Encision Reports Fourth Quarter Fiscal Year 2019 Results

Encision Inc. (PK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous stray electrosurgical burns in minimally invasive surgery, today announced financial results for its fiscal 2019 fourth quarter that ended March 31, 2019.

The Company posted quarterly net revenue of $2.09 million for a quarterly net loss of $183 thousand, or $(0.02) per diluted share. These results compare to net revenue of $2.04 million for a quarterly net loss of $18 thousand, or $0.00per diluted share, in the year-ago quarter. Net revenue for last year’s quarter included net revenue of $68.3 thousand from an order for non-AEM product. Gross margin on net revenue was 53% in the fiscal 2019 fourth quarter and 57% in the fiscal 2018 fourth quarter. Gross margin on net revenue was lower in the current quarter primarily as a result of significantly higher material costs, especially as a result of tariffs on our steel costs and, to a lesser extent, product mix.

The Company posted twelve months net revenue of $8.80 million for a twelve months net loss of $236 thousand, or $(0.02) per diluted share. These results compare to net revenue of $8.75 million for a twelve months net income of $336 thousand, or $0.03 per diluted share, in the year-ago twelve months. Net revenue for last year’s twelve months included net revenue of $492 thousand from an order for non-AEM product. Gross margin on net revenue was 53% in the fiscal 2019 twelve months and 57% in the fiscal 2018 twelve months. Gross margin on net revenue was lower in the current twelve months as a result of higher material costs and product mix.

“Core AEM® Technology sales are increasing.  For this fiscal year’s twelve months, net revenue on AEM products resulted in a 7% rate of growth,” said Gregory Trudel, President and CEO of Encision Inc.  “We continue to open up new market opportunities.  During the quarter ended March 31, 2019, our proprietary patient safety technology was recognized by the U.S. Department of Veterans Affairs and provides us with the opportunity to market our instruments and monitors into VA Medical Centers. The VA is the largest medical system in the U.S. providing service to more than nine million veterans across more than 1,200 facilities.  Also, during the quarter, Encision was awarded a prestigious Vizient Innovative Technology Contract for monopolar surgical instruments and monitors. This contract will enable us to expand the use of our technology and to provide savings opportunities into thousands of new hospital accounts. Vizient represents a diverse membership base that includes academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks and non-acute health care providers and represents approximately $100 billion in annual purchasing volume.  We appreciate the VA’s and Vizient’s recognition and look forward to driving top line growth in FY2020.”

Encision Inc. designs and markets a portfolio of high performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures. – PR Newswire