RANCHO CORDOVA, Calif., May 10, 2012 /PRNewswire/ -- ThermoGenesis Corp. (NASDAQ: KOOL), a leading supplier of enabling technologies for the processing, storage and administration of cell therapies, today reported results for the third quarter of fiscal 2012.
For the quarter ended March 31, 2012, the Company reported sales of $4.9 million. This compares to revenues of $5.2 million in the third quarter a year ago and $4.8 million in the prior quarter. Disposable sales in the third quarter of fiscal 2012 were $2.9 million, compared to $3.0 million a year ago and $3.5 million in the prior quarter. ThermoGenesis reported a net loss of $1.8 million, or $0.11 per share, in the third quarter of fiscal 2012, compared to a net loss of $845,000, or $0.06 per share, in the same period a year ago. The Company's divestiture and reorganization efforts added approximately $700,000 in additional costs during the quarter. However, the Company expects the organizational focus and cost streamlining from these efforts to yield tangible benefits in the future quarters.
The Company ended the quarter with $8.5 million in cash compared to $8.7 million at the end of the second quarter and $12.3 million at the end of fiscal 2011. The Company's backlog at the end of the third quarter was $1.3 million.
The Company indicated the results for the third quarter included revenues of $765,000 for the final order of CryoSeal devices related to the wind down of the product line. These sales were offset by a $360,000 decline in the sales of its BioArchive® System, due to continued constrained capital budgets, and a $330,000 decrease in sales of ThermoLine devices as the Company discontinues that product line.
"During the quarter, we had two important developments relative to our initiative in China, beginning with registration approval for our BioArchive System by China's State Food and Drug Administration (SFDA), enabling our direct commercial sale into the People's Republic of China. In addition, Beike Biotechnology Co., Ltd., which has committed to adoption of our BioArchive and AXP® AutoXpress® Platform (AXP), became the first company in China to receive accreditation from the AABB, formerly the American Association of Blood Banks," said Matthew Plavan, Chief Executive Officer.
"Although revenues were consistent with the prior quarter, the activities around the divestiture of our CryoSeal and ThermoLine product lines compressed our gross margins by approximately $600,000 or 12 basis points in the third quarter. Despite these headwinds, the positive impact of our January reorganization and other cash containment efforts enabled us to reduce our use of cash in the quarter to approximately $200,000," he added.
Plavan noted that in concert with the Company's strategy to focus on its core businesses in the regenerative medicine sector, it plans to finalize the purchase by Asahi Kasei Medical Co., Ltd. of the CryoSeal product line this quarter. "Not only will this transaction represent the final phase in our program to divest this non-core asset, it will also result in a cash payment of approximately $2 million to the Company," Plavan said.
"By closing out the CryoSeal and ThermoLine businesses, the Company can now turn its focus entirely to its core business in regenerative medicine and achieving essential near-term milestones. These include the launch of the Arthrex Res-Q product worldwide, China market entry and AXP approval, new strategic alliances and continued organizational optimization and operating efficiency," Plavan noted.
For the first nine months of fiscal 2012, ThermoGenesis reported revenues of $14.5 million compared to revenues of $18.0 million in the first nine months of fiscal 2011. The Company reported a net loss of $4.2 million, or $0.26 per share, compared to a net loss of $1.4 million, or $0.10 per share, in the same period a year ago.
Company's Conference Call and Webcast
Management will hold a conference call today at 2 p.m., Pacific (5 p.m., Eastern) to review the fiscal 2012 third quarter results.
