- U.S. Product Revenue up 43%, Driven by Growth in U.S.
Dermatology
- Oculus Announced Sale of Latin America Assets for $19.5
Million in Cash (see separate press release, issued on October 31,
2016)
- Dermatology Prescriptions Up 17%, September 2016
Quarter over June 2016 Quarter
Conference Call Begins at 4:30pm EST
Today
Oculus Innovative Sciences, Inc. (NASDAQ: OCLS warrants OCLSW), a
specialty pharmaceutical company that develops and markets unique
and effective solutions for the treatment of dermatological
conditions and advanced tissue care, today announced financial
results for the second quarter of fiscal year 2017, ended September
30, 2016.
Total revenue was $4.11 million for the second quarter as
compared to $4.05 million for the same period in 2015. Product
revenues of $3.8 million were up 12% when compared to the same
period last year, driven by strong growth in dermatology and animal
health sales, partly offset by a decrease in international
revenue.
“We have established a strong foundation in dermatology with 22
salespeople, a portfolio of eight prescription products and over
58,000 prescriptions filled at the pharmacy counter since late
2014,” said Jim Schutz, Oculus CEO. “We had our best dermatology
sales quarter to date with 13,739 prescriptions filled, up 17% over
the previous quarter. Net revenue for dermatology in the September
2016 quarter was up 56% over the prior quarter. With this
foundation in place, we are focused on maximizing our revenue
growth in dermatology as we strive towards breakeven. Also, due to
the recent sale of our Latin American business for $19.5 million of
non-dilutive cash, we have more than sufficient cash to achieve
commercial breakeven.”
Product revenues in the United States for the quarter ended
September 30, 2016, of $1.7 million, increased by $511,000, or 43%,
when compared to the same period in the prior year. This increase
was the result of higher sales of the company’s dermatology and
animal health products. Oculus currently has a strong dermatology
product portfolio of eight products for the treatment of atopic and
seborrheic dermatitis, scar management, surgical procedures, an
oral anti-infective for severe acne and Ceramax, which utilizes a
“state of the art” skin repair technology. In addition, sales to a
new animal health care partner increased during the quarter
compared to last year, partially offset by a decline in U.S. wound
care revenue.
Product revenue in Europe and the rest of the world for the
quarter ended September 30, 2016, of $920,000, decreased by $32,000
or 3%, as compared to the same period in the prior year, with
decreases in Europe and Asia, partially offset by increases in the
Middle East and Singapore.
Product revenue in Latin America for the quarter ended September
30, 2016, was $1.2 million, down $74,000 or 6%, when compared to
the same period in the prior year. This decrease was caused by a
15% decline in the value of the peso from the same period in the
prior year, partially offset by a 9% growth in local currency
revenue.
For the three months ended September 30, 2016 and 2015, product
licensing fees and royalty revenues were $75,000 and $339,000,
respectively. The decrease is primarily related to the lower
amortization of upfront payments from the company’s partner,
Invekra, in Latin America.
Oculus reported gross profit of $2.1 million, or 51% of total
revenue, during the three months ended September 30, 2016, compared
to a gross profit of $2.1 million, or 52% of total revenue when
compared to the same period in the prior year. The gross profit
percentage was down slightly compared to last year due to the
reduction in higher-margin license fees and royalty revenue of
$264,000, related to Oculus’ agreement with Invekra.
Total operating expenses of $4 million for the three months
ended September 30, 2016, increased by $74,000, or 2%, as compared
to the same period in the prior year. Operating expenses minus
non-cash expenses during the second quarter of fiscal year 2017
were $3.7 million, up $167,000, as compared to the same period in
the prior year. This increase in operating expenses was due mostly
to sales, marketing and administrative expenses in the United
States related to the growth in the expenses associated with
developing the company’s dermatology markets.
Net loss for the quarter ended September 30, 2016, was $1.9
million, an increase of $186,000 as compared to net loss of $1.8
million for the same period in the prior year. The operating loss
minus non-cash expenses was $1.5 million, up $171,000, compared to
$1.3 million for the same period last year.
As of September 30, 2016, Oculus had unrestricted cash and cash
equivalents of $3.3 million, as compared with $5 million as of June
30, 2016. The company has no material debt outstanding. Due to sale
of Latin American assets, Oculus’s cash position increased $18
million on October 28, 2016 with another $1.5 million expected in
February 2017.
