Escalon Medical Corp. (ESMC, Financial) filed Quarterly Report for the period ended 2009-03-31.
Escalon Medical Corp. develops markets and distributes ophthalmic diagnostic surgical and pharmaceutical products as well as vascular access devices. The company utilizes strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the company's distribution capabilities. Escalon Medical Corp. has a market cap of $12.6 million; its shares were traded at around $1.7 with and P/S ratio of 0.4.
Product revenue decreased $433,000, or 30.0%, to $1,012,000 in the Vascular business segment during the three-month period ended March 31, 2009, as compared to the same period last fiscal year. The decrease in product revenue in the Vascular business segment was primarily related to an increase in sales of Vasculars new VascuView system in the prior year. The VascuView was approved and ready for sale during the third quarter of fiscal 2008 and generated $525,000 in sales during that period.
In the Drew business segment, product revenue increased $3,310,000, or 33.8%, as compared to the same period last fiscal year. The increase in product revenue is related to the acquisition of JAS Diagnostics in May 2009 and Biocode in December 2008. JAS and Biocode generated $1,305,000 and $1,262,000, respectively, in revenue for the nine month period ended March 31, 2009.
In the Vascular business segment, product revenue decreased $217,000, or 6.9%, to $2,908,000 during the nine-month period ended March 31, 2009 as compared to the same period last fiscal year. The decrease in product revenue in the Vascular business segment was primarily related to an increase in sales of Vasculars new VascuView system in the prior year. The VascuView was approved and ready for sale during the third quarter of fiscal 2008 and generated $525,000 in sales during that period.
Other revenue decreased by approximately $18,000, or 36.7%, to $31,000 during the three-month period ended March 31, 2009 as compared to the same period last fiscal year. Other revenue decreased by approximately $57,000, or 37.0%, to $97,000 during the nine-month period ended March 31, 2009 as compared to the same period last fiscal year. These decreases were attributable to decreased royalties from Bio-Rad related to an OEM agreement between Bio-Rad and Drew as a result of lower sales of Drews products in covered areas. While this agreement terminated as of May 15, 2006, the parties have continued to operate under the terms of the expired agreement pending negotiation of a potential extension and/or revision.
Cost of goods sold in the Drew business segment totaled $2,599,000, or 50.9% of product revenue, for the three-month period ended March 31, 2009 as compared to $2,509,000, or 69.5% of product revenue, for the same period last fiscal year. Gross margins in the Drew business segment which have historically been lower than those in the Companys other business segments improved to 49.1% due to the addition of higher margin JAS and Biocode reagent sales.
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Escalon Medical Corp. develops markets and distributes ophthalmic diagnostic surgical and pharmaceutical products as well as vascular access devices. The company utilizes strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the company's distribution capabilities. Escalon Medical Corp. has a market cap of $12.6 million; its shares were traded at around $1.7 with and P/S ratio of 0.4.
Highlight of Business Operations:
In the Drew business segment, product revenue increased $1,495,000, or 41.4%, as compared to the same period last fiscal year. The increase in product revenue is related to the acquisition of JAS Diagnostics in May 2008 and Biocode in December 2008. JAS and Biocode generated $325,000 and $1,262,000 in revenue, respectively, for the three-month period ended March 31, 2009.Product revenue decreased $433,000, or 30.0%, to $1,012,000 in the Vascular business segment during the three-month period ended March 31, 2009, as compared to the same period last fiscal year. The decrease in product revenue in the Vascular business segment was primarily related to an increase in sales of Vasculars new VascuView system in the prior year. The VascuView was approved and ready for sale during the third quarter of fiscal 2008 and generated $525,000 in sales during that period.
In the Drew business segment, product revenue increased $3,310,000, or 33.8%, as compared to the same period last fiscal year. The increase in product revenue is related to the acquisition of JAS Diagnostics in May 2009 and Biocode in December 2008. JAS and Biocode generated $1,305,000 and $1,262,000, respectively, in revenue for the nine month period ended March 31, 2009.
In the Vascular business segment, product revenue decreased $217,000, or 6.9%, to $2,908,000 during the nine-month period ended March 31, 2009 as compared to the same period last fiscal year. The decrease in product revenue in the Vascular business segment was primarily related to an increase in sales of Vasculars new VascuView system in the prior year. The VascuView was approved and ready for sale during the third quarter of fiscal 2008 and generated $525,000 in sales during that period.
Other revenue decreased by approximately $18,000, or 36.7%, to $31,000 during the three-month period ended March 31, 2009 as compared to the same period last fiscal year. Other revenue decreased by approximately $57,000, or 37.0%, to $97,000 during the nine-month period ended March 31, 2009 as compared to the same period last fiscal year. These decreases were attributable to decreased royalties from Bio-Rad related to an OEM agreement between Bio-Rad and Drew as a result of lower sales of Drews products in covered areas. While this agreement terminated as of May 15, 2006, the parties have continued to operate under the terms of the expired agreement pending negotiation of a potential extension and/or revision.
Cost of goods sold in the Drew business segment totaled $2,599,000, or 50.9% of product revenue, for the three-month period ended March 31, 2009 as compared to $2,509,000, or 69.5% of product revenue, for the same period last fiscal year. Gross margins in the Drew business segment which have historically been lower than those in the Companys other business segments improved to 49.1% due to the addition of higher margin JAS and Biocode reagent sales.
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