RANCHO CORDOVA, Calif., Sept. 9 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. (Nasdaq: KOOL), a leading supplier of innovative products and services that process and store adult stem cells, today said that revenues in the fourth quarter of fiscal 2008 more than doubled over the same period a year ago. Separately, the Company also announced today that it has signed a distribution agreement with Celling Technologies for ThermoGenesis' MarrowXpress(TM) (MXP(TM)) product line used for isolating stem cells from bone marrow.
Revenues for the quarter ended June 30, 2008, were $7.2 million, a 104 percent increase over revenues of $3.5 million in the fourth quarter a year ago. Disposable revenues in the quarter were $4.2 million, nearly triple the $1.5 million in disposable revenue for the fourth quarter of fiscal 2007.
The Company reported a net loss of $2.5 million, or $0.04 per share, versus a net loss of $2.6 million, or $0.05 per share, in the fourth quarter of fiscal 2007. The results for both periods include stock-based compensation expense of $303,000 and $482,000, respectively.
The Company ended fiscal 2008 with $25.3 million in cash, cash equivalents and short-term investments. Total backlog at the end of the fourth quarter was $2.3 million. This compares with $2.2 million in the same period a year ago.
"ThermoGenesis ended fiscal 2008 in very strong fashion with revenue growth in the quarter driven primarily by demand for our AXP(TM) AutoXpress Platform (AXP(TM)) disposable bagsets and our continued ability to improve manufacturing yields," said Dr. William Osgood, the Company's Chief Executive Officer. "In addition, we benefited from an increase in sales of our BioArchive(R) System having sold a record nine units in the fourth fiscal quarter".
"Our growth in revenues for the quarter," he continued, "was offset at the bottom line by a $1.0 million dollar increase in Research and Development spending year-over-year related to our veterinary stem cell initiative and salary and stock compensation charges for the newly created position Chief Technology Architect. In addition, interest income declined $265,000 versus last year due to decreased cash balances and declining interest rates."
Osgood noted that the Company has achieved several important milestones recently, including receiving a CE-Mark enabling commercial sales of its MarrowXpress(TM), or MXP(TM), in Europe, and authorization from the FDA to initiate commercial sales of the device in the U.S. The MXP is used for concentrating stem cells from bone marrow at both the point-of-care and in a laboratory setting.
"In addition, we have appointed more than a dozen new distributors for our BioArchive System following the restructuring of our agreement with GE Healthcare, giving us distributor relationships in nearly all of our key international markets. Many of these distributors previously sold one or more of our offerings-including the BioArchive-and have established relationships in their markets," Osgood noted.
Osgood said the Company realized a number of key accomplishments in its
growth strategy during fiscal 2008, including:
-- Amending its distribution agreement with GE Healthcare and achieving
higher manufacturing output of its AXP bagsets.
-- Developing and receiving regulatory approval of the MXP and initiating
discussions with customers and clinical study investigators.
-- Launching Vantus(TM), Inc., a subsidiary that is a collaboration with
the Center for Equine Health at the University of California, Davis,
that will offer stem cell laboratory services and point-of-care bone
marrow and peripheral blood processing products focused initially on
the equine market.
-- Improving the performance of the Company's wound care business.
-- Initiating the development of a new point-of-care stem cell processing
platform to complement our MXP offering.
-- Initiating discussions with potential partners in regenerative medicine
and networking with key opinion leaders in the use of stem cells for
treating orthopedic, vascular, and cardiac diseases in addition to
plastic surgery applications.
-- Implementing a corporate rebranding and marketing awareness program.
-- Enhancing the management team and board of directors.
"Because of our accomplishments over the past year, ThermoGenesis is well positioned to achieve a ramp in growth and increase its presence in key areas of regenerative medicine. In addition to implementing programs that are designed to expand our cord blood business, we have a number of product and market development initiatives underway that we expect will begin to contribute initial revenues from new stem cell markets during the current fiscal year," Osgood commented.
For all of fiscal 2008, ThermoGenesis reported revenues of $21.9 million, a 31 percent increase over revenues of $16.8 million in fiscal 2007. The Company reported a net loss of $9.2 million, or $0.16 per share, compared with a net loss of $6.8 million, or $0.12 per share, in fiscal 2007. The results for both periods include stock-based compensation expense of $1.9 million and $1.1 million, respectively.
With respect to fiscal 2009, management indicated that it expects
overall revenue growth to be between 30-35 percent driven in large part by
increased AXP disposable bagset sales as well as new revenues from MXP, the
successful launch of Vantus services, and the launch of a new point-of-care
stem cell product platform. Management also expects continued gross margin
improvement during the year with fourth quarter gross margin anticipated to
exceed 40 percent and that operating expenses will be relatively comparable
with fiscal 2008. As a result, management expects to exit the fourth fiscal
quarter at break even.
