ThermoGenesis Reports First Quarter 2009 Results
Revenues for the quarter ended September 30, 2008, were $4.5 million, a24 percent increase over revenues of $3.6 million in the first quarter a yearago. Disposable revenues were $2.1 million versus $1.9 million in the firstquarter of fiscal 2008.
The Company reported a net loss of $2.7 million, or $0.05 per share,compared with a net loss of $2.3 million, or $0.04 per share, in the sameperiod a year ago. The results for both periods include stock-basedcompensation expense of $123,000 and $628,000, respectively.
The company's results for the quarter reflect an accrual of $520,000included in cost of revenues resulting from a voluntary recall of certain lotsof AXP disposable bag sets as they may contain particulates that may bereleased into the sterile, non-pyrogenic fluid path. This recall was not aresult of any reports of patient safety issues. The Company's recall plan isbeing filed this week and is subject to approval by the FDA. The Companybelieves that it has adequately accrued for the costs related to this plan,but the estimate may change depending on the discussions with the FDA. Aspart of the recall plan, the Company will provide customers a blood filter tobe used, as necessary, with any bag already processed.
The Company ended the first quarter of fiscal 2009 with $22.3 million incash and short-term investments, compared to $25.3 million at the end offiscal 2008. Total backlog at the end of the first quarter of fiscal 2009 was$1.8 million, versus $5.5 million in the same period a year ago.
"Our revenues reflect increased sales of and improved pricing for ourBioArchive(R) System and AXP(TM) AutoXpress Platform (AXP(TM)) devices anddisposable bag sets. In addition, we were able to reduce our operatingexpense by almost $1 million versus the fourth quarter of last year as weimplemented programs designed to achieve profitability during the currentfiscal year," said Dr. William Osgood, Chief Executive Officer.
Osgood said that sales of AXP bag sets during the first quarter of fiscal2009 were impacted by short-term delays in shipments of AXP devices due to aflawed supplier component, and because the Company filled nearly its entireAXP bag set backlog during the prior quarter.
"We continue to be excited about the distribution agreement with CellingTechnologies, a subsidiary of Spine-Smith, LLC, for our MarrowXpress(TM)(MXP(TM)) that we announced last quarter. Celling will be using the MXP forbone marrow stem cell processing in orthopedic surgeries. We expect to seeinitial revenues during the current quarter from this agreement," Osgoodnoted.
With respect to fiscal 2009, the Company said it now expects overallrevenue growth to be 10-20 percent versus fiscal 2008. This compares to priorguidance for revenue growth of 30-35 percent, reflecting a refined strategyfor the Company's Vantus subsidiary that will now focus initially on theCompany's Res-Q(TM), a point-of-care solution for bone marrow processing andconcentrating platelets from peripheral blood. The Company continues toexpect gross margin improvement during the year with fourth quarter 2009 grossmargin expected to exceed 40 percent. The company said that it expects to beprofitable in the fourth quarter, based on its ability to add new AXPcustomers, initiate a successful market launch of MXP and Res-Q, and continueaggressive management of expenses in proportion with expected decreases inforecasted revenue.
Company's Conference Call and Webcast
Management will host a conference call today at 2:00 PM Pacific(5:00 PM Eastern) to review the fiscal first quarter financial results.
To listen to the audio webcast of the call during or after the event,please visit http://www.thermogenesis.com/investors-webcasts-and-calls.aspx.
An audio replay of the conference call will be available beginningapproximately two hours after completion of the call for the following fivebusiness days.
About ThermoGenesis Corp.
ThermoGenesis Corp. (http://www.thermogenesis.com) is a leader indeveloping and manufacturing automated blood processing systems and disposableproducts that enable the manufacture, preservation and delivery of cell andtissue therapy products. These products include:
-- The BioArchive(R) System, an automated cryogenic device, is used bycord blood stem cell banks in more than 25 countries for cryopreserving andarchiving cord blood stem cell units for transplant.
-- AXP(TM) AutoXpress Platform (AXP(TM)) is a proprietary family ofautomated devices that includes the AXP and the MarrowXpress(TM) and companionsterile blood processing disposable for harvesting stem cells in a closedsystem. The AXP device is used for the processing of cord blood. GEHealthcare is the exclusive global distribution partner for the AXP cord bloodproduct except for Central and South America, China and Russia/CIS, whereThermoGenesis markets through independent distributors. The MarrowXpress isused for isolating stem cells from bone marrow.
-- The CryoSeal(R) FS System, an automated device and companion sterileblood processing disposable, is used to prepare fibrin sealants from plasma inabout an hour. The CryoSeal FS System is approved in the U.S. for liverresection surgeries. The CryoSeal FS System has received the CE-Mark whichallows sales of the product throughout the European community. Asahi Medicalis the exclusive distributor for the CryoSeal System in Japan and the Companymarkets through independent distributors in Europe and South America.
-- The Thrombin Processing Device(TM) (TPD(TM)) is a sterile bloodprocessing disposable that prepares activated thrombin from a small aliquot ofplasma in less than 30 minutes. The CE-Marked TPD is currently being marketedin Europe by Biomet, Inc., subsidiary Biomet Biologics, Medtronic, Inc. andindependent distributors.
This press release contains forward-looking statements, and suchstatements are made pursuant to the safe harbor provisions of the PrivateSecurities Litigation Reform Act of 1995. These statements involve risks anduncertainties that could cause actual outcomes to differ materially from thosecontemplated by the forward-looking statements. Several factors, includingtiming of FDA approvals, changes in customer forecasts, our failure to meetcustomers' purchase order and quality requirements, supply shortages,production delays, changes in the markets for customers' products,introduction timing and acceptance of our new products scheduled for fiscalyear 2009, and introduction of competitive products and other factors beyondour control, could result in a materially different revenue outcome and/or inour failure to achieve the revenue levels we expect for fiscal 2009. A morecomplete description of these and other risks that could cause actual eventsto differ from the outcomes predicted by our forward-looking statements is setforth under the caption "Risk Factors" in our annual report on Form 10-K andother reports we file with the Securities and Exchange Commission from time totime, and you should consider each of those factors when evaluating theforward-looking statements.Conference call details: Dial-in (U.S.): 1-800-860-2422 Dial-in (International): 1-412-858-4600 Conference name: "ThermoGenesis"
SOURCE ThermoGenesis Corp.
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