PETALUMA -- Oculus Innovative Systems Inc. (Nasdaq: OCLS), a commercial developer of topical disinfectants and treatments, today reported second-quarter revenue increased 47 percent to $2.5 million, and net loss improved to $1.1 million in the same period.

Product revenue in Oculus' second quarter, which ended Sept. 30, increased 63 percent to $2.3 million from $1.4 million in the same period last year. Sales increased in the U.S., Mexico, India and the Middle East but decreased in Europe and China.

Most of that increase -- $758,000 -- came from animal health care via a partnership with Innovacyn and from wound care for humans, according to the company. Oculus plans on royalties of 30 percent-plus for sales through Innovacyn to start in July 2011.

"Our main focus is on revenue growth with an emphasis on achieving profitability," said Hoji Alimi, founder and chief executive officer of Oculus. "In line with this strategy, we continue to develop new and promising partnerships, expand into new product categories, and await the FDA review and potential clearance for an additional five new Microcyn-based products in oral care, allergy relief and dermatology."

Net operating expenses increased to $2.8 million in the second quarter from $2.6 million a year before.

The company reiterated its projections of reaching $45 million to $60 million in annual revenue with 20 percent operating profits by the end of 2013. However, Oculus needs to achieve $3.5 million to $4.0 million in quarterly revenue break even.

The company's stock price was $1.63 a share at the end of trading today, an increase of 3 cents per share or almost 2 percent.