Full Press Release Details
Innovative Sciences Reports Record Third Quarter Revenue for Fiscal Year 2011,
Call Begins at 4:30 p.m. (EDT) Today
PETALUMA, Calif. (February 3, 2011) -
Oculus Innovative Sciences, Inc. (Nasdaq: OCLS) today announced financial
and operating results for the third quarter of fiscal year 2011, ended December
31, 2010. Total revenue was $2.3 million in the third quarter of
fiscal 2011, compared to $1.6 million in the third quarter of fiscal
2010. Product revenue was $2.0 million, up 48%, from $1.4 million in
the prior third quarter primarily due to higher sales in the United States,
Mexico, Europe and the Middle East; while partially offset by a slight decline
in India. Operating expenses minus non-cash expenses for the quarter
were $2.8 million, up from $2.4 million in the same period last
Alimi, founder and CEO of Oculus said, "We continue to focus on our business
strategy of targeting profitability and increased profit margins via
collaborative partnerships in multiple markets including dermatology, animal
healthcare, oral care and others. As we secure new FDA clearances in
the coming quarters, it is our intent to have partnership discussions in place
so that commercialization quickly follows."
revenue in the United States increased $170,000, or 55% compared to the same
quarter last year, with growth in animal health care, resulting from national
advertising programs and sales initiatives sponsored by Oculus' partner,
Innovacyn, as well as an increase in U.S. human wound care sales.
in Mexico increased 23% from the prior year period with 41% growth in the
smaller 120-milliliter and 240-milliliter units, partially offset by a 4%
decline in the five-liter units. Due to the higher margins of the
smaller units, Oculus' sales force has been focused on promoting the growth of
the smaller units sold to the pharmacies and private hospitals. The unit
sales of the 120-milliliter and 240-milliliter presentations, which are
primarily sold to pharmacies in Mexico, increased 33% from the prior year to a
monthly average of 47,000 units compared to 35,000 in the same period last
and rest-of-world revenue increased $272,000, up 158% over the prior year
period, caused by strong growth in sales to the Middle East and moderate growth
revenue increased $54,000 when compared to the prior year period due to an
increase in the number of tests provided by Oculus' services
reported gross profit from the Microcyn-based products business of $1.1 million
or 54% of product revenues, during the three months ended December 31, 2010,
compared to a gross profit of $621,000, or 46% of product revenues, in the prior
year period. The improved gross margins represent higher margins in the United
States, partially offset by lower gross margins in Europe, Mexico and
rest-of-world. The higher margins in the United States are due to higher units
sold and product mix for certain U.S. sales. Margins in Mexico,
excluding export sales, were 71% during the quarter ended December 31, 2010,
compared to 80% in the prior year period, due to lower pricing and volume of the
five-liter product sold to the public hospitals.
operating expenses increased $531,000, or 20%, to $3.2 million for the three
months ended December 31, 2010, compared to $2.7 million in the prior year.
Operating expenses minus non-cash expenses during the quarter were $2.8 million,
up from $2.4 million in the same period last year. Research and development
expense increased $95,000, or 26%, to $467,000 for the three months ended
December 31, 2010, compared to $372,000 in the prior year
period. Most of the increase was due to studies needed for regulatory
approvals and development of manufacturing processes for new
general and administrative expense increased $436,000, or 19%, to $2.8 million
during the three months ended December 31, 2010, from $2.3 million during the
three months ended December 31, 2009. This increase was primarily due
to higher sales-related costs in the United Sates and Mexico 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 December 31, 2010 was $2.2 million, up $884,000 from
$1.3 million for the same period in the prior year. Last year, during
the third quarter ending December 31, 2009, Oculus recorded a non-cash gain of
$625,000 due to the change in fair value of its derivative liability, compared
to a $55,000 non-cash loss in this quarter. Stock compensation
expenses for the quarters ended December 2010 and 2009, were $352,000 and
$237,000, respectively.
December 31, 2010, Oculus had unrestricted cash and cash equivalents of $4.7
million, compared with $6.2 million as of March 31, 2010 and $5.4 million as of
expects to continue strong annualized growth of 50% to 100% over the next three
years. The company is targeting a minimum of $45-$60 million in
annual revenues in calendar year 2013 with 20% operating
profitability. The company's animal healthcare partner, Innovacyn,
had significant sales growth in calendar year 2010 and Oculus expects continued
strong sales growth in 2011. Oculus currently receives approximately
18-20% royalties on these sales with that percentage increasing to approximately
30% effective July 1, 2011.
management will hold a conference call today to discuss third 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.
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 37947168. 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,