Vision-Sciences, Inc. (Vision-Sciences) has reported net sales of $12.8 million for the fiscal 2009, up 34%, compared with the net sales of $9.6 million in the previous year. It also reported a net loss of $8.2 million, or $0.24 loss per diluted share, for the fiscal 2009, compared with the net loss of $9.3 million, or $0.27 loss per diluted share, in the previous year.
Loss from operations in fiscal year 2009 was $12.7 million, compared to $10.7 million in fiscal year 2008, an increase of $2.1 million.
The increase in loss from operations of $2.1 million during fiscal year 2009 is mainly attributable to: (i) initial production start-up cost related to our new videoscope products; (ii) initial sales and marketing expenses related to the launching of our videoscope family of products and building our sales force; (iii) higher research and development expenses related to the further development and expansion of our videoscope family of products and development of our new 4000 Series line of fiberscopes; (iv) increased operational expenses to support the anticipated growth of our production capacity for our videoscope and our newly developed 4000 Series fiberscope product lines; and (v) losses on disposal of fixed assets.
As a result of our desire to focus our attention and financial resources on our core business in the medical segment, we sold the assets of our former health services segment (the BEST-DMS assets) in the quarter ended December 31, 2008. The net loss from the former health services segment was classified as discontinued operations in the consolidated statements of operations, and our fiscal year 2008 results were adjusted accordingly.
Medical sales grew from $6.9 million in fiscal year 2008 to $10.0 million in fiscal year 2009, or by 45%, and industrial sales for the same period grew from $2.7 million to $2.8 million, or by 4%. Within medical sales:
ENT and TNE (trans-nasal esophagoscopy) sales grew by 12%, from $5.3 million to $5.9 million;
Urology sales grew by 259%, from $633 thousand to $2.3 million; and,
Repair, peripheral and accessories sales grew by 88%, from $983 thousand to $1.8 million.
Ron Hadani, our president and chief executive officer, stated, This fiscal year’s net sales represent the start of expected accelerated revenue growth from the introduction of our videoscope family of products. We achieved approximately 260% growth in our urology revenue, and endoscope sales within the ENT/TNE market reached 120% growth. It is important to note that the significant growth in our total medical sales occurred despite the loss of ENT EndoSheath® disposable revenue as a result of the sale of our ENT EndoSheath® disposable product line to Medtronic. At the time of the sale, such revenue was approximately $3.5 million per year.
We are very excited about our state-of-the-art pipeline of newly developed products. We have just released our new video bronchoscopy line, the BRS-5000, used by pulmonologists and other physicians for airway management, and our new family of fiberscopes, the 4000 Series, the first model of which has been released to the ENT market. We will roll out other 4000 Series fiberscopes over the course of FY 10.
Vision-Sciences designs, develops, manufactures and markets endoscopic products utilizing sterile disposable sheaths.