Escalon Medical Corp. (ESMC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Escalon Medical Corp. has a market cap of $11.42 million; its shares were traded at around $1.54 with and P/S ratio of 0.36. ESMC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Cost of goods sold from continuing operations totaled approximately $4,362,000, or 58.3% of product revenue, for the three-month period ended September 30, 2010, as compared to $4,250,000, or 56.6% of product revenue, for the same period last fiscal year.
Cost of goods sold in the Drew business unit totaled $2,991,000, or 59.8% of product revenue, for the three-month period ended September 30, 2010, as compared to $2,755,000, or 59.5% 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, 2010 and 2009, respectively.
Cost of goods sold in the Sonomed business unit totaled $1,032,000, or 54.8% of product revenue, for the three-month period ended September 30, 2010, as compared to $1,126,000, or 55.3% 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, 2010 and 2009. International sales typically have lower margins due to increased sales discounts to Sonomeds international distributors.
Cost of goods sold in the EMI business unit totaled $102,000, or 35.6% of product revenue, for the three-month period ended September 30, 2010, as compared to $163,000, or 31.7% or product revenue, for the same period last fiscal year. The margin decrease is related to the product mix shifting toward lower margin hardware products as opposed to higher margin customized products.
Cost of goods sold in the Medical/Trek business unit totaled $237,000, or 76.6% of product revenue, during the three-month period ended September 30, 2010, as compared to $206,000, or 64.4% of product revenue, during the same period last fiscal year. The decreased margin is related to the aging of Medical/Treks product line and write-off of $11,000 in obsolete inventory in the quarter ended September 30, 2010.
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Escalon Medical Corp. has a market cap of $11.42 million; its shares were traded at around $1.54 with and P/S ratio of 0.36. ESMC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The Company has adopted FASB issued guidance related to accounting for uncertainty in income taxes, which provides a comprehensive model for the recognition, measurement, and disclosure in financial statements of uncertain income tax positions that a company has taken or expects to take on a tax return. Under the FASB guidance a company can recognize the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit can be recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Additionally, companies are required to accrue interest and related penalties, if applicable, on all tax exposures for which reserves have been established consistent with jurisdictional tax laws. The Company has elected to recognize interest expense and penalties related to uncertain tax positions as a component of its provision for income taxes.Cost of goods sold from continuing operations totaled approximately $4,362,000, or 58.3% of product revenue, for the three-month period ended September 30, 2010, as compared to $4,250,000, or 56.6% of product revenue, for the same period last fiscal year.
Cost of goods sold in the Drew business unit totaled $2,991,000, or 59.8% of product revenue, for the three-month period ended September 30, 2010, as compared to $2,755,000, or 59.5% 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, 2010 and 2009, respectively.
Cost of goods sold in the Sonomed business unit totaled $1,032,000, or 54.8% of product revenue, for the three-month period ended September 30, 2010, as compared to $1,126,000, or 55.3% 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, 2010 and 2009. International sales typically have lower margins due to increased sales discounts to Sonomeds international distributors.
Cost of goods sold in the EMI business unit totaled $102,000, or 35.6% of product revenue, for the three-month period ended September 30, 2010, as compared to $163,000, or 31.7% or product revenue, for the same period last fiscal year. The margin decrease is related to the product mix shifting toward lower margin hardware products as opposed to higher margin customized products.
Cost of goods sold in the Medical/Trek business unit totaled $237,000, or 76.6% of product revenue, during the three-month period ended September 30, 2010, as compared to $206,000, or 64.4% of product revenue, during the same period last fiscal year. The decreased margin is related to the aging of Medical/Treks product line and write-off of $11,000 in obsolete inventory in the quarter ended September 30, 2010.
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