RANCHO CORDOVA, Calif., Nov. 6 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. (Nasdaq: KOOL), a leading supplier of innovative products and services that process and store adult stem cells, today reported results for the first quarter of fiscal 2009.
Revenues for the quarter ended September 30, 2008, were $4.5 million, a 24 percent increase over revenues of $3.6 million in the first quarter a year ago. Disposable revenues were $2.1 million versus $1.9 million in the first quarter 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 same period a year ago. The results for both periods include stock-based compensation expense of $123,000 and $628,000, respectively.
The company's results for the quarter reflect an accrual of $520,000 included in cost of revenues resulting from a voluntary recall of certain lots of AXP disposable bag sets as they may contain particulates that may be released into the sterile, non-pyrogenic fluid path. This recall was not a result of any reports of patient safety issues. The Company's recall plan is being filed this week and is subject to approval by the FDA. The Company believes that it has adequately accrued for the costs related to this plan, but the estimate may change depending on the discussions with the FDA. As part of the recall plan, the Company will provide customers a blood filter to be used, as necessary, with any bag already processed.
The Company ended the first quarter of fiscal 2009 with $22.3 million in cash and short-term investments, compared to $25.3 million at the end of fiscal 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 our BioArchive(R) System and AXP(TM) AutoXpress Platform (AXP(TM)) devices and disposable bag sets. In addition, we were able to reduce our operating expense by almost $1 million versus the fourth quarter of last year as we implemented programs designed to achieve profitability during the current fiscal year," said Dr. William Osgood, Chief Executive Officer.
Osgood said that sales of AXP bag sets during the first quarter of fiscal 2009 were impacted by short-term delays in shipments of AXP devices due to a flawed supplier component, and because the Company filled nearly its entire AXP bag set backlog during the prior quarter.
"We continue to be excited about the distribution agreement with Celling Technologies, a subsidiary of Spine-Smith, LLC, for our MarrowXpress(TM) (MXP(TM)) that we announced last quarter. Celling will be using the MXP for bone marrow stem cell processing in orthopedic surgeries. We expect to see initial revenues during the current quarter from this agreement," Osgood noted.
With respect to fiscal 2009, the Company said it now expects overall revenue growth to be 10-20 percent versus fiscal 2008. This compares to prior guidance for revenue growth of 30-35 percent, reflecting a refined strategy for the Company's Vantus subsidiary that will now focus initially on the Company's Res-Q(TM), a point-of-care solution for bone marrow processing and concentrating platelets from peripheral blood. The Company continues to expect gross margin improvement during the year with fourth quarter 2009 gross margin expected to exceed 40 percent. The company said that it expects to be profitable in the fourth quarter, based on its ability to add new AXP customers, initiate a successful market launch of MXP and Res-Q, and continue aggressive management of expenses in proportion with expected decreases in forecasted 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.
Conference call details:
Dial-in (U.S.): 1-800-860-2422
Dial-in (International): 1-412-858-4600
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): 1-412-317-0088
Conference ID#: 385107
Condensed Consolidated Balance Sheets (Unaudited)
September 30, June 30,
Cash and cash equivalents $6,358,000 $4,384,000
Short term investments 15,961,000 20,903,000
Accounts receivable, net 4,176,000 5,976,000
Inventory 5,987,000 5,131,000
Other current assets 366,000 367,000
Total current assets 32,848,000 36,761,000
Equipment, net 1,435,000 1,450,000
Other assets 65,000 71,000
Accounts payable $2,631,000 $4,186,000
Other current liabilities 2,936,000 2,589,000
Total current liabilities 5,567,000 6,775,000
Long-term liabilities 812,000 982,000
Stockholders' equity 27,969,000 30,525,000
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
Product and other revenues $4,502,000 $3,632,000
Cost of product and other revenues 3,222,000 2,423,000
Gross profit 1,280,000 1,209,000
Selling, general and administrative 2,447,000 2,420,000
Research and development 1,600,000 1,496,000
Total operating expenses 4,047,000 3,916,000
Interest and other income, net 88,000 407,000
Net loss ($2,679,000) ($2,300,000)
Per share data:
Basic and diluted net loss per common
share ($0.05) ($0.04)
Shares used in computing per share data 56,027,960 55,659,508
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended,
Cash flows from operating activities:
Net loss ($2,679,000) ($2,300,000)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 120,000 136,000
Stock based compensation expense 123,000 628,000
Accretion of discount on short-term
investments (76,000) (295,000)
Net change in operating assets and
Accounts receivable, net 1,800,000 259,000
Inventories (856,000) (716,000)
Other current assets 1,000 34,000
Other assets 6,000 13,000
Accounts payable (1,555,000) (74,000)
Accrued payroll and related
expenses (149,000) (162,000)
Deferred revenue (240,000) (162,000)
Other current liabilities 569,000 227,000
Net cash used in operating activities (2,936,000) (2,412,000)
Cash flows from investing activities:
Capital expenditures (105,000) (173,000)
Purchase of investments (3,982,000) (9,766,000)
Maturities of investments 9,000,000 13,000,000
Net cash provided by investing
activities 4,913,000 3,061,000
Cash flows from financing activities:
Payments on capital lease obligations (3,000) (5,000)
Exercise of stock options and warrants -- 266,000
Net cash (used in) provided by
financing activities (3,000) 261,000
Net increase in cash and cash equivalents 1,974,000 910,000
Cash and cash equivalents at beginning of period 4,384,000 5,730,000
Cash and cash equivalents at end of period $6,358,000 $6,640,000
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.
-- 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 forward-looking
Web site: http://www.thermogenesis.com
Contact: Investor Relations
|SOURCE ThermoGenesis Corp.|
Copyright©2008 PR Newswire.
All rights reserved