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ThermoGenesis Reports First Quarter 2009 Results
Date:11/6/2008

rsus $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. <
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SOURCE ThermoGenesis Corp.
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