Results for the Six Months Ended September 30,
2016Total revenues of $7.9 million increased by $185,000,
or 2%, for the six months ended September 30, 2016, as compared to
$7.7 million for the six months ended September 30, 2015. Product
revenue of $7.3 million for the six months ended September 30, 2016
increased $1.0 million, or 16%, compared to the same period last
year. This increase in product revenue was driven by strong growth
in the United States, up $1.1 million, or 56%, and Europe and rest
of world, up 29%. Latin American revenue was down 19% with an 18%
decline in the value of the peso.
Oculus reported gross profit related to sales of its products of
$4 million, or 51% of total revenues, for the six months ended
September 30, 2016 and 2015.
Total operating expenses less non-cash expenses increased
$598,000, or 8%, for the six months end September 30, 2016 compared
to the same period in the prior year. This increase was primarily
due to higher costs of the direct sales force for dermatology.
Operating loss less non-cash expenses (EBITDAS) for the six months
ended September 30, 2016, was $3.6 million, compared to $3.0
million for the same period last year.
Conference CallOculus’ management will hold a
conference call today to discuss second quarter fiscal year 2017
results and answer questions, beginning at 4:30 p.m. EST.
Individuals interested in participating in the conference call may
do so by dialing 877-303-7607 for domestic callers or 973-638-3203
for international callers.
Those interested in listening to the conference call live via
the Internet may do so at http://ir.oculusis.com/events.cfm. Please
log on approximately 30 minutes prior to the presentation in order
to register and download the appropriate software.
A telephone replay will be available for seven days following
the conclusion of the call by dialing 855-859-2056 for domestic
callers, or 404-537-3406 for international callers, and entering
conference code 94494840. A webcast replay will be available on the
site at http://ir.oculusis.com/events.cfm for one year following
the call.
About Oculus Innovative Sciences, Inc.Oculus
Innovative Sciences is a specialty pharmaceutical company that
develops and markets unique and effective solutions for the
treatment of dermatological conditions and advanced tissue care.
The company’s products, which are sold throughout the United
States and internationally, have improved outcomes for more than
five million patients globally by reducing infections, itch,
pain, scarring and harmful inflammatory responses. The company's
headquarters are in Petaluma, California, with manufacturing
operations in the United States and Latin America. European
marketing and sales are headquartered in Roermond,
Netherlands. More information can be found at
www.oculusis.com.
Forward-Looking StatementsExcept for historical
information herein, matters set forth in this press release
are forward-looking within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
including statements about the commercial and technology progress
and future financial performance of Oculus Innovative
Sciences, Inc. and its subsidiaries (the “Company”). These
forward-looking statements are identified by the use of words such
as “maximizing,” “achieve,” and “strive,” among others.
Forward-looking statements in this press release are subject to
certain risks and uncertainties inherent in the Company’s business
that could cause actual results to vary,
including such risks that regulatory clinical and
guideline developments may change, scientific data may not be
sufficient to meet regulatory standards or receipt of required
regulatory clearances or approvals, clinical results may not
be replicated in actual patient settings, protection offered
by the Company’s patents and patent applications may be
challenged, invalidated or circumvented by its
competitors, the available market
for the Company’s products will not be as large as
expected, the Company’s common stock and warrants may be delisted
from NASDAQ, the Company’s products will not be able to
penetrate one or more targeted markets, revenues will not be
sufficient to fund further development and clinical studies, the
Company may not meet its future capital needs, the Company may
not be able to obtain additional funding, as well as uncertainties
relative to varying product formulations and a multitude of diverse
regulatory and marketing requirements in different countries and
municipalities, and other risks detailed from time to time in the
Company’s filings with the Securities and Exchange Commission
including its annual report on Form 10-K for the fiscal year
ended March 31, 2016. The Company disclaims any obligation to
update these forward-looking statements, except as required by
law.
Oculus and Microcyn® Technology are trademarks or registered
trademarks of Oculus Innovative Sciences, Inc. All other trademarks
and service marks are the property of their respective owners.
