-generation technology as a drug designed for use in the surgical suite," said Jim Schutz, Oculus
CEO. "Further, we believe the separation of Ruthigen from our company will create additional value for our
respective shareholders - ours and theirs - while offering healthcare providers a new tool in the fight to
reduce infection and enabling Oculus to reduce its operating expenses while targeting EBITDAS breakeven.
Specific to Oculus' continued growth, we anticipate our More Pharma partnership south of the border will
continue to increase our operating profitability while providing strong long-term growth prospects with continued
high unit growth, although initially reducing short-term top line growth. We predict additional growth for Oculus
will also be generated by new products, new partners and new territories in the United States and abroad."
Product revenue in the United States for the
three months ended March 31, 2013, decreased $167,000, or 12%, due to a decline in sales of Oculus' animal healthcare products,
partially offset by increases in sales of dermatology and wound care products. The company recorded revenue in the amounts of $658,000
and $957,000, for the three months ended March 31, 2013, and 2012, respectively, from Oculus' animal healthcare partner,
Innovacyn. Late winter storms in the East and Midwest delayed spring sales in the farm and ranch animal sectors. Revenue growth
attributed to Oculus' dermatology partners reflected strong unit growth as three new product lines were launched over the
Revenue in Mexico for the three months ended
March 31, 2013, decreased $48,000, or 4%, when compared to the same period in the prior year caused by the lower sales price per
unit sold to Oculus' partner, More Pharma. The number of units sold by More Pharma increased 49% compared to the same period
last year. In addition, Oculus recognized $370,000 related to the amortization of upfront product licensing fees paid by More Pharma,
Oculus' new exclusive distributor in Mexico and Latin America. The increase in units sold and the amortization was offset
by about a 54% reduction in the overall average sales price per unit. Also, due to the transfer of the sales function of Oculus'
products in Mexico to More Pharma, Oculus reduced or transferred the cost of the salespeople and promotions thereby eliminating
those operating costs, thus improving the company's operating profitability in Mexico.
Revenue in Europe and Rest of World for the
three months ended March 31, 2013, increased $205,000, or 52%, as compared to the same period in the prior year, primarily as the
result of increases in sales in Europe, China, India and Singapore.
Oculus reported gross profit related to sales
of Microcyn -based products of approximately $2.2 million, or 69% of product revenues, during the three months ended March
31, 2013, compared to a gross profit of $2.1 million, or 67% of product revenues, for the same period in the prior year. The slightly
higher gross profitability is primarily the result of improved product mix in the United States, partially offset by lower gross
margins in Mexico as a result of the reduction in the unit pricing in connection with the More Pharma transaction.
Total operating expenses decreased by $30,000,
or 1%, to $3.6 million for the three months ended March 31, 2013. Operating expenses minus non-cash expenses during the three months
ended March 31, 2013 were $3.4 million, up from $3.1 million for the same period in the prior year. Research and development expenses
were $669,000 for the three months ended March 31, 2013, up $193,000 due to higher preclinical expenses related to Ruthigen. Selling,
general and administrative expense decreased $223,000, or 7%, to $2.9 million during the three months ended March 31, 2013, as
compared to $3.1 million for the same period in the prior year. The decrease for the three months ended March 31, 2013 was primarily
due to lower selling expenses in Mexico, partially offset by higher expenses related to Ruthigen, compensation and investor-related
costs in the United States.
Loss from operations minus non-cash expenses
for the three months ended March 31, 2013, was $1.1 million, compared to $924,000 for the same period in the prior year.
Net loss for the three months ended March 31,
2013, was $2.4 million, an increase of $677,000 from a net loss of $1.8 million for the same period in the prior year.
Stock-based compensation charges were $204,000 and $460,000 for the quarters ended March 31, 2013, and 2012, respectively.
As of March 31, 2013, Oculus had unrestricted
cash and cash equivalents of $7.9 million, compared with $3.4 million as of March 31, 2012.
Results for Fiscal Year 2013
Total revenue was $15.5 million for the twelve
months ended March 31, 2013, compared to $12.7 million for the same period in the prior year. Product revenues, including product
licensing fees received, for the twelve months ended March 31, 2013, increased $2.7 million, or 23%, to $14.6 million, as compared
to $11.9 million for the same period in the prior year, with revenue increases in the United States, Mexico, China and Singapore,
partially offset by a decline in Europe, Middle East and India.
Oculus reported gross profit related to sales
of Microcyn -based products of $10.6 million, or 73% of product revenues, for the twelve months ended March 31, 2013, compared
to a gross profit of $8.6 million, or 73% of product revenues, for the same period in the prior year. Total operating expenses
minus non-cash expenses increased $236,000, for the twelve months compared to the same period in the prior year. Operating loss
minus non-cash expenses (EBITDAS) for the twelve months was $1.5 million, including $410,000 of one-time severance charges related
to the More Pharma transaction in Mexico, down $1.8 million, compared to $3.3 million in the same period in the prior year.
Oculus management will hold a conference call
today to discuss fourth quarter fiscal 2013 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.
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 74134211. 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 Science is a global healthcare
company that designs, manufactures and markets prescription and non-prescription products in over 20 countries. The company's
products are used to treat patients in surgical/advanced wound management, dermatology, women's health and animal health
markets; addressing the unmet medical needs of these markets, while raising the standard of patient care and lowering overall
healthcare costs. The company's headquarters are in Petaluma, California, with manufacturing operations in the United States
and Latin America. 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 "anticipates," "believes," "expects," "may,"
"plans," and "will," 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 will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund