January 27, 2009
Encision Reports Third Fiscal Quarter Results; Net Income
Increases 295%
Boulder, Colorado, January 27, 2009 -- Encision Inc. (OTCBB: ECIA),
a medical device company owning patented surgical technology that is
emerging as a standard of care in minimally-invasive surgery, reported
its financial results for its third quarter ended December 31, 2008.
Net sales for the third quarter of fiscal year 2009, ended December
31, 2008, totaled $3.27 million, representing a 4% increase over net
sales of $3.13 million for the prior fiscal year’s third quarter.
The Company recorded net income of $233 thousand or $.04 per share for
the third quarter of fiscal year 2009, representing a 295% increase,
compared to net income of $59 thousand or $.01 per share for the third
quarter of fiscal year 2008. Gross profit margin for the third quarter
of fiscal year 2009 was 64% as compared to 65% for the third quarter
of fiscal year 2008. The gross profit margin decrease from the third
quarter of fiscal year 2008 was due to increased sales of lower gross
profit margin products and a 0.8% increase to gross profit margin that
was attributed to a decrease in warranty claims in the third quarter
of fiscal year 2008.
Net sales for the first nine months of fiscal year 2009, ended December
31, 2008, totaled $9.7 million, representing a 9% increase over net sales
of $8.9 million for the prior fiscal year’s first nine months.
The Company recorded net income of $144 thousand or $.02 per share for
the first nine months of fiscal year 2009 compared to a net loss of $228
thousand or $.04 per share for the first nine months of fiscal year 2008.
Gross profit margin for the first nine months of fiscal year 2009 was
62% as compared to 63% for the first nine months of fiscal year 2008.
“All disposable scissor inserts sales made in the third quarter
ending December 31, 2008 were sales from internally manufactured disposable
scissor inserts and resulted in higher gross profit margins from the
second quarter ended September 30, 2008. Also, we saw during this third
quarter the savings effect of our reduced cost structure as it relates
to engineering projects,” said Jack Serino, President and CEO of
Encision Inc. “We are pleased with our net income increase of 295%
and are cautiously optimistic that the results for the last three months
of fiscal year 2009 will be positive.”
Encision Inc. designs, develops, manufactures and markets innovative
surgical devices that allow surgeons to optimize technique and patient
safety during a broad range of surgical procedures. Based in Boulder,
Colorado, the Company pioneered the development of patented AEM® Laparoscopic
Instruments to improve electrosurgery and reduce the chance for patient
injury in minimally invasive surgery.
In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company notes that statements in
this press release and elsewhere that look forward in time, which include
everything other than historical information, involve risks and uncertainties
that may cause actual results to differ materially from those indicated
by the forward-looking statements. Factors that could cause the Company's
actual results to differ materially include, among others, its ability
to increase net sales through the Company's distribution channels,
insufficient quantity of new account conversions, insufficient cash
to fund operations, scale up production to meet delivery obligations,
delay in developing new products and receiving FDA approval for such
new products and other factors discussed in the Company's filings with
the Securities and Exchange Commission.
CONTACT: Marcia
McHaffie, Encision Inc., 303-444-2600, mmchaffie@encision.com

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