Conference call details:
Dial-in (U.S.): 1-800-860-2442
Dial-in (International): 412-858-4600
Conference name: "ThermoGenesis"
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 beginning
approximately two hours after completion of the call for the following five
To access the replay:
Access number (U.S.): 1-877-344-7529
Access number (International): 412-317-0088
Conference ID#: 385107
Condensed Consolidated Balance Sheets
June 30, June 30,
Cash and cash equivalents $4,384,000 $5,730,000
Short term investments 20,903,000 27,649,000
Accounts receivable, net 5,976,000 3,226,000
Inventory 5,131,000 5,046,000
Other current assets 367,000 415,000
Total current assets 36,761,000 42,066,000
Equipment, net 1,450,000 1,602,000
Other assets 71,000 122,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $4,186,000 $2,074,000
Other current liabilities 2,589,000 2,233,000
Total current liabilities 6,775,000 4,307,000
Long-term liabilities 982,000 1,671,000
Stockholders' equity 30,525,000 37,812,000
Condensed Consolidated Statements of Operations
Three Months Ended Years Ended
June 30, June 30,
2008 2007 2008 2007
Net revenues $7,182,000 $3,520,000 $21,946,000 $16,751,000
Cost of revenues 4,832,000 2,596,000 14,976,000 11,554,000
Gross profit 2,350,000 924,000 6,970,000 5,197,000
administrative 2,838,000 2,817,000 10,165,000 9,630,000
development 2,157,000 1,139,000 7,172,000 4,108,000
expenses 4,995,000 3,956,000 17,337,000 13,738,000
Interest and other
income, net 161,000 419,000 1,186,000 1,765,000
Net loss ($2,484,000) ($2,613,000) ($9,181,000) ($6,776,000)
Basic and diluted
net loss per
common share ($0.04) ($0.05) ($0.16) ($0.12)
Shares used in
per share data 55,956,452 55,369,291 55,754,578 55,169,977
Condensed Consolidated Statements of Cash Flows
Cash flows from operating activities:
Net loss ($9,181,000) ($6,776,000)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 543,000 549,000
Stock based compensation expense 1,921,000 1,094,000
Accretion of discount on short-term
investments (918,000) (1,257,000)
Loss on sale/retirement of equipment 238,000 31,000
Net change in operating assets
Accounts receivable (2,750,000) 547,000
Inventories (200,000) (2,309,000)
Other current assets 48,000 47,000
Other assets 51,000 (34,000)
Accounts payable 2,112,000 143,000
Accrued payroll and related expenses 39,000 108,000
Deferred revenue (633,000) (231,000)
Other current liabilities 279,000 326,000
Net cash used in operating activities (8,451,000) (7,762,000)
Cash flows from investing activities:
Purchase of short-term investments (44,336,000) (51,420,000)
Maturities of investments 52,000,000 60,500,000
Capital expenditures (514,000) (621,000)
Net cash provided by investing
activities 7,150,000 8,459,000
Cash flows from financing activities:
Exercise of stock options 266,000 439,000
Exercise of warrants -- 1,083,000
Repurchase of common stock (293,000) --
Payments on capital lease obligations
and note payable (18,000) (16,000)
Net cash (used in) provided by
financing activities (45,000) 1,506,000
Net increase (decrease) in cash and cash
equivalents (1,346,000) 2,203,000
Cash and cash equivalents at beginning
of year 5,730,000 3,527,000
Cash and cash equivalents at end of year $4,384,000 $5,730,000
Supplemental non-cash financing and
Equipment acquired by not
payable/capital lease -- $17,000
Transfer of inventories to equipment $157,000 $124,000
Transfer of equipment to inventories $42,000 $69,000
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.
-- AXP(TM) AutoXpress Platform (AXP(TM)) is a proprietary family of
automated devices that includes the AXP and the MarrowXpress(TM) and
companion sterile blood processing disposable for harvesting stem cells
in a closed system. The AXP device is used for the processing of cord
blood. GE Healthcare is the exclusive global distribution partner for
the AXP cord blood product except for Central and South America, China
and Russia/CIS, where ThermoGenesis markets through independent
distributors. The MarrowXpress is used for isolating stem cells from
bone marrow. ThermoGenesis sells the MarrowXpress directly to global
-- 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. The CryoSeal FS System is approved in the
U.S. for liver resection surgeries. The CryoSeal FS System has
received the CE-Mark which 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 contains forward-looking statements, and such statements
are made pursuant to the safe harbor 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 2009, 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 2009. 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
Web site: http://www.thermogenesis.com
Contact: Investor Relations
|SOURCE ThermoGenesis Corp.|
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