Uroplasty Inc (UPI, Financial) filed Quarterly Report for the period ended 2009-09-30.
Uroplasty is a medical device company that develops manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. The Company's minimally invasive products treat urinary incontinence and overactive bladder symptoms. They believe that the company is uniquely positioned because we offer a broad and diverse set of products to address the various preferences of doctors and patients as well as the quality of life issues presented by voiding dysfunctions. Uroplasty Inc has a market cap of $21.67 million; its shares were traded at around $1.45 with and P/S ratio of 1.47.
Sales to customers outside the U.S. for the three months ended September 30, 2009 and 2008 were $1.5 million and $1.7 million, respectively, a decrease of 13%. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 5%. For the six months ended September 30, 2009 and 2008 sales were $2.8 million and $4.0 million, respectively, a decrease of 29%. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 20%. The sales decrease is mainly attributed to increased competition from a newly-introduced product against our Macroplastique product, inventory buildup in the last fiscal year at one of our European distributors, the current year first fiscal quarter change of a distributor in an European country, and the discontinuation in the United Kingdom of our I-Stop urethral sling product which accounted for approximately $101,000 in sales for the six months ended September 30, 2008 and $191,000 in sales in fiscal 2009. We believe the distributor-related issues are now resolved.
General and Administrative Expenses (G&A): G&A expenses decreased $205,000 from $918,000 during the three months ended September 30, 2008 to $713,000 during the same period in 2009. Expenses decreased $395,000 from $2.0 million during the six months ended September 30, 2008 to $1.6 million during the same period in 2009. G&A expenses decreased primarily because of a decrease in personnel-related costs and professional and consulting fees. We have implemented concentrated efforts to reduce expenses until reimbursement in the U.S. for Urgent PC recovers and the economy improves.
Research and Development Expenses (R&D): R&D expenses increased from $328,000 during the three months ended September 30, 2008 to $436,000 during the same period in 2009. Expenses increased from $733,000 during the six months ended September 30, 2008 to $964,000 during the same period in 2009. The increase is attributed primarily to an increase in spending for clinical studies. We have undertaken clinical studies that we anticipate may assist us in obtaining a specific listed CPT code that will encourage broader use of our Urgent PC. We spent approximately $1.3 million in fiscal 2009, have spent approximately $0.3 million in the six months ended September 30, 2009 and anticipate spending approximately $0.2 million in the remainder of the current fiscal year for such clinical studies.
Selling and Marketing Expenses (S&M): S&M expenses decreased from $2.5 million during the three months ended September 30, 2008 to $2.0 million during the same period in 2009. Expenses decreased from $5.1 million during the six months ended September 30, 2008 to $4.0 million during the same period in 2009. We attribute the decrease to a $276,000 decrease in commissions due to the decrease in sales, $186,000 decrease in travel costs, $261,000 decrease in compensation-related costs, a $59,000 decrease in consultancy costs, mainly reimbursement related, and decreased cost to support our marketing activities. Although we have maintained our assembled U.S. sales force and redirected some of their effort to our Macroplastique product line until reimbursement for Urgent PC stabilizes, we have taken steps to control other sales and marketing expenses.
Amortization of Intangibles: Amortization of intangibles was $212,000 and $211,000 for the three months ended September 30, 2009 and 2008, respectively, and was $423,000 and $422,000 for the six months ended September 30, 2009 and 2008, respectively. In April 2007, we acquired from CystoMedix, Inc., certain intellectual property assets related to the Urgent PC system for $4.7 million, which we are amortizing over six years.
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Uroplasty is a medical device company that develops manufactures and markets innovative proprietary products for the treatment of voiding dysfunctions. The Company's minimally invasive products treat urinary incontinence and overactive bladder symptoms. They believe that the company is uniquely positioned because we offer a broad and diverse set of products to address the various preferences of doctors and patients as well as the quality of life issues presented by voiding dysfunctions. Uroplasty Inc has a market cap of $21.67 million; its shares were traded at around $1.45 with and P/S ratio of 1.47.
Highlight of Business Operations:
Net Sales: During the three months ended September 30, 2009, net sales of $3.0 million represented a $0.9 million, or a 24% decrease, over net sales of $3.9 million for the three months ended September 30, 2008. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 21%. During the six months ended September 30, 2009, net sales of $5.8 million represented a $2.6 million, or a 31% decrease, over net sales of $8.4 million for the six months ended September 30, 2008. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 27%.Sales to customers outside the U.S. for the three months ended September 30, 2009 and 2008 were $1.5 million and $1.7 million, respectively, a decrease of 13%. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 5%. For the six months ended September 30, 2009 and 2008 sales were $2.8 million and $4.0 million, respectively, a decrease of 29%. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 20%. The sales decrease is mainly attributed to increased competition from a newly-introduced product against our Macroplastique product, inventory buildup in the last fiscal year at one of our European distributors, the current year first fiscal quarter change of a distributor in an European country, and the discontinuation in the United Kingdom of our I-Stop urethral sling product which accounted for approximately $101,000 in sales for the six months ended September 30, 2008 and $191,000 in sales in fiscal 2009. We believe the distributor-related issues are now resolved.
General and Administrative Expenses (G&A): G&A expenses decreased $205,000 from $918,000 during the three months ended September 30, 2008 to $713,000 during the same period in 2009. Expenses decreased $395,000 from $2.0 million during the six months ended September 30, 2008 to $1.6 million during the same period in 2009. G&A expenses decreased primarily because of a decrease in personnel-related costs and professional and consulting fees. We have implemented concentrated efforts to reduce expenses until reimbursement in the U.S. for Urgent PC recovers and the economy improves.
Research and Development Expenses (R&D): R&D expenses increased from $328,000 during the three months ended September 30, 2008 to $436,000 during the same period in 2009. Expenses increased from $733,000 during the six months ended September 30, 2008 to $964,000 during the same period in 2009. The increase is attributed primarily to an increase in spending for clinical studies. We have undertaken clinical studies that we anticipate may assist us in obtaining a specific listed CPT code that will encourage broader use of our Urgent PC. We spent approximately $1.3 million in fiscal 2009, have spent approximately $0.3 million in the six months ended September 30, 2009 and anticipate spending approximately $0.2 million in the remainder of the current fiscal year for such clinical studies.
Selling and Marketing Expenses (S&M): S&M expenses decreased from $2.5 million during the three months ended September 30, 2008 to $2.0 million during the same period in 2009. Expenses decreased from $5.1 million during the six months ended September 30, 2008 to $4.0 million during the same period in 2009. We attribute the decrease to a $276,000 decrease in commissions due to the decrease in sales, $186,000 decrease in travel costs, $261,000 decrease in compensation-related costs, a $59,000 decrease in consultancy costs, mainly reimbursement related, and decreased cost to support our marketing activities. Although we have maintained our assembled U.S. sales force and redirected some of their effort to our Macroplastique product line until reimbursement for Urgent PC stabilizes, we have taken steps to control other sales and marketing expenses.
Amortization of Intangibles: Amortization of intangibles was $212,000 and $211,000 for the three months ended September 30, 2009 and 2008, respectively, and was $423,000 and $422,000 for the six months ended September 30, 2009 and 2008, respectively. In April 2007, we acquired from CystoMedix, Inc., certain intellectual property assets related to the Urgent PC system for $4.7 million, which we are amortizing over six years.
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