For quarter beginning Oct 1. 2012:
- Reduced SG&A by approximately $3 million annually due to transfer of Mexico marketing and sales function to More Pharma
- Guidance for quarterly cash operating expenses reduced 15% to the range of $2.5 million
- Positive EBITDAS to be achieved on quarterly revenues of between $3.7 million and $4 million
- Increased cash position of nearly $8 million projected for the end of September as result of More Pharma's $5.1 upfront payment
PETALUMA, Calif., Sept. 20, 2012 (GLOBE NEWSWIRE) -- Oculus Innovative Sciences, Inc. (Nasdaq:OCLS), a commercial healthcare company that designs, produces and markets innovative, safe and effective healthcare products, today announced the finalization of transition of marketing and sales to More Pharma in Mexico, thus reducing Oculus' guidance for quarterly cash operating expenses 15% to the range of $2.5 million for the quarter beginning October 1, 2012. With the reduction of expenses effective in late August, operating expenses for the quarter ending September 30, 2012, will include some sales and marketing, severance and transition costs. The reduction of cash operating expenses shortens the company's projected timeline to achieve positive EBITDAS, which is anticipated once quarterly revenues are in the range of $3.7 million to $4 million.
In an effort to expand commercialization of Microcyn Technology, More Pharma is now preparing regulatory filings for approval of the Microcyn® Technology in six Latin American and Caribbean countries including El Salvador, Dominican Republic, Guatemala and Jamaica. An update on this partnership as well as guidance on the annual rate of revenue growth will be included in Oculus' Q2 2013 earnings call to be held on November 1, 2012."The partnership with More Pharma is a strategically prudent initiative that provides Oculus with multiple upsides," Bob Miller, CFO of Oculus said. "We've reduced our quarterly expenses and are now on track to positive EBITDAS at a more rapid pace. As well, we now have a major partner working on our behalf to secure regulatory approvals in multiple Latin America and Caribbean countries, thus eventually opening up new markets for the Microcyn Technology. Finally, and not to be overlooked, their upfront payment of $5.1 million provides us with a much stronger balance sheet position."