PETALUMA -- Oculus Innovative Sciences Inc. (Nasdaq: OCLS) on Thursday reported net income of $3.7 million for its fiscal year, compared with a $5.4 million net loss a year before, driven largely by benefits from a subsidiary's spinoff.

It was the pharmaceutical company’s first earnings announcement following the spinoff of Santa Rosa-based Ruthigen in an April initial public offering of stock. Oculus maintains a 43 percent stake in Ruthigen, currently valued at around $10.2 million. The spinoff of Ruthigen resulted in an $11.1 million recorded gain for Oculus.

"Now that the IPO is behind us, our entire team is focused on the expansion of our own commercial efforts to increase our revenue growth in multiple therapeutic areas including dermatology, acute care, oral and animal healthcare," said Jim Schutz, Oculus CEO, in an announcement.

Earnings were equivalent to 54 cents per share for the fiscal year, ended March 31, compared with a loss of $1.30 last year.

Total revenue was down 11.6 percent, at $13.7 million. Decreases in United States, Mexico and China, were partially offset by revenue growth in Europe, Middle East, India and Singapore, according to the company.

Sales of the flagship Microcyn-based product resulted in a gross profit –accounting for costs to produce and market -- of $8.2 million for the year, down 22.6 percent. Total operating expenses were up $497,000 year-over year, largely due to $2.7 million in Ruthigen-related expenses.

Oculus designs and manufactures products for wound care, dermatology, animal care and women’s health.

Shares in Oculus were trading at $3.29 when the markets closed on Thursday, and were down 7.9 percent in after-hours trading.