Escalon Medical Corp. (ESMC, Financial) filed Quarterly Report for the period ended 2009-09-30.
Escalon Medical Corp. develops, markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. The company utilizes strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the company's distribution capabilities. Escalon Medical Corp. has a market cap of $11.12 million; its shares were traded at around $1.5 with and P/S ratio of 0.32.
Cost of goods sold in the Drew business unit totaled $2,755,000, or 59.5% of product revenue, for the three-month period ended September 30, 2009 as compared to $2,679,000, or 63.0% of product revenue, for the same period last fiscal year. Margins on Drews instruments continue to range between 10% to 20% depending on the product, these lower margin sales are offset by the margins achieved on reagent sales which ranged from 50% to 70% during the periods ended September 30, 2009 and 2008, respectively. Biocode represents approximately 30% of sales at Drew, Cost of goods sold at Biocode were $639,000 or 40% of Biocodes revenue of $1,336,000.
Cost of goods sold in the Sonomed business unit totaled $1,126,000, or 55.3% of product revenue, for the three-month period ended September 30, 2009 as compared to $1,409,000, or 54.8% of product revenue, for the same period last fiscal year. Despite the drop off of capital equipment sales, margins remained relatively unchanged during the current period due to a similar mix of international and domestic sales during the three month periods ended September 30, 2009 and 2008. International sales typically have lower margins due to increased sales discounts to Sonomeds international distributors.
Cost of goods sold in the Vascular business unit totaled $340,000 or 36.5% of product revenue, for the three-month period ended September 30, 2009 as compared to $347,000, or 34.8% of product revenue, for the same period last fiscal year. The mix of sales in each period consists of core needle business, sales of the modified VascuView are anticipated to begin in January 2010. Margins on the VascuView are anticipated to be approximately 50%.
Cost of goods sold in the EMI business unit totaled $163,000, or 31.7% of product revenue, for the three-month period ended September 30, 2009 as compared to $217,000, or 41.3% of product revenue, for the same period last fiscal year. The margin increase is related to the product mix shifting toward higher margin products enhanced or customized by software modifications.
Cost of goods sold in the Medical/Trek business unit totaled $206,000, or 64.4% of product revenue, during the three-month period ended September 30, 2009 as compared to $192,000, or 59.4% of product revenue, during the same period last fiscal year. The decreased margin is related to the aging of Medical/Treks product line.
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Escalon Medical Corp. develops, markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. The company utilizes strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the company's distribution capabilities. Escalon Medical Corp. has a market cap of $11.12 million; its shares were traded at around $1.5 with and P/S ratio of 0.32.
Highlight of Business Operations:
Cost of goods sold totaled approximately $4,590,000, or 54.4% of product revenue, for the three-month period ended September 30, 2009 as compared to $4,844,000, or 55.9% of product revenue, for the same period last fiscal year.Cost of goods sold in the Drew business unit totaled $2,755,000, or 59.5% of product revenue, for the three-month period ended September 30, 2009 as compared to $2,679,000, or 63.0% of product revenue, for the same period last fiscal year. Margins on Drews instruments continue to range between 10% to 20% depending on the product, these lower margin sales are offset by the margins achieved on reagent sales which ranged from 50% to 70% during the periods ended September 30, 2009 and 2008, respectively. Biocode represents approximately 30% of sales at Drew, Cost of goods sold at Biocode were $639,000 or 40% of Biocodes revenue of $1,336,000.
Cost of goods sold in the Sonomed business unit totaled $1,126,000, or 55.3% of product revenue, for the three-month period ended September 30, 2009 as compared to $1,409,000, or 54.8% of product revenue, for the same period last fiscal year. Despite the drop off of capital equipment sales, margins remained relatively unchanged during the current period due to a similar mix of international and domestic sales during the three month periods ended September 30, 2009 and 2008. International sales typically have lower margins due to increased sales discounts to Sonomeds international distributors.
Cost of goods sold in the Vascular business unit totaled $340,000 or 36.5% of product revenue, for the three-month period ended September 30, 2009 as compared to $347,000, or 34.8% of product revenue, for the same period last fiscal year. The mix of sales in each period consists of core needle business, sales of the modified VascuView are anticipated to begin in January 2010. Margins on the VascuView are anticipated to be approximately 50%.
Cost of goods sold in the EMI business unit totaled $163,000, or 31.7% of product revenue, for the three-month period ended September 30, 2009 as compared to $217,000, or 41.3% of product revenue, for the same period last fiscal year. The margin increase is related to the product mix shifting toward higher margin products enhanced or customized by software modifications.
Cost of goods sold in the Medical/Trek business unit totaled $206,000, or 64.4% of product revenue, during the three-month period ended September 30, 2009 as compared to $192,000, or 59.4% of product revenue, during the same period last fiscal year. The decreased margin is related to the aging of Medical/Treks product line.
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