Scientific Industries Reports First Quarter Fiscal Year 2023 Financial Results
November 16, 2022 at 08:29 am EST
Share
Scientific Industries, Inc. (OTCQB: SCND), a life sciences tool provider and a developer of digitally simplified bioprocessing products, yesterday reported financial results for the first quarter of fiscal year 2023, ended September 30, 2022.
Fiscal 2023 First Quarter Product Highlights
Bioprocessing Systems Operations' DOTS software launched for management of sensors, actuators and bioprocess data enabling real-time analysis - Significant portion of our customers have scheduled to upgrade their software. Benchtop Laboratory Equipment Operations' VIVID Plus software launched a subscription cloud-based solution for pharmacies - Nearly all of our customers have upgraded to the new software, positioning the Company for stream of recurring revenue.
Fiscal 2023 First Quarter Financial Overview
Total net revenues were $2.7 million, a decrease of $0.2 million, or 7%, vs. prior year period. Bioprocessing Systems Operations' net revenues were $0.3 million for each period. o Bioprocessing product sales increased $0.1 million, or 50% vs. prior year. Benchtop Laboratory Equipment Operations net sales were $2.4 million, a decrease of $0.1 million, or 4%, vs. prior year period. o Torbal product sales increased $0.2 million, or 33%, vs. prior year period, including a 75% increase in VIVID product sales. Cash and cash equivalents and investments were $7.7 million, as of September 30, 2022, compared to $9.4 million, as of June 30, 2022. Working capital was $12.9 million, as of September 30, 2022, compared to $14.0 million as of June 30, 2022.
Management Discussion
Helena Santos, Chief Executive Officer of Scientific Industries, stated, 'The financial results for the first quarter came in as expected with our core benchtop products sales normalizing with COVID-19 subsiding, but still providing positive cash flow, and the seasonality of the European summer months impacting our first quarter. Our investments in research and development are beginning to gain traction, as reflected in the product sales growth of bioprocessing products, and substantial sales growth of VIVID products in the first quarter. Operationally, we have made significant progress with our synergistic integration efforts, resulting in decreased operating losses from Bioprocessing Systems Operations while nearly doubling the number of employees dedicated to those operations. We also launched our DOTS platform and software in accordance with our internal timeline. We remain focused on delivering on our growth initiatives as we build cloud-based subscription models across our business segments that will generate recurring revenue for years to come.'
John Moore, Chairman of Scientific Industries and Scientific Bioprocessing, Inc. ('SBI'), said, 'Our Bioprocessing team made solid progress in the first quarter as we continue to build momentum with our new DOTS platform to deliver Digitally Simplified Bioprocessing. More than one-third of our eligible customers have scheduled an upgrade to the new software. We have transformed the Bioprocessing Systems Operations from a royalty revenue model and have positioned it to become a leading-edge product and subscription-based service offering model that is expected to deliver real-time solutions and generate recurring revenue.'
Scientific Industries, Inc. designs, manufactures, and markets standard benchtop laboratory equipment and bioprocessing systems and products (Bioprocessing Systems). The Company operates through two segments: the manufacture and marketing of standard Benchtop Laboratory Equipment, which includes various types of equipment used for research and sample preparation in university, pharmacy and industrial laboratories sold primarily through laboratory equipment distributors and online, and weight and measurement products, including pill counters and digital scales, and the design, development, manufacture and marketing of bioprocessing products, principally products incorporating smart sensors and software analytics, sold primarily on a direct basis through the Companyâs internal sales force. Its Benchtop Laboratory Equipment products consist of mixers and shakers, rotators/rockers, refrigerated and shaking incubators, and magnetic stirrers sold through the Genie division.
SCIENTIFIC INDUSTRIES, INC. 
