Misonix, Inc. Announces Second Quarter

Fiscal Year 2014 Financial Results

Second Quarter Net Sales UP 19%; BoneScalpel™ Revenue UP 31%

For Immediate Release

FARMINGDALE, NY – February 5, 2014 — Misonix, Inc. (NASDAQ: MSON), an international surgical device company that designs, manufactures and markets innovative therapeutic ultrasonic products for spine surgery, skull based surgery, neurosurgery, wound debridement, cosmetic surgery, laparoscopic surgery and other surgical applications, today announced financial results for the second quarter of fiscal year 2014 and six months ended December 31, 2013.

Highlights for the second quarter fiscal 2014 included:

Second Quarter Fiscal 2014 Financial Results

Revenue for the three months ended December 31, 2013 was $4.1 million, a 19% increase, when compared to $3.5 million for the same period in fiscal 2013. The increase was attributable to a 31% increase in BoneScalpel revenue to $2.1 million, a 13% increase in SonaStar revenue to $1.2 million and a 1% increase in SonicOne revenue to $536,000.

There were 57 BoneScalpel units sold or placed worldwide during the second quarter fiscal 2014 compared to 35 BoneScalpel units sold or placed during the second quarter of fiscal 2013. BoneScalpel domestic disposable sales increased 56% during the second quarter fiscal 2014 compared to the same period in fiscal 2013.

The Company reported net income of $459,000, or $0.06 diluted earnings per share, for the second quarter fiscal 2014 compared to a net loss of $654,000, or $(0.09) loss per share, for the same period in fiscal 2013.

6 Months Fiscal 2014 Financial Results

Revenue for the six months ended December 31, 2013 was $7.2 million, an 11% decrease, compared to $8.0 million for the same period in fiscal 2013, principally attributable to a decrease of approximately $248,000 in BoneScalpel revenue, a $24,000 decrease in SonicOne revenue and a $302,000 decrease in SonaStar revenue. As we have previously stated, part of the decrease in revenue is attributable to the Company’s focus on consigning units and also the fact that there were no unit sales to Aesculap for the six months ended December 31, 2013 as compared to 15 systems sold to Aesculap for the same period ending December 31, 2012.

BoneScalpel domestic disposables revenue for the six months ended December 31, 2013 increased nine percent to $1.1 million and BoneScalpel disposables sold in Latin America increased 302% to $201,000. SonicOne disposables revenue for the six months ended December 31, 2013 increased 266% to $477,000, driven by a 318% increase in United States disposables revenue to $465,000.

Bone Scalpel units consigned during the six months ended December 31 2013 increased to 24 systems compared to 5 systems for the same period in fiscal 2013. The Company reported a net loss of $425,000 or $(0.06) loss per share for the six months ended December 31, 2013 compared to a net loss of $609,000, or $(0.09) loss per diluted share, for the same period in fiscal 2013.

Michael A. McManus Jr., President and CEO stated, “We are pleased with the results of the second quarter of fiscal 2014. Total revenue increased 19% with the number of BoneScalpel units consigned increasing 63% to 57 units worldwide. BoneScalpel disposables sales in the United States are up 56% resulting in solid quarterly profitability for the Company. As prior quarter evaluations are turning into purchase orders we are gaining traction both domestically and internationally. This was a strong first step, which we hope to build on in the coming quarters.”

Mr. McManus concluded, “In addition to the improved operational and financial performance during the quarter, the financial underpinnings of the Company continue to be strong. With cash and equivalents that exceed $5 million and no long-term debt, we are able to fund operations from internally generated cash flow. We are pleased with the progress achieved during the second fiscal quarter of 2014.”

Conference Call:

The Company has scheduled a conference call today, Wednesday February 5, 2014 at 4:30 pm ET to review the results. Interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789 or can listen via a live Internet webcast, which is available in the Investor Relations section of the Company's website at www.misonix.com. 

A teleconference replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088, confirmation # 100040667. A webcast replay will be available in the Investor Relations section of the Company's website at www.misonix.com for 30 days. 

About Misonix

Misonix, Inc. designs, develops, manufactures and markets therapeutic ultrasonic medical devices. Misonix's therapeutic ultrasonic platform is the basis for several innovative medical technologies. Addressing a combined market estimated to be in excess of $3 billion annually; Misonix's proprietary ultrasonic medical devices are used for wound debridement, cosmetic surgery, neurosurgery, laparoscopic surgery, and other surgical and medical applications. Additional information is available on the Company's Web site at www.misonix.com.

Safe Harbor Statement

With the exception of historical information contained in this press release, content herein may contain "forward looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include general economic conditions, delays and risks associated with the performance of contracts, risks associated with international sales and currency fluctuations, uncertainties as a result of research and development, acceptable results from clinical studies, including publication of results and patient/procedure data with varying levels of statistical relevancy, risks involved in introducing and marketing new products, potential acquisitions, consumer and industry acceptance, litigation and/or court proceedings, including the timing and monetary requirements of such activities, the timing of finding strategic partners and implementing such relationships, regulatory risks including approval of pending and/or contemplated 510(k) filings, the ability to achieve and maintain profitability in the Company's business lines, and other factors discussed in the Company's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any obligation to update its forward-looking relationships.

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