Bovie Medical Corporation (the “Company”) (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the fourth quarter and year ended December 31, 2010.

Revenues for the fourth quarter ended December 31, 2010 were approximately $6.2 million versus an approximate $6.5 million for the comparable period last year. During the fourth quarter of 2010, we recognized a non-recurring impairment loss of approximately $1.3 million; resulting in a net loss of approximately $(1,369,000) or $(0.08) per share as compared to net income of approximately $27,000 or $.00 per diluted share in the same period last year. The aforementioned impairment loss was the result of our annual evaluation of the future outlook of our patent related to our SEER product line, after which we determined that the asset value was fully impaired; we further calculated the impairment loss to be approximately $1.3 million.

Revenues for the year ended December 31 were approximately $24.2 million versus an approximate $26.9 million for the comparable period last year; resulting in an approximate net loss of $(1,535,000) or $(0.09) per share as compared to an approximate net income of $595,000 or $.03 per diluted share in the same period in the prior year. The decrease in revenues for the year was primarily due to a decline in OEM sales of approximately $3.6 million. The decrease in sales was partially offset by increased domestic and international electrosurgical generators and cauteries sales; with international sales spiking to a record exceeding $5 million. Net loss includes non-recurring expenses of approximately $1.3 million relating to asset impairment, a $300,000 loss on the sale of our St. Petersburg, Florida property and $100,000 on the closing of the Canadian facility. In addition, there were increased professional and consulting fees totaling $145,000.

Andrew Makrides, chief executive officer of Bovie Medical, stated, “The Company continues to place great effort and resources into the development of J-Plasma having submitted a 510k application to the FDA for a new handpiece with retractable cutting features used in both laparoscopic and open procedures. Since the outset of the current fiscal year, surgeons in diverse specialties have evaluated J-Plasma and the feedback received is most encouraging. While awaiting 510k clearance, J-Plasma developmental progress has far exceeded our expectations and management is convinced that its market potential will be the prime engine of Bovie’s future growth.”

Mr. Makrides continued, “We have increased our sales and marketing efforts with the engagement of over 50 commission-based direct sales representatives. The sales of our Resistick II™ coated blades and the initial orders of our laparoscopic instruments through this network have been encouraging.”



Work and additional testing in support of the application process for 510K clearance to market the J-Plasma™ handpiece with retractable cutting features continues to progress.

The combination of J-Plasma™ energy with an extendable knife allows the surgeon to cut as well as reduce tissue bleeding without the need of a grounding pad. By using a single, multi-modal instrument, the Company believes surgeons will reduce their operating time and lower the cost of a procedure.

Vessel Sealing

The Seal-N-Cut™ is going through additional testing and due to recent device design improvements and we currently anticipate that we will be re-submitting an application for 510k clearance in the third quarter of 2011. The vessel sealing market continues to be among the fastest growing markets of electrosurgery.

Disposable Laparoscopic Instruments and Coated Blades

Bovie’s more than 50 independent sales representatives have recently commenced marketing the laparoscopic instruments with what we view as a positive market response. Sales of Resistick™ II and the coated blades product lines continue to increase since their introduction several months ago.

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. 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




(in thousands, except per share amounts)
  Three Months Ended

December 31,

  Year Ended

December 31,
2010 2009 2010 2009
Revenues $6,233 $6,533 $24,230 $26,953
Cost of Sales $3,550 $3,739 $14,242 $15,099
Gross Profit $2,683 $2,794 $9,988 $11,854
Costs & Expenses $2,911 $2,783 $11,454 $11,139
Asset Impairment $1,286 - - - - - $1,286 - - - - -
Gain (Loss) from operations $(1,514) $11 $(2,752) $715
Other income (expense):
Interest (net of expense) $(54) $(53) $(223) $(52)
Other Gain (loss) $(285) - - - - - $513 - - - - -
Income (loss) before income taxes $(1,853) $(42) $(2,462) $663
Income Taxes (Provision) Benefit $484 $69 $927 $(67)
Net Income (loss) $(1,369) $27 $(1,535) $595
EPS (loss) Basic (.08) .00 (.09) .04
EPS (loss) Diluted (.08) .00 (.09) .03
Weighted average shares 17,561 16,951 17,367 16,899

Weighted average shares adjusted for dilutive securities
17,561 17,922 17,367 17,836

Copyright Business Wire 2010