Bovie Medical Boosts Revenue 27 Percent in First Quarter

Bovie Medical Corporation is off to a strong start this year. Total revenue jumped 27 percent and J-Plasma proceeds surged 25.8 percent year-over-year.  
 
“First quarter revenue represented a strong start to 2016. We achieved robust growth across nearly all product lines, with sales of certain products up more than 25 percent. This success builds upon the solid foundation in sales, manufacturing and R&D that we established in 2015,” said Robert L. Gershon, CEO.
 
“J-Plasma sales increased substantially on a year-over-year basis, with hand piece sales volumes up 140 percent from 2015 levels. Additionally, we saw positive momentum in all operating metrics that serve as early indicators of J-Plasma sales trends,” he added.
 
In the first quarter (ended March 31), sales were $7.8 million, up 26.9 percent from $6.1 million in the first quarter of 2015. Executives attributed the increase to higher sales of generators, cauteries and J-Plasma. Gross margin was 42.7 percent, compared with gross margin of 43.6 percent in the first quarter of 2015.
 
Operating expenses totaled $5.3 million in the first quarter, representing 68 percent of sales compared to $4.9 million, or 81 percent of sales in the first quarter of 2015, demonstrating a significant improvement in operating leverage. Operating loss was $1.9 million, improved from an operating loss of $2.3 million in the first quarter of 2015.
 
Net loss attributable to common shareholders was $1.9 million, or 7 cents per diluted share, compared with net income of $12.9 million, or 57 cents per diluted share in the first quarter of 2015, which was affected by non-cash gains on the conversion of warrants and preferred shares as part of the company’s capital raise, and the valuation of remaining derivative liabilities. Exclusive of these gains, the company would have reported a net loss in the 2015 first quarter of $2.5 million.
 
The company had unrestricted cash and cash and equivalents of $9.5 million at the end of the first quarter, compared to $11.8 million at the end of 2015.
 
Recent Developments
On April 20, Bovie announced the launch of its J-Plasma product extension, branded the Precise 360. This new J-Plasma hand piece has an angled and rotating tip that enables surgeons to access structures that are difficult to reach using a straight laparoscopic device, expanding its potential application for a range of procedures.
 
On March 4, the company announced the hiring of a marketing director and two new region managers for its J-Plasma product line. Bovie’s new marketing director, Jeffrey Hoffman, is an experienced medical device executive with specialized knowledge in advanced energy technology. The new region managers, Robert Timerman and Dennis Keast, are helping advance the adoption of J-Plasma and overseeing its expanding geographic sales footprint.
 
“The elements are in place for 2016 to be a year of substantial growth for Bovie Medical. Our core products business continues on track for low to mid-single digit growth this year, and we expect to benefit from strong growth in OEM and J-Plasma sales, resulting in year-on-year revenue growth of 20 percent for full year 2016,” Gershon said.
 
“At the same time, we are executing on the strategies we have previously outlined in order to accelerate J-Plasma adoption and significantly expand the addressable market for the product. These initiatives, combined with the reliability and high quality of our manufacturing processes, give us confidence in our ability to progressively realize the potential of J-Plasma and help make it the standard of care across multiple procedures and specialties,” Gershon noted.
 
Based in Purchase, N.Y., Bovie Medical Corporation developed J-Plasma, a patented new plasma-based surgical product for cutting and coagulation. J-Plasma uses a helium ionization process to produce a stable, focused beam of ionized gas that provides surgeons with greater precision, minimal invasiveness and an absence of conductive currents through the patient during surgery. The company also manufactures electrosurgical products and technologies, marketed through both private labels and its own brands (Bovie, Aaron, IDS and ICON).