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

J-Plasma™

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.

Vessel Sealing

Tests have demonstrated efficacy in our redesigned and updated vessel sealing technology as we enter the final phases of the 510k re-submission process. Our intention is to deliver a cost effective device with superior performance than what is currently being marketed.

Disposable Laparoscopic Instruments and Coated Blades

Our independent sales force has successfully launched our disposable laparoscopic instruments by receiving both orders and re-orders since the products early March launch. We now have over 50 independent sales reps selling some of our disposable products and anticipate this channel continuing to successfully introduce new products as they become available.

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 www.boviemedical.com.

BOVIE MEDICAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(UNAUDITED) (in thousands, except EPS)
 
March 31, 2011   March 31, 2010
 
Sales $ 6,154 $ 5,599
Cost of sales   3,721   3,314
 
Gross profit 2,433 2,285
 
Gain from settlement of litigation 750 --
 
Total other costs   2,598     2,617
 
Income from operations   585   (332)
 

Change in fair value of liabilities, net

Interest expense, net
  141

(52)
  (44)
 
Income (loss) before income taxes   674   (376)
 
Provision for current income taxes - (1)
Benefit (provision) for deferred income taxes   (182)   151
Total benefit (provision) for income taxes - net   (182)   150
 
Net income (loss) $ 492 $ (226)
 
Earnings (loss) per common share
Basic $ 0.03 $ (0.01)
Diluted $ 0.03 $ (0.01)
 
Weighted average number of shares outstanding   17,575   16,963
 
Weighted average number of shares outstanding adjusted for

dilutive securities – * no dilutive shares
  17,906 16,963 *

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