News Releases

Escalon® Medical Corp. Reports First Quarter Fiscal 2015 Results

Nov 14, 2014

ARDMORE, Pa., Nov. 14, 2014 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC) today announced its operating results for its fiscal 2015 first quarter ended September 30, 2014.  

For the quarter ended September 30, 2014, the Company reported a net loss of $458,959 and a net loss from continuing operations of $440,196, or $0.06 per share.  This compares to net income of $13,241 for the first quarter of fiscal 2014 and net income from continuing operations of $38,846

For the first quarter of fiscal 2015, consolidated product revenue declined to $2.6 million from $3.1 million in the year ago period primarily as a result of declines in sales of the Company's Sonomed Escalon Ultrasound and Digital products.  Product sales have fluctuated as the Company updates its product offering.  In addition, the Company noted that the first quarter of last year was a particularly strong quarter for sales.

For the first quarter of fiscal 2015, margins decreased to 48.0% from 50.3% in the prior year period due to lower revenue and decreased margin in ultrasound products due to reduced pricing on older products in anticipation of the transition to new of higher margin products.  Marketing, general and administrative expenses increased by 13.6% in the quarter primarily due to increased expenditures on upcoming sales campaigns to support new and updated products as well as added sales people and production and product quality management.  Research and development expenses for the first quarter of fiscal 2015 were relatively flat at $324,277 compared to $323,190 in the prior year period.

At September 30, 2014, the Company had $1.5 million of cash and no long-term debt.  Inventory stood at $2.8 million at September 30, 2014. 

"While fiscal 2015 is off to a slow start, the first quarter is typically our weakest," commented Chief Executive Officer, Richard J. DePiano, Jr.  "Sales and margins continued to be hampered by the transition to new products, which involved the discounting of our older product inventory as well as the distribution of demonstration devices to our distributors."

"Looking ahead, we believe we have effective plans in place to drive top-line growth.  We remain focused on improved organizational efficiency and are also in the process of revitalizing our sales organization.  We have recently brought on a Director of Domestic Sales and will add to our internal sales team to help leverage our US distribution network.  Our extensive European distribution channels also now have access to our new products, including the VuPad™ and VuMAX® HD."

Mr. DePiano concluded, "We are confident that our investment in our ophthalmic diagnostics instrumentation and ultrasound solutions will begin to yield results in the months to come.  New products were well received at the recent American Academy of Ophthalmology Annual Meeting in Chicago, and we saw sales accelerate in October.  We will continue to invest in research and development as well as sales and marketing and believe this will lead to improved growth in fiscal 2015 and increased shareholder value long term."

About Escalon Medical  
Founded in 1987, Escalon Medical Corp. (NASDAQ: ESMC) specializes in the development, marketing and distribution of ophthalmic diagnostic imaging and surgical products branded under the Sonomed Escalon name.  Products include a variety of ophthalmic ultrasound, digital imaging and photography, and image management systems as well as surgical products including intraocular gases, fiber optic light guides and sources, and other surgical vitreoretinal instruments.  The Company seeks to grow its ophthalmic business by further developing and diversifying its product offering through internal development programs, strategic partnerships, and the acquisition of technology so as to best leverage the Company's distribution capabilities. The Company has headquarters in Wayne, Pennsylvania and research and development, manufacturing and distribution operations in Lake Success, New York, New Berlin, Wisconsin and Stoneham, Massachusetts.  For additional information visit and

Forward Looking Statements  
This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. These statements are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to: develop, obtain regulatory clearance of and launch new and updated products, implement its growth and marketing strategies; improve upon the operations of the Company including the ability to make acquisitions and the integration of any acquisitions it may undertake, if any, of which there can be no assurance; grow the Company's remaining ophthalmic business unit; improve the Company's financial position; improve the Company's organizational efficiency and revitalize the Company's sales organization; implement cost reductions; generate cash; and identify, finance and enter into business relationships and acquisitions.  Other factors include uncertainties and risks related to: new product development, updating existing products, commercialization, manufacturing and market acceptance of new products; marketing acceptance of existing products in new markets; research and development activities, including failure to demonstrate clinical efficacy; delays by regulatory authorities, scientific and technical advances by the Company or third parties; introduction of competitive products; ability to reduce staffing and other costs and retain benefit of prior reductions; third party reimbursement and physician training, and general economic conditions.  Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10-K for year ended June 30, 2014, and its other filings with the Securities and Exchange Commission, all of which are available from the Securities and Exchange Commission as well as other sources.

--financial tables to follow--



Condensed Consolidated Statements of Operations 

Three Months Ended
September 30,



Revenues, net

$  2,630,320


Costs and expenses:

    Cost of goods sold



    Marketing, general and administrative



    Research and development



       Total costs and expenses



(Loss) income from operations



Other income

     Other income



     Interest income



         Total other income



Net (loss) income  from continuing operations



Net loss from discontinued operations,

      before tax



Income tax expense



Net loss from discontinued operations,

      net of tax



Net loss (income) 

$   (458,959)

$   13,241

Net (loss) income per share, basic and diluted

     Continuing operations

$        ( 0.06)

$           --

     Discontinued operations



      Net (loss)  income

$        (0.06)

$           --

Weighted average shares – basic



Weighted average shares –  diluted




Selected Balance Sheet Data (Unaudited)

September 30, 2014

June 30, 2014

Cash and Cash Equivalents






Working Capital



Total Assets



Total Liabilities



Stockholders' Equity





SOURCE Escalon Medical Corp.

For further information: Richard J. DePiano, Jr, Chief Executive Officer, 610-688-6830; Alison Ziegler, Cameron Associates, 212-554-5469