Oculus Innovative Sciences, Inc. (Nasdaq:OCLS) today announced financial and operating results for the second quarter of fiscal year 2011, ended September 30, 2010. Total revenue was $2.5 million in the second quarter of fiscal 2011, compared to $1.7 million in the second quarter of fiscal 2010. Product revenue was $2.3 million, up 63% from $1.4 million in the prior first quarter primarily due to higher sales in the United States, Mexico, India and the Middle East, partially offset by declines in Europe and China. Operating expenses minus non-cash expenses for the quarter were $2.8 million, up slightly from $2.6 million in the same period last year. Hoji Alimi, founder and CEO of Oculus said, “Our main focus is on revenue growth with an emphasis on achieving profitability. In line with this strategy, we continue to develop new and promising partnerships, expand into new product categories, and await the FDA review and potential clearance for an additional five new Microcyn-based products in oral care, allergy relief and dermatology.” Product revenue in the United States increased $879,000 with the majority of growth in animal health care, resulting from national advertising programs and sales initiatives sponsored by Oculus’ partner, Innovacyn, as well as increases in human wound care. Oculus also received a quarterly royalty payment from Union Springs Pharmaceuticals LLC, which sells MyClyns®, a germ protection spray for both the professional and consumer markets. Revenue in Mexico increased 18% from the prior year period with strong price increases, partially offset by a unit decline in the sale of five-liter units. Last year, the five-liter unit sales were higher than normal, due to the swine flu epidemic in Mexico. Sales of the 120- and 240-milliliter presentations, which are primarily sold to pharmacies in Mexico, increased 11% from the prior year to a monthly average of 39,000 units compared to 35,000 in the same period last year. Sales to hospitals increased 21% with strong price increases, partially offset by a small decline in units sold.