Bovie Medical Corporation Reports Results For Three And Nine Months Ended September 30, 2012

Bovie Medical Corporation (the “Company”) (NYSE MKT: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the third quarter and nine months ended September 30, 2012.

Revenues for the third quarter of fiscal 2012 ended September 30, 2012 increased 6.6% to $6.67 million when compared to $6.26 million in the same period last year. Net loss for the third quarter of fiscal 2012 was $(7,000) or $.00 per diluted share versus net income of $63,000 or $.00 per diluted in the third quarter of fiscal 2011.

For the nine months ended September 30, 2012, revenues increased 8.3% to $20.84 million when compared to $19.25 million in the same period last year. Net income for the first nine months of 2012 was $331,000 or $.02 per diluted share versus $984,000 or $.06 per diluted in the first nine months of fiscal 2011, which included the receipt of a one-time payment of $750,000 as part of a legal settlement agreement in the first nine months of fiscal 2011.

Third quarter revenues were positively impacted by increased electrosurgical generator sales both domestically and internationally as well as increased medical lighting sales compared to the previous year. Gross profit margin increased 1.7% during the quarter mainly attributable to increased sales of higher margin products.

In addition to the condensed statement of operations, which are presented in accordance with GAAP, we have included a pro-forma of income from operations for the nine months ended September 30, 2011, which excludes the legal settlement gain from 2011 for comparative purposes.

J-Plasma™ Update

The Company continues to make progress with the marketing of J-Plasma™. Training of independent sales representatives covering over half of the United States has been completed with additional representatives having been identified for the remainder of the country.

Bovie attended the 41 st AAGL Global Congress on minimally invasive gynecology in Las Vegas, Nevada, November 5 th-9 th, which is attended annually by over 2,000 gynecologists from throughout the world.

The Company’s participation at the AAGL conference reinforced management’s confidence in J-Plasma’s™ and its belief that it will have a considerable impact on Bovie’s future growth. At the conference, Bovie contributed to labs specializing in traditional surgical techniques, as well as introducing new surgical techniques. This was the first time Bovie participated in these specialized labs, which are traditionally reserved for much larger medical device companies.

With this additional exposure, Bovie personnel engaged surgeons from around the world as well as from many of the most prestigious teaching hospitals in the United States. The interest expressed by surgeons this year far exceeded that of last year and has resulted in a growing list of qualified leads. The Company will promptly commence evaluations with these surgeons. Management expects continued successes from these surgical evaluations and anticipates increased sales going into early 2013 and beyond.

J-Plasma™ is formed by passing helium over Bovie’s proprietary electrode, which is held at high voltage and high frequency, producing a luminous discharge beam. The electrode is in the form of a retractable surgical blade, providing multiple modes of operation in a single instrument. The extended surgical blade can be used for incisions and other cutting procedures, and when retracted, the blade is used to form the J-Plasma beam for coagulation. The extended blade can also be used in combination with the J-Plasma beam, providing an enhanced cutting capability with minimal impact on surrounding tissue.

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.boviemed.com.

Bovie Medical Corporation
Condensed Statements of Operations
For the Three and Nine-Month Periods
(unaudited) (in thousands, except for per share amounts)
 
  Three Months Ended     Nine Months Ended     Nine Months Ended
September 30,
September 30, September 30, 1 Pro Forma
 
2012   2011 2012   2011 2012   2011
     
Sales $ 6,671 $ 6,256 $ 20,843 $ 19,252 $

20,843

 
$

19,252

 
Cost of Sales   3,777       3,650     12,297       11,167     12,297       11,167  
 
Gross Profit 2,894 2,606 8,546 8,085 8,546 8,085
 
Gain from settlement of litigation - - - 750 - -
 
Other costs   2,612       2,358     7,628       7,452     7,628       7,452  
 
Income from operations 282 248 918 1,383   918       633  
 
Other income (expense):
Interest (Net of expense) (58 ) (42 ) (175 ) (141 )
Change in fair value of liabilities, net   (135 )     (67 )   (108 )     181  
 
Income before income taxes 89 139 635 1,423
 
Income taxes (provision)   (96 )     (76 )   (304 )     (439 )
 
Net income (loss)   (7 )     63     331       984  
EPS Basic 0.00 0.00 0.02 0.06
EPS Diluted 0.00 0.00 0.02 0.06
 
Weighted average shares
Outstanding-Basic 17,634 17,601 17,628 17,592

Weighted average shares adjusted for dilutive securities
17,634 17,774 17,731 17,807

 

1 In addition to the condensed statement of operations which are presented in accordance with GAAP, we have included a Pro-forma of Income from operations for the nine months ended September 30, 2011, which excludes the legal settlement gain from 2011 for comparative purposes.

Copyright Business Wire 2010

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