Bovie Medical Corporation Reports Financial Results for the Second Quarter 2007; Begins Shipments of ICON GI.MELVILLE, N.Y. -- Bovie Medical Corporation (the "Company") (Amex: BVX BVX Bulk Viscosity of Xenon ), a manufacturer and marketer of electrosurgical products, today announced its financial results for the second quarter and six months ended June 30, 2007. Revenues for the second quarter increased 10% to a quarterly record $7.4 million versus $6.7 million recorded for the second quarter 2006. *Net income for the second quarter was $1,067,991 (includes $453,674 net deferred income tax benefit) or $.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on 17,752,431 shares compared to $712,810 or $.04 per diluted share on 17,129,404 shares for the comparable period last year. Income before minority interest and income tax for the second quarter of 2007 was $614,317 compared to $722,810 in 2006. Revenues for the first six months of 2007 increased 11% to a record $14.1 million versus $12.7 million recorded for the first six months of 2007. *Net income for the first six months was $1,648,177 (includes $599,473 net deferred income tax benefit) or $.09 per diluted share on 17,781,383 shares compared to $1,402,940 or $.08 per diluted share on 16,957,670 shares for the comparable period last year. Income before minority interest and income tax for the six months ended June 30, 2007 was $1,048,704 versus $1,417,940 last year. * In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , the Company has recognized a current net deferred income tax asset of $453,674 in the second quarter and $599,473 for the first six months of 2007 due to management's belief that the Company will most likely utilize all of the remaining balance of its net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carryforward in the near future, prior to any portion expiring. As a result, and assuming the Company continues to generate positive operating results, subsequent quarterly net income will not be offset by a tax benefit as GAAP rules required the recognition of the whole amount of the asset in the current reported period. The Company does not anticipate paying any income taxes other than those arising from the alternative minimum tax, until it fully utilizes its operating loss carryforwards in late 2008. Management believes for analysis purposes, until the tax loss carryforward tax loss carryforward See carryforward. is fully utilized, an appropriate measure of the Company's financials is its income before minority interest and incomes taxes. The decrease in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the second quarter was primarily attributable to a $168,800 or 63.2% increase in R & D costs as well as a $78,500 or 64.9% increase in professional fees. The increased expenses are mainly due to costs related to the final stages of software validation The certification that an information system has been implemented correctly and that it conforms to the functional specifications derived from the original requirements. Such validation is often performed by a third party consulting organization. for the ICON GI, for new product development along with related patent costs, and legal expenses associated with new transactions. Andrew Makrides, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Bovie Medical Corp., stated, "We continue to make progress in the design and development of our new products including the initial shipment of Bovie's ICON GI targeted for the gastroenterology gastroenterology Medical specialty dealing with digestion and the digestive system. In the 17th century Jan Baptista van Helmont conducted the first scientific studies in the field; William Beaumont published his own observations in 1833. market. Management considers the advances in Bovie's MEG and Polaris[TM] hand held instrument product lines as playing a key role in the Company's future growth. Marketing of the MEG is anticipated in late 2007 and Polaris[TM] in the first half of 2008. The Company is having ongoing discussions with potential strategic partners for these and other products, which may lead to beneficial collaborative manufacturing and marketing agreements." In other news, the Company announced it will be speaking at the Flaherty Financial News/ Wall Street Research Small Cap Conference in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. (www.flahertyfinancialnews.com) on Tuesday, August 14th as well as the Red Chip New York City Small-Cap Investor Conference (www.redchip.com) on Thursday, August 16th. This document may contain some forward looking statements, particularly regarding operational prospects in 2007 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. [TABLE OMITTED] |
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