Medical-device maker Encision trims losses in most recent quarter

BOULDER — Medical-device maker Encision Inc. reduced its losses during its fiscal 2016 second quarter that ended Sept. 30.

Boulder-based Encision (PK:ECIA) on Tuesday reported a loss of $184,000, or 2 cents per share, for the quarter, compared with a loss of $414,000, or 4 cents per share, incurred during the same period a year ago.

Revenue increased slightly to $2.3 million for the quarter, compared with revenue of $2,279,000 for the same period a year ago.

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Encision, headed by president and chief executive Greg Trudel, makes devices used by surgeons that prevent electrosurgical burns in minimally invasive surgery.

Gross margin on net revenue was higher in the quarter as a result of increasing product prices during the quarter and reducing waste of materials in manufacturing operations, both helping offset higher material costs, the company said in the earnings report.

“We continue to execute against our plan, and the results are both evident and encouraging,” Trudel said in a prepared statement. “We are proud of our employees’ efforts in reducing costs while maintaining high levels of quality and productivity.”

Trudel expects that gross margins will improve modestly in the third quarter. He said the company’s efforts to build awareness of the risks of potentially deadly stray energy in laparoscopy are “slowly but surely building momentum with a number of new account conversions, contract conversations and a growing sales pipeline.”