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Misonix Reports Decline In Q2 Revenues

Misonix, a developer of minimally invasive ultrasonic medical device technology, has reported a revenue of $3.4m for the three months ended December 31, 2009 compared to $4.9m for the same period in fiscal 2009.

Medical device product sales decreased $1.3m to $2.7m and laboratory and scientific product sales decreased $200,000 to $654,000 for the three months ended December 31, 2009.

Gross profit as a percentage of sales increased to 51.2% during the period. The increase in gross profit percentage is primarily attributable to increased margins from the company’s BoneScalpel and SonicOne platforms, which in part are sold through the its direct sales force and carry higher margins as opposed to sales to distributors.

Misonix reported a net loss of $437,000 for the three months ended December 31, 2009 compared with a loss from continuing operations of $91,000 for the same period in fiscal 2009.

During the second quarter fiscal 2010, Misonix sold substantially all of its assets of Sonora for a cash payment of $8,000,000 (subject to a future adjustment based on net working capital at the closing). Misonix also purchased at the closing of the transaction, utilizing $1.2m of the proceeds the remaining outstanding 5% of Sonora shares.

Misonix also reported a net loss of $367,000 including income from discontinued operations of $83,000 compared to net income of $194,000 during the same period in 2008.

Michael McManus, president and CEO, said: “Even though our sales growth has been slower then expected, we are pleased with our increase in profit margins as the restructuring of our distribution takes hold. Our direct sales force is successfully building the Misonix brand as a world leader in ultrasonic surgical devices.

“We expect further expansion of our worldwide distribution organization in the months to come with new partners in Asia, the Middle East, Europe and Latin America. We have also experienced rapid clinical acceptance of our BoneScalpel platform for spinal surgery applications, which has resulted in strong demand and should result in sales growth as the year progresses.

“The closing of the Sonora transaction enables our team to be exclusively focused on growing our high margin medical device business with the support of a strengthened balance sheet with almost $10m in cash.”