Net Loss Reduced by 56 Percent Year-Over-Year
Positive Clinical Study Results Published
RANCHO CORDOVA, Calif., Feb. 12, 2013 (GLOBE NEWSWIRE) -- ThermoGenesis Corp. (Nasdaq:KOOL), a leading supplier of enabling technologies for the processing and storage of cell therapies, today reported results for the second quarter and first six months of fiscal 2013.
For the quarter ended December 31, 2012, revenues of $4.8 million were comparable to revenues in the second quarter a year ago and up substantially from revenues of $4.1 million in the prior quarter. Revenues for the second quarter of 2013 versus the same period a year ago reflect increased sales of the Company's BioArchive® System devices, offset by declines in BioArchive disposable revenues, as well as CryoSeal product sales—which the Company divested in the first quarter of fiscal 2013.
ThermoGenesis reported a net loss of $563,000, or $0.03 per share, in the second quarter of 2013, compared with a net loss of $1.3 million, or $0.08 per share, in the same period a year ago.
The Company ended the quarter with $7.5 million in cash compared with $8.8 million at the end of the first quarter of 2013 and $7.9 million at the end of fiscal 2012. The Company's backlog at the end of the second quarter was approximately $714,000.
"The second quarter demonstrated the value of our initiatives to improve gross margins and reduce operating expenses as we reduced our net loss by more than 50 percent versus the second quarter a year ago. On a sequential basis, revenues increased nearly $700,000 versus the first quarter of 2013, as we sold three more of our BioArchive System devices versus the prior quarter and recorded revenues from the initial shipment of our AutoXpress® Platform (AXP) bagsets to Golden Meditech Holdings Limited in China as part of our new product purchase and distribution agreement," said Matthew Plavan, Chief Executive Officer.
"We were also pleased to sign the agreement to divest the ThermoLine product line at the end of the second quarter. We anticipate closing this transaction in the third quarter, which will mark the completion of the disposition of our non-core product lines, ThermoLine and CryoSeal. Together with the $500,000 we received at the end of the second quarter for the ThermoLine product line, these divestitures have generated a total of $3.5 million in cash with $2.5 million of that received in the last six months. In addition, our restructuring and streamlining initiatives have reduced our operating and overhead expenses by more than $2 million annually, serving our goal of creating a stronger organization more focused on our core cord blood and stem cell regenerative medicine businesses," he added.
Plavan noted publication during the second quarter of encouraging data from the Company's critical limb ischemia (CLI) clinical evaluation of the MXP in Naples. This is a Phase 1 study that used the MXP platform to produce cell concentrate for use in treating peripheral artery disease patients with CLI. "These were patients who were either not a candidate for surgical revascularization or had not benefited from previous revascularization procedures. At 12 months, blood flow for the patient cohort was double that prior to the infusion of the MXP-produced cell concentrate, and 10 of the 13 patients experienced improved blood flow," he noted.
For the first six months of fiscal 2013, ThermoGenesis reported net income of $432,000, or $0.03 per diluted share, compared to a net loss of $2.5 million, or $0.15 per share, in the first six months of 2012. The results for the first six months of 2013 include a gain on sale of $2 million related to the CryoSeal transaction.
Conference Call and Webcast
Management will hold a conference call today at 2 p.m., Pacific (5 p.m., Eastern) to review the second quarter fiscal 2013 results.
|Conference call details:|
To listen to the audio webcast of the call during or after the event, please visit
An audio replay of the conference call will be available beginning approximately two hours after completion of the call for the following five business days.
|To access the replay:|
|Access number (U.S.):||1-877-344-7529|
|Access number (Internationally)||1-412-317-0088|
About ThermoGenesis Corp.
ThermoGenesis Corp. (www.thermogenesis.com) is a leader in developing and manufacturing automated blood processing systems and disposable products that enable the separation, preservation and delivery of cell and tissue therapy products. These include:
- The BioArchive® System, an automated cryogenic device, used by cord blood stem cell banks in more than 30 countries for cryopreserving and archiving cord blood stem cell units for transplant.
- AXP® AutoXpress® Platform (AXP), a proprietary family of automated devices that includes the AXP and the MXP® MarrowXpress® and companion sterile blood processing disposables for harvesting stem cells in closed systems. The AXP device is used for the processing of cord blood. The MXP is used for the preparation of cell concentrates, including stem cells from bone marrow aspirates in the laboratory setting.
- The Res-Q® 60 BMC/PRP (Res-Q), a point-of-care system designed for the preparation of cell concentrates, including stem cells, from bone marrow aspirates and whole blood for platelet rich plasma (PRP).
The ThermoGenesis Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=14120
This press release contains forward-looking statements. 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 and foreign regulatory 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 2013, 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 2013. 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.
|Condensed Balance Sheet|
|Cash and cash equivalents||$7,516,000||$7,879,000|
|Accounts receivable, net||5,355,000||4,558,000|
|Prepaid expenses and other current assets||420,000||338,000|
|Total current assets||18,643,000||19,065,000|
|Other current liabilities||2,587,000||2,259,000|
|Total current liabilities||3,987,000||5,031,000|
|Condensed Consolidated Statements of Operations|
|Three Months Ended,||Six Months Ended,|
|December 31,||December 31,|
|Cost of revenues||2,826,000||3,071,000||5,322,000||5,931,000|
|Selling, general and administrative||1,820,000||1,991,000||3,616,000||4,307,000|
|Research and development||714,000||1,037,000||1,552,000||1,960,000|
|Gain on sale of product line||--||--||(2,000,000)||--|
|Total operating expenses||2,534,000||3,028,000||3,168,000||6,267,000|
|Interest and other income, net||(5,000)||46,000||(2,000)||78,000|
|Net income (loss)||($563,000)||($1,278,000)||$432,000||($2,486,000)|
|Condensed Statements of Cash Flows (Unaudited)|
|Six Months Ended,|
|Cash flows from operating activities:|
|Net income (loss)||$432,000||($2,486,000)|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||266,000||202,000|
|Stock based compensation expense||272,000||621,000|
|Loss on disposal of equipment||7,000||--|
|Gain on sale of product line||(2,000,000)||--|
|Net change in operating assets and liabilities:|
|Accounts receivable, net||(797,000)||(1,018,000)|
|Prepaid expenses and other current assets||(82,000)||130,000|
|Accrued payroll and related expenses||(168,000)||40,000|
|Net cash used in operating activities||(2,495,000)||(3,099,000)|
|Cash flows from investing activities:|
|Proceeds from sale of product line||2,000,000||--|
|Proceeds from prepayment from sale of product line||500,000||--|
|Net cash provided by (used in) investing activities||2,186,000||(481,000)|
|Cash flows from financing activities:|
|Repurchase of common stock||(54,000)||--|
|Net cash used in financing activities||(54,000)||--|
|Net decrease in cash and cash equivalents||(363,000)||(3,580,000)|
|Cash and cash equivalents at beginning of period||7,879,000||12,309,000|
|Cash and cash equivalents at end of period||$7,516,000||$8,729,000|