Bovie Medical Corporation Announces Second Quarter Financial Results; Revenues Increase 16% Over Previous Year, Receives $2.6 Million OEM Electrosurgical Generator Commitment

Bovie Medical Corporation (the “Company”) (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the second quarter and six months ended June 30, 2011.

Revenues for the quarter ended June 30, 2011 increased 16% to $6.8 million versus $5.9 million for the comparable period last year. Net income was $429,000 or $.02 per diluted share compared to a net income of $56,000 or $.00 per share in the same period last year.

Revenues for the six months ended June 30, 2011 increased 13% to $13.0 million versus $11.5 million for the comparable period last year. Net income was $921,000 or $.05 per diluted share compared to a net loss of $(170,000) or $(.01) per share in the same period last year. Revenues continued to be positively impacted by increased OEM generator sales as well as higher disposable electrode sales. This improved product mix increased gross profit margins 2.2% for the first six months of 2011, which combined with cost reductions and a $750,000 gain from a litigation settlement helped to increase the Company’s cash position to over $5.7 million as of June 30.

In other news, the Company received a $2.6 million commitment from an OEM customer to manufacture electrosurgical generators with delivery slated to begin later in the year. Bovie has also received initial orders resulting from its exclusive distribution agreement for the sale of a new next-generation medical lighting product entry.

Andrew Makrides, Chief Executive Officer of the Company stated, “We are pleased with the revenue increase the Company achieved in the second quarter and first six months of the year. We are also very encouraged by the positive surgeon response regarding our J-Plasma™ technology, as we await 510K clearance to market the handpiece. Management believes that with the substantial advancements made on J-Plasma™ and with its significant potential for use in several surgical specialties, Bovie is primed to become a potential leader in plasma surgery.”

NEW PRODUCT UPDATE

As announced previously, Bovie has joined with an outside regulatory consulting firm to assist in preparing and filing 510K applications. Changing procedures at the FDA and lengthier average times for obtaining regulatory clearances have caused management to retain the firm. As a result, and with the firm’s assistance, Bovie submitted a new 510K application for the J-Plasma™ handpiece, having also been advised that the process toward clearance would be expedited by the resubmission.

Vessel Sealing and 1450 Generator

The Company is in the final stages of completing the necessary testing and paperwork in order to submit new vessel sealing and Bovie 1450 electrosurgical generator 510k applications to the FDA. By working with the regulatory consulting firm, the Company anticipates a more streamlined and faster 510k submission and clearance process.

Cautionary Note on Forward-Looking Statements

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 including the Company’s Report on Form 10-K for the year ended December 31, 2011. 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
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2011 AND 2010
(unaudited)
 
 

Three Months Ended
 

Six Months Ended

June 30,

June 30,
 
2011   2010 2011   2010
 
Revenues $ 6,841 $ 5,897 $ 12,995 $ 11,496
Cost of sales $ 3,796   $ 3,581   $ 7,517   $ 6,895  
 
Gross profit $ 3,045 $ 2,316 $ 5,478 $ 4,601
 
Gain from settling of litigation

 

--
 

 

--
  $ 750  

 

--
 
 
Total other costs & expenses $ 2,496   $ 3,107   $ 5,093   $ 5,724  
Income (loss) from operations $ 549

$

(791

)
$ 1,135 $ (1,123 )
 
Change in fair value of liabilities, net $ 107 $ 617 $ 248 $ 617
 
Interest (expense) income, net

$

(46

)

$

(67

)

$

(98

)
$

(111
)
 
Income (loss) before income taxes $ 610 $ (241 ) $ 1,285 $ (617 )
 
Provision for current income taxes

 

--
 

 

--
 

 

--
 

 

--
 
 
Benefit (provision) for deferred income taxes $ (181 ) $ 297   $ (364 ) $ 447  
 
Net (loss) income $ 429 $ 56 $ 921 $ (170 )
 
Earnings (loss) per share
Basic 0.02 -- 0.05 (0.01 )
Diluted 0.02 -- 0.05 (0.01 )
 
Weighted average number of shares outstanding 17,600 17,377 17,587 17,171
 
Weighted average number of shares outstanding adjusted for dilutive securities 17,827 17,874 17,829 17,171

Copyright Business Wire 2010

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