Bovie Medical Corporation (the “Company”) (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the first quarter and year ended March 31, 2011.
Revenues for the first quarter ended March 31, 2011 increased 10% to $6.2 million versus $5.6 million for the comparable period last year. Revenues were positively impacted by increased OEM generator sales as well as higher electrosurgical disposable sales.
Net income was $492,000 or $.03 per diluted share compared to a loss of ($226,000) or ($.01) per share in the same period last year. During the quarter, the Company received a one-time payment of $750,000 as part of a previously announced settlement of a legal action with Salient Surgical Technologies, Inc. and Medtronic, Inc. This gain was reflected in our results of operations as a
gain from settlement of litigation.
Andrew Makrides, chief executive officer of Bovie Medical, stated, “Both new and longstanding OEM customer sales increases positively impacted on first quarter revenues. We are pleased with the revenue gains and the trend continued early into the second quarter. We are also encouraged by the response that our network of independent sales representatives is receiving from surgeons and buyers of medical equipment throughout the country.”
Mr. Makrides continued, “Due to the much longer process of clearing new products through the Food & Drug Administration, we have dedicated additional resources both internal and external to the application process. The application phase for J-Plasma™ continues as we await 510k clearance. The company also expects to file a re-submission of its vessel sealing product during the second or third quarter.”
NEW PRODUCT UPDATE
In the first quarter, Bovie Medical increased J-Plasma’s exposure to the medical community by meeting with and gaining support and input from physicians, nurses and physician assistants in specialties such as Gynecology, Uro-gynecology and Plastic Surgery, as well as sub-specialties such as robotic surgery. As a result of recent testing and industry trade shows, we believe Bovie will be better positioned to market J-Plasma in foreign markets earlier than previously anticipated, although the initial focus continues to be for the U.S. market. We intend to continue studies beyond the current 510k filing of the J-Plasma device to establish further uses of the technology and expand its revenue potential.