MELVILLE, NY--(Marketwired - May 15, 2013) - Bovie Medical Corporation (the "Company") (
For first quarter of fiscal 2013 ended March 31, 2013, the Company reported revenues of $5.70 million resulting in a net loss of $(409,000) or a $(0.02) loss per diluted share. For the comparable period in the prior year sales totaled $6.73 million with net income of $187,000 or $0.01 per diluted share.
First quarter performance was negatively impacted by the completion of two large multi-year OEM contracts in 2012, a new medical device tax imposed under the Affordable Care Act of 2010, legal costs associated with on-going litigations together with increased costs associated with the development and marketing of the Company's J-Plasma® technology. The Company will continue to devote increased resources and efforts to J-Plasma®, while otherwise effecting a program to manage costs. Currently, the Company is involved in discussions with several companies relating to possible design, development and manufacturing projects that could result in one or more OEM agreements.
Update on J-Plasma®
As previously reported, teaching courses for surgeons and sales representatives continue to generate strong surgeon interest from participants. Courses have been scheduled monthly in both Las Vegas and Nashville through September of this year. The location of these courses allows for surgeons in the eastern U.S. and western U.S. to have access to a teaching facility where they can increase their skills and knowledge of J-Plasma®. Interest in J-Plasma® remains high and clinical outcomes have been impressive enough for surgeons to document their findings in papers. There is a difficult process, however, to receiving hospital purchasing committee approval, in order to affect a sale, since hospitals require a two committee approach, of first giving consent to use the product on patients, followed by further approval from a purchasing committee. This has contributed to delays in accomplishing our initial sales goals. The delays are more extensive than in prior years and have impacted other companies as well. The success of J-Plasma® surgeon evaluations portend that committee approvals should be forthcoming, resulting in future sales.
We were recently informed that a video and paper on J-Plasma® has been submitted by a prominent surgeon to one of the most prestigious GYN conferences in the world. If accepted, J-Plasma® will be presented which should give J-Plasma® worldwide credibility. In addition, several other papers are being developed by a GYN oncologist, a plastic surgeon and infertility surgeons including GYN surgeons.
J. Robert Saron, Bovie's President, stated, "With increased surgeon sentiment supporting the application of J-Plasma® in multiple surgical specialties, the Company is reviewing a program to enter new markets; thus, taking further advantage of J-Plasma's® revenue potential."
A prominent gynecological surgeon recently commented, "J-Plasma® replaces both the Argon Beam technology as well as the CO2 laser." He added that after using J-Plasma® for several months he believes that it has many uses in surgery for endometriosis, ovarian cystectomy and cystotomy, myomectomy, sacrocolpopexy, vulvar vaginal wart removal, deep pelvic surgery and dissection.
Another GYN-surgeon stated, "This is exactly what I've been looking for. It fills the void between high energy, vessel sealing type devices and monopolar instruments."
While management believes its first targeted GYN market is sizable, J-Plasma's® potential applications in several surgical specialties could make Bovie a major player in electrosurgery.
An example in support of this premise for use in other surgical areas is a recent comment by a plastic surgeon who stated that J-Plasma® could be a "game changer" in plastic surgery.
Jeff Rencher, VP of Sales and Marketing of Surgical Products, concluded: "Interest in J-Plasma® continues to grow nationally. Currently, there are cases pending in Chicago, South Carolina and Portland, to name a few. Furthermore, the teaching courses conducted by leading surgeons add to J-Plasma's® growing acceptance and momentum."
Additionally, we are receiving valuable input from surgeons resulting in ergonomic design modifications to the J-Plasma® hand piece, while incorporating system improvements which will benefit manufacturing processes and profit margins.
Cautionary Note on Forward-Looking Statements
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings with the Securities and Exchange Commission including the Company's Report on Form 10-K for the year ended December 31, 2012. For forward-looking statements in this new release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
For further information about the Company's current and new products, please refer to the Investor Relations section of Bovie's website www.boviemed.com.
|Bovie Medical Corporation|
|Condensed Statements of Operations|
|For the Three-month Period Ended March 2013 and 2012|
|(in thousands, except for per share amounts)|
|Three Months Ended March 31 |
|Cost of Sales||3,545||3,937|
|Costs & Expenses||2,816||2,400|
|Income (loss) from operations||(665)||396|
|Other income (expense)|
|Interest (net of expense)||(55)||(58)|
|Change in fair value of liabilities, net||(34)||(17)|
|Income (loss) before income taxes||(754)||321|
|Benefit (provision) for income taxes, net||345||(134)|
|Weighted average shares Outstanding-Basic||17,650||17,622|
|Weighted average shares adjusted for dilutive securities||17,650||17,791|