November 10, 2021

Encision revenue, earnings up

BOULDER — Encision Inc. (OTC: ECIA) posted net revenue of $2.1 million and net income of $360,000 in its fiscal 2022 second quarter compared with $1.9 million and $9,000 year-over-year.

The medical device maker said in an earnings press release that the increase was due to “services performed under a Master Services Agreement with Auris Health Inc.”

Encision’s “active electrode monitoring” technology can prevent “dangerous radiant energy burns in minimally invasive surgery” the release said. In August, the company signed a three-year deal to sell products with that technology to Auris. Auris is owned by New Jersey-based Johnson & Johnson.

Encision said gross margins declined during the quarter to 45% from 53% year-over-year because of higher material costs.

It also received forgiveness of a $533,000 Paycheck Protection Program loan in the quarter, which it booked as “extinguishment of debt income.”

Envision trades on the Pink Sheets at a market cap of about $17 million.

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