UNILENS VISION INC (OTCMKTS:UVIC)’s diluted earnings jumped 16.7% to $0.14 per share, compared with $0.12 a year ago. The total revenue surged 11.5% to $2.24 million compared to $2.0 million in the comparable quarter a year earlier. It was the highest percentage increase in quarterly revenue in the past five quarters. The company benefited from improved gross margins that expanded to 37.3% of product sales in 2Q2015, compared with 35.7% in 2Q2014.
The financial performance
UNILENS VISION sales of C-Vue custom soft lens and disposable lens surged 17.8% and 7.8% respectively. The higher sales for the two products significantly contributed to the total product sales of $1.56 million in the quarter. The company’s operating expenses surged 17.7%, due to higher marketing and sales expenses related to the transition to an external sales-based firm. UNILENS VISION INC (OTCMKTS:UVIC) managed to post lower interest income due to a decline in outstanding balances on the debt. The company incurred the debt in October when it repurchased common stock from its largest shareholder.
UNILENS announced its 34th consecutive cash payout of $0.045 per share, which is payable on February 27, 2015. The annualized cash dividend stands at $0.18 per share, providing a dividend yield of 2.6%, as per the company’s share price of $7.00 on February 11, 2015.
The management view
Michael Pecora, the CEO of Unilens Vision, said that UNILENS VISION INC (OTCMKTS:UVIC) reported strong growth in its product sales, including sales of C-Vue custom soft lens and disposable lens. It was a strong quarter in terms of royalty income and earnings. There was strong demand for the company’s C-Vue advanced custom lenses. The C-Vue® ADDvantage™ Multifocal, which company introduced in June 2014, contributed to the robust growth of product sales. The other outperforming segment was royalty income from Bausch & Lomb Holdings Incorporated, which gained 17.0% in the 2Q2015.