BOULDER, Colo., Nov. 6, 2018 /PRNewswire/ -- Encision Inc. (PK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous stray electrosurgical burns in minimally invasive surgery, today announced financial results for its fiscal 2019 second quarter that ended September 30, 2018.
The Company posted quarterly net revenue of $2.20 million for a quarterly net income of $12 thousand, or $0.00 per diluted share. These results compare to net revenue of $2.16 million for a quarterly net income of $116 thousand, or $0.01 per diluted share, in the year-ago quarter. Net revenue for last year's quarter included net revenue of $74 thousand from an order for non-AEM product. Gross margin on net revenue was 55% in the fiscal 2019 second quarter and 58% in the fiscal 2018 second quarter. Gross margin on net revenue was lower in the current quarter as a result of product mix and higher material cost.
The Company posted six months net revenue of $4.60 million for a six months net income of $31 thousand, or $0.00 per diluted share. These results compare to net revenue of $4.53 million for a six months net income of $298 thousand, or $0.03 per diluted share, in the year-ago six months. Net revenue for last year's six months included net revenue of $329 thousand from an order for non-AEM product. Gross margin on net revenue was 54% in the fiscal 2019 six months and 58% in the fiscal 2018 six months. Gross margin on net revenue was lower in the current six months as a result of product mix and higher material cost.
"We had strong AEM product revenue growth of 5% year over year and posted a modest profit for the quarter," said Greg Trudel, President and CEO of Encision Inc. "The increase of sales and marketing expense reflects the costs of increased direct sales representation, higher commissions on higher revenue, and higher commission rates on exceeded quotas. The investment to fortify our sales channel with direct sales representation to fill strategic gaps and supplant underperforming distribution relationships is showing promising results and we look forward to developing that strata further. Our sales team continues to deliver new account conversions and we are excited over the growing pipeline and sales momentum."
CONTACT: Mala Ray, Encision Inc., 303-444-2600, [email protected]
SOURCE Encision Inc.
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