Full Press Release Details
Oculus Innovative Sciences Reports Revenues
of $3.5 Million for the Third Quarter of Fiscal 2013
Conference Call Begins at 4:30 p.m. (ET)
PETALUMA, Calif.--(February 13, 2013)--Oculus Innovative
Sciences, Inc. (Nasdaq: OCLS) today announced financial results for the third quarter of fiscal year 2013, ended December 31, 2012.
Total revenues were $3.5 million for the third quarter ended December 31, 2012 compared to $2.8 million for the same period in
the prior year. Product revenues, including product licensing fees, increased $760,000, or 29%, for the third quarter ended December
31, 2012, as compared to the same period in the prior year, with increases in the United States, Mexico and Singapore; partly offset
by declines in Middle East, India and China.
"Oculus management and the board of directors set forth
on a plan in January to unlock the value of Oculus' drug assets," said Hoji Alimi, CEO of Ruthigen, Inc., a wholly owned
subsidiary of Oculus. "Ruthigen was established to develop RUT58-60, a novel hypochlorous acid formulation with magnesium
and no sodium hypochlorite, as a drug candidate for surgical and traumatic indications. We are targeting spinning off Ruthigen
from Oculus later this year and we are also working towards initiation of clinical trials for RUT58-60 later this year."
Product revenue in the United States for the three months ended
December 31, 2012, increased $648,000, or 64%, as compared to the same period in the prior year due to both unit growth with new
product launches into the dermatology market, as well as higher unit growth in products sold by Oculus' animal healthcare
partner, Innovacyn, Inc. The revenue recorded from Innovacyn for the three months ended December 31, 2012, was $883,000, up $218,000
from the same period in the prior year. Revenue growth attributed to Oculus' dermatology partners reflected strong unit growth
as three new products were launched in the fourth quarter of the fiscal year ended March 31, 2012.
"We have a primary focus on product, growth and profitability,"
said Jim Schutz, newly appointed Oculus CEO. "We believe three key elements will further our growth efforts. First, we
will add new products-organically from our own R&D and
through acquisition-for our current commercial partners.
Second, we'll add new partners. And finally, we'll expand territories with aggressive targets. This is an exciting time
Revenue in Mexico for the three months ended December 31, 2012,
increased $188,000, or 16%, when compared to the same period the prior year. The increase was driven by a 97% increase in the number
of units sold and the recognition of $378,000 related to the amortization of upfront fees paid by More Pharma Corporation, S.de
R.L. de C.V., Oculus' new exclusive distributor in Mexico, partially offset by a 45% reduction in the overall average sales
price per unit received. Due to the transfer of the sales function to More Pharma, Oculus has eliminated the cost of the sales
people and promotions in Mexico, thus reducing certain operating costs in that country.
Revenue in Europe and Rest of World for the three months ended
December 31, 2012, decreased $76,000, or 18%, as compared to the same period in the prior year, primarily as a result of decreases
in sales in India, Middle East and China, partially offset by increases in Singapore.
Oculus reported gross profit related to sales of Microcyn -based
products of approximately $2.5 million, or 73% of product revenues, during the three months ended December 31, 2012, compared to
a gross profit of $1.8 million, or 71% of product revenues, for the same period in the prior year. The higher gross profitability
is primarily the result of higher unit volume and improved product mix in the United States. Gross margins in Mexico were
54% of product revenues during the three months ended December 31, 2012, as compared to 75% for the same period in the prior year
as a result of the reduction in the unit pricing in connection with the More Pharma agreement discussed previously.
Total operating expenses decreased by $1.1 million, or 25%,
to $3.2 million for the three months ended December 31, 2012, compared to $4.2 million for the similar period in the prior year.
Operating expenses minus non-cash expenses during the three months ended December 31, 2012 were $2.7 million, down from $3.2 million
for the same period in the prior year. Research and development expenses were $509,000 for the three months ended December 31,
2012, and were the same as in the prior year period. Selling, general and administrative expense decreased $1.1 million, or 29%,
to $2.6 million during the three months ended December 31, 2012, as compared to $3.7 million for the same period in the prior year.
The decrease for the three months ended December 31, 2012 was primarily due to lower selling expenses in Mexico and higher expenses
related to new products, compensation, and investor-related costs in the United States.
Loss from operations minus non-cash expenses for the three months
ended December 31, 2012 was at $163,000, compared to $1,264,000 for the same period in the prior year.
Net loss for the three months ended December 31, 2012 was $1.9
million, a decrease of $635,000 from a net loss of $2.5 million for the same period in the prior year.
Stock-based compensation charges were $456,000 and $1.0 million for the quarters ended December 31, 2012 and 2011, respectively.
As of December 31, 2012, Oculus had unrestricted cash and cash
equivalents of $6.6 million, compared with $3.4 million as of March 31, 2012.
Total revenue was $12.1 million for the nine months ended December
31, 2012, compared to $9.4 million for the same period in the prior year. Product revenues, including product licensing fees received,
for the nine months ended December 31, 2012 increased $2,740,000, or, 32%, to $11.4 million as compared to $8.7 million for the
same period in the prior year, with revenue increases in the United States, Mexico and Singapore, partially offset by a decline
in Europe, Middle East, India and China. Oculus reported gross profit related to sales of Microcyn -based products of $8.5
million, or 74%, for the nine months ended December 31, 2012, compared to a gross profit of $6,482,000, or 75% of product revenues,
for the same period in the prior year, primarily due to lower profitability in Europe and Mexico. Total operating expenses minus
non-cash expenses decreased $34,000, for the nine months compared to the same period in the prior year. Operating loss minus non-cash
expenses (EBITDAS) for the nine months was $398,000, including $410,000 of one-time severance charges related to the More Pharma
transaction in Mexico, compared to $2.4 million in the same period in the prior year.
Oculus management will hold a
conference call today to discuss its third quarter of fiscal 2013 results and to 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 individuals 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
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 90051967. 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 Sciences is a commercial healthcare
company that designs, produces and markets innovative, safe and effective drugs, devices and nutritional products. Oculus is pioneering
innovative solutions in multiple markets for the dermatology, surgical, wound care, and animal healthcare markets. The company
has commercialized products in the United States, Europe, India, China, Mexico and select Middle East countries. Oculus'
headquarters are in Petaluma, California, with manufacturing operations in the United States and Latin America. More information
can be found at www.oculusis.com.
About Ruthigen, Inc.
Ruthigen, Inc. is a wholly owned subsidiary of Oculus Innovative
Sciences, Inc. (Nasdaq:OCLS). Ruthigen focuses on the development of RUT58-60, a drug candidate intended for accelerating patient
discharge post-surgery. RUT58-60 is a new and unique chemical formulation containing twice the concentration of hypochlorous acid
as compared to Oculus Innovative Sciences, Inc.'s proprietary Microcyn Technology, along with magnesium and no sodium hypochlorite.
It is specifically designed for internal use, targeting organ exposure.
RUT58-60 has been formulated based on several clinical studies
in international markets including a 2006 retrospective case-controlled study involving 40 post-surgical peritonitis patients.
The 20 patients in the study group, who were treated with the preliminary RUT58-60 formulation and saline, were in the hospital
on an average of 22.4 days following surgery, whereas the control group, which was treated with saline alone, demonstrated a longer
hospital stay on average of 31.9 days. Both groups were treated with systemic antibiotics.
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,"
"predicts," "will," "launching," "planned," and "expect," among