Unilens Vision Reports Custom Soft Lens Sales Rose 31.2 Percent in FY2012

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LARGO, Fla.— Unilens Vision Inc. (OTCQB: UVIC) (TSX VENTURE: UVI), which develops, licenses, manufactures, distributes and markets specialty contact lenses, reported its operating results for the fourth quarter and FY2012.

For the fiscal year ended June 30, 2012, total revenue, including royalty income, declined less than 1 percent to $8,721,145, compared with $8,779,356 in the fiscal year ended June 30, 2011. Sales of the company's specialty contact lenses increased 1.7 percent to $6,181,449 in FY2012, versus $6,077,032 in FY2011. The sales increase was entirely attributable to an improvement of 31.2 percent in sales of custom soft lenses, primarily due to increased demand for the company's new C-VUE Advanced HydraVUE line of customizable silicone hydrogel contact lenses for monthly replacement, according to an announcement from the company.

Royalty income from Bausch + Lomb declined 6.0 percent to $2,539,696 in the most recent fiscal year, compared with $2,702,324 in the previous fiscal year.

"While a continuation of sluggish U.S. economic conditions and increased competition caused sales in our disposable lens category to decline by 5.0 percent, a strong 31.2 percent sales improvement in our custom soft lens category of specialty lenses allowed total product sales to increase slightly during Fiscal 2012," stated Michael Pecora, chief executive officer of Unilens Vision Inc. "We have been particularly pleased with the continued growth in demand for our C-VUE Advanced HydraVUE line of completely customizable silicone hydrogel contact lenses for monthly replacement, and we look forward to the anticipated launch of a new silicone hydrogel disposable multifocal lens that embodies our C-VUE Advanced technology during the next 12 months.

“During the past fiscal year, we have invested in new state-of-the-art production equipment that should increase operating efficiencies and gross profit margins in the current fiscal year and beyond,” Pecora added.

Fourth quarter revenue, including royalty income, declined 5.7 percent to $2,177,631, compared with $2,309,431 in the fourth quarter of FY2011. Sales of the company's specialty contact lenses decreased 3.5 percent to $1,558,567 in the most recent quarter, versus $1,614,809 in the corresponding period of the previous fiscal year. The sales decline was attributable to decreases in all lens categories except the company’s custom lens category, which posted an improvement of 17.9 percent in sales relative to the comparable FY2011 period.

Royalty income from Bausch + Lomb declined 10.9 percent to $619,064 in the three months ended June 30, 2012, compared with $694,622 in the three months ended June 30, 2011. The company reported a 53.4 percent decrease in fourth quarter net income, which totaled $238,803 in the three months ended June 30, 2012, versus $512,896 in the corresponding period of the previous fiscal year.

"The declines in net income during the fourth quarter and fiscal year ended June 30, 2012 were primarily attributable to a one-time price correction totaling $261,000 that benefited gross margin in the fourth quarter of Fiscal 2011 and did not repeat during any of the Fiscal 2012 quarters," continued Pecora.

Looking ahead, Pecora said, “While we expect Fiscal 2013 to be another year of solid profitability and further improvement in our balance sheet, production operating efficiency benefits may be offset somewhat if the economic recovery does not accelerate and we continue to experience softness in demand for our legacy disposable lenses, prior to the introduction of our new silicone hydrogel disposable multifocal lens that embodies our C-VUE Advanced technology."