OCULUS INNOVATIVE SCIENCES, INC. AND
SUBSIDIARIESCondensed Consolidated Balance
Sheets(In thousands, except per share amounts)
|
|
September 30, |
|
|
March 31, |
|
|
|
2016 |
|
|
2016 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,254 |
|
|
$ |
7,469 |
|
Accounts receivable, net |
|
|
2,260 |
|
|
|
2,274 |
|
Inventories, net |
|
|
2,085 |
|
|
|
1,640 |
|
Prepaid expenses and other current
assets |
|
|
793 |
|
|
|
1,505 |
|
Total current assets |
|
|
8,392 |
|
|
|
12,888 |
|
Property and equipment, net |
|
|
794 |
|
|
|
850 |
|
Other assets |
|
|
55 |
|
|
|
65 |
|
Total assets |
|
$ |
9,241 |
|
|
$ |
13,803 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,284 |
|
|
$ |
1,337 |
|
Accrued expenses and other current
liabilities |
|
|
1,189 |
|
|
|
1,526 |
|
Deferred revenue |
|
|
651 |
|
|
|
574 |
|
Current portion of long-term
debt |
|
|
28 |
|
|
|
114 |
|
Total current liabilities |
|
|
3,152 |
|
|
|
3,551 |
|
Deferred revenue, less
current portion |
|
|
– |
|
|
|
112 |
|
Long-term debt, less
current portion |
|
|
50 |
|
|
|
– |
|
Total liabilities |
|
|
3,202 |
|
|
|
3,663 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Convertible preferred stock,
$0.0001 par value; 714,286 shares authorized, none issued and
outstanding at September 30, 2016 and March 31, 2016,
respectively |
|
|
– |
|
|
|
– |
|
Common stock, $0.0001 par value;
12,000,000 shares authorized at September 30, 2016 and March 31,
2016, 4,206,020 (unaudited) and 4,196,873 shares issued and
outstanding at September 30, 2016 and March 31, 2016,
respectively |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
167,185 |
|
|
|
166,368 |
|
Accumulated deficit |
|
|
(156,892 |
) |
|
|
(152,375 |
) |
Accumulated other comprehensive
loss |
|
|
(4,255 |
) |
|
|
(3,854 |
) |
Total stockholders’ equity |
|
|
6,039 |
|
|
|
10,140 |
|
Total liabilities and stockholders’
equity |
|
$ |
9,241 |
|
|
$ |
13,803 |
|
|
|
|
|
|
|
|
|
|
OCULUS INNOVATIVE SCIENCES, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Comprehensive Loss(In thousands, except per share
amounts)(Unaudited)
|
|
Three Months Ended September 30, |
|
|
Six Months Ended September 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
3,809 |
|
|
$ |
3,404 |
|
|
$ |
7,318 |
|
|
$ |
6,320 |
|
Product licensing fees and
royalties |
|
|
75 |
|
|
|
339 |
|
|
|
150 |
|
|
|
786 |
|
Service |
|
|
224 |
|
|
|
311 |
|
|
|
451 |
|
|
|
628 |
|
Total revenues |
|
|
4,108 |
|
|
|
4,054 |
|
|
|
7,919 |
|
|
|
7,734 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
|
1,822 |
|
|
|
1,717 |
|
|
|
3,529 |
|
|
|
3,233 |
|
Service |
|
|
204 |
|
|
|
247 |
|
|
|
389 |
|
|
|
538 |
|
Total cost of revenues |
|
|
2,026 |
|
|
|
1,964 |
|
|
|
3,918 |
|
|
|
3,771 |
|
Gross profit |
|
|
2,082 |
|
|
|
2,090 |
|
|
|
4,001 |
|
|
|
3,963 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
379 |
|
|
|
412 |
|
|
|
739 |
|
|
|
879 |
|
Selling, general and
administrative |
|
|
3,643 |
|
|
|
3,536 |
|
|
|
7,773 |
|
|
|
7,253 |
|
Total operating expenses |
|
|
4,022 |
|
|
|
3,948 |
|
|
|
8,512 |
|
|
|
8,132 |
|
Loss from
operations |
|
|
(1,940 |
) |
|
|
(1,858 |
) |
|
|
(4,511 |
) |
|
|
(4,169 |
) |
Interest expense |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
Interest income |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Gain due to change in
fair value of derivative liabilities |
|
|
– |
|
|
|
65 |
|
|
|
– |
|
|
|
6 |
|
Other (expense) income,
net |
|
|
(9 |
) |
|
|
30 |
|
|
|
(6 |
) |
|
|
60 |
|
Net loss |
|
$ |
(1,949 |
) |
|
$ |
(1,763 |
) |
|
$ |
(4,517 |
) |
|
$ |
(4,103 |
) |
Net loss per common
share: basic and diluted |
|
$ |
(0.46 |
) |
|
$ |
(0.54 |
) |
|
$ |
(1.08 |
) |
|
$ |
(1.30 |
) |
Weighted-average number
of shares used in per common share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
4,202 |
|
|
|
