Oculus Innovative Sciences' CEO Discusses F1Q13 Results - Earnings Call Transcript

Oculus Innovative Sciences, Inc. (OCLS)

F1Q13 Earnings Call

August 2, 2012 04:30 PM ET


Dan McFadden – Director Public and IR

Hoji Alimi – Founder and CEO

Greg Gust – Analyst

Bob Miller – CFO


Laura Engel – Stonegate

Echo He – Maxim Group

Jack Wallace – Sidoti & Company

Bob Robbins – Robbins Capital Management

Prashant Mehta – NetGain



Good afternoon and welcome to the Oculus Innovative Sciences fiscal first quarter 2013 conference call. My name is Stefani and I will be your coordinator for today's call. AT this time all participants are in a listen-only mode. At the end of the call we will be holding a question-and-answer session with the company management. (Operator Instructions) As a reminder, this call is being recorded for replay purposes. I will now turn the call over to Mr. Dan McFadden. Please proceed sir.

Dan McFadden

Thank you Stephanie. Good afternoon and thank you for joining us. With me on the call are our Founder and CEO, Hoji Alimi, Mr. Greg Gust, dermatology industry analyst and our Chief Financial Officer, Bob Miller. We will open the call with Hoji’s discussion of the business highlights since the last earnings call and the company's execution on a strategic business plan. Next Mr. Gust will provide an overview of the dermatology markets and the role that Microcyn based products can play in these areas. Finally Bob Miller will review the financials and then we will take the questions.

This afternoon Oculus issued a press release detailing fiscal first quarter 2013 financial results and recent corporate developments. A copy of the press release can be downloaded from our website which is www. oculusis.com/ or you can call Investor Relations at 425-753-2105 and we’ll be happy to assist you.

Before we begin I'll remind listeners that this conference call contains forward-looking statements within the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by use of words as expect, to expand, would and anticipate amongst others. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially including risk inherent in the development and commercialization of potential products, the risk that potential clinical studies or trials will not proceed as anticipated or may not be sufficient or successful to meet regulatory standards, or receive the regulatory clearances or approvals, the company’s future capital needs and its ability to obtain additional funding and other risks detailed from time to time in the company’s filings with the Securities and Exchange Commission including the Quarterly Report on Form 10-Q and the Annual Report on Form 10-K. Identified product applications and/or uses are intended to highlight potential applications for the investment community and does infer that the company's market in for these indications. The company does not provide any assurances that such applications will receive regulatory approvals and Oculus disclaims any obligation to update these forward-looking statements.

Having said that, I will now turn the call over to Hoji Alimi, CEO and Founder.

Hoji Alimi

Thank you. Good afternoon. I am Hoji Alimi, CEO and Co-Founder of Oculus. And today on the call we have Greg Gust, former analyst with knowledge of the dermatology markets as well Bob Miller our CFO on the call with me.

As many of our shareholders are aware, Microcyn based products have commercialized both domestically as well as also in the United States to a number of partners with exception of obviously Mexico where we have our own direct sales force. These types of collaborative partnership strategy has helped generated record revenue quarter for Oculus with the highest revenues in our history which we reported revenues up 4.1 million and we were only 22,000 negative to reach EBITDA breakeven.

In the key timeframe we have signed a drug partner for the acne indication. We have initiated a scar management trial as well a cost reduction asserting to support the sale of wound care products in the United States in the hospital markets. And we are seeing a strong brand; I should say in the US dermatology sale of our products and as our partner is moving dermatologists from trialing the products to adopting the products. But all in all, a very highly strong quarter for us. A very meaningful market (ph) that we can truly point to that is going to create shareholder values.

During this quarter, we also initiated a clinical trial for scar management. This indication is already partnered with Amneal Quinnova and once the trial is completed and we receive the FDA clearance for that indication, and Amneal Quinnova will be in best Oculus for the cost of this trial, but more importantly is sales force will be ready to launch horoscope management in the US market.

In this trial we are targeting to enroll 40 patients, primarily to evaluate their scar improvements and we are using this according to monotype Vancouver scar scale or be refer to as VSS. The Oakland enroll our first patient pretty much (inaudible) and a target completed trial is in the first half of the next calendar year. So we view this as a potential catalyst for next year.

In addition, we are successfully as I said, I mentioned earlier executed an acne drug agreement with AmDerma. Based on this agreement, they will drive and all the necessary clinical trials and regulatory efforts regarding this acne indication. The agreement includes payments associated with the successful completion of each milestone and Greg Gust on this call will take a few minutes to explain the market and how Microcyn Technology can play a role in that market for treatment of acne. Looking forward, Oculus has established minimum revenue targets associated with each partner and these minimums increase each year as a commercialization of our products mature over time. All in all today, there are over 40 products in the US consumer markets, three in the US dermatology markets and seven products in the US acute hospital markets and we have well over 20 different products in international markets commercially.

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