Misonix Reports Q2 Fiscal 2009 Results

The company also reported the following financial and operational achievements:

$0.03 diluted earnings per share and a 5.1% increase in revenue for the three months ended December 31, 2008.

$0.07 diluted earnings per share and a 6.2% increase in revenue for the six months ended December 31, 2008.

Signed one year extension for LySonix 3000 ultrasonic assisted liposuction product with Mentor Corporation which includes purchase minimums.

Signed three year distribution agreement with Alliance Lithomobile of Milano, Italy for the Sonablate 500 for prostate cancer on a fee-per-use arrangement.

Executed exclusive distribution agreements for the SonicOne wound debridement system, Bone Scalpel and Sonastar Neuroaspirator in Turkey, Greece, Netherlands and the United Kingdom. Each agreement includes purchase minimums.

The increase in revenues for the three months ended December 31, 2008 was due to a $909,000 increase in medical device products sales to $6.9 million, partially offset by a $320,000 decrease in sales of laboratory and scientific products to $5.2 million. The increase in sales of medical device products was primarily due to the Company’s bone scalpel product and SonicOne wound debridement system. The decrease in laboratory and scientific products was primarily due to the strengthening of the US Dollar against the English Pound during the three months ended December 31, 2008 against three months ended December 31, 2007, reducing Labcaire sales reported in US Dollars by approximately $981,000.

Revenues for the six months ended December 31, 2008 were $23.5 million, up 6.2% compared with revenues of $22.1 million for the six months ended December 31, 2007. The increase in revenues for the six months ended December 31, 2008 was due to a $1.1 million increase in medical device products sales to $12.4 million and an increase of $301,000 in laboratory and scientific products sales to $11.1 million. The increase in medical device products was primarily attributable to an increase in sales of the Company’s bone scalpel product, AutoSonix product and SonicOne wound debridement system. The increase in sales of laboratory and scientific products was primarily due to a $561,000 increase in Labcaire product sales, partially offset by a decrease of $0.23 million in ductless fume enclosure products sales. The strengthening of the US Dollar against the English Pound during the six months ended December 31, 2008 as against the six months ended December 31, 2007 reduced Labcaire sales reported in US Dollars by about $1.3 million.

The company reported a net income for the six months ended December 31, 2008 of $514,000 or $.07 diluted earnings per share against a net loss of $343,000 or $.05 loss per share for the same period in fiscal 2008. The six months net income of $514,000 for the period ended December 31, 2008 included a gain on the sale of the company’s interest and previously written off debt in Focus Surgery, Inc. of about $880,000 or $.13 per share.

Commenting on Misonix’s financial and operating results, Michael A. McManus, president and chief executive officer, said, “We are very pleased to report two consecutive quarters of increased revenues and earnings. Our medical device business is continuing to grow with a 9% and 15% increase in revenues for our six and three months of fiscal 2009, respectively, versus the same period in fiscal 2008. Excluding the negative impact of the strengthening of the US dollar against the English pound, Labcaire sales increased $795,000 in the second quarter due to shipments of our new ISIS endoscope cleaning system, endoscope storage cabinet and increased service revenue.

In light of the challenging global economic environment, we continue to review our cost structure and implement appropriate expense reductions. We expect to see the results of the cost reductions in our third and fourth quarters of fiscal 2009.

Our medical device business made solid progress as we expanded our sales opportunities both domestically and internationally. We concluded a one year extension of our relationship with Mentor for our ultrasound assisted liposuction product and continue to make traction in Europe for the Sonablate 500 on a fee-per-use model. We are also pleased with the continued expansion of our endoscope cleaning and disinfecting product at Labcaire in the United Kingdom.

We are encouraged by the financial results for the first half of fiscal year 2009 and believe we are beginning to see the return on the investments in our new products, enhanced international distribution and our contract sales force.”