MELVILLE, N.Y.--()--Bovie Medical Corporation (the “Company”) (NYSE Amex: BVX), a manufacturer and marketer of electrosurgical products, today announced its financial results for the first quarter ended March 31, 2010.
“Growthink has the expertise and relationships within the medical device industry that can enhance our new product development and revenues with the ultimate goal of increased shareholder value.”
Revenues for the quarter ended March 31, 2010 totaled $5,599,107 versus $7,217,324 for the comparable period last year; resulting in net loss of $(225,774) or $(0.01) per diluted share as compared to net income of $403,266 or $.02 per diluted share in the same period in the prior year. While OEM business declined and is difficult to predict, the Company anticipates an improvement in non-OEM and new product sales.
The Company also announced today that it has retained Growthink Securities, Inc. to assist Bovie as its strategic consulting, business planning and financial advisor in connection with developing various sales and marketing strategies, any potential financing and/or sale transaction, related to one or more of Bovie’s medical device product lines. Growthink services include strategic business planning consulting, investment banking, market research, feasibility studies and private equity investing.
NEW PRODUCT ACTIVITIES
Andrew Makrides, president of Bovie, stated, “While management is disappointed in the first quarter’s results, we continue to work to improve the Company’s bottom line by cutting costs and increasing efficiencies. The Company remains optimistic regarding its future prospects and its new proprietary products targeted towards the higher margin hospital, surgi-centers and specialty markets. Recent progress with our Sintered Steel technology highlighted by FDA clearance of the soon to be launched BOSS™ device, adds to our optimism. Pre-clinical testing for the Seal-N-Cut™ vessel sealing instrument line has been scheduled to collect data for a 501k submission, while plans for marketing the product are moving forward. J-Plasma, a product with multi-market potential, is advancing toward market availability during 2010.
We understand shareholder impatience and frustration with perceived delays in new product introductions into the marketplace. However, the lengthy process of developing new technologies into new products is often the result of regulatory hurdles that must be overcome. Additionally, our recent $3.0 million private placement will be directed at marketing our new products, while not precluding a large company collaboration.”
Commenting on the Growthink relationship, Mr. Makrides added, “Growthink has the expertise and relationships within the medical device industry that can enhance our new product development and revenues with the ultimate goal of increased shareholder value.”
The proprietary Sintered Steel technology is a stainless steel sponge that allows saline to flow through it in conjunction with radiofrequency energy creating a stick-resistant coagulation effect minimizing bleeding during surgery. Bovie’s first commercialized sintered device, SEER™ is a single-use monopolar electrosurgical electrode used for dissection and coagulation of soft tissue.
Bovie received a 510k marketing clearance for BOSS™, a bipolar sintered steel electrocautery device in late March of this year and has commenced marketing of the product. The BOSS™ device will be primarily targeted to orthopedic surgeons performing hip and knee arthroplasty procedures; a market comprised of approximately 1.1 million procedures performed in the US annually. The estimated worldwide market for the sintered steel technology is in excess of $500 million.
The Company recently received 510(k) clearance to market its ICON™ VS generator designed to perform vessel sealing procedures, while providing both monopolar and bipolar energy options to the surgeon. The clearance of the ICON™ VS generator allows the Company to complete testing required for a 510(k) Seal-N-Cut™ instrument submission. Bipolar vessel sealing and coagulation is one of the fastest growing markets in electrosurgery, estimated to exceed $1 billion in revenues worldwide.
The manufacturing and development of multiple units has commenced with the goal of distributing to physicians and surgeons in various specialties. We are studying the possibilities of our plasma technology being useful in promoting wound healing, viral eradication and oncologic applications. Bovie anticipates J-Plasma™ systems will be available for sale this fiscal year.
In other news, the Company announced it will be attending the Jefferies 2010 Global Life Sciences Conference to be held at The Grand Hyatt in New York City on June 8-11, 2010. Bovie’s presentation will be Friday, June 11th from 2:15PM-2:45PM.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company’s filings with the Securities and Exchange Commission. For forward-looking statements in this new release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
About Growthink, Inc.
Growthink is an integrated investment banking, strategy consulting, and venture investing firm. Founded in 1999, Growthink has worked with more than 2,000 clients, including start-ups, small and medium-sized businesses, venture capital firms, Fortune 1,000 companies, and other organizations. GT Securities, the firm's subsidiary, provides one-of-a-kind investment banking services, a platform that combines hands-on management support, business sector experience, and transactional expertise. Growthink specializes in medical device and healthcare technology engagements. For more information about Growthink, please refer to the Company’s website. www.growthink.com
For further information about the Company’s current and new products, please refer to the Investor Relations section of Bovie’s website www.boviemedical.com.
|BOVIE MEDICAL CORPORATION|
|CONDENSED STATEMENTS OF OPERATIONS|
|FOR THE THREE MONTH PERIOD|
Three Months Ended
|Cost of sales||$||3,314,324||$||3,897,510|
|Total costs & expenses||$||2,616,963||$||2,777,156|
|Income (Loss) from operations||$||(332,180||)||
|Interest (Expense) income, net||$||(43,594||)||$||67,608|
|Income (Loss) before income taxes||$||(375,774||)||$||610,266|
|Total benefit (Provision) for income taxes-net||$||150,000||$||(207,000||)|
|Net Income (Loss)||$||(225,774||)||$||403,266|
Earnings (Loss) per common share
|Weighted average number of shares outstanding||16,962,610||16,852,994|
|Weighted average number of shares outstanding adjusted for dilutive securities-*no dilutive shares||16,962,610*||17,777,738|