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PLC Systems Reports Second Quarter 2011 Results
Date:8/12/2011

ch in order to increase use of RenalGuard and expand the number of healthcare institutions at which it is available."

He added, "At the same time, we have also completed most of the steps required to recommence the U.S. pivotal trial for RenalGuard in order to gain approval from the FDA to market and sell RenalGuard in the U.S. We look forward to announcing our first sites and first enrolled patients in this important trial in the coming months."

Financial UpdateAs of June 30, 2011, PLC reported $4,059,000 in cash and equivalents, an increase of $2,735,000 from the Company's cash position as of December 31, 2010.  The increased cash position reflects the net proceeds from the sale of the TMR business and the secured convertible debt financing.  

During the second quarter of 2011, PLC shipped 455 single-use RenalGuard disposable sets and 14 RenalGuard consoles internationally, compared to 180 RenalGuard single-use disposable sets and five consoles that shipped in the second quarter of 2010. As a result, RenalGuard revenues increased $102,000, or 58%, in the second quarter of 2011 as compared to the same period in 2010. OEM revenues increased $48,000, or 67%, in the second quarter of 2010, reflecting primarily the recognition of revenue related to transactions that were previously deferred.  The OEM assets were sold in May 2010 and all transactions previously deferred have been recognized in full.  

Sales, General and Administrative costs decreased to $667,000 in the second quarter of 2011, from $839,000 in the second quarter of 2010. This decrease reflects the impact of decreased compensation expenses in the current year period resulting from 2010 workforce reductions and the departure of the company's former Chief Financial Officer. Research & Development expenses increased to $373,000 in the second quarter of 2011, from $113,000 in the second quarter of 2010. This increase reflects the higher costs associated
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