and its price change pointed 3.77% up.But what’s behind the stock high trade? Though it is currently moving up, there is no recent news on VSCI.
According to the records, the last announcement by the company was made at the beginning of this June and it was regarding the financials of Vision-Sciences. At that time, the company reported $10.8 million in revenue for the fiscal 2010. However, the result appeared to be 16% lower as compared to the year before.[BANNER]
This year VSCI has suffered higher operating loss, its gross profit and total cash flow have also declined. The company has registered more assets than liabilities, though its financial condition doesn’t look good enough.
Last November VSCI entered into a three-year $5 million revolving loan agreement with its Chairman, Lewis C. Pell. In its 10-K report, Vision-Sciences stated that: “At March 31, 2010, we had $2.5 million in outstanding borrowings under the Loan, which is reflected as line of credit – related party on our consolidated balance sheet.” According to this agreement, all the borrowings must be repaid by November 2012, however there is no plan for finding additional capital yet.
Vision-Sciences manufactures and markets products for endoscopy to provide minimally invasive access to areas not readily visible to the human eye. Following the chart, we notice that VSCI has traded at a higher level during the last year. In September the stock price moved up to $1.60 per share, but after that it fell down.
Based on all the facts, we still cannot be certain if a new uptrend for VSCI is to be registered, or something unexpected is going to happen soon.
