Misonix (MSON) Tops Q2 EPS by 8c, Revenues Beat

Misonix (NASDAQ: MSON) reported Q2 EPS of ($0.09), $0.08 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $10.18 million versus the consensus estimate of $9.67 million.

Stavros Vizirgianakis, President and Chief Executive Officer of Misonix stated, “Misonix’s financial growth momentum continued in the fiscal second quarter, reflecting the ongoing successful execution of our go-to-market strategies, including our direct sales team, which has expanded our domestic market share. Growing demand for our leading ultrasonic surgical products resulted in a 22% year-over-year rise in total fiscal second quarter revenues to a record $10.2 million, including a 23% increase in consumables revenue and a 21% gain in equipment revenue. Our ability to generate revenue growth, while maintaining a healthy gross margin of approximately 70%, is highlighted by the 22% year-over-year increase in second quarter gross profit to a record $7.1 million. We were able to maintain Misonix’s double-digit top-line growth trajectory, generating 25% year-over-year growth in total revenues through the first six months of fiscal 2019. Importantly, our financial results for the second quarter and first half of fiscal 2019 confirm the benefits of our recent investments and accelerating demand for the demonstrated clinical benefits that our ultrasonic medical devices deliver to physicians, hospitals and patients.

“During the second quarter, we further developed our direct commercialization team while training our international distribution partners. These initiatives will enable Misonix to further penetrate existing and new markets as we prepare for the launch of Nexus, our new ultrasonic surgical platform, which we intend to launch in the second half of fiscal 2019. In addition, we are already realizing value from the recent systems and infrastructure enhancements made to support our continued growth and expect these investments to drive additional operating efficiencies across the business in the coming quarters.

“Since unveiling Nexus at the 2018 NASS Conference, we have received overwhelmingly positive feedback from surgeons and the overall market, which provides us with added confidence for its potential to serve as a third growth engine for the Company as we benefit from cross-selling opportunities, especially through deeper penetration of current customer accounts and the expansion of our addressable markets to a broader range of procedures beyond those served by our current products. While medical professionals are the driving force behind successful outcomes, Nexus presents surgeons with a powerful tool to remove hard and soft tissue with greater control, accuracy and efficiency. By incorporating multiple modalities into one modern platform with extensive functionalities, we believe Nexus will be a requisite addition to the operating room as it delivers demonstrated clinical benefits at a compelling value proposition for hospitals and outpatient clinics.

“Looking ahead, we are excited about the opportunities to enhance shareholder value as we continue pursuing the Company’s next phase of growth. As we bring the next generation of ultrasonic products to market and complete our transformation to a direct commercialization platform, we remain confident in our ability to generate double-digit top-line growth and improved profitability in the second half of fiscal 2019.”

Joe Dwyer, Chief Financial Officer, added, “Our fiscal 2019 second quarter results marked another outstanding quarter for Misonix, resulting in continued robust top-line growth, healthy margins and an improved bottom line, highlighting our successful execution across multiple fronts.

“During the first half of fiscal 2019, we undertook a range of initiatives to eliminate inefficiencies in our procurement and distribution, including bringing new suppliers on board and diversifying our supply chain. We also fully transitioned to a significantly more capable ERP system as well as instituted new policies to ensure optimal inventory levels and fulfillment outcomes. With these initiatives now largely behind us, we are confident in our ability to successfully and efficiently meet the added demand we expect.

“As we enter the second half of fiscal 2019, we remain well-positioned to continue to invest in our products and further improve our operations and our position in the market. We are confident that we have the capital flexibility we need, including $10.2 million in cash and no debt, to ensure that we adequately support our growth via both organic and inorganic growth initiatives and look forward to driving long-term value for our shareholders as we remain disciplined and focused in generating attractive rates of returns. Looking ahead to the second half of fiscal 2019, we reiterate our guidance for product revenue growth in excess of 20% for fiscal 2019, along with gross profit margins of approximately 70%.”

For earnings history and earnings-related data on Misonix (MSON) click here.

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