BOVIE REPORTS 2ND QTR NET LOSS OF $118,337 IN REVENUES.
Revenues for the second quarter of FY2005 totaled $5.05 million resulting in a loss of $(118,337). For the comparable period last year the company reported revenues of $5.26 million and net income of $404,547 or $.03 per diluted share. Revenues for the first six months of FY 2005 total $9.81 million compared to $10.0 million reported one year ago. The company reported a net loss of $(29,314) for the six-month period ended June 30, 2005 versus net income of $644,376 or $.04 per diluted share for the comparable period last year. As previously announced, sales were in line with our expectations reflecting the impact of reduced orders from one of our larger OEM customers. The lower sales from this customer were partially offset by new business. Net income was adversely impacted by the company's accelerated commitment towards the commercialization of its suture removal device, G.I. Device and J-Plasma technology. Additionally, there were higher costs relating to the expansion and acceleration of our marketing efforts both domestically and internationally, together with a dramatic increase in insurance premiums. On a positive note, initial orders from a major medical company, previously anticipated in the third quarter should be reflected in late 2005 with significant impact expected in FY 2006.
Commenting on the second quarter results, Andrew Makrides, president of Bovie Medical, stated, "Our emphasis in 2005 has been to commit substantial resources towards commercializing proprietary products and technologies to be released under the Bovie name, which should translate into higher profit margins as well as diversifying our customer base. We continue to review new OEM design and manufacturing opportunities with current and new customers.
Marketing of the company's new products has experienced slight delays which is a direct result of Bovie's continued efforts to improve and refine both the Suture Remover and G.I. Device. Management remains enthusiastic regarding the successful marketing and potential of these products. Management is pleased with the progress being made in the development of J-Plasma and, while costly, continues to believe this technology can be a significant factor to Bovie's growth potential."
The J-Plasma technology utilizes a gas ionization process creating a ultra-violet beam which allows the surgeon to control temperatures and intensities, resulting in precision, minimal invasiveness and an absence of conductive currents during a medical procedure. Initial markets being targeted include dermatology, plastic surgery and gastroenterology. In unrelated news, the company has accepted the resignation of Charles Peabody, its CFO effective August 12, 2005. For more information, call 800/940-9087.
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|Title Annotation:||Bovie Medical Corp.|
|Comment:||BOVIE REPORTS 2ND QTR NET LOSS OF $118,337 IN REVENUES.(Bovie Medical Corp.)|
|Publication:||Biotech Financial Reports|
|Date:||Oct 1, 2005|
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