PETALUMA -- Occulus Innovative Sciences, Inc., (Nasdaq: OCLS) reported revenue in its third quarter increased nearly 27 percent and was up 29 percent for the fiscal year, while the maker of health care treatments and devices significantly cut its quarterly and nine-month losses and prepares to spin off a drug in development into a new company.

"We have a primary focus on product, growth and profitability," said Jim Schutz, newly appointed chief executive officer, in a statement Wednesday along with the after-market-close release of financial results. "We believe three key elements will further our growth efforts. First, we will add new products -- organically from our own R&D and through acquisition -- for our current commercial partners. Second, we'll add new partners. And finally, we'll expand territories with aggressive targets. This is an exciting time to be at Oculus."

In Oculus' third quarter, ended Dec. 31, revenues increased 26.7 percent to $3.54 million from a year before. Third-quarter net loss was trimmed by a quarter to $1.91 million, or 5 cents a share, from a year before.

Quarterly loss from operations dropped 71 percent over the year to $680,000.

Nine-month revenues increased 29.0 percent to $12.1 million from a year before. The company said revenue increases in the United States, Mexico and Singapore partially offset a decline in Europe, Middle East, India and China.

Nine-month net loss fell by almost half to $2.99 million, or 12 cents a share, from a year before. Loss from operations over the past three quarters improved by 60 percent to $1.99 million from the previous fiscal year.

In late January, Oculus announced it is plans to create a subsidiary -- Ruthigen, Inc. -- to develop and market RUT58-60, an internal drug designed to speed healing from surgery and trauma by 25 percent as well as prevent and treat infection. The treatment is said to be effective on difficult-to-treat infections from bacteria such as methicillin-resistant Staphylococcus aureus, or MSRA, and Clostridium difficile, or C. diff.

Offices and labs for the new company are being set up in Santa Rosa this year with of starting clinical trials by year-end.

The price of Oculus stock closed at 67 cents a share Wednesday after a loss of 1 cent a share for the day. The price was back to 68 cents at 11 a.m. Thursday.