Bovie Medical Corporation Announces Second Quarter and Six Month Financial Results.Secures $5 Million Line of Credit Commitment from RBC Centura RBC Centura is the U.S. retail banking division of Royal Bank of Canada (RBC). The bank's headquarters are located in Raleigh, North Carolina. It was acquired by RBC in 2001. Services include banking, investment, loan, mortgage, and life insurance. Bank MELVILLE, N.Y. -- Bovie Medical Corporation (the "Company") (Amex: BVX BVX Bulk Viscosity of Xenon ), a manufacturer and marketer of electrosurgical products, today announced second quarter and six month results for the period ended June 30, 2008. Second quarter revenues were $6,985,312 compared to $7,439,380 recorded in the same period of 2007. *Net income was $1,430,220 or $.08 per diluted share versus net income of $1,067,991 or $.06 per diluted share in the prior year. Revenues were impacted by a decline in OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and business; however based on orders received, the Company anticipates an increase in OEM business for the remainder of the year. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased to 41.5% due to improved product mix relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc higher sales of products other than OEM. Research & Development costs rose 34% in the second quarter as a result of several products under development. Six month revenues were $13,662,879 compared to $14,142,243 reported during the first six months of 2007. *Net income totaled $1,620,664 or $.09 per diluted share versus net income of $1,648,177 or $.09 per diluted share comparable period last year. The OEM sales decline was partially offset by a 29% increase in international sales in the first six months of 2008. This trend is expected to continue for the year. *The Company realized other income totaling $1,504,580, which included $1,495,634 in the second quarter for acquiring intellectual property in a non-monetary exchange from a contract settlement as well as $8,946 interest income. New Products Update: * FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. clearance and CE Mark to market MEG line of instruments in U.S. and abroad. * Initiated marketing of Canady Argon argon (är`gŏn) [Gr.,=inert], gaseous chemical element; symbol Ar; at. no. 18; at. wt. 39.948; m.p. −189.2°C;; b.p. −185.7°C;; density 1.784 grams per liter at STP; valence 0. Plasma probes. * Submitted 510(k) application for ICON GP generator to be used in general surgery and in conjunction with the Company's Polarian vessel sealing instruments currently being developed. * Made significant advances in the development of the SEER resection technology, for initial uses in liver surgery, to be followed by applications in additional surgical procedures characterized by attractive markets and margins. * Advances continue to be made in the ICON GS Plasma generator with plans for a 510(k) submission in the near future. Andrew Makrides, president of Bovie, stated, "During the second quarter, Bovie made progress in the development of our new products highlighted by the acquisition of the SEER tissue resection device. The second half of 2008 will feature product development and new sales in the U.S. and abroad." In other news, the Company has secured a commitment for a $5.0 million line of credit from RBC Centura Bank. This new revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. will replace the prior $1.5 million unused credit line with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. . Gary Pickett, CFO See Chief Financial Officer. of Bovie, commented that the Company considers this new banking relationship as another milestone. RBC Centura shares our vision in the future and the significant opportunities available to our Company. This document may contain some forward looking statements, particularly regarding operational prospects in 2008 and beyond, which involve a number of risks and uncertainties that could cause actual results to differ materially. These risks are listed from time to time in the Company's SEC filings. www.boviemedical.com [TABLE OMITTED] |
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