Encision Reports Fourth Quarter Fiscal Year 2024 Results

BOULDER, CO / ACCESSWIRE / July 15, 2024 / Encision Inc. (OTCPK:ECIA), a medical device company owning patented Active Electrode Monitoring (AEM®) Technology that prevents dangerous radiant energy burns in minimally invasive surgery, today announced financial results for its fiscal 2024 fourth quarter that ended March 31, 2024.

The Company posted quarterly net revenue of $1.53 million for a quarterly net loss of $409 thousand, or $(0.03) per diluted share. These results compare to net revenue of $1.81 million for a quarterly net loss of $93 thousand, or $(0.01) per diluted share, in the year-ago quarter. Gross margin on net revenue was 42% in the fiscal 2024 fourth quarter and 56% in the fiscal 2023 fourth quarter. Gross margin decreased in the current year's fourth quarter compared to last year's fourth quarter due principally to higher material costs and increased inventory reserves.

The Company posted twelve months net revenue of $6.59 million for a twelve month net loss of $692 thousand, or $(0.06) per diluted share. These results compare to twelve months net revenue of $7.35 million for a twelve months net loss of $324 thousand, or $(0.03) per diluted share. Gross margin on net revenue was 48% in the fiscal 2024 twelve months and 55% in the fiscal 2023 twelve months. Gross margin in the fiscal 2024 twelve months was lower due to higher material costs and increased inventory reserves.

"Fiscal 2024 presented significant challenges for us and for the medical device market in general," said Gregory Trudel, President and CEO of Encision Inc. "The market has fundamentally changed because of COVID, and as a small medical device company, we constantly have to generate new ways to engage customers and to drive adoption of our technology. We have had success by offering value added programs that often convert into selling opportunities and we are targeting select customer segments to increase focus and close rates. We also are fighting the conversion of standard laparoscopic procedures to those that are using the robot for procedures. We look forward to fiscal 2025 with a strengthening sales channel, a growing sales pipeline, new collaborative relationships, and a new product introduction that will deliver AEM ^TM Shield Technology to high growth surgical procedures.

Encision Inc. designs and markets a portfolio of high-performance surgical instrumentation that delivers advances in patient safety with AEM technology, surgical performance, and value to hospitals across a broad range of minimally invasive surgical procedures. Based in Boulder, Colorado, the company pioneered the development and deployment of Active Electrode Monitoring, AEM technology, to eliminate dangerous stray energy burns during minimally invasive procedures. For additional information about all our products, please visit www.encision.com.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to develop new or enhanced products and have such products accepted in the market, its ability to increase net sales through the Company's distribution channels, its ability to compete successfully against other manufacturers of surgical instruments, insufficient quantity of new account conversions, insufficient cash to fund operations, delay in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other disclosures appearing in the Company's Annual Report on Form 10-K for the year ended March 31, 2023 and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise.

CONTACT: Mala Ray, Encision Inc., 303-444-2600, [email protected]

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SOURCE: Encision, Inc.