3,251 |
|
|
|
4,195 |
|
|
|
3,144 |
|
Other comprehensive
loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,949 |
) |
|
$ |
(1,763 |
) |
|
$ |
(4,517 |
) |
|
$ |
(4,103 |
) |
Foreign currency translation
adjustments |
|
|
(168 |
) |
|
|
(253 |
) |
|
|
(401 |
) |
|
|
(324 |
) |
Comprehensive loss |
|
$ |
(2,117 |
) |
|
$ |
(2,016 |
) |
|
$ |
(4,918 |
) |
|
$ |
(4,427 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OCULUS INNOVATIVE SCIENCES, INC. AND
SUBSIDIARIESReconciliation of GAAP Measures to
Non-GAAP Measures(In thousands) and (Unaudited)
|
|
Three Months Ended September 30, |
|
|
Six Months Ended September 30, |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
(1) Loss from
operations minus non-cash expenses (EBITDAS): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations as reported |
|
$ |
(1,940 |
) |
|
$ |
(1,858 |
) |
|
$ |
(4,511 |
) |
|
$ |
(4,169 |
) |
Non-cash
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
406 |
|
|
|
492 |
|
|
|
817 |
|
|
|
1,011 |
|
Depreciation and amortization |
|
|
57 |
|
|
|
60 |
|
|
|
118 |
|
|
|
122 |
|
Non-GAAP loss from operations minus
non-cash expenses (EBITDA) |
|
$ |
(1,477 |
) |
|
$ |
(1,306 |
) |
|
$ |
(3,576 |
) |
|
$ |
(3,036 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Net loss
minus non-cash expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss as
reported |
|
$ |
(1,949 |
) |
|
$ |
(1,763 |
) |
|
$ |
(4,517 |
) |
|
$ |
(4,103 |
) |
Non-cash
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
406 |
|
|
|
492 |
|
|
|
817 |
|
|
|
1,011 |
|
Depreciation and amortization |
|
|
57 |
|
|
|
60 |
|
|
|
118 |
|
|
|
122 |
|
Gain due to change in fair value of
derivative instruments |
|
|
– |
|
|
|
(65 |
) |
|
|
– |
|
|
|
(6 |
) |
Non-GAAP net loss minus non-cash
expenses |
|
$ |
(1,486 |
) |
|
$ |
(1,276 |
) |
|
$ |
(3,582 |
) |
|
$ |
(2,976 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Operating
expenses minus non-cash expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
as reported |
|
$ |
4,022 |
|
|
$ |
3,948 |
|
|
$ |
8,512 |
|
|
$ |
8,132 |
|
Non-cash
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
(340 |
) |
|
|
(430 |
) |
|
|
(683 |
) |
|
|
(894 |
) |
Depreciation and amortization |
|
|
(8 |
) |
|
|
(11 |
) |
|
|
(16 |
) |
|
|
(23 |
) |
Non-GAAP operating expenses minus
non-cash expenses |
|
$ |
3,674 |
|
|
$ |
3,507 |
|
|
$ |
7,813 |
|
|
$ |
7,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loss from operations minus non-cash expenses (EBITDAS) is a
non-GAAP financial measure. The Company defines operating loss
minus non-cash expenses as GAAP reported operating loss minus
operating depreciation and amortization, and operating stock-based
compensation. The Company uses this measure for the purpose of
modifying the operating loss to reflect direct cash related
transactions during the measurement period. (2) Net loss minus
non-cash expenses is a non-GAAP financial measure. The Company
defines net loss minus non-cash expenses as GAAP reported net loss
minus depreciation and amortization, stock-based compensation, a
change in fair value of common stock, a change in the fair value of
derivative instruments, loss on impairment of investment, and
non-cash interest expense. The Company uses this measure for the
purpose of modifying the net loss to reflect only those expenses to
reflect direct cash transactions during the measurement
period. (3) Operating expenses minus non-cash expenses is a
non-GAAP financial measure. The Company defines operating expenses
minus non-cash expenses as GAAP reported operating expenses minus
operating depreciation and amortization, and operating stock-based
compensation. The Company uses this measure for the purpose of
identifying total operating expenses involving cash transactions
during the measurement period.
OCULUS INNOVATIVE SCIENCES, INC. AND
SUBSIDIARIESProduct Related Revenue
Schedules(In thousands) and (Unaudited)
The following table shows our product revenues
by geographic region:
|
|
Three months ended September 30, |
|
|
|
|
|
|
|
Geographic
Region |
|
2016 |
|
|
2015 |
|
|
$ Change |
|
|
% Change |
|
United States |
|
$ |
1,697 |
|
|
$ |
1,186 |
|
|
$ |
511 |
|
|
|
|
43 |
% |
|
Latin America |
|
|
1,192 |
|
|
|
1,266 |
|
|
|
(74 |
) |
|
|
|
(6 |
% |
) |
Europe and Rest of the
World |
|
|
920 |
|
|
|
952 |
|
|
|
(32 |
) |
|
|
|
(3 |
% |
) |
|
|
|
3,809 |
|
|
|
3,404 |
|
|
|
405 |
|
|
|
|
12 |
% |
|
Product license fees
and royalties |
|
|
75 |
|
|
|
339 |
|
|
|
(264 |
) |
|
|
|
(78 |
% |
) |
Total |
|
$ |
3,884 |
|
|
$ |
3,743 |
|
|
$ |
141 |
|
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table shows our product license
fees and royalties revenue by partner:
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|
Product license fees and royalties |
|
2016 |
|
|
2015 |
|
|
$ Change |
|
|
% Change |
|
Exeltis |
|
$ |
– |
|
|
$ |
103 |
|
|
$ |
(103 |
) |
|
|
|
(100 |
% |
) |
Innovacyn |
|
|
– |
|
|
|
9 |
|
|
|
(9 |
) |
|
|
|
(100 |
% |
) |
Invekra, S.A. de
C.V. |
|
|
75 |
|
|
|
227 |
|
|
|
(152 |
) |
|
|
|
(67 |
% |
) |
Total product license
fees and royalties |
|
$ |
75 |
|
|
$ |
339 |
|
|
$ |
(264 |
) |
|
|
|
(78 |
% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table shows our product revenues
by geographic region:
Geographic
Region |
|
Six months ended September 30, |
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
$ Change |
|
|
% Change |
|
United States |
|
$ |
3,070 |
|
|
$ |
1,973 |
|
|
$ |
1,097 |
|
|
|
|
56 |
% |
|
Latin America |
|
|
2,290 |
|
|
|
2,824 |
|
|
|
(534 |
) |
|
|
|
(19 |
% |
) |
Europe and Rest of the
World |
|
|
1,958 |
|
|
|
1,523 |
|
|
|
435 |
|
|
|
|
29 |
% |
|
|
|
|
7,318 |
|
|
|
6,320 |
|
|
|
998 |
|
|
|
|
16 |
% |
|
Product license fees
and royalties |
|
|
150 |
|
|
|
786 |
|
|
|
(636 |
) |
|
|
|
(81 |
% |
) |
Total |
|
$ |
7,468 |
|
|
$ |
7,106 |
|
|
$ |
362 |
|
|
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table shows our product license
fees and royalties revenue by partner:
|
|
Six Months Ended September 30, |
|
|
|
|
|
|
|
Product license fees and royalties |
|
2016 |
|
|
2015 |
|
|
$ Change |
|
|
% Change |
|
Exeltis |
|
$ |
– |
|
|
$ |
157 |
|
|
$ |
(157 |
) |
|
|
|
(100 |
% |
) |
Innovacyn |
|
|
– |
|
|
|
29 |
|
|
|
(29 |
) |
|
|
|
(100 |
% |
) |
Invekra, S.A. de
C.V. |
|
|
150 |
|
|
|
600 |
|
|
|
(450 |
) |
|
|
|
(75 |
% |
) |
Total product license
fees and royalties |
|
$ |
150 |
|
|
$ |
786 |
|
|
$ |
(636 |
) |
|
|
|
(81 |
% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media and Investor Contact:
Oculus Innovative Sciences, Inc.
Dan McFadden
VP of Public and Investor Relations
(425) 753-2105
dmcfadden@oculusis.com
Sonoma Pharmaceuticals (NASDAQ:SNOAW)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sonoma Pharmaceuticals (NASDAQ:SNOAW)
Historical Stock Chart
From Jul 2023 to Jul 2024