COMPANY PROVIDES UPDATE ON CORPORATE STRATEGY
RANCHO CORDOVA, Calif., Sept. 12 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. (Nasdaq: KOOL), a leading supplier of enabling technologies for stem cell therapy, today reported results for the fourth quarter and all of fiscal 2007.
Revenues for the quarter ended June 30, 2007 were $3,520,000 compared with revenues of $3,557,000 for the fourth quarter of fiscal 2006. Revenues related to the Company's stem cell therapy activities were $2,443,000 versus $2,708,000 in the same period a year ago. Revenues from the sale of BioArchive and AutoXpress Platform(TM) (AXP) disposables for the fourth quarter of fiscal 2007 were $1,246,000 versus $680,000 in the same period a year ago. The Company sold three BioArchive(R) Systems in the quarter versus seven in the fourth quarter a year ago.
The Company reported a net loss of $2,613,000, or $0.05 per share, in the fourth quarter of fiscal 2007, compared with a net loss of $1,482,000, or $0.03 per share, in the same period a year ago.
For all of fiscal 2007, revenues were $16,751,000, within the range provided by the Company in its press release on July 30, 2007. Revenues for fiscal 2007 increased 39 percent over revenues of $12,048,000 in fiscal 2006. The Company reported a net loss of $6,776,000, or $0.12 per share, compared with a net loss of $6,142,000, or $0.12 per share, in fiscal 2006. Weighted shares outstanding at June 30, 2007 increased to 55.2 million shares compared with 49.6 million at June 30, 2006, primarily the result of an equity offering of 8.8 million shares completed in March 2006.
"ThermoGenesis had a solid year, recording a 39 percent increase in revenues, achieving key clinical milestones and implementing important partnership programs," noted William Osgood, who was named Chief Executive Officer on July 30, 2007.
"As we indicated in our announcement on July 30, 2007, fourth quarter revenues were impacted by quality issues related to AXP disposables and lower than expected sales of our BioArchive System through our distributor GE Healthcare (GEHC). However, we maintain a very solid backlog of AXP disposables and BioArchive orders totaling $4.8 million as of today and believe we are acutely focused on addressing AXP manufacturing issues with our current provider, and bringing on-line our second source manufacturer Nipro Corporation. I am also delighted that the backlog for AXP disposables has increased significantly during the current quarter. In addition, we are working closely with GEHC to get our BioArchive sales effort back on track and we are cautiously optimistic that this quarter's BioArchive sales will exceed those of the prior quarter," he added.
Osgood said that since assuming the CEO position, he has been conducting a strategic review of the Company and implementing initiatives that will generate revenue growth and move the Company to profitability.
"ThermoGenesis possesses a number of important assets, including excellent technology, a solid market presence in the cord blood arena, strong clinical relationships and meaningful financial resources to support our initiatives. Because of factors such as increased government funding, growing appreciation for the benefits of cord blood stem cells and favorable clinical outcomes, it has become clear to me that the best approach to maximize the value of these attributes is the development of innovative products and services that address the use of adult stems cells for the treatment of disease and injury," he said.
"As a result," he continued, "going forward we will focus on growing our share of the cord blood market, positioning the Company to have a leadership role in the rapidly-growing stem cell market, and exploring new market opportunities in cell therapy and regenerative medicine to generate incremental revenues."
Osgood said the key elements of this strategy include:
-- Resolving the GEHC issues that have impacted BioArchive sales.
-- Ramping AXP disposable production and generating increased activity
among both existing and new customers.
-- Developing the modular BioArchive.
-- Creating awareness of our stem cell brand and associated products
outside the cord blood markets
-- Ensuring use of our AXP products in adult stem cell, animal studies
and human clinical trials.
-- Identifying new ways of generating value for our surgical wound
-- Successful disposition of our legacy ThermoLine offering.
-- Continuing to evolve our management team and adding new members to the
board of directors in the near future.
Guidance for Fiscal 2008
The Company expects sequential revenue improvement throughout fiscal 2008 with accelerated growth in the later half of the fiscal year. Management intends to provide more specific revenue guidance in its first quarter fiscal 2008 earnings report.
The Company will hold a conference call today, September 12, 2007, at 7:30 a.m., Pacific Daylight Time (10:30 a.m., Eastern Daylight Time) to review financial results and key operating developments. Please dial in 10 minutes prior to the beginning of the call. The call can be accessed by dialing 1-800-860-2442 within the U.S. or 412-858-4600 outside the U.S. and referencing conference, "ThermoGenesis". The call will also be available via the Internet at http://www.thermogenesis.com/investor_relations/index.asp. A replay of the conference call will be available approximately two hours after its completion for the following five business days. It can be accessed by dialing 877-344-7529 within the U.S. or 412-317-0088 outside the U.S. and entering the following account number when prompted '385107'.
About ThermoGenesis Corp.
ThermoGenesis Corp. (http://www.thermogenesis.com) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the manufacture, preservation and delivery of cell and tissue therapy products. These products include:
-- The BioArchive(R) System, an automated cryogenic device, is used by
cord blood stem cell banks in more than 25 countries for
cryopreserving and archiving cord blood stem cell units for transplant.
GE Healthcare is the non-exclusive global distribution partner for the
-- AXP(TM) AutoXpress Platform (AXP(TM)) is a proprietary, semi-automated
device and companion sterile blood processing disposable for
harvesting stem cells from cord blood in a functionally closed system.
GE Healthcare is the exclusive global distribution partner for the AXP
-- The CryoSeal(R) FS System, an automated device and companion sterile
blood processing disposable, is used to prepare fibrin sealants from
plasma in about an hour. We received FDA clearance to market the
CryoSeal FS System in liver resection surgeries in July 2007. The
CryoSeal FS System has received the CE-Mark. From a marketing
perspective, the CE Mark is the European equivalent to an FDA approval,
in that it allows sales of the product throughout the European
community. Asahi Medical is the exclusive distributor for the
CryoSeal System in Japan and the Company markets through independent
distributors in Europe and South America.
-- The Thrombin Processing Device(TM) (TPD(TM)) is a sterile blood
processing disposable that prepares activated thrombin from a small
aliquot of plasma in less than 30 minutes. The CE-Marked TPD is
currently being marketed in Europe by Biomet, Inc., subsidiary Biomet
Biologics, Medtronic, Inc. and independent distributors.
This press release, including statements regarding financial information for future periods, contain forward-looking statements, and such statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual outcomes to differ materially from those contemplated by the forward-looking statements. Several factors, including timing of FDA approvals, changes in customer forecasts, our failure to meet customers' 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 fiscal year 2008, and introduction of competitive products and other factors beyond our control, could result in a materially different revenue outcome and/or in our failure to achieve the revenue levels we expect for fiscal 2008. A more complete description of these and other risks that could cause actual events to differ from the outcomes predicted by our forward looking statements is set forth under the caption "Risk Factors" in our annual report on Form 10-K and other reports we file with the Securities and Exchange Commission from time to time, and you should consider each of those factors when evaluating the forward looking statements.
Web site: http://www.thermoGenesis.com
Contact: Matthew Plavan, CFO
Condensed Balance Sheets
June 30, June 30,
Cash and cash equivalents $5,730,000 $3,527,000
Short-term investments 27,649,000 35,472,000
Accounts receivable, net 3,226,000 3,773,000
Inventories, net 5,046,000 2,792,000
Other current assets 415,000 462,000
Total current assets 42,066,000 46,026,000
Equipment, net 1,602,000 1,489,000
Other assets 122,000 88,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $2,074,000 $1,931,000
Other current liabilities 2,233,000 1,753,000
Total current liabilities 4,307,000 3,684,000
Long-term liabilities 1,671,000 1,947,000
Stockholders' equity 37,812,000 41,972,000
Condensed Statements of Operations
Three Months Ended Years Ended
June 30, June 30,
2007 2006 2007 2006
Net revenues $3,520,000 $3,557,000 $16,751,000 $12,048,000
Cost of revenues 2,596,000 2,239,000 11,554,000 7,705,000
Gross profit 924,000 1,318,000 5,197,000 4,343,000
Selling, general and
administrative 2,817,000 2,055,000 9,630,000 7,156,000
development 1,139,000 1,202,000 4,108,000 4,157,000
expenses 3,956,000 3,257,000 13,738,000 11,313,000
Interest and other
income, net 419,000 457,000 1,765,000 828,000
Net loss ($2,613,000) ($1,482,000) ($6,776,000) ($6,142,000)
Basic and diluted net
loss per common share ($0.05) ($0.03) ($0.12) ($0.12)
Shares used in
computing per share
data 55,369,291 54,867,737 55,169,977 49,583,823
|SOURCE ThermoGenesis Corp.|
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