LAKE FOREST, CA--(Marketwire - January 14, 2009) - TRIMEDYNE, INC. (OTCBB: TMED), today reported its audited financial results for the quarter and fiscal year ended September 30, 2008.
Trimedyne had a loss of $1,590,000 or $0.09 per share on revenues of $5,871,000 for its fiscal year ended September 30, 2008, compared to a loss of $324,000 or $0.02 per share on revenues of $5,470,000 for the prior year.
The loss in the current year was due primarily to an increase in R & D expenses of $91,000 in the development of its new Side Firing Laser Fiber, a decrease in royalty revenues of $113,000, an adjustment to reserve obsolete and slow moving inventory of $127,000, a decrease in Other Income of $129,000, an increase in SG&A expenses of $327,000 and lower margins on sales due to increasing cost of raw materials.
Trimedyne reported a loss of $336,000 or $0.02 per share on revenues of $1,781,000 for the quarter ended September 30, 2008, compared to a loss of $162,000 or $0.01 per share on revenues of $1,380,000 for the prior year quarter. The loss was primarily the result of a write-off of slow moving inventory of $127,000, a decrease in royalty revenues of $73,000, a decrease in Other Income of $27,000, an increase in SG&A expenses of $145,000 and lower margins on sales due to increasing cost of raw materials.
Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are sorry we had a loss in the current quarter. However, in the immediately preceding quarter ended June 30, 2008, we had revenues of only $1,385,000 compared to revenues of $1,781,000 for the current quarter, an increase of 28.6%, and our loss in the immediately preceding quarter was $585,000, compared to a loss of $336,000 for the current quarter, of which $127,000 was a write-off of slow moving inventory."
About 50% of men over age 55 and higher percentages of men at advanced ages suffer from an enlarged prostate, technically benign prostatic hyperplasia or "BPH." About 1.2 million men worldwide undergo a surgical procedure each year to treat BPH. Our new Side Firing Laser Fiber has been cleared for sale by the FDA for use with our Holmium Lasers and other Holmium Lasers with a compatible connector, such as Lumenis' Holmium Laser, for the treatment of BPH.
The new Fiber will be marketed under the DuraMAX trademark in the U.S. and Japan by Boston Scientific Corporation and throughout the rest of the world by Lumenis, LTD, when Boston Scientific completes its quality review and physician evaluation of the new Fiber. Lumenis is based in Israel and is the world's largest medical laser manufacturer, with revenues of about $300 million and a direct sales force in Europe, Japan, China and many other countries.
Dr. Loeb continued, "We have been devoting a very significant portion of our management and R & D efforts over the past two years to the development of the new Side Firing Fiber for Boston Scientific and Lumenis. Making the new Fiber sufficiently durable for use with Lumenis' Holmium Lasers has proved to be a more challenging task than we originally projected, and the introduction of the new Fiber by Boston Scientific and Lumenis has been delayed much longer than we originally anticipated."
"We have completed the development of the new Fiber and its testing in our laboratory was successful. In the next 2 or 3 weeks, we plan to have an independent testing laboratory begin testing the new Fiber to assure it performs as it did in our lab. If so, we look forward to Boston Scientific beginning its review of our production process and quality procedures and physician evaluation of the new Fiber, which is expected to take four months or longer. Barring any unforeseen delays, we expect to commence shipments of the new Fiber to Boston Scientific and Lumenis early in the third calendar quarter of 2009."
We will begin marketing the new Fiber under our DuraMAX® trademark to owners of our Holmium Lasers in April 2009. While our marketing capabilities are small, compared to those of Boston Scientific and Lumenis, we expect the new Fiber will begin contributing to revenues in the quarter ended June 30, 2009.
Trimedyne manufactures proprietary Holmium lasers and patented, disposable and reusable fiber optic laser energy delivery devices. For product, financial and other information, visit our website, http://www.trimedyne.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act:
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including words like "expect," "anticipate," "may," "could" and others. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's current 10-KSB Report and other SEC reports. There is no assurance such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
TRIMEDYNE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AUDITED)
ASSETS
For The Years Ended
September 30,
----------------------------
2008 2007
------------ ------------
Current assets:
Cash and cash equivalents $ 2,007,000 $ 3,179,000
Trade accounts receivable, net of allowance
for doubtful accounts of $12,000 and
$12,000, respectively 954,000 574,000
Inventories 2,584,000 2,991,000
Note due from related party -- 9,000
Other current assets 171,000 245,000
------------ ------------
Total current assets 5,716,000 6,998,000
Property and equipment, net 1,382,000 920,000
Other 83,000 41,000
Goodwill 544,000 544,000
------------ ------------
$ 7,725,000 $ 8,503,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 256,000 $ 212,000
Accrued expenses 469,000 427,000
Deferred revenue 75,000 45,000
Accrued warranty 54,000 27,000
Notes payable and current portion
of long term debt 237,000 2,000
------------ ------------
Total current liabilities 1,091,000 713,000
Long term debt, net of current portion 400,000 --
Deferred rent 73,000 91,000
------------ ------------
Total liabilities 1,564,000 804,000
------------ ------------
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.01 par value,
1,000,000 shares authorized, none
issued and outstanding --
Common stock - $0.01 par value;
30,000,000 shares authorized,
18,467,569 shares issued, 18,365,960
shares outstanding at September 30,
2008 and 2007 186,000 186,000
Additional paid-in capital 51,425,000 51,373,000
Accumulated deficit (44,737,000) (43,147,000)
------------ ------------
6,874,000 8,412,000
Treasury stock, at cost (101,609 shares) (713,000) (713,000)
------------ ------------
Total stockholders' equity 6,161,000 7,699,000
------------ ------------
$ 7,725,000 $ 8,503,000
============ ============
TRIMEDYNE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(AUDITED)
For The Three Months Ended For The Year Ended
September September September September
30, 30, 30, 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Net revenues $ 1,781,000 $ 1,380,000 $ 5,871,000 $ 5,470,000
Cost of revenues 1,266,000 837,000 4,163,000 3,161,000
----------- ----------- ----------- -----------
Gross profit 515,000 543,000 1,708,000 2,309,000
Operating expenses:
Selling, general
and administrative 593,000 448,000 2,373,000 2,046,000
Research and
development 317,000 416,000 1,311,000 1,220,000
----------- ----------- ----------- -----------
Total operating
expenses 910,000 864,000 3,684,000 3,266,000
----------- ----------- ----------- -----------
Income (loss)
from operations (395,000) (321,000) (1,976,000) (957,000)
Other income, net 59,000 159,000 399,000 641,000
----------- ----------- ----------- -----------
Net income before
income taxes $ (336,000) $ (162,000) $(1,577,000) $ (316,000)
Provision for
income taxes -- -- 13,000 8,000
Net income after
provision for
income taxes $ (336,000) $ (162,000) $(1,590,000) $ (324,000)
=========== =========== =========== ===========
Basic net income
per share $ (0.02) $ (0.01) $ (0.09) $ (0.02)
=========== =========== =========== ===========
Basic weighted average
common shares
outstanding: 18,365,960 17,593,306 18,365,960 17,594,668
=========== =========== =========== ===========
