Encision reports lower revenue during COVID-19 downturn
BOULDER — Medical-device company Encision Inc. (PK: ECIA) reported declining revenue in the fourth quarter ended March 31.
The company develops Active Electrode Monitoring technology that prevents stray electrosurgical burns in minimally invasive surgery.
Fourth-quarter revenue totaled $1.78 million, down 14.8% from $2.09 million in the same period a year ago. Encision recorded a net loss of $116,000, improving on a net loss of $183,000 in the year-ago quarter.
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For its fiscal year, Encision reported revenue of $7.67 million, down 12.8% from $8.8 million the prior year, and a net loss of $198,000, compared with a net loss of $236,000 a year ago.
“Starting in mid-February 2020, and through the end of March, we had a sudden decrease in revenue due to the COVID-19 pandemic,” Gregory Trudel, president and CEO of Encision, said in a prepared statement. “Revenue for April was half of last year’s April revenue. As of the beginning of May, we are just starting to see the flow of non-essential procedures recommence and a corresponding uptick in sales revenue.”
Encision in April secured a loan under the federal Paycheck Protection Program of $598,567.
“We’re pleased to have received the PPP funding” Trudel said. “This enabled us to maintain internal momentum in manufacturing, engineering innovation, and new AEM Technology products introduction.”
Also in April, Encision entered into a master services agreement with Auris Health Inc., part of the Johnson & Johnson family of companies. Under terms of the agreement, Encision will help integrate its AEM technology into monopolar instrumentation produced by Auris Health for advanced surgical applications.
“We are also looking forward to a new product introduction in the current fiscal year that will open new account opportunities, enable customers to reduce procedural costs, and drive revenue growth,” Trudel said.
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