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Misonix shares soar on strong ultrasonic device sales

The Misonix Sonastar FS1000RF

The Misonix Sonastar FS1000RF Credit: Misonix

Shares of Misonix Inc. climbed 23.7 percent to close at $9.15 Thursday after the company reported a surge in sales of its ultrasonic devices used in spine and skull surgery and wound care.

After the market close Wednesday, the Farmingdale company posted a 48 percent increase in fourth-quarter revenue to $5.6 million compared to the 2013 period. Sales of its BoneScalpel device, used to cut bones, climbed 65 percent to $2.5 million, and its SonaStar product, used to remove soft and hard tissue, leaped 75 percent to $2.4 million.

Net income for the quarter rebounded to $1.4 million, or 18 cents per diluted share, from a loss of $1.5 million, or 22 cents per share, in the year-ago quarter.

"BoneScalpel and SonaStar unit sales grew at strong double-digit rates for the fourth quarter as well as for the entire year," CEO Michael McManus Jr. said in a statement. "Recurring revenue -- which is comprised of disposables revenue from our three major product lines -- all experienced substantial double-digit growth as well."

In a conference call, McManus said U.S. sales, which account for about 50 percent of the total, were growing faster than international sales, but Russia appeared to be a promising market despite recent political tensions.

McManus also said the company needed to expand sales to bring marketing expenses into proportion.

"We have to grow our revenue base to be able to have things like sales and marketing at a percentage of that number that's reasonable," he said.

Still, in fiscal 2015, McManus said, Misonix plans to add to its force of sales professionals and trainers who instruct doctors on how to use the company's products.

The company launched in July a BoneScalpel iPad app to educate doctors on the benefits of the ultrasonic